Business 101 chapter 16,17,18 – Flashcards

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When Betty Tran prepared a personal income statement, the reminder or residual value is called
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cash surplus
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A system of exchange in which goods and services are traded directly for other goods and services is called a(n) ____ system.
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barter
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___ Is the largest video site on the internet.
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Youtube
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What do users say is their primary reason for using social media?
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Staying in touch with family and friends
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___ is a piece of software send by a website that tracks and individuals Internet use.
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A cookie
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An internet consulting company uses its Web site to allow its corporate clients to obtain information, analyze data and ask questions. This consulting company is using a _____ model.
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B2B
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APSCO Lighting, Inc. had a gross profit of $234,000 for the last twelve -month period. Operating expenses were $185,000. What was APSCO's net income before taxes?
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49,000
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The statement of cash flows for a business offers information on all of the following except
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expenses during a particular accounting period.
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All of the following are classified as fixed assets except
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computers held for resale
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The U.S. government bank is
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The federal reserve
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Which of the following statements is False?
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The federal funds rate is established on a semiannual basis by the board of governors of the Federal Reserve.
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Which of the following can accurately be described as an interactive community bulletin board?
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Forums
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Which of the following is most like a radio show that could be described through the web?
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Podcast
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When were Facebook and Twitter were created?
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In the past decade
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Refer to Pure Training, Inc. Pure Training was founded 10 years abo and it's now ready to venture into offering workshops for businesses selling to other businesses primarily through the Internet. Which of the following is most likely to be a new addition to their agenda?
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Webinars
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Yasmin stops offering free shipping to her online customers. Yasmin is trying to increase her profits by
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decreasing her expenses
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Lutex Corporation began its accounting period with merchandise inventory (beginning inventory) that cost $10,000. During the period, it purchased for resale merchandise with a retail value of $100,000. With purchase discounts, it paid only $80,000 for this merchandise. Thus, during this period. Lutex had ____ in goods available for sale.
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90,000
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A price reduction to customers who pay their bills promptly is called
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a sales discount
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Which of the following is true about CPAs?
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CPAs must participate in continuing education programs
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A written order for a bank or other financial institution to pay stated dollar amount to a specific business or person is called a
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check
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York Department Store does 50 percent of its business on credit and frequently has to tolerate slow-paying customers and those who simply do not pay. Now it would like to facilitate immediate cash purchases for customers who don't like to write checks or to carry cash with them. What would you recommend?
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Buy a point-of-sale terminal for the store
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Number of fans and number of likes are typical measurements of
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Facebook
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____ read online forums, read blogs, and listen to podcasts.
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Spectators
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A business model represents a _____ in a business situation.
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group of common characteristics and behaviors
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Marta invests a substantial amount of money to take her business online. She is extremely discouraged when three months pass and she has not produced enough new revenues to offset the high start-up costs. What sound advise is good for marta?
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Because the initial start-up costs were high, it may take longer to recover, but it is too soon to determine the long-term success.
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Which of the following type of individual who uses social media maintains a profile and visits social networking sites?
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Joiners
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Which of the following are not considered a social media tool?
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DVDs
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Which of the following is true about the definition of social media?
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There are many definitions of "social media."
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Operations managers need management information in all of the following areas except
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future capitalization needs
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The ration that averages about 2.0 for all industries is the
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current ration
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Which type of manager would be most concerned with information about the products offered by competitors?
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Marketing
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All American National Company earned $240,000 last year. The board of directors decided to pay out one-half of the firm's earnings to stockholders. Before the board's decision, the firm's retained earnings were $740,000. Which of the following statements is true?
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The value of the firm's retained earnings is now $860,000.
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Walmart takes it nets sales and subtracts the cost of goods sold during the previous period. The result of Walmart's
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gross profit
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A public corporation must change its lead auditing firm
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every five years
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During the year Comer, Inc., had $200,000 in goods available for sale. At the end of the accounting period it had an ending inventory of $40,000. This reveals that is had sold all but ____ worth of the available goods.
