Multiple Choice Questions

Which of the following media enables firms to quickly change their advertising message?
  • Profitable businesses usually pay taxes.
  • An advantage of newspapers is that they normally come out daily and allow firms to place revised ads quickly.
  • Interest is a tax-deductible expense.
  • the funds are automatically transferred from the customer's account to the store's account.
Accountant Alan Wingspan has just finished working on the balance sheet, income statement, and statement of cash flows for his company. The next step in the accounting cycle involves:
  • An advantage of newspapers is that they normally come out daily and allow firms to place revised ads quickly.
  • Liquidity ratios measure the company's ability to pay its short-term debts.
  • A line of credit means that a bank will lend your business a given amount of unsecured short-term funds, provided that the bank has the funds readily available.
  • Analyzing the firm's financial statements to evaluate the financial condition of the firm.
A Bond's face value is the same as its:
  • principal
  • premium.
  • qualifying
  • podcast.
Today's public relations departments:
  • it is not an easy process, and often cumbersome to carry goods to the place of trade.
  • the funds are automatically transferred from the customer's account to the store's account.
  • A good public relations program begins with listening to the public. Public relations starts with good marketing research when the firm evaluates public attitudes.
  • Lenders usually require borrowers to pay interest on loans. Firms must also pay interest to their bondholders. Interest payments are deductible expenses on the firm's income statement.
Which of the following accurately describes an advantage of selling bonds to raise long-term capital?
  • An advantage of newspapers is that they normally come out daily and allow firms to place revised ads quickly.
  • Interest is a tax-deductible expense.
  • Government Accounting Standards Board
  • Profitable businesses usually pay taxes.
Which of the following statements best summarizes the difference between M-1 and M-2?
  • Lenders usually require borrowers to pay interest on loans. Firms must also pay interest to their bondholders. Interest payments are deductible expenses on the firm's income statement.
  • The M-2 definition includes everything in the M-1 definition, plus additional components such as money in savings accounts, money market accounts, and certificates of deposit.
  • The terms 3/15, net 30 indicates that a 3% discount is offered to customers paying by the 15th day after the billing. No discount is offered to customers paying between the 16th and the 30th day after the billing.
  • An advantage of newspapers is that they normally come out daily and allow firms to place revised ads quickly.
The explosion of the BP oil rig and subsequent oil spill in the Gulf of Mexico was one of the worst disasters affecting the U.S. in this century. There was a tremendous loss of sea life. Commercial fishermen and other businesses suffered from the loss of trade. After the massive disaster and tragedy, Tony Hayward, then CEO of BP, offended many people when he was quoted in several newspapers as saying, "I would like my life back." Sadly, BP did not solicit this promotion. Marketers refer to this type of message as ____________, an unpaid form of promotion.
  • publicity
  • smart cards
  • A line of credit means that a bank will lend your business a given amount of unsecured short-term funds, provided that the bank has the funds readily available.
  • qualifying
The accounting profession follows generally accepted accounting principles as defined by __________________.
  • the funds are automatically transferred from the customer's account to the store's account.
  • the FASB (Financial Accounting Standards Board)
  • Most recent merchandise purchased by the firm.
  • Internet banks have lower overhead costs.
Mark impresses his friends by stating that he just cast four votes in the election of the board of directors of Microsoft, indicating that Mark owns __________ stock in Microsoft.
  • Common stock represents ownership privileges that include the right to vote to elect the board of directors.
  • All journal entries are posted to the ledger on a regular basis. This is the third step in the accounting cycle.
  • The master budget (also known as the operating budget) summarizes and ties together all the company's other budgets.
  • 12
Revenue, minus cost of goods sold = ____________.
  • Trade credit
  • reserve requirement
  • principal
  • gross profit
Corporations that want to attract more investors by lowering the selling price of their common stock might consider declaring a:
  • Lenders usually require borrowers to pay interest on loans. Firms must also pay interest to their bondholders. Interest payments are deductible expenses on the firm's income statement.
  • Factoring is the sale of accounts receivables at a discount for cash. Since factoring involves a sale of an asset, the funds received are not a loan. Small businesses often find it difficult to obtain loans from bankers. These same firms often can obtain the needed funds from factors if their customers are judged to be creditworthy.
  • A stock split will increase the number of shares outstanding. The price of the stock decreases proportionately to the size of the stock split. There is no immediate change in value for the stockholder.
  • The approach is the step in selling where the salesperson calls on the customer for the first time. The objective of this step is to give an impression of professionalism, create a rapport, build credibility, and start a relationship.
