Question 1

Debts owed by a business are called

Accepted Answer

A)  assets. 
B)  expenses. 
C)  liabilities. 
D)  equities. 
E)  revenues. 
A)  assets. 
B)  expenses. 
C)  liabilities. 
D)  equities. 
E)  revenues.

Question 2

In your own words, describe the relationship between information and risk and how this relationship could impact the business decision-making process.

Accepted Answer

The relationship between information and

Question 3

The most common internal sources of data include company records, reports, managers and employees, and minutes of meetings.

Accepted Answer

A) True 
 B)False

Question 4

Revenues ― cost of goods sold ― expenses = net income characterizes which financial statement?

Accepted Answer

A)  Balance sheet 
B)  Statement of retained earnings 
C)  Statement of cash flows 
D)  Statement of financial position 
E)  Income statement 
A)  Balance sheet 
B)  Statement of retained earnings 
C)  Statement of cash flows 
D)  Statement of financial position 
E)  Income statement

Question 5

Because information rules must be checked out before a decision can be made, they lengthen the time required to analyze choices.

Accepted Answer

A) True 
 B)False

Question 6

Winshare Art Company has issued only common stock. Currently it has 10,000 shares outstanding. The value of the stock is shown as $20 per share. In addition, $100,000 of Winshare's earnings have been reinvested in the business since it was founded. What is Winshare's total owners' equity?

Accepted Answer

A)  $300,000 
B)  $200,000 
C)  $100,000 
D)  $2,000,000 
E)  $100,020 
A)  $300,000 
B)  $200,000 
C)  $100,000 
D)  $2,000,000 
E)  $100,020

Question 7

Long-term liabilities need not be repaid for at least one year.

Accepted Answer

A) True 
 B)False

Question 8

Data are always in numerical form.

Accepted Answer

A) True 
 B)False

Question 9

A management information system is a system that provides managers and employees with the information they need to perform their jobs as effectively as possible.

Accepted Answer

A) True 
 B)False

Question 10

All firms use the same management information system regardless of their size.

Accepted Answer

A) True 
 B)False

Question 11

A manager at the executive level responsible for ensuring that a firm has the equipment necessary to provide the information the firm's employees and managers need to make effective decisions is often called a(n)

Accepted Answer

A)  information expert. 
B)  technology expert. 
C)  MIS officer. 
D)  informaiton technology officer. 
E)  database manager. 
A)  information expert. 
B)  technology expert. 
C)  MIS officer. 
D)  informaiton technology officer. 
E)  database manager.

Question 12

How might the information needs of a marketing manager differ from those of an operations manager?

Accepted Answer

The information needs of a marketing man

Question 13

The basic resource from which plans are developed and decisions are made is called

Accepted Answer

A)  information. 
B)  data. 
C)  tabulations. 
D)  objectives. 
E)  statistics. 
A)  information. 
B)  data. 
C)  tabulations. 
D)  objectives. 
E)  statistics.

Question 14

____ is a firm's procedures for generating, using, and sharing the data and information contained in the firm's database.

Accepted Answer

A)  MIS 
B)  KM 
C)  IT 
D)  CPA 
E)  GAAP 
A)  MIS 
B)  KM 
C)  IT 
D)  CPA 
E)  GAAP

Question 15

A firm has $260,000 in assets and $158,000 in stockholders' equity. It owes $55,000 from a long-term loan, and this is its only long-term liability. This firm has ____ in total current liabilities.

Accepted Answer

A)  $55,000 
B)  $103,000 
C)  $47,000 
D)  $102,000 
E)  $213,000 
A)  $55,000 
B)  $103,000 
C)  $47,000 
D)  $102,000 
E)  $213,000

Question 16

Compare information and data. Why might a manager prefer information to data?