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$40,000
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Since business has been rapidly expanding. A Shot Of Sugar Bakery decides to purchase a second industrial oven. The cash paid for the oven would be listed in the ____ section of the statement of cash flows.
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Investing
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Ruin Company's net sales for the period were $175,000. Its cost of goods sold was &85,0000. What is the firm's gross profit on sales?
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$90,000
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Refer to community bank. One employee asked Jeffrey how much money could be found in the whole country. Jeffrey indicated that the government tracks this type of information via supply of money. What are the main measures of the supply on money?
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Two: m1, m2
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The federal reserve system was organized in
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1913
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Commercial banks have experienced competition from all of the following except
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federal reserve banks
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When the federal reserve system sets a new margin requirement, it is regulating the
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buying of securities.
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_____ banks are charted by the U.S. Comptroller of the Currency.
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National
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Refer to Pure Training inc. When Pure Training is discussing typical measurements for various types of social media and it starts discussing "number of fans", "number of likes", and "growth of" measurements for
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Facebook
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Bit Torrent is an example of ____ model.
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consumer to consumer
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___ is considered a social marketing site for professionals.
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LinkedIN
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Tech Savvy, digital natives born after 1980 are known as
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Millenials
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Which of the following most accurately describes a podcast?
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A digital audio or video file
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Claire browses for clothing at Banana Republic's website, but goes to Banana Republic store to try on and purchase the clothing. This demonstrates what aspect of e-business?
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A firm's Web site may lead to increased sales in its physical stores.
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Peer-to-peer software that allows users to share information over the Internet is known as a _____ model.
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consumer to consumer
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Each objective of a social media plan should be all of the following except
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Vague
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Wallace Plumbing Company had income from operations of $110,000. It paid federal income taxes of $26,000. What was the firm's net income after taxes?
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$84,000
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All of the following would be examples of internal information sources except company
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competitors
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Debts owed by a business are called
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liabilities
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Mike Acorn applied for a $7,500 loan to start a small retail business. When the loan officer interviewed him for the loan, she asked him to list the assets he owned. The loan officer is concerned about Mike's
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capital
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Which of the following statements is true?
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The Federal Reserve uses deposit expansion to counteract the effects of inflation
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A friends overhears your conversation with another friend, who is discussing his new job with "the fed." What does the term Fed stand for?
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Federal Reserve Board
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Deposits in a single account at a credit union are insured for
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$250,000
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Maya Michey graduated from college and is seeking employment in the banking industry. She believes she has what it takes to be successful because she
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is honest and likes to interact with people.
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Refer to pure training, inc. If clients (the business owners) were asking for workshops to allow their customers to listen to audio files about their product or service, Pure Training would be organizing ____ workshops.
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podcast
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A _____ is a source of revenue flowing into the firm.
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revenue stream
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Approximately what percentage of Americans use the internet?
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77
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Social media can most accurately be described as being about
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people.
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McDonald's and Burger King share a similar _____ because they offer about the same products and need about the same type of employees.
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business model
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Chase invests $5,000 of his own money in his new auto detailing business. He then obtains a loan and builds a small workshop in his backyard for $10,000. At this point assets are _____ liabilities are _____ , and owners' equity is ____.
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$15,000; $10,000; $5,000
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In order for the Gift Market, a local specialty store, to purchase Christmas merchandise for selling in its store, it had to borrow money from a local bank. This debt owed to the bank is a (n)
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liability
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According to the accountant for Michael's Floral Supply, the firm's assets are $124,000 and its liabilities are $31,000. Which of the following statements is true?
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The owners' equity is $93,000.
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Judy Martinez, owner of Judy's fashions, received a $12,000 tax refund. She deposited the money in Chase Bank. The terms of the agreement are that she must leave the money on deposit for three years and the bank will pay her 2.0 percent interest. Her account is a
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certificate of deposit
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Which of the following is not considered a goal of new government banking and financial organization by the Obama administrations?
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Provide economic growth in coordination with full employment.
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Money that is held and spent later represents a ______, or means for retaining and accumulating wealth.
