MGT 8803

What are the three forms of business? correct answer: Proprietorship, partnership, and corporations A proprietorship/partnership has limited liability? correct answer: False What are the accounting assumptions? correct answer: Separate entity, consistent unit of measurement (currency), going concern, periodicity, and materiality Materiality correct answer: only information that would influence the decisions of a reliant party need be disclosed Periodicity correct answer: presume...

3 factors that effect planning of organization correct answer: 1) organization level (more heirarchy better with more stability) 2) degree of uncertainty (more uncertain, shorter planning horizon) 3) length of future commitments (planning horizon should be as long as length of longest commitment by management 4 functions of management correct answer: 1) planning: business goals 2) organizing: allocating resources 3) leading: coordinating and directing 4) controlling: observe and analyz...

Unit of measurement 3. Going concern 4. Periodicity 5. Materiality What does materiality mean? correct answer: The only information that needs to be disclosed in financial statements is information that will be useful for those who rely on the financial statements to make decisions. What are the qualities of financial statements? (6) correct answer: 1. Understandability 2. Timeliness 3. Full disclosure 4. Comparability 5. Objectivity 6. Decision relevance What are the three ba...

Marketing Strategy correct answer: Finding opportunities and developing profitable strategies to capitalize on those opportunities: Specifies a target market and related marketing mix. 5 Cs of Marketing correct answer: Customer: buyers with needs the company aims to fulfill Company: goods or services provider fulfilling customer need Competitors: Orgs aiming to fulfill the same need as company Collaborators: external entities that work with company to create value Context: Environmen...

A balance sheet shows: a. Dividends distributed to stockholders b. Operating expenses for the period c. Earnings per share for the period d. Claims owners have against the assets of the firm e. Sales revenue correct answer: d. Claims owners have against the assets of the firm Which of the following would not be a liability on the balance sheet? a. Depreciation b. Deferred revenue c. Accounts payable d. Wages payable e. Dividends payable correct answer: a. Depreciation Which...

Which one of the following is reported on the Balance Sheet at current market value? a) Accounts Receivable b) Buildings c) Treasury Stock d) Land e) Marketable Securities correct answer: e) Marketable Securities The form of business organization that is legally separate from its owners is a: correct answer: Corporation A clean financial statement audit opinion will state that the financial statements are guaranteed to be accurate... TRUE OR FALSE? correct answer: FALSE Acco...

Why are financial ratios used? correct answer: Used to enable financial statement users to examine how a firm has performed relative to its peers and relative to its own historical performance. What does differences in ratios for the two companies in the same industry indicate? correct answer: It can be a result of: 1) Different product market strategy 2) Management team effectiveness 3) Different financial strategies What is Return on Equity (ROE)? correct answer: = Net Income / Boo...

cash correct answer: Current Asset (BS) Deferred Revenue correct answer: Current Liability (BS) Treasury Stock correct answer: Contra-Equity (BS) Cost of Goods Sold correct answer: Expense (IS) Interest Expense correct answer: Expense (IS) Sales correct answer: Revenue (IS) Sales Discounts correct answer: Contra-Revenue (IS) Sales Returns correct answer: Contra-Revenue (IS) Discounts on Bonds Payable correct answer: Contra - Liability (BS) Inventory correct an...

Promotion Types correct answer: 1. personal selling 2. mass selling 3. sales promotion Marketing Mix Levers correct answer: 4 P's - product, place, price, promotion Accumulating correct answer: Collecting products from many small producers Acquisition correct answer: where the company converts a prospect into a customer, meaning they are actually using their offerings and paying for them Activities correct answer: identify what people do and are objectively observable Adop...

Proprietorship correct answer: Single Owner; unlimited liability & no taxation Partnership correct answer: More than one owner; unlimited liability & no taxation Corporation correct answer: A business owned by stockholders (shareholders -> board of directors --> top managers); limited liability & taxation Publicly traded or privately held Assumptions of Financial Accounting correct answer: Separate entity, unit of measurement, going concern, periodicity, materiality Goin...