Question 1

Credit management involves:

Accepted Answer

A)  forecasting sales and allocating expenses to achieve them. 
B)  developing new products to achieve a deeper market penetration. 
C)  deciding how customers will pay for purchases. 
D)  examining a company's financial records. 
A)  forecasting sales and allocating expenses to achieve them. 
B)  developing new products to achieve a deeper market penetration. 
C)  deciding how customers will pay for purchases. 
D)  examining a company's financial records.

Question 2

Oral reports are the most prevalent type of control used in small firms and provide two-way communication.

Accepted Answer

A) True 
 B)False

Question 3

If a company turns its inventory over too slowly, it is most likely to be keeping obsolete or deteriorating goods.

Accepted Answer

A) True 
 B)False

Question 4

_____ is the percentage of net profit the owners' equity earns before taxes.

Accepted Answer

A)  Return on net assets 
B)  Surplus value 
C)  Return on equity 
D)  Profit margin 
A)  Return on net assets 
B)  Surplus value 
C)  Return on equity 
D)  Profit margin

Question 5

Internal audits furnish the owner(s), creditors, potential and current investors, and regulatory agencies with information on the company's financial status and operations.

Accepted Answer

A) True 
 B)False

Question 6

Describe the different types of budgets. Provide examples for each type.

Accepted Answer

The three most important types of budget

Question 7

Taxes are not levied on the transfer of ownership of businesses.

Accepted Answer

A) True 
 B)False

Question 8

Working capital can be calculated by subtracting current assets from total assets.

Accepted Answer

A) True 
 B)False

Question 9

The current ratio shows how easily a company can pay its current obligations.

Accepted Answer

A) True 
 B)False

Question 10

How is cash balance calculated at the end of a month?

Accepted Answer

A)  By adding balance at beginning of month and total cash receipts and subtracting total cash payments 
B)  By adding balance at beginning of month and total cash payments and subtracting total cash receipts 
C)  By adding total cash receipts and total cash payments and subtracting balance at beginning of month 
D)  By adding balance at beginning of month, total cash receipts, and total cash payments 
A)  By adding balance at beginning of month and total cash receipts and subtracting total cash payments 
B)  By adding balance at beginning of month and total cash payments and subtracting total cash receipts 
C)  By adding total cash receipts and total cash payments and subtracting balance at beginning of month 
D)  By adding balance at beginning of month, total cash receipts, and total cash payments

Question 11

List some of the factors contributing to a firm's poor performance.

Accepted Answer

Students' answers will vary. Poor perfor

Question 12

A(n) _____ budget forecasts sales and allocates expenses for achieving them.

Accepted Answer

A)  capital 
B)  operating 
C)  revenue 
D)  cash flow 
A)  capital 
B)  operating 
C)  revenue 
D)  cash flow

Question 13

Which of the following constitute taxable income?

Accepted Answer

A)  Total revenues plus deductible expenses 
B)  Total revenues minus dividends paid 
C)  Total revenues plus dividends paid 
D)  Total revenues minus deductible expenses 
A)  Total revenues plus deductible expenses 
B)  Total revenues minus dividends paid 
C)  Total revenues plus dividends paid 
D)  Total revenues minus deductible expenses

Question 14

An audit of a company consists of a formalized, methodical study, examination, and review of its financial records.

Accepted Answer

A) True 
 B)False

Question 15

Define feedback. What forms of feedback can a small business owner obtain to analyze the actual performance of its operations?

Accepted Answer

Feedback is the response a receiver give

Question 16

Which of the following is a characteristic of an effective control system?

Accepted Answer

A)  It should not be the responsibility of any one individual. 
B)  It should be outsourced. 
C)  It should indicate cause-and-effect relationship. 
D)  It should not be quantifiable. 
A)  It should not be the responsibility of any one individual. 
B)  It should be outsourced. 
C)  It should indicate cause-and-effect relationship. 
D)  It should not be quantifiable.

Question 17

Which of the following best describes a collection period ratio?

Accepted Answer

A)  Long-term liability divided by working capital 
B)  Accounts receivable divided by average daily credit sales 
C)  Net income divided by average shareholders' equity 
D)  Net profit divided by net sales 
A)  Long-term liability divided by working capital 
B)  Accounts receivable divided by average daily credit sales 
C)  Net income divided by average shareholders' equity 
D)  Net profit divided by net sales

Question 18

Owners of small businesses do not have to pay personal taxes on their salaries and other ownership-related income they withdraw from the business.