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store of value
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A short-term loan is usually repaid within ____ year(s) or less.
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one
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The transformation of data into a form useful for a specific purpose is called
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data processing
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Shanda Lucas obtained a bank loan to buy a $70,000 Porsche. As the borrower, Shanda obtained immediate purchasing power. This can be described as
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credit
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Refer to Community Bank, In his training, when Jeffrey suggests that money should retain its value over time, which of the following characteristics is he referring to?
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Stability
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EFT stands for
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electronic funds transfer
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Refer to Community Bank. One of Laila's responsibilities is keeping track of the interest rate that the Federal Reserve System charges for loan to member banks. Which of the following should Laila be tracking?
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Discount Rate
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____ refers to a firm's activities to support a healthy environment and sustain the planet.
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Green IT
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Which of the following can be most closely associated with "outsourcing tasks"?
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Crowdsourcing
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What is usually the primary revenue stream for online auction sites such as eBay?
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Fees charged for selling products on the site
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Information rules
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emerge when research confirms the same results each time a problem is studied.
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The most liquid asset is
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cash
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Each month, Bath and Body Works pays employees wages, telephone bills, and salaries to accountants. These are all considered
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Operating expenses
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Which of the following is true about marketing messages and social media?
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Social media marketing messages are not like traditional marketing messages.
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Emiliano Garza spent five years in accounting educational program and successfully completed a rigorous accounting examination five years ago. Since then, he has worked for several accounting firms. Currently he is senior partner in a international accounting firm. By profession, Emiliano is probably a
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certified public accountant
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KYZ Radio pays salaries, rent, insurance, and utilities each month. These are all
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operating expense
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Which of the following is not one of the sections included in a typical business report?
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Analysis
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Marilyn provides piano lessons to students in her home four days a week. The money she earns from providing these services would be called ____ on an income statement.
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Revenues
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The financial statement that provides information about a firm's operating, investing, and financial activities during an accounting period is the
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cash flow statement
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The term ____ describes assets that can be quickly converted into cash or consumed in one year or less.
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current assets
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On its company computer system, Gymboree has numerical and verbal descriptions about its suppliers and their prices, which as a whole is called _____ . Managers can access and use this to make decisions about suppliers.
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a database
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Like other businesses, a bank's primary mission is to
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meet the need of its customers while earning a profit
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Refer to M&B bank, While offering the credit-counseling workshops, the facilitator lists the five C's of credit. Which of the following refers to the borrower's attitude toward credit obligations?
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Character
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Vince is saving to buy his first car. The Mini Cooper he wants is $28,000 right now., but it will take at least a year to accumulate the down payment . He also knows that although money is a store of value, he will probably need more then $28,000 to buy the car next year because of
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inflation
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During periods of high inflation, money loses which essential characteristic?
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Stability
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When Clarissa Nettles went to the grocery store, she wrote out a check to pay for her purchases. The clerk processed the check electronically and gave her the voided check back. the store is using a(n) ______ to process Clarissa's payment.
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electronic check conversion
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In the Federal Reserve System, there are ____ district banks.
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twelve
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Payless Shoes finds that it does not have enough cash to purchase new sandals for the upcoming summer season. What type of arrangement would you recommend for purchasing the shoes?
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Short-term business loan
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In explaining money to his twelve-year-old, Mike, the president of a small business , said that money is "symbolic". This should be correctly interpreted to mean that money is
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an artificial device that aids in the exchange of resources for products, services, and resources.
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The ___ requires lenders to clearly state the annual percentage rate and total finance charge for a consumer loan.
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Truth in lending act
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Usually money is used as a
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All are acceptable uses of money.
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The percentage of deposits that a bank must retain for depositors is called
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a reserve requirement
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Which of the following companies was one of the early adopters of consumer ratings?
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Amazon
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Mystarbucksidea.com is an example of a _____ site.
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crowdsourcing
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Which of the following is true about social media measurement tools?
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Most companies use quantitative measurements.
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What does "stickiest" refer to in regard to social media?
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Users spending a great deal of time at a particular site.