Companies can implement global marketing by developing a product and promotional strategy that:
  • $1000 denominations
  • savings and loan association
  • can be implemented worldwide.
  • significant decrease in value.
Many small businesses rely on factoring as a source of short-term financing because:
  • Sales receipts, purchase orders, and payroll records are original transaction documents. Bookkeepers record the data from these documents into journals.
  • Word of mouth can be positive or negative. Negative word of mouth can be quite destructive to a firm. Upset customers are getting on the Internet publishing their complaints and encouraging others to share their negative experiences.
  • Permitting customers to pay with credit cards or on credit makes it easier for them to buy, and it also attracts new customers.
  • Factoring is the sale of accounts receivables at a discount for cash. Since factoring involves a sale of an asset, the funds received are not a loan. Small businesses often find it difficult to obtain loans from bankers. These same firms often can obtain the needed funds from factors if their customers are judged to be creditworthy.
Which of the following accurately presents a major difference between Internet banks and traditional banks?
  • Savings account deposits are included in the M-2 definition of the money supply, but not the M-1 definition.
  • Profitable businesses usually pay taxes.
  • smart cards
  • Internet banks have lower overhead costs.
In the seven step B2B selling process, the selection of potential customers is known as:
  • secured loan.
  • qualifying
  • blog
  • premium.
Government bonds can vary in denomination, but most corporate bonds are issued in ___________.
  • premium.
  • can be implemented worldwide.
  • $1000 denominations
  • underwrite
Kelley's Kloset, LLC has applied for a business loan. Her prospective banker has requested information concerning the financial condition of her business. Which accounting discipline is responsible for providing accounting information to outside stakeholders?
  • The SEC (Securities & Exchange Commission) is the federal agency that oversees the financial markets and all firms who offer securities for trade.
  • The M-2 definition includes everything in the M-1 definition, plus additional components such as money in savings accounts, money market accounts, and certificates of deposit.
  • The intended audience of financial accounting information and reports is people outside of the organization. This would include creditors, banks, owners, unions, and government units.
  • All journal entries are posted to the ledger on a regular basis. This is the third step in the accounting cycle.
Investment bankers ________ new issues of bonds or stocks by purchasing, at a discount, the entire stock or bond issue of a firm and selling the issue to interested investors at a higher price.
  • qualifying
  • underwrite
  • podcast.
  • Trade credit
Advertising to wholesalers and retailers by manufacturers to encourage them to carry their products is called:
  • underwrite
  • income statement
  • trade advertising.
  • reserve requirement
Since commercial finance companies offer loans to higher risk customers than commercial banks, the interest rates they charge are usually ________ than rates charged by banks.
  • Barter
  • higher
  • underwrite
  • smart cards
The finance manager at AllSports Communication has asked his assistant, Ben, to prepare the ________ budget. Ben will gather as much information as possible by utilizing the firm's other budgets and any documents that summarize proposed financial activities.
  • Savings account deposits are included in the M-2 definition of the money supply, but not the M-1 definition.
  • The discount rate is the interest rate the Fed charges for loans to member banks.
  • The master budget (also known as the operating budget) summarizes and ties together all the company's other budgets.
  • the performance of the U.S. economy relative to other economies.
A balance sheet lists assets in order of their ______________.
  • Undercapitalization is the problem of having insufficient start-up funds.
  • Interest is a tax-deductible expense.
  • Liquidity ratios measure the company's ability to pay its short-term debts.
  • Liquidity, with the most liquid assets listed first
The distribution method for audio and video programs via the Internet that lets users subscribe to a number of files or feeds is called a:
  • premium.
  • publicity
  • Trade credit
  • podcast.
The Federal Reserve System consists of ________ Federal Reserve banks.
  • limit
  • The discount rate is the interest rate the Fed charges for loans to member banks.
  • 12
  • stimulate the economy by increasing the amount of money in circulation.
The overall objective of financial planning is to:
  • stimulate the economy by increasing the amount of money in circulation.
  • Interest is a tax-deductible expense.
  • optimize the firm's profitability.
  • Most recent merchandise purchased by the firm.
The Fed bought several billion dollars worth of U.S. government securities. The purpose of this action is to:
  • Analyzing the firm's financial statements to evaluate the financial condition of the firm.
  • optimize the firm's profitability.
  • stimulate the economy by increasing the amount of money in circulation.
  • the FASB (Financial Accounting Standards Board)
Marshall McBride inherited $10,000 from his Great Aunt Martha. He invested $5,000 in a new, risky start-up venture, 10th Generation, Inc., and the other $5,000 in Major Chemicals, Inc, a well-known chemical company that's been around for years. Today, his financial planner called to inform him that the Return on Equity on 10th Generation = 6.28%; and, Return on Equity on Major Chemicals = 10.50%. Which of the following facts is important information for Marshall McBride?
