Question 1

A key element of Internet2 is:

Accepted Answer

the very-high-speed Backbone Network Service (vBNS).

Question 2

Many _________, which ran software at data centers and rented software services to customers, went out of business after the Web boom cooled off.

Accepted Answer

application service providers

Question 3

Instability in technology:

Accepted Answer

remains a serious problem that is caused by a variety of factors.

Question 4

The _____________ was created as a part of the Office of Homeland Security and given the responsibility to devise a plan for improving the security of America\'s critical infrastructure.

Accepted Answer

Critical Infrastructure Protection Board

Question 5

__________ refers to a variety of software applications that analyze an organization\'s raw data and obtain useful insights from it.

Accepted Answer

Business intelligence

Question 6

__________ includes computers, printers, tablets, and smart phones.

Accepted Answer

Hardware

Question 7

__________ is copyrighted software that is distributed to potential customers free of charge. However, customers are expected to pay the developer a fee if they decide to use it.

Accepted Answer

Shareware

Question 8

Information mainly used for security purposes such as fingerprinting and retinal scans is known as:

Accepted Answer

biological data

Question 9

___________ technology uses cable modems, digital subscriber lines, fixed wireless, and satellites to provide users with significantly faster Internet connections than are provided by traditional 56k modems.

Accepted Answer

Broadband

Question 10

Moore\'s Law says that the capacity of computer chips _________ every year or so.

Accepted Answer

doubles

Question 11

A major problem with the rapid expansion in the amount of information available to managers is that:

Accepted Answer

managers can become overwhelmed with too much information.

Question 12

The ability of the Critical Infrastructure Protection Board to achieve its mission depends crucially on:

Accepted Answer

convincing information managers in the private sector to report problems such as hacker attacks and viruses to the government.

Question 13

A company that wanted to provide a single, unified entry point to its network that would allow different types of users access to different types of resources could do so by establishing a(n):

Accepted Answer

enterprise portal

Question 14

Compared to the Internet, a major advantage of Internet2 is that it:

Accepted Answer

can move information much faster than the Internet and has the capacity to handle heavy-duty applications.

Question 15

Which of the following is an advantage of telecommuting?

Accepted Answer

Firms may be able to retain workers who would otherwise leave or retire by allowing them to work at home.

Question 16

A major impact of information technology has been to:

Accepted Answer

create organizations that are independent of location.

Question 17

A firm would use data mining if it wanted to:

Accepted Answer

discover hidden relationships among the data it accumulates.

Question 18

From the 1970s to the present time, the primary role of business technology has:

Accepted Answer

changed from supporting business to providing new ways of doing business.

Question 19

An important advantage knowledge technology has over older versions of business technology is that it:

Accepted Answer

delivers timely information directly to the people who need it.

Question 20

A firm that wanted to enable its employees to use and share data without allowing outsiders to gain access could do so by establishing a(n):

Accepted Answer

intranet.

Question 21

Accounting recognizes that assets, such as machinery and buildings, lose value over time. Accountants will record a portion of the cost of an asset as an expense each year through the use of:

Accepted Answer

depreciation.

Question 22

In the course of their jobs, bookkeepers:

Accepted Answer

record business transactions.

Question 23

A ___________ provides a summary of cash coming into and money going out of a firm from operations activities, financing activities, and investing activities.

Accepted Answer

statement of cash flows

Question 24

Which of the following is an example of a financial transaction?

Accepted Answer

A firm purchases a fire insurance policy.

Question 25

An important difference between accounting and other business functions, such as marketing and management, is that:

Accepted Answer

Accounting offers us insight into whether the business is financially sound.

Question 26

The three important financial statements prepared by accountants are:

Accepted Answer

Balance sheet, income statement, and statement of cash flows.

Question 27

The _____ shows the assets, liabilities, and owners\' equity of a firm, at a specific point in time.

Accepted Answer

balance sheet

Question 28

Expenses a firm incurs for insurance, office salaries, and rent are classified as:

Accepted Answer

general expenses on an income statement.

Question 29

_______ refers to the value that stockholders or owners have in a company.

Accepted Answer

Owners\' equity

Question 30

Company resources that are purchased with the intention that they will convert to cash within one year are:

Accepted Answer

current assets

Question 31

Earnings per share, return on sales, and return on equity are examples of:

Accepted Answer

profitability ratios

Question 32

Jose just graduated from college with a bachelor\'s degree in accounting. He plans to go to work for the American Cancer Society as an accountant. Jose will be a(n):

Accepted Answer

private accountant

Question 33

The use of computerized accounting systems _____________.

Accepted Answer

allows firms to generate financial information almost instantly and whenever the organization needs it.

Question 34

During a period of rising prices, using FIFO (first in, first out) inventory valuation method will result in ________ net income figures than would LIFO (last in, first out).