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Which of the following is not one of the top four social networking sites used by business?
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Pinterest
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The use of webinars and online informational promotional materials is most often related to businesses selling to
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other businesses
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Which of the following is most likely to be the manner in which a business connects and communicates with other businesses rather than the customers?
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Webinars
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Social media is used by approximately ______ of online adults.
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two-thirds
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Which of the following may leave users completely unaware that their movements and clicks on the internet are being monitored?
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Cookies
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Creating a web site so that customers can search for information instead of calling the company's offices and speaking to a customer-service representative is an e-business strategy designed to increase profit by
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reducing expenses
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One type of B2B model focuses on
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facilitating sales transactions between businesses.
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After a company listens and pays attention to what is being said about a company through social media, what is the following step?
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Establish social media objectives
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Which of the following is true about the definition of social media?
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There are many definitions of "social media"
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Computers and software belong to which of the following specialized e-business resources?
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Material
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The Wall Street Journal's online edition is not provided free to Interne users. Therefore, the primary revenue stream for this online version is probably
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subscription fees
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Online firms like Amazon.com that take a B2C approach
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incorporate all of the above
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With _____ community members are the editors and gatekeepers of the content of a site.
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wikis
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Gap.com, the clothier's online site, focuses on conducting business with individual customers. This represents a _____ model
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B2C
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Which of the following most accurately describes a podcast?
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A digital audio or video file
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Schluster Hardware Inc. had a gross profit of $380,000, operating expenses of $210,000, and income taxes of $48,000. What is Shluster's net income after taxes?
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$122,000
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The purpose of an audit is to ensure that financial statements have been prepared according to
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generally accepted accounting principles
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The ratio obtained by dividing net income after taxes by net sales is the
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return on sales ratio
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Refer to Christine's First Job. If the owners did not recognize the term "statement of financial position," Christine could use which of the following more common terms?
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Balance Sheet
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Television sets that Best Buy owns for selling to its customers are classified as
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merchandise inventory
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Tavia Jacobson is the owner of Jacobson's Home Interiors. She would like to begin accepting Visa, MasterCard, or Discover credit cards, but shit is concerned about the cost. As a merchant she could expect to pay between ____ percent to the credit card company for processing credit card transactions.
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1.5 and 4
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The Seven members of the Federal Reserve System are
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appointed by the president
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A financial institution that is owned by its depositors is called a(n)
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mutual savings bank
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The FDIC provides basic deposit insurance of ____ per depositor.
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$250,000
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Immediate purchasing power that is exchanged for a promise to pay at a later date is called
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credit
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If a subcultural group in Africa started its own country, it should not use tissue paper to print currency because money should have
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durability
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GE Capital is an example of a(n)
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finance company
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The average repayment term for long-term business loans is generally
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between three and seven years
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Refer to Academic Standard Inc. All except ____ forces are primary external environmental forces that ASI needs to be mindful of in regard to the company's use of technology
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customer service
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"Digital Natives" are considered to be anyone
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under the age of 32.
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According to a survey by eMarketer, ____ of U.S. companies with more that 100 employees are using social media tools for marketing.
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80
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_____ post ratings of products and services and contribute to and edit articles in wikis.
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Critics
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As the accountant for Marston Retail Stores, you must calculate the current ratio for the firm's last accounting period. The firm's current assets were $120,000, its fixed assets were $240,000, its current liabilities were $80,000, and its long-term liabilities were $60,000. Given these facts, what is the firm's current ratio?
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1.5
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What is the correct order for the balance sheet?
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assets, liabilities, owners' equity
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A firm has $260,000 in assets and $158,000 in stockholders equity. It owes $55,000 from a long-term loan, and this is its only long-term liability. This firm has _____ in total current liabilities.
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$47,000
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Another name for the statement of financial position is the
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balance sheet
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The cost of goods sold for McPherson Fashions is $360,000. The beginning inventory for the firm was $20,000. Twelve months later the ending inventory was $40,000. What is the firm's inventory turnover?
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12 Times a year
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Which of the following statements is true?
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The more information a manager has, the less risk there is when making a decision.
