Information Technology
True or False:
Information Technology is defined as the equipment and techniques used to manage and process information.
True
True or False:
A current asset is one that can or will be converted into cash within the next year.
True
Name one of the responsibilities of financial managers.
Focusing on cash flows, the inflows and outflows of cash
Financial planning
Investing (spending money)
Financing (raising money)
Snap, Inc. went public in 2017 with an IPO of $24/share. Shares of the company are an example of what type of security, which represents an ownership interest in a corporation and has voting rights?
Common stock
Two or more computer systems linked together by communications channels to share data and information is called what?
A computer network
Name one of the three primary financial statements included in a company's annual report.
The balance sheet
The income statement
The statement of cash flows
These assets produce benefits that extend beyond 1 year and are funds invested in assets such as land, buildings, machinery, and equipment.
Capital expenditures
The DegreeWorks app in myUSI displays data that is collected over a period of time and then processed all at the same time, which is an example of _____ processing.
batch
An electronic filing system that collects and organizes data and information is referred to as what?
A database
In accounting, as each transaction is recorded, there is an equal and opposite event so that two accounts or records are changed.
Recording every transaction as two entries is defined as what?
Double-entry bookkeeping
In finance, the potential for loss (the chance that an investment will not achieve the expected level of return) is defined as what?
Risk
Deloitte, PricewaterhouseCoopers (PwC), Ernst & Young (EY), and KPMG International are examples of independent accountants who serve organizations and individuals on a fee basis, which are defined as which type of accountant?
Public Accountants
A network that connects computers at different sites via telecommunications media is called what?
Wide Area Network (WAN)
This financial statement summarizes a firm’s financial position at a specific point in time. It reports the resources of a company (assets), the company’s obligations (liabilities), and the difference between what is owned (assets) and what is owed (liabilities), or owners’ equity.
The balance sheet
Financial managers evaluate whether to finance expenses through debt or equity financing. What is the major drawback to the use of debt financing?
Financial risk is a possibility due to the chance the company is unable to pay principal and interest payments.
Target dealt with a security breach in 2013 when 11 gigabytes of data leaked and ~70 millions of names, credit card information, etc. were exposed, which is an example of a data security issue.
Name one other type of data security issue.
Unauthorized access
Computer viruses, worms, and trojan horses
Deliberate damage to equipment or information
Spam
Which type of information system receives raw data and prepares the data for storage in a database?
Transaction Processing System
What is a formal expression of the accounting equation?
Assets−Liabilities=Owners' equity
Profits that have been reinvested in the firm are referred to as what?
Retained Earnings
In 2002, Congress passed the Sarbanes-Oxley Act to set standards for what types of business functions?
Accounting, auditing, and financial reporting and to prevent future accounting irregularities