Accepted Answer

higher

Question 35

During a period of rising prices, if a firm desires to report a low gross profit figure in hopes of reducing their income tax liability, the firm will use the __________ inventory valuation method.

Accepted Answer

LIFO (last in, first out)

Question 36

________ measures the speed of inventory moving through the firm and its conversion into sales.

Accepted Answer

Inventory turnover ratio

Question 37

As an accountant, Joe Billing\'s responsibilities include:

Accepted Answer

Summarizing and interpreting financial information needed by his firm\'s managers.

Question 38

When reviewing the Balance Sheet for Preferred Pet Care, Inc., a mobile small animal care business, Julian noted the following information: Company assets totaling $3.5 million, and liabilities totaling $1.3 million. On paper, the net worth (owner\'s equity) for this business = ___________.

Accepted Answer

$2.2 million

Question 39

In the Making Ethical Decisions box titled, \"Barking-Up the Wrong Financial Statement,\" the situation provides the student with an ethical dilemma that might present itself to an accounting professional. The story focuses on: Is it ethical to __________________________

Accepted Answer

account for sales and profits at a time period, before or after the time these sales and profits actually occurred?

Question 40

Many business decisions are made in hopes of improving a firm\'s \"bottom line.\" Which of the following financial statements will reveal a firm\'s \"bottom line\"?

Accepted Answer

income statement

Question 41

One of the challenges of effective financial management is:

Accepted Answer

to have sufficient cash on hand without compromising the firm\'s investment potential.

Question 42

Which of the following statements is most accurate?

Accepted Answer

Financial managers need to understand accounting.

Question 43

Businesses acquire long-term financing from two major sources:

Accepted Answer

debt financing and equity financing

Question 44

Selling accounts receivable to obtain short-term funds is called:

Accepted Answer

factoring

Question 45

Which of the following statements about taxes is accurate?

Accepted Answer

Profitable businesses usually pay taxes.

Question 46

Which of the following provides the buyer with collateral?

Accepted Answer

secured bond

Question 47

In order to assist in revenue realization, a(n) ________ allocates resources throughout the firm.

Accepted Answer

budget

Question 48

To reduce the time and expense of collecting their accounts receivable, some firms:

Accepted Answer

accept bank credit cards

Question 49

________ examine the data prepared by ________ and then make recommendations to top management regarding strategies for improving the firm.

Accepted Answer

financial managers; accountants

Question 50

The overall objective of financial planning is to:

Accepted Answer

optimize the firm\'s profitability

Question 51

Carlos wants to know the income potential for his computer consulting business during the next five years. Which of the following would be most helpful?

Accepted Answer

long-term forecast

Question 52

The effective management of accounts receivable requires financial managers to:

Accepted Answer

review the credit history of new customers.

Question 53

\"Good Finance or Bad Medicine,\" the topic title of the Making Ethical Decisions box, has an important message for managers who make financial decisions. Which of the following statements summarizes this passage\'s theme?

Accepted Answer

Managers must balance good economic decisions with socially forward thinking decisions.

Question 54

Farmers Savings and Loan agreed to extend Eckert\'s Orchards $200,000 of unsecured short-term funds, contingent upon the bank having the funds available. This arrangement represents a:

Accepted Answer

line of credit

Question 55

Ariel, a recent graduate in finance from a well-known university, was hired by a large corporation to work in tax management. Ariel\'s goal is:

Accepted Answer

To minimize the firm\'s tax consequences.

Question 56

By borrowing $10 million from First Dayton Bank, Hi-Lo Industries is utilizing ________.

Accepted Answer

debt financing

Question 57

Which of these is a common source of long-term financing for a corporation?

Accepted Answer

a bond issue

Question 58

Susan started a cake decorating business that failed. She is convinced that she lacked the necessary funds to promote her business and get it off the ground. Susan experienced:

Accepted Answer

undercapitalization

Question 59

One of the primary factors that influences the interest rate a firm pays on long-term loans is the:

Accepted Answer

General level of market interest rates.

Question 60

Carlos is the manager of Oh! Canada Sporting Goods. During the past six months, his cash expenditures have exceeded his cash receipts. Oh! Canada is suffering from a(n) ________ problem.

Accepted Answer

cash flow

Question 61

Successful use of financial leverage requires a firm to:

Accepted Answer

earn a higher return on its investments than the interest rate it pays to acquire funds.

Question 62

The rationale behind offering customers credit is:

Accepted Answer

Permitting customers to pay with credit cards or on credit makes it easier for them to buy, and it also attracts new customers.

Question 63

The first step in the financial planning process is:

Accepted Answer

forecasting financial needs

Question 64

Typically, only highly regarded customers with financial stability receive __________.

Accepted Answer

unsecured loans

BUS3-10 Final Exam (BC-B,17-20 Quizzes) – Flashcards

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