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Selling expenses are considered to be a type of
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operating expense
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Regina owns and operates her own bakery and coffee shop. Regina has no accounting training and has only three employees . How does she most likely handle the necessary accounting for her business?
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She pays a public accountant to do the accounting for her business
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As the accountant for Ideal Manufacturing Company, you determine the following totals in your balance sheet: total assets -$124,000; current liabilities - $41,000; long-term liabilities -$13,000. What is the total owners' equity for this
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$70,000
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Winshare Art Company has issued only common stock. Currently it has 10,000 shares outstanding . The value of the stock is shown as $20 per share. In addition, $100,000 of Winshare's earnings have been reinvested in the business since it was founded. What is Winshare's total owners' equity?
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300,000
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Refer to Christine's First Job. To help the owners understand how effectively the firm is transforming sales into profits, Christine should address which of the following rations?
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Return on sales
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Refer to Ridgley, Cooper, and Ross. One of RCR's clients is ABC Electronics. RCR develops ABC Electronics' statements and reports for ABC's stockholders, financial analysts, and bankers. These services can be classified as which of the following
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Financial accounting
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Which of the following would not be included in the M1 definition of money?
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Travelers checks
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Which of the following is most commonly used to obtain cash from an ATM?
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Debit Cards
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Credit union members usually are
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All of these answer are correct
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If Jamie wanted to purchase Disney stock using borrowed money and had $4,000 of her own money to use, what is the maximum amount of stock she can purchase with a margin requirement of 50 percent?
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$8,000
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Which of the following statements is false?
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The consumer price index is base on two factors: the cost of housing and the cost of transportation.
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Along with stability, all of the following are characteristics of money except
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profitability
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In lending money, lenders consider a prospective borrower's
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collateral, capacity, and character
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What is commercial paper?
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Short-term promissory notes issued by large corporations
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Your friend Elizabeth says that all the Fed does is lower or raise interest rates. You explain that Fed's actual mission is to
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maintain an economically healthy and financially sound business environment.
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A guaranteed line of credit is called a
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revolving credit agreement
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Of the following, which is false about the "stress" tests that were instituted and conducted by the Federal Reserve and other federal agencies?
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The banks that failed were provided non-recourse loans to help secure the banks' survival.
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Real or personal property that a firm or individual owns that is pledged as security for a loan is called
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collateral
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When you make a purchase with a _____ , funds are electronically subtracted from your bank account that the moment the purchase is made.
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debit card
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Marty obtained a three year loan at 7.5 percent interest to buy a new BMW and used the car as collateral for the loan. After two years, the Stocker Finance Company repossessed Marty's car because
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he failed to repay the loan according to the loan terms.
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The amount a credit card company charges a merchant for accepting credit cards depends on all of the following factors except the
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type of product the merchant sells.
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Refer to Community BANK. In giving examples to new employees, Jeffrey has indicated that when customers put their money in the bank, some are looking to retain and accumulate wealth. This refers to which of the following functions of money?
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Money as a store of value
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Which of the following is the last step in building a social media plan?
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Implement and integrate the plan
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Ashley wants to increase the profits of her e-business. What two ways can she accomplish her goal of increasing profits?
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Cutting back on expenses and increasing sales
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The basic resource from which plans are developed and decisions are made is called
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information
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Cash, marketable securities, notes receivable, and merchandise inventory are examples of
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current assets
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Resources that a firm owns are called
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assets
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What are the three activities according to which a statement of cash flows is organized?
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Operating, investing, financing
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Revenues - cost of goods sold - expenses = net income characterizes which financial statement?
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Income statement
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All of the following are responsibilities of the Federal Reserve system except
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negotiating loans for the government.
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A machine that provides almost any service a human teller can provide is called a
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ATM
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In 2011 the seven banks in the United States were
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national banks
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M1 and M2 are both measures of
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the supply of money
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At the bank where Natasha works, loans are made on the money that customers deposit then in turn on what borrowers deposit, which allows the bank to make more loans. This is referred to as
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deposit expansion
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