Accepted Answer

A) True 
 B)False

Question 19

Information on actual operational performance comes through some form of feedback.

Accepted Answer

A) True 
 B)False

Question 20

Effective control systems should be generally acceptable to those involved with implementing them.

Accepted Answer

A) True 
 B)False

Credit management involves:

Oral reports are the most prevalent type of control used in small firms and provide two-way communication.

If a company turns its inventory over too slowly, it is most likely to be keeping obsolete or deteriorating goods.

_____ is the percentage of net profit the owners' equity earns before taxes.

Internal audits furnish the owner(s), creditors, potential and current investors, and regulatory agencies with information on the company's financial status and operations.

Describe the different types of budgets. Provide examples for each type.

Taxes are not levied on the transfer of ownership of businesses.

Working capital can be calculated by subtracting current assets from total assets.

The current ratio shows how easily a company can pay its current obligations.

How is cash balance calculated at the end of a month?

List some of the factors contributing to a firm's poor performance.

A(n) _____ budget forecasts sales and allocates expenses for achieving them.

Which of the following constitute taxable income?

An audit of a company consists of a formalized, methodical study, examination, and review of its financial records.

Define feedback. What forms of feedback can a small business owner obtain to analyze the actual performance of its operations?

Which of the following is a characteristic of an effective control system?

Which of the following best describes a collection period ratio?

Owners of small businesses do not have to pay personal taxes on their salaries and other ownership-related income they withdraw from the business.

Information on actual operational performance comes through some form of feedback.

Effective control systems should be generally acceptable to those involved with implementing them.

Starting Your Small Business

Family-Owned Businesses

Forms of Ownership of Small Businesses

Maintaining Good Government Relations and Business Ethics

Becoming the Owner of a Small Business

Planning, Organizing, and Managing a Small Business

How to Obtain the Right Financing for Your Business

Developing Marketing Strategies

Promoting and Distributing

How to Obtain and Manage Human Resources and Diversity in Small Companies

How to Maintain Relationships With Your Employees and Their Representatives

Obtaining and Laying Out Operating Facilities

Purchasing, Inventory, and Quality Control

Basic Financial Planning

Using Computer Technology in Small Businesses

Risk Management, Insurance, and Crime Prevention

Filters

Exam 15: Budgeting and Controlling Operations and Taxes

Credit management involves:

Oral reports are the most prevalent type of control used in small firms and provide two-way communication.

If a company turns its inventory over too slowly, it is most likely to be keeping obsolete or deteriorating goods.

_____ is the percentage of net profit the owners' equity earns before taxes.

Internal audits furnish the owner(s), creditors, potential and current investors, and regulatory agencies with information on the company's financial status and operations.

Describe the different types of budgets. Provide examples for each type.

Taxes are not levied on the transfer of ownership of businesses.

Working capital can be calculated by subtracting current assets from total assets.

The current ratio shows how easily a company can pay its current obligations.

How is cash balance calculated at the end of a month?

List some of the factors contributing to a firm's poor performance.

A(n) _____ budget forecasts sales and allocates expenses for achieving them.

Which of the following constitute taxable income?

An audit of a company consists of a formalized, methodical study, examination, and review of its financial records.

Define feedback. What forms of feedback can a small business owner obtain to analyze the actual performance of its operations?

Which of the following is a characteristic of an effective control system?

Which of the following best describes a collection period ratio?

Owners of small businesses do not have to pay personal taxes on their salaries and other ownership-related income they withdraw from the business.

Information on actual operational performance comes through some form of feedback.

Effective control systems should be generally acceptable to those involved with implementing them.

Starting Your Small Business

Family-Owned Businesses

Forms of Ownership of Small Businesses

Maintaining Good Government Relations and Business Ethics

Becoming the Owner of a Small Business

Planning, Organizing, and Managing a Small Business

How to Obtain the Right Financing for Your Business

Developing Marketing Strategies

Promoting and Distributing

How to Obtain and Manage Human Resources and Diversity in Small Companies

How to Maintain Relationships With Your Employees and Their Representatives

Obtaining and Laying Out Operating Facilities

Purchasing, Inventory, and Quality Control

Basic Financial Planning

Using Computer Technology in Small Businesses

Risk Management, Insurance, and Crime Prevention

Filters