Show:
Mystery #1
Secret #2
Riddle #3
Puzzle #4
Problem #5
100
The area of accounting that provides managers inside the organization with information they need to make decisions is called: A. Tax accounting. B. Managerial accounting. C. Informational accounting. D. Financial accounting.
What is B. Managerial accounting.
100
A just-in-time inventory system allows a firm to: A. extend credit to new customers. B. provide sufficient inventory for most contingencies. C. reduce their investment in inventory. D. reduce capital expenditures.
What is C. reduce their investment in inventory.
100
An organization whose members can buy and sell securities for companies and investors is known as a: A. public securities dealer. B. securities facilitator. C. transfer medium. D. stock exchange.
What is D. stock exchange.
100
_____________ is the function in business that is responsible for acquiring funds for the firm, and managing funds within the firm. A. Accounting B. Managerial accounting C. Finance D. Financial accounting
What is C. Finance
100
Revenue, minus cost of goods sold =____________. A. retained earnings B. fundamental accounting equation C. gross profit D. net income
What is C. gross profit
200
With plans to build a $50 million theme park, Extreme Entertainment, Inc. intends to finance this project through the sale of additional shares of ownership in their firm. Selling new shares of stock represents ___________ financing. A. retained B. debt C. initial offering D. equity
What is D. equity
200
Budgets are: A. useful for businesses, but too restrictive to be used by individuals or households. B. a financial plan of projected revenues and expenses. C. just another name for cash flow statements. D. only helpful to people who earn more than $50,000 per year.
What is B. a financial plan of projected revenues and expenses.
200
_________ refers to how quickly an asset can be converted into cash. A. Liquidity B. Velocity C. Fundability D. Accessibility
What is A. Liquidity
200
A firm's ________ reports the profit or loss for the firm over a specified time period. A. income statement B. balance sheet C. statement of cash flows D. bank statement
What is A. income statement
200
228. A Roth IRA offers employees an incentive to save for their retirement by: A. deferring taxes on income contributed to the IRA. B. eliminating taxes on the withdrawals from the IRA. C. eliminating taxes on the income contributed to the IRA. D. allowing employers to match the employee's contribution to the IRA.
What is B. eliminating taxes on the withdrawals from the IRA.
300
The number of workers paying into Social Security for each retiree receiving Social Security benefits is: A. fixed by law. B. increasing. C. decreasing. D. not fixed by law, but has remained relatively constant for several decades.
What is C. decreasing.
300
A comparison of bookkeeping and accounting indicates that: A. The two are virtually the same in practice. B. Bookkeeping involves recording financial information, while accounting is concerned with classifying, summarizing, and interpreting this information. C. Bookkeeping is more useful for small businesses while accounting is more useful for large businesses. D. Accounting is a subsystem of the process of bookkeeping.
What is B. Bookkeeping involves recording financial information, while accounting is concerned with classifying, summarizing, and interpreting this information.
300
Two kinds of equity financing are: A. common and preferred stock. B. convertible and superior stock. C. fixed and variable stock. D. common and superior stock.
What is A. common and preferred stock.
300
By buying a ________ bond, investors will have an option to exchange their bond for shares of common stock in the company at a future date. A. discount B. contingent C. convertible D. preferred
What is C. convertible
300
Typically, only highly regarded customers with financial stability receive ___________. A. secured loans B. bank premiums C. unsecured loans D. commercial paper
What is C. unsecured loans
400
The balance sheet is composed of the following types of accounts: A. Revenue, expenses, and earnings. B. Operating expenses, cash flow, and capital expenditures. C. Capital, cost, and valuation. D. Assets, liabilities, and owners' equity.
What is D. Assets, liabilities, and owners' equity.
400
Diversification means: A. allocating all your investment funds into one type of investment. B. buying investments on margin. C. being knowledgeable about the various types of investment opportunities. D. allocating your investment funds to several types of investments.
What is D. allocating your investment funds to several types of investments.
400
When an investor sells a security for more than the purchase price, the investor earns a(n): A. dividend payment. B. appreciated interest receipt. C. corporate benefit. D. capital gain.
What is D. capital gain.
400
Which of the following shows a firm's spending plans on fixed assets such as large equipment? A. Capital budget B. Operating budget C. Cash budget D. Surplus budget
What is A. Capital budget
400
The preparation of financial statements for people outside the firm (creditors, unions, suppliers, and others) is the goal of: A. Auditing. B. Financial accounting. C. Managerial accounting. D. Cost accounting.
What is B. Financial accounting.
500
Which of the following trades corporate stocks not listed on the national securities exchanges? A. Federal Investment Assurance Agency B. American Stock Exchange C. The over-the-counter market D. Chicago Board of Trade
What is C. The over-the-counter market
500
Issuing bonds to obtain long-term funds legally compels a firm to pay regular ________ payments and repay the ________ at the maturity date. A. dividend; par value B. interest; bond premium C. dividend; maturity value D. interest; principal
What is D. interest; principal
500
Undercapitalization refers to the problem of: A. insufficient start-up funds. B. inadequate control of expenses. C. inappropriate cash flows. D. under-valued capital stock.
What is A. insufficient start-up funds.
500
The best way to save money is to: A. pay yourself first by taking out money for savings from each paycheck before deciding what to do with the remaining money. B. start your own business designed to create business tax deductions. C. prepare a balance sheet. D. pay yourself last.
What is A. pay yourself first by taking out money for savings from each paycheck before deciding what to do with the remaining money.
500
Acquiring funds through borrowing represents: A. debt financing. B. venture capital. C. speculative capital. D. equity financing
What is A. debt financing.