4.01
The primary role of finance in business involves
obtaining funds or paying employees
obtaining funds
Which of the following is true of working capital management:
It concerns long-term decisions or It deals with accounts payable and receivable.
It deals with accounts payable and receivable.
What step in the accounting cycle occurs after journal entries are posted to the business's ledger?
A trial balance is prepared or Source documents are gathered.
A trial balance is prepared.
The profit a business has earned can be determined from the business's:
income statement or balance sheet
Income statement
Operations managers must work closely with managers and employees in:
foreign markets or all other parts of the business
All other parts of the business
When businesses invest funds to expand they are involved in the process of:
finance or selling
finance
The RDJ Company plans to sell stock and take out loans to build new manufacturing facilities in Taiwan and Peru over a 3 year period. In this situation the company is:
making a capital investment decision or tightening its cash conversion cycle
Making a capital investment decision
A characteristic of the accrual method of accounting is that it:
records credit purchases when the purchases are made or is the method most frequently used by small businesses.
records credit purchases when the purchases are made.
A financial statement of a firm's current assets and liabilities is called:
Balance sheet or Cash-flow projection
Balance sheet
Which form of technology creates tangible prototypes and products:
Social Media or 3D printing
3D printing
In business, the financial function monitors and controls the company's:
supply channel members or monetary returns and risks
Monetary returns and risks
Which of the following is most likely to increase a company's capital assets:
Purchasing land for future expansion or Obtaining a loan to make payroll
Purchasing land for future expansion
When customers buy on credit, the money owed the business by the customer is part of the business's:
accounts payable or accounts receivable
accounts receivable
A business can determine its net income by subtracting total:
liabilities from assets or expenses from gross margin
Expenses from gross margin
The difference between service providers' and manufacturers' operations activities is that service providers produce __________ outputs.
Tangible or Intangible
Intangible
Which of the following business activities monitors and controls the firm's revenue and debt:
Finance or Purchasing
Finance
Which of the following is an example of debt funding:
Using assets already owned to fund a project or Taking a loan out from a local bank
Taking a loan out from a local bank
Which of the following would be included in a business's income statement:
Operating expenses or Liabilities
Operating expenses
What do managers use for financial planning purposes:
Business policies or Accounting Information
Accounting Information
Because operations managers control so much of a business's money, they must focus on:
keeping costs low or hiring the best employees
keeping costs low
A business should strive to keep its cash conversion cycle as short as possible so it:
has fewer liquid assets or has cash available to use
has cash available to use
Working capital management decisions focus on
The company's current balance of assets and liabilities or long-term company investments and projects
The company's current balance of assets and liabilities
A business has an inventory valued at $750,000. This amount would appear in the business's balance sheet under:
Liabilities or Current Assets
Current Assets
An important purpose of accounting is to provide accurate financial information that is useful to:
management or employees
Management
An operations manager must determine the sequence materials will take through the production process. This activity is known as:
Scheduling or routing
Routing