a) Educational Employees Credit Union
b) Missouri Public School Retirement System
c) Southwest Savings Bank
d) Heartland Bank
Answer: B
a) the firm needs to keep a constant look out for employees and suppliers who may be committing fraud.
b) internal audits help to make accounting statements more reliable.
c) the firm uses the audits to determine desired profits for the following year.
d) they aid in the development of the firm's financial statements.
Answer: B
a) sales revenues and future tax policies.
b) predictions of future performance of the firm's new products.
c) capital expenditures for the next five years.
d) expected sales revenues and expenses for the coming year.
Answer: D
a) increased confidence in the financial services markets
b) more government scrutiny and regulations
c) the dismissal of compliance officers as an integral part of the financial services industry
d) the knowledge that too much government regulation can disrupt the ethical direction that financial managers follow
Answer: B
a) the accounting cycle
b) financial ratio analysis
c) managerial control
d) financial control
Answer: D
a) about the same
b) more variable
c) higher
d) lower
a) Establishing financial controls and tax policy.
b) Forecasting short-term financial needs.
c) Developing financial statements for outside investors.
d) Developing budgets to meet financial needs.
Answer: B
a) leverage
b) return on debt
c) cost of capital
d) return on sales
Answer: C
a) equity financing.
b) the expense of collecting accounts payable.
c) capital expenditures.
d) the expense of collecting accounts receivable.
Answer: D
a) short-term financing
b) venture capital
c) equity financing
d) bond trading
Answer: C
a) increase demand for their products.
b) reduce the need for long-term funds.
c) be able of accept credit cards.
d) manage available funds and maximize profitability.
Answer: D
a)revolving credit agreement
b) promissory note
c) sponsored trade credit
d) line of credit
Answer: D
a) Expense controls are too rigid.
b) Poor use of marketing mix.
c) Undercapitalization.
d) Stock is undervalued.
Answer: C
a) accountants
b) managers
c) stock brokers
d) financial analysts
Answer: A
a) lobbyists
b) small businesses
c) individual consumers
d) government accounts
Answer: B
a) Issuance of bonds
b) Commercial paper
c) Line of credit
d) Factoring
Answer: A
a) promissory note
b) stock
c) bond
d) equity
Answer: C
a) A sizeable portion of a firm's assets could be tied up in accounts receivable.
b) You can't legally set a date when customers must pay their bills.
c) Selling on credit makes a firm look too eager for business.
d) It makes production scheduling more difficult.
Answer: A
a) accounts receivable liability
b) equity liability
c) cash inflow
d) cash outflow
Answer: D
a) it is better to have money in your pocket now, than later.
b) it is better to make big purchases now, rather than wait until later.
c) a monetary system will devalue it's money over time.
d) the value of money will fall over time.
Answer: A
a) there is no advantage because retained earnings are only used for short-term financing
b) retained earnings are funds that fundamentally belong to bondholders, and as such, their use does not dilute ownership
c) firms avoid having to make dividend payments to stockholders, or interest payments to bondholders
d) firms pay a higher interest rate for the use of these funds, which benefits the business in the long-run
Answer: C
a) refers to funds raised through various forms of borrowing.
b) refers to funds raised through selling ownership in the firm.
c) requires that the firm pay interest from after-tax profit.
d) is always more expensive than selling equity.
Answer: A
a) will receive a 5% discount if they pay within the first three days, but the entire bill is due in 30 days
b) will pay 30% of the charge on delivery and the rest within 5 days
c) is offered a 3% discount if it pays during the first 5 days. The entire bill is due in 30 days
d) will receive 10% discount on the first 5% of the order. The entire bill is due in 30 days
Answer: C
a) manage the day-to-day cash needs of a business.
b) identify variances from the financial plan and take corrective actions.
c) predict cash inflows in future periods past one year.
d) develop the appropriate budgets for all functional departments.