Accepted Answer

Information and data are closely related

Question 17

Salaries payable, accounts payable, and taxes payable are examples of

Accepted Answer

A)  expenses. 
B)  current liabilities. 
C)  current assets. 
D)  long-term liabilities. 
E)  owners' equity. 
A)  expenses. 
B)  current liabilities. 
C)  current assets. 
D)  long-term liabilities. 
E)  owners' equity.

Question 18

Selling expenses are considered to be a type of

Accepted Answer

A)  current liability. 
B)  general expense. 
C)  prepaid expense. 
D)  operating expense. 
E)  fixed liability. 
A)  current liability. 
B)  general expense. 
C)  prepaid expense. 
D)  operating expense. 
E)  fixed liability.

Question 19

The debts of a business that will be paid in one year or less are called its

Accepted Answer

A)  current liabilities. 
B)  expenses. 
C)  prepaid expenses. 
D)  current assets. 
E)  long-term liabilities. 
A)  current liabilities. 
B)  expenses. 
C)  prepaid expenses. 
D)  current assets. 
E)  long-term liabilities.

Question 20

Which of the following best describes the organization of a statement of cash flows?

Accepted Answer

A)  Assets = liabilities + stockholders' equity 
B)  Revenues ― expenses = net income 
C)  Operating, investing, and financing cash flows 
D)  Cash in, cash out 
E)  Payments ― receipts = cash 
A)  Assets = liabilities + stockholders' equity 
B)  Revenues ― expenses = net income 
C)  Operating, investing, and financing cash flows 
D)  Cash in, cash out 
E)  Payments ― receipts = cash

Exam 17: Using Management and Accounting Information

Debts owed by a business are called

In your own words, describe the relationship between information and risk and how this relationship could impact the business decision-making process.

The most common internal sources of data include company records, reports, managers and employees, and minutes of meetings.

Revenues ― cost of goods sold ― expenses = net income characterizes which financial statement?

Because information rules must be checked out before a decision can be made, they lengthen the time required to analyze choices.

Winshare Art Company has issued only common stock. Currently it has 10,000 shares outstanding. The value of the stock is shown as $20 per share. In addition, $100,000 of Winshare's earnings have been reinvested in the business since it was founded. What is Winshare's total owners' equity?

Long-term liabilities need not be repaid for at least one year.

Data are always in numerical form.

A management information system is a system that provides managers and employees with the information they need to perform their jobs as effectively as possible.

All firms use the same management information system regardless of their size.

A manager at the executive level responsible for ensuring that a firm has the equipment necessary to provide the information the firm's employees and managers need to make effective decisions is often called a(n)

How might the information needs of a marketing manager differ from those of an operations manager?

The basic resource from which plans are developed and decisions are made is called

____ is a firm's procedures for generating, using, and sharing the data and information contained in the firm's database.

A firm has $260,000 in assets and $158,000 in stockholders' equity. It owes $55,000 from a long-term loan, and this is its only long-term liability. This firm has ____ in total current liabilities.

Compare information and data. Why might a manager prefer information to data?

Salaries payable, accounts payable, and taxes payable are examples of

Selling expenses are considered to be a type of

The debts of a business that will be paid in one year or less are called its

Which of the following best describes the organization of a statement of cash flows?

Exploring the World of Business and Economics

A: Being Ethical and Socially Responsible

B: Being Ethical and Socially Responsible

A: Exploring Global Business

B: Exploring Global Business

Choosing a Form of Business Ownership

Small Business, Entrepreneurship, and Franchises

Understanding the Management Process

Creating a Flexible Organization

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating and Satisfying Employees and Teams

Enhancing Union-Management Relations

Building Customer Relationships Through Effective Marketing

A: Creating and Pricing Products That Satisfy Customers

B: Creating and Pricing Products That Satisfy Customers

Wholesaling, Retailing, and Physical Distribution

Developing Integrated Marketing Communications

Social Media, E-Business, and Accounting

Understanding Money, Banking, and Credit

Mastering Financial Management

A: Understanding Personal Finances and Investments

B: Understanding Personal Finances and Investments

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