GEB 1011 Midterm Exam
Questions with All Correct
Answers
What function is an employee of a firm conducting when he or she systematically
collects, analyzes, and reports the financial
information to the company in the form required to make decisions about a firm's
financing, investing, marketing, and
operating activities?
a. Tax preparation
b. Auditing
C. Accounting
d. Bookkeeping - Answer- C. Accounting
Today, most corporations include in their ________
their financial statements for recent years comparisons of the important elements of
their financial statements for recent years. - Answer- Annual reports
Firms require information on a variety of subjects so they can plan for the future,
implement the plans, and evaluate the
results against historical data. Which of the following managers needs information
regarding future sales levels, current
inventory levels, and the availability and cost of resources required to produce goods
and services?
a. Operations manager
b. Financial manager
C. Marketing manager
d. Human resources manager - Answer- A. Operations manager
Which of the following should be used to evaluate a firm's ability to pay its current
liabilities?
a. Financial ratio
b. Return on sales
c. Current ratio
d. Inventory turnover - Answer- C. Current ratio
As part of the accounting process, employees provide managers and employees within
the organization with information
, needed to determine the cost of producing specific products or services. This
information is used to evaluate current expenses
and to compare them to historic data, international data, and data from suppliers,
subcontractors (if any), and other
processers (if any) to determine if a less expensive alternative is available that will
generate the same product quality. What
specific type of accounting is being performed in the beginning of this process?
a. Financial accounting
b. Government accounting
c. Managerial accounting
D. Cost accounting. - Answer- D. Cost accounting
When a lender seeks collateral for a loan it can use almost any asset as security, but
prefers ______________ when seeking tangible security and may insist that it be stored
in a public warehouse with the lender keeping the warehouse receipt. - Answer- finished
goods
When individuals use their home computers to buy and sell stock that is not listed on a
securities exchange, they are
participating in the ________ which has existed since long before home computers
were
invented - Answer- over-the-counter market
In the traditional approach, each new budget is based on the dollar amounts contained
in the budget for the
preceding year; however, in a(n) ________ every expense in every budget must be
justified. - Answer- Zero-base budget
When a business purchases goods and pays for them with a written order for a bank to
pay the seller a stated amount of
money on a specific date, what has it provided for payment?
A. Bill of lading
b. Warehouse receipt
c. Letter of credit
d. Banker's acceptance - Answer- D. Banker's acceptance
______ refers to the time lag between the actual production of goods and when the
goods are sold. - Answer- Speculative production
Typical job titles in finance include chief financial officer, vice-president of finance, bank
officer, consumer credit officer,
financial analyst, financial planner, loan officer, insurance analyst, and investment
account executive. Which of the following
is not one of the qualifications to have a career in finance?
a. Background in finance, accounting, or mathematics
b. Know how to use a computer to analyze data
Questions with All Correct
Answers
What function is an employee of a firm conducting when he or she systematically
collects, analyzes, and reports the financial
information to the company in the form required to make decisions about a firm's
financing, investing, marketing, and
operating activities?
a. Tax preparation
b. Auditing
C. Accounting
d. Bookkeeping - Answer- C. Accounting
Today, most corporations include in their ________
their financial statements for recent years comparisons of the important elements of
their financial statements for recent years. - Answer- Annual reports
Firms require information on a variety of subjects so they can plan for the future,
implement the plans, and evaluate the
results against historical data. Which of the following managers needs information
regarding future sales levels, current
inventory levels, and the availability and cost of resources required to produce goods
and services?
a. Operations manager
b. Financial manager
C. Marketing manager
d. Human resources manager - Answer- A. Operations manager
Which of the following should be used to evaluate a firm's ability to pay its current
liabilities?
a. Financial ratio
b. Return on sales
c. Current ratio
d. Inventory turnover - Answer- C. Current ratio
As part of the accounting process, employees provide managers and employees within
the organization with information
, needed to determine the cost of producing specific products or services. This
information is used to evaluate current expenses
and to compare them to historic data, international data, and data from suppliers,
subcontractors (if any), and other
processers (if any) to determine if a less expensive alternative is available that will
generate the same product quality. What
specific type of accounting is being performed in the beginning of this process?
a. Financial accounting
b. Government accounting
c. Managerial accounting
D. Cost accounting. - Answer- D. Cost accounting
When a lender seeks collateral for a loan it can use almost any asset as security, but
prefers ______________ when seeking tangible security and may insist that it be stored
in a public warehouse with the lender keeping the warehouse receipt. - Answer- finished
goods
When individuals use their home computers to buy and sell stock that is not listed on a
securities exchange, they are
participating in the ________ which has existed since long before home computers
were
invented - Answer- over-the-counter market
In the traditional approach, each new budget is based on the dollar amounts contained
in the budget for the
preceding year; however, in a(n) ________ every expense in every budget must be
justified. - Answer- Zero-base budget
When a business purchases goods and pays for them with a written order for a bank to
pay the seller a stated amount of
money on a specific date, what has it provided for payment?
A. Bill of lading
b. Warehouse receipt
c. Letter of credit
d. Banker's acceptance - Answer- D. Banker's acceptance
______ refers to the time lag between the actual production of goods and when the
goods are sold. - Answer- Speculative production
Typical job titles in finance include chief financial officer, vice-president of finance, bank
officer, consumer credit officer,
financial analyst, financial planner, loan officer, insurance analyst, and investment
account executive. Which of the following
is not one of the qualifications to have a career in finance?
a. Background in finance, accounting, or mathematics
b. Know how to use a computer to analyze data