Answer: B
a) capital budget.
b) advertising budget.
c) operating (master) budget.
d) cash budget.
Answer: C
a) Preparing tax returns
b) Preparing financial statements
c) Planning for spending funds on long-term assets, such as plant and equipment
d) Production planning and resource development
Answer: C
a) Computers can free up accountants to do important tasks, such as financial analysis and forecasting.
b) Computers have been programmed to make their own financial decisions.
c) Computerized accounting systems have actually made the accounting process slightly more complicated because of the need to understand the software.
d) Computerized accounting systems are primarily used only in large corporations.
Answer: A
a) Accounts payable
b) Copyrights
c) Buildings
d) Accounts receivable
Answer: D
The following information is listed on Beck's Bicycles, Inc.'s balance sheet as of 12/30/2015.
Assets Liabilities
Current Assets Current Liabilities
Cash $3,000,000.00 Accts. Payable $12,000,000.00
Accts. Receivables 2,000,000.00
Inventory 9,000,000.00
Total Current Assets $14,000,000.00 Total Current Liabilities $12,000,000.00
Fixed Assets $125,000,000.00 Long-Term Debt $75,000,0000.00
a) Beck's does not have enough funds to pay bills that are coming due because it has $3 million in cash, and it owes $87,000,000 in the next few months.
b) Beck's will not have enough funds to pay bills coming due in the next few months because it cannot depend on selling inventory to pay those bills. It must depend only on cash and credit sales already produced. Total cash and credit sales are only $5 million.
c) Beck's has enough funds to pay bills that are coming due because it has $3 million in cash assets.
d) Beck's will have enough funds to pay bills coming due in the next few months, as long as it continues to collect money that others owe Beck's and it continues to turn its inventory and sell bikes.
a) Inventory turnover
b) Liquidity
c) Profitability
d) Leverage
Answer: D
a) Departmental checks and balances
b) A gross margin balance
c) A trial balance
d) A retained balance
Answer: C
a) Forecasting demand for a new product.
b) Developing strategies for entering new markets.
c) Establishing a channel of distribution and supply chain.
d) Summarizing and interpreting company financial information.
Answer: D
a) basically the same as a certified management accountant, since both have passed a series of exams
b) a government employee who has a degree in accounting
c) a professional who has studied both personal financial management and financial accounting and passed brokerage qualification exams
d) an accountant who has met educational requirements and has passed exams established by the American Institute of Certified Public Accountants
a) the compilation of financial statements and their analysis.
b) the independent audit.
c) the annual report.
d) the double entry bookkeeping system.
Answer: A
a) appreciated earnings
b) gross revenues
c) accumulated capital
d) retained earnings
Answer: D
a) $5.12 per share. Earnings per share is calculated by taking the sales dollars and dividing by the number of shares issued and outstanding
b) $0.45 per share. Earnings per share means sales of $225 million is divided by the number of common shares outstanding
c) $4.50 per share. Earnings per share is calculated by taking the number of shares issued and outstanding and dividing by the net income after taxes
d) $0.045 per share. Earnings per share is calculated by taking net income after taxes and dividing by the total number of common shares issued and outstanding
Answer: D
a) The trial balance
b) Financial ratios
c) The customer base payments schedule
d) General ledger statements
Answer: B
a) the company has more debt than equity.
b) the company is in too much debt, and should restructure.
c) the company has more equity than debt.
d) by comparison with other firms, the company is probably in good shape.
Answer: A
a) bookkeepers
b) private accountants
c) tax accountants
d) independent auditors
Answer: D
a) master account portfolio.
b) trial balance sheet.
c) ledger.
d) journal.
Answer: C
a) transactions such as sales, payroll, and other expenses; financial statements
b) results of surveys on consumer satisfaction; accounts payables
c) transactions such as the cash flow statement; payroll taxes
d) marketing strategy-type information; sales data
Answer: A
a) record transactions into a ledger.
b) prepare an income statement.
c) develop a trial balance.
d) divide transactions into meaningful categories.
