VCU BUSN 201 Final Exam 2025

Data - -numerical or verbal descriptions that usually result from some sort of measurement Information - -data that is used for a purpose, like comparing wages Insight - -identify patters/trends actionable recommendations/observations supported by the data Management Information System (MIS) - -integrated database capable of receiving, organizing, summarizing, and calculating data and information and providing information to managers networked into the system Function of Management Information System - - 1. Collects data 2. Stores data 3. Updates data 4. Processes data into information 5. Presents information to users Statistics - -measure that summarizes a particular characteristic of an entire group of numbers Accounting - -process of systematically collecting, analyzing, and reporting financial information Managerial accounting - -provides information needed to make decisions about firm's financing, investing, marketing and operating activities Financial accounting - -generates financial statements and reports for interested people outside an organization Accounting equation is - -Assets= Liabilities+ Owners' Equity Double-entry bookkeeping system - -each financial transaction is recorded as two separate accounting entries to maintain the balance of the accounting equation Annual report - -Report distributed to stockholders and other interested parties that describes a firm's operating activities and its financial condition Balance sheet - -summary of the dollar amounts of a firm's assets, liabilities, and owners' equity accounts at the end of a specific accounting period VCU Liquidity - -ease with which it can be converted to cash Current assets - -can quickly be converted into cash or that will be used in one year or less Fixed assets - -will be held or used for a period longer than one year Intangible assets - -do not exist physically, but have a value based on the rights or privileges they confer on the firm Current liabilities - -debts to be repaid in one year or less long-term liabilities - -debts that need not to repaid for at least one year Retained earnings - -Profits not distributed to stockholders Revenue - -dollar amounts earned by a firm from selling goods, providing services, or performing business activities Gross sales - -total dollar amount of all goods and services sold during the accounting period Net sales - -actual dollar amounts received by a firm for the goods and services it has sold, after adjustments for returns, allowances and discounts Cost of goods sold= - -beginning inventory+ net purchases - ending inventory Gross profit= - -firm's net sales- cost of goods sold Operating expenses - -all business costs other than the cost of goods sold Net income - -occurs when revenues exceed expenses Net loss - -occurs when expenses exceed revenue Financial ratios - -numbers that show the relationship between two elements of a firm's financial statements Examples of short term financing needs - --Cash-flow problems -Monthly expenses -Current inventory needs -Unexpected emergencies Examples of long-term financing needs - --Business start-up costs -Mergers and acquisitions VCU -New product development Return on sales - -Return on sales= net income after taxes/Net sales Current ratio - -Current ratio= Current assets/ current liabilities Inventory turnover= - -Inventory turnover= Cost of goods sold/Average inventory Intensive distribution - -the use of all available outlets for a product Selective distribution - -the use of only a portion of the available outlets for a product in each geographic region Exclusive distribution - -the use of only a single retail outlet for a product in a large geographic area Supply chain management - -long-term partnership among channel members working together to create a distribution system Merchant wholesaler - -middleman that purchases goods in large quantities and then sells them to other wholesalers or retailers and to institutional, farm, government, or professional users Three steps of financial planning - - 1. Establish organizational goals and objectives 2. Budget the money needed to accomplish the goals and objectives 3. Identify the sources of funds Equity capital - -money received from the owners of from the sale of shares of ownership in a business Debt capital - -borrowed money obtained through loans or various types Unsecured financing - -financing not backed by collateral Trade credit - -financing extended by a seller who does not require immediate payment Promissory notes - -written pledge by a borrower to pay a certain sum of money to a creditor at a specified future date Full-service wholesaler - -performs the entire range of wholesaler functions, including delivering goods, supplying, warehousing, and arranging for credit, supporting promotional activities, and providing gen