  • The approach is the step in selling where the salesperson calls on the customer for the first time. The objective of this step is to give an impression of professionalism, create a rapport, build credibility, and start a relationship.
  • Liquidity ratios measure the company's ability to pay its short-term debts.
  • The M-2 definition includes everything in the M-1 definition, plus additional components such as money in savings accounts, money market accounts, and certificates of deposit.
  • Risk is an important concern for investors. Investors are willing to accept higher risk, if they are rewarded with higher returns. In this particular situation, the riskier investment is producing lower returns. This should signal concern for the investor.
A loan backed by collateral represents a(n):
  • income statement
  • $1000 denominations
  • smart cards
  • secured loan.
"You never get a second chance to make a good first impression," captures the importance of the __________ step in the selling process.
  • The approach is the step in selling where the salesperson calls on the customer for the first time. The objective of this step is to give an impression of professionalism, create a rapport, build credibility, and start a relationship.
  • The intended audience of financial accounting information and reports is people outside of the organization. This would include creditors, banks, owners, unions, and government units.
  • The M-2 definition includes everything in the M-1 definition, plus additional components such as money in savings accounts, money market accounts, and certificates of deposit.
  • A stock split will increase the number of shares outstanding. The price of the stock decreases proportionately to the size of the stock split. There is no immediate change in value for the stockholder.
The Fed requires that banks hold a percentage of their deposits in a vault. This percentage is the _________.
  • $1000 denominations
  • reserve requirement
  • Closed-end funds
  • trade advertising.
When a customer purchases an item with a debit card:
  • The second step in a good public relations program is to change policies and procedures that are not in the public interest.
  • Undercapitalization is the problem of having insufficient start-up funds.
  • the FASB (Financial Accounting Standards Board)
  • the funds are automatically transferred from the customer's account to the store's account.
At a recent sporting event, a local beer distributor gave free beverage mugs to all adults with a paid admission. This is an example of:
  • Word of mouth can be positive or negative. Negative word of mouth can be quite destructive to a firm. Upset customers are getting on the Internet publishing their complaints and encouraging others to share their negative experiences.
  • limit
  • An independent auditor is responsible for providing an unbiased opinion about the accuracy of a company's financial statements and reporting procedures.
  • Sales promotion is a promotional tool that stimulates consumer purchasing and dealer interest by the use of specially designed incentives to promote a business or a product.
Reviewing the stock market performance between 2000 and 2002 reveals a:
  • Government Accounting Standards Board
  • Liquidity, with the most liquid assets listed first
  • significant decrease in value.
  • Interest is a tax-deductible expense.
Your firm is a supplier to a major chain of discount stores. You have heard rumors that this chain of discount stores is in financial difficulty. Which financial ratios would indicate the discount store's ability or inability to pay its short-term debts?
  • All journal entries are posted to the ledger on a regular basis. This is the third step in the accounting cycle.
  • Liquidity ratios measure the company's ability to pay its short-term debts.
  • Liquidity, with the most liquid assets listed first
  • Analyzing the firm's financial statements to evaluate the financial condition of the firm.
An online diary that looks like a Web page but is easier to create and update is called a(n):
  • blog
  • can be implemented worldwide.
  • Barter
  • income statement
Sales receipts, purchase orders, and payroll records are all examples of accounting transactions that would be recorded by a(n):
  • Word of mouth can be positive or negative. Negative word of mouth can be quite destructive to a firm. Upset customers are getting on the Internet publishing their complaints and encouraging others to share their negative experiences.
  • Lenders usually require borrowers to pay interest on loans. Firms must also pay interest to their bondholders. Interest payments are deductible expenses on the firm's income statement.
  • Sales receipts, purchase orders, and payroll records are original transaction documents. Bookkeepers record the data from these documents into journals.
  • The terms 3/15, net 30 indicates that a 3% discount is offered to customers paying by the 15th day after the billing. No discount is offered to customers paying between the 16th and the 30th day after the billing.
A good public relations program recognizes that the:
  • it is not an easy process, and often cumbersome to carry goods to the place of trade.
  • The M-2 definition includes everything in the M-1 definition, plus additional components such as money in savings accounts, money market accounts, and certificates of deposit.
  • The SEC (Securities & Exchange Commission) is the federal agency that oversees the financial markets and all firms who offer securities for trade.