Answer: D
a) assets = liabilities + owner's equity
b) owners' earnings = assets - revenues
c) assets = liabilities - owner's earnings
d) liabilities = owners' equity + revenues
Answer: A
a) advance payments accounts
b) asset summarization
c) recording processes
d) cash flow
Answer: D
a) Financial
b) Tax
c) Accrual
d) Managerial
Answer: D
a) resource trading
b) management
c) financial
d) marketing
Answer: C
a) make sure a business is paying its taxes.
b) allow for government tracking of business activities.
c) help managers evaluate the financial condition of the firm.
d) provide a method of spending money wisely.
Answer: C
a) Intangible assets
b) Current assets
c) Long-term assets
d) Fixed assets
a) $141 million
b) $161 million
c) $69 million
d) $11.6 million
Answer: B
a) The Sarbanes-Oxley Act
b) The Clayton Act
c) The Robinson-Patman Act
d) The Public Company Oversight Act
Answer: A
a) certified internal auditor.
b)certified management accountant.
c) public accountant.
d) private accountant.
Answer: C
a) They pay less for the product because the different companies that are advertising similar products must lower prices.
b) They pay more for the product than they would if there was no advertising.
c) The actual fact is that very few find any benefit due to the selective perception of ads.
d) They receive valuable information, and advertising can even pay for the media that delivers the message.
Answer: D
a) it can reach a much wider audience than other media due to the fact that most parents do not let their children view all television and radio messages
b) it is proven to stimulate consumer purchasing better than other media
c) it can reach a much wider audience than television
d) the advertiser can more easily track who has selectively viewed the message and who has passed it along to others
a) an online form of notification of a potential computer virus or problem.
b) a function that evaluates public attitudes and executes a program of action and information to earn public understanding.
c) a term used to describe promotional efforts such as paying people to say positive things about your product online.
d) a system in which consumers can access company information on their own and supply information about themselves in an ongoing dialogue.
a) sampling
b) incentive selling
c) viral marketing
d) trial closings
Answer: A
a) podcast
b) electronic discourse
c) email message
d) blog
Answer: D
a) any form of communication that uses electronic media.
b) all the various paid media that carries the promotional message.
c) the promotional tools marketers use to carry out the promotional strategy.
d) a sampling of all products that need to be evaluated to define their message.
Answer: C
a) public relations
b) blog
c) personal selling
d) infomercial
Answer: A
a) product placement
b) social media
c) television
d) radio
Answer: B
a) have a presence at trade shows and conventions.
b) work with the sales staff to develop an effective sales presentation format.
c) work closely with marketing to develop an appropriate advertising campaign.
d) maintain close ties with the media, community leaders, government officials and other corporate stakeholders.
a) leverage
b) saturation
c) pull
d) push
a) personalized selling
b) integrated marketing communication
c) delivery cue analysis
d) branding assimilation
Answer: B
a) The objective of an initial sales call is to make a sale immediately.
b) Salespeople use the Internet and other technology to do everything it takes to complete a sale.
c) It is more difficult to find customers in the business-to-business market than in the B2C market.
d) Big customers should always be treated with more care than small ones.
Answer: B
a) Prospect and qualify
b) Make presentation
c) Approach
d) Pre-approach
Answer: A
a) identify a target market.
b) develop a unifying message.
c) define the objectives for each element of the promotion mix.
d) determine a promotional budget.
Answer: A
a) Listen to the public.
b) Hire well-known public figures who will promote positive word of mouth.
c) Develop policies and procedures in the public interest.
d) Inform people of the fact you're being responsive.
Answer: A
a) Product placement
b) Viral marketing
c) Publicity
d) Sales promotion
Answer: C
a) an infomercial
b) blogging
c) product placement
d) interactive promotion
Answer: C
a) personal selling
b) infomercials
c) global advertising
d) publicity
Answer: C
a) run continuous positive advertising campaigns.
b) mount an aggressive publicity campaign to refute any bad events surrounding your product.
c) motivate your sales force and give them information to overcome bad publicity.
d) take care of consumer complaints quickly and effectively.
