BUSN ACCT-2 – Flashcards
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Henry Ford's famous quote "You can have your Model T in any color you want as long as it's black" best reflects marketing attitudes during the _____ era.
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production
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Which of the following statements is most consistent with the marketing view of the relationship era?
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It is much less expensive to retain existing customers than to acquire new customers.
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Which of the following is a vital starting point for most marketers?
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Demographics
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Demographic segmentation divides the market:
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based on measurable characteristics about people.
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Which of the following statements is true of a business buyer?
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A business buyer bases purchases on specifications.
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Which of the following statements best describes a difference between primary data and secondary data?
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Primary data tends to be more expensive than secondary data.
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_____ typically require accounting information of a firm to evaluate its ability to pay back its loans by analyzing the firm's financial statements.
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Creditors
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Genarally accepted accounting principles (GAAP) is a set of accounting standards that is used in the:
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preparation of financial statements.
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Shelly is a loan officer who approves loans for small businesses. One factor she looks at carefully when making loan decisions is the amount of outstanding debt the firm already has. She can find this information by looking at the firm's:
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balance sheet.
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A firm's current liabilities: a. include wages payable. b. are not represented on its balance sheet. c. do not have to be repaid within a year. d. must equal its current assets.
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include wages payable.
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The _____ identifies a firm's sources and uses of money in a given accounting period based on the firm's operating, investing, and financing activities.
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statement of cash flows
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Congress passed the _____ of 2002 to combat widespread accounting malpractice.
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Sarbanes-Oxley Act
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Which of the following is a difference between managerial accounting and financial accounting?
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Managerial accounting is intended to provide information primarily for internal stakeholders, whereas financial accounting is intended to provide information primarily to external stakeholders.
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Managerial accounting primarily serves the needs of a firm's:
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internal stakeholders.
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_____ are not-for-profit organizations owned by their depositors, which strive to pay higher interest rates on member deposits and charge lower interest rates on loans.
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Credit unions
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Congress responded to the stock market crash that occurred in 1929 with the _____, which dealt mainly with the process of issuing new securities.
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Securities Act of 1933
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Dividends to common stockholders of a company are:
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a distribution of earnings that are paid only if declared by the company's board of directors.
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Diana owns 15 percent of the existing shares of stock in Cobalt Corp. The corporation is presently issuing new stock, and Diana buys 15 percent of the new shares to maintain her share of ownership in the company. By doing so, Diana is exercising the _____ of common stockholders.
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preemptive right
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If you are a preferred stockholder at CDE Corporation and CDE goes out of business, your claim on the firm's assets:
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takes precedence over common stockholders.
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Topaz Inc. has issued bonds in $100,000 increments to raise capital for product development efforts. The bonds contain a provision that allows the bondholders to exchange each bond for 25 shares of common stock. Bonds with this type of arrangement are called _____.
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convertible bonds