  • The second step in a good public relations program is to change policies and procedures that are not in the public interest.
The risk associated with Firm A's bond is greater than the risk of Firm B's bond. All other things being equal, investors would be willing to pay ________ for Firm B's bond.
  • Trade credit
  • underwrite
  • smart cards
  • more
Which of the following is included in the M-2 definition of the money supply but not the M-1 definition?
  • Interest is a tax-deductible expense.
  • Savings account deposits are included in the M-2 definition of the money supply, but not the M-1 definition.
  • An advantage of newspapers is that they normally come out daily and allow firms to place revised ads quickly.
  • The M-2 definition includes everything in the M-1 definition, plus additional components such as money in savings accounts, money market accounts, and certificates of deposit.
While reviewing the books at his firm, Chad Cooper noticed discrepancies between how the firm recorded revenues last year and how it elected to record revenues during the recent quarter of the current year. As a recent business graduate, Chad felt confident that the changes needed clarification. To get another opinion, Chad suggested to the company's controller that the firm solicit ______________.
  • Businesses often provide cash or quantity discounts to buyers who pay their accounts by a certain date. By continually turning accounts receivable into cash, the firm is increasing cash flow.
  • An independent auditor is responsible for providing an unbiased opinion about the accuracy of a company's financial statements and reporting procedures.
  • Sales promotion is a promotional tool that stimulates consumer purchasing and dealer interest by the use of specially designed incentives to promote a business or a product.
  • limit
________ is a form of short-term financing. Businesses buy merchandise from their suppliers, but are not required to pay for their purchases until some future date.
  • smart cards
  • podcast.
  • Closed-end funds
  • Trade credit
The Fed plans to raise the discount rate to 6%. This indicates that:
  • the funds are automatically transferred from the customer's account to the store's account.
  • Permitting customers to pay with credit cards or on credit makes it easier for them to buy, and it also attracts new customers.
  • The discount rate is the interest rate the Fed charges for loans to member banks.
  • The second step in a good public relations program is to change policies and procedures that are not in the public interest.
_____________ have a set dollar goal the fund manager wants to manage. Once the fund has reached that goal, it does not accept new investors.
  • Closed-end funds
  • podcast.
  • income statement
  • smart cards
The new potato-bar restaurant chain, Hottie Potatee wants to raise an undisclosed amount of funds in order to expand the company-owned potato bar stores, internationally. This move will require the CFO (Chief Financial Officer) to:
  • The M-2 definition includes everything in the M-1 definition, plus additional components such as money in savings accounts, money market accounts, and certificates of deposit.
  • The SEC (Securities & Exchange Commission) is the federal agency that oversees the financial markets and all firms who offer securities for trade.
  • A line of credit means that a bank will lend your business a given amount of unsecured short-term funds, provided that the bank has the funds readily available.
  • The discount rate is the interest rate the Fed charges for loans to member banks.
After buying 100 shares of common stock in the It's All Good Corporation for $20 per share, Popeye later sold the same shares for $25 per share. Popeye's capital gain on the total transaction is:
  • Word of mouth can be positive or negative. Negative word of mouth can be quite destructive to a firm. Upset customers are getting on the Internet publishing their complaints and encouraging others to share their negative experiences.
  • Businesses often provide cash or quantity discounts to buyers who pay their accounts by a certain date. By continually turning accounts receivable into cash, the firm is increasing cash flow.
  • All journal entries are posted to the ledger on a regular basis. This is the third step in the accounting cycle.
  • A capital gain is the positive difference between the price at which Popeye bought the stock and the price at which he sold it. The capital gain per share is $5, ($25 - $20). Popeye's total capital gain is $500, ($5 times 100 shares).
The financial manager of Carolina Graphics negotiated a ________ with her bank that allows Carolina to borrow up to $50,000 without collateral. This arrangement eliminates the need to renegotiate the terms of the loan and complete new paper work each time Carolina borrows money. The preapproved short-term loan agreement is contingent upon the bank having the funds available.
  • The SEC (Securities & Exchange Commission) is the federal agency that oversees the financial markets and all firms who offer securities for trade.
  • All journal entries are posted to the ledger on a regular basis. This is the third step in the accounting cycle.
  • Lenders usually require borrowers to pay interest on loans. Firms must also pay interest to their bondholders. Interest payments are deductible expenses on the firm's income statement.
  • A line of credit means that a bank will lend your business a given amount of unsecured short-term funds, provided that the bank has the funds readily available.
0 h : 0 m : 1 s

Multiple Choice Questions
Answered Not Answered Not Visited Correct : 0 Incorrect : 0