Answer: D
a) generally a faster closing process than a B2C sale
b) more prospecting and qualifying of customers
c) better presentation skills but less qualifying of customers
d) less prospecting and qualifying of customers
a) personal selling and advertising.
b) social networking, blogging and podcasting.
c) sales promotion and public relations.
d) public relations and advertising.
Answer: B
a) sales promotion.
b) advertising.
c) publicity.
d) viral marketing.
Answer: A
a) prospecting
b) closing
c) presentation
d) follow-up
Answer: D
a) allegations
b) sales promotion
c) sales development
d) propaganda
Answer: D
a) Hiring a sales force to call on automotive customers.
b) Sponsoring a NASCAR race.
c) Expanding the product line to include sunglasses custom-made to match the customer's windshield colors.
d) Designing an interactive website for customers to ask questions and order products.
a) brand intrigue
b) brand equity
c) time line
d) value package
Answer: B
a) Growth
b) Maturity
c) Decline
d) Introduction
Answer: B
a) target forcing
b) upscale
c) point-of-difference
d) nonprice
Answer: D
a) new product innovation
b) change in the environmental mix
c) change in the product focus to the B2B market
d) change in the classification of the product
Answer: A
a) decide what stage of the product life cycle the product was in.
b) determine the appropriate product bundling strategy.
c) promote the product to distributors and retailers to get wide distribution.
d) do the appropriate concept and environmental testing.
Answer: C
a) 5,000
b) 2,500
c) 10,000
d) 1,000
Answer: A
a) all products go through the product life cycle in the same length of time.
b) in the growth stage, marketers differentiate their product from competitors.
c) most brands follow the same pattern in the product life cycle.
d) different stages in the product life cycle call for different marketing strategies.
Answer: D
a) product screening.
b) concept testing.
c) business analysis.
d) idea generation.
Answer: B
a) private name.
b) generic name.
c) knockoff name.
d) trademark.
Answer: B
a) A microwave oven
b) An evening gown
c) An automobile battery
d) A candy bar
Answer: D
a) tool for measuring the forces of competition and the companies' break-even point
b) tool that tells the marketing manager if the product market seems to be changing
c) tool that indicates when the product has reached another stage in the cycle, and might require changes in the marketing mix
d) indication of whether price is still greater than expenses for a given product line
Answer: B
a) generic brand
b) custom coded brand
c) private-label or dealer brand
d) open-ended brand
Answer: C
a) EDLP.
b) skimming strategy.
c) high-low pricing strategy.
d) penetration strategy.
Answer: D
a) growth
b) decline
c) introduction
d) maturity
Answer: A
a) pricing analysis
b) commercialization
c) new-product development
d) government screening
Answer: C
a) convenience
b) specialty
c) unsought
d) shopping
Answer: D
a) convenience
b) shopping
c) specialty
d) unsought
Answer: D
a) employees.
b) suppliers.
c) research and development.
d) competitors.
Answer: A
a) trade marking
b) last-minute fanning
c) bundling
d) branding
Answer: C
a) cost-based pricing.
b) target costing.
c) value pricing.
d) demand-oriented pricing.
Answer: B
a) FOID
b) FDIR
c) FDIO
d) RFID
Answer: D
a) trademark
b) mark to market
c) brand patent
d) brand equity
Answer: A
a) line
b) width
c) mix
d) depth
Answer: C
a) improve its public image.
b) reduce its tax liabilities by reducing market share.
c) build consumer traffic.
d) create a prestigious image.
Answer: C
a) change the organization design structure of the company
b) decrease their workforce through attrition
c) develop new menu offerings
d) open additional restaurants with more table space and service in new locations
Answer: C