TexEs Business Education 176:
Technology and Information Technology,
Starred Business Definitions
When a company is trying to regulate its spending and track incoming funds, the
accountant should prepare an income statement once - ANS-every month.
What is convertible securities used for - ANS-to convert another security (usually stock
or bond) and raise capital by way equity.
What is the best way to identify the use of debt financing to raise capital by way of
equity. - ANS-Convertible securities
Direct stock offerings
Initial public offerings are all equity financing
In the accounting cycle, closing journal entries are required in order to - ANS-Transfer
balances in temporary accounts to retained earnings. (Move from temp. to perm.
accounts.
A lending company will review a borrower's accounting documentation to evaluate -
ANS-creditworthiness and cashflow
Which of the following doctrines prevents a person from insuring a neighbor's house? -
ANS-Doctrine of subrogation - Substitute
What is the definition of contribution? - ANS-A defendant that has paid more than his or
her share of the award has a claim against others.
What is the definition of indemnification? - ANS-Ability to financially restore property as
it was prior to incident.
Which of the following inventory systems is designed to record the actual costs
associated with the inventory using a physical count? - ANS-The perpetual inventory
system
, Which inventory system does not become part of count of goods to be sold. - ANS-The
periodic inventory system
Which inventory system is not on hand until needed - ANS-Just in time inventory system
In which of the following sections of the balance sheet is prepaid insurance recorded? -
ANS-Assets
Which of the following statements is generally true about the purchasing function today?
- ANS-Purchasing is evolving into strategic supply management.
The owner of a small boat rental company opened the business as a sole proprietorship
but has since decided to bring a friend into the business. It is best for the owner, who is
concerned about the cost of changing the form of the company's organization, to
change the business structure to a - ANS-partnership.
Kim, a young college student, has decided to start a business. She does not have much
capital but believes the business can generate capital through an initial public offering
(IPO). An IPO is categorized as - ANS-equity.
The marketing department of a small business wants to obtain information about how
and why a product continues to be successful after many years. Which of the following
research techniques will be most effective? - ANS-Requesting user surveys
Which of the following best describes management practices that promote adaptability
in a global business environment? - ANS-Changing strategies to accommodate local
conditions
Which of the following types of compensation has the greatest positive effect on
employee motivation and productivity? - ANS-Varied and attainable pay mix
To have the greatest impact on long-term employee productivity, businesses must -
ANS-conduct effective employee evaluations.
RXJW is a publicly traded company that is required by law to register its code of ethics
with the Securities and Exchange Commission and ensure that its senior financial
officers are aware of the policy. Which of the following mandates this requirement? -
ANS-Sarbanes-Oxley Act
Technology and Information Technology,
Starred Business Definitions
When a company is trying to regulate its spending and track incoming funds, the
accountant should prepare an income statement once - ANS-every month.
What is convertible securities used for - ANS-to convert another security (usually stock
or bond) and raise capital by way equity.
What is the best way to identify the use of debt financing to raise capital by way of
equity. - ANS-Convertible securities
Direct stock offerings
Initial public offerings are all equity financing
In the accounting cycle, closing journal entries are required in order to - ANS-Transfer
balances in temporary accounts to retained earnings. (Move from temp. to perm.
accounts.
A lending company will review a borrower's accounting documentation to evaluate -
ANS-creditworthiness and cashflow
Which of the following doctrines prevents a person from insuring a neighbor's house? -
ANS-Doctrine of subrogation - Substitute
What is the definition of contribution? - ANS-A defendant that has paid more than his or
her share of the award has a claim against others.
What is the definition of indemnification? - ANS-Ability to financially restore property as
it was prior to incident.
Which of the following inventory systems is designed to record the actual costs
associated with the inventory using a physical count? - ANS-The perpetual inventory
system
, Which inventory system does not become part of count of goods to be sold. - ANS-The
periodic inventory system
Which inventory system is not on hand until needed - ANS-Just in time inventory system
In which of the following sections of the balance sheet is prepaid insurance recorded? -
ANS-Assets
Which of the following statements is generally true about the purchasing function today?
- ANS-Purchasing is evolving into strategic supply management.
The owner of a small boat rental company opened the business as a sole proprietorship
but has since decided to bring a friend into the business. It is best for the owner, who is
concerned about the cost of changing the form of the company's organization, to
change the business structure to a - ANS-partnership.
Kim, a young college student, has decided to start a business. She does not have much
capital but believes the business can generate capital through an initial public offering
(IPO). An IPO is categorized as - ANS-equity.
The marketing department of a small business wants to obtain information about how
and why a product continues to be successful after many years. Which of the following
research techniques will be most effective? - ANS-Requesting user surveys
Which of the following best describes management practices that promote adaptability
in a global business environment? - ANS-Changing strategies to accommodate local
conditions
Which of the following types of compensation has the greatest positive effect on
employee motivation and productivity? - ANS-Varied and attainable pay mix
To have the greatest impact on long-term employee productivity, businesses must -
ANS-conduct effective employee evaluations.
RXJW is a publicly traded company that is required by law to register its code of ethics
with the Securities and Exchange Commission and ensure that its senior financial
officers are aware of the policy. Which of the following mandates this requirement? -
ANS-Sarbanes-Oxley Act
