Exam 2: Business Processes and Accounting Information

A law firm signs a $700,000 mortgage note with a local bank for the purchase of an office building.This is an example of a(n):

Plans showing business activities intended to accomplish objectives during the next year are referred to as:

Fit for Fun,Inc.sells fitness equipment.The company has 75 stores located in malls throughout the country.The company recently engaged in the following activities.Identify each activity as part of the (B)Business Organization and Strategy Process (O)operating process,(CR)capital resources process (P)Performance Measurement and Management ______ a)Purchased 300 treadmills for resale. ______ b)Borrowed $50,000 from the bank. ______ c) Sold 45 stepping machines. ______ d)Purchased 10 new cash registers. ______ e)Made a $4,000 payment on the mortgage. ______ f)Purchased office supplies for cash. ______ g)Paid employees' salaries. ______ h)Developed operating budget. ______ i)Calculated ratio analysis. ______ j)The owners invested an additional $100,000 into the business.

Riga Corp borrowed $1,000,000 to buy a new manufacturing plant is part of their

Which of the following is part of the operating process?

A health-food retailer buys food for resale.This is an example of a(n):

Which of the following is not considered a subprocess of the Operating Process?

A bookcase manufacturer purchases brackets to install on the bookcases in production.This is an example of a(n):

Identify the ratio below that does not monitor non-value added time.

A corporation borrows $1,500,000 in cash from a bank to acquire a new building.This is an example of a(n).

Which of the following is not a factor in getting bank and book balances to reconcile?

Activities involving the purchase and sale of long-term assets as well as other major items used in a business's operation are referred to as:

Which of the following combination of quality measurement cost are incurred voluntarily?

Which one of the following processes is responsible for purchase and sale of long-term investments?

Activities involving obtaining necessary funds to purchase long-term assets,repay existing obligations,and provide a return for owners are referred to as:

Which is not part of the operating process?

Toccata Corporation purchased raw materials,transformed them into finished goods,and sold these goods to customers on account.Describe how the subprocesses of the operating process are impacted by these events.

Using the financial statements from the (instructor supplies the income statement and balance sheet of a company and insert name here)calculate each of the following ratios and briefly describe what the results indicate. Current Ratio Quick Ratio Gross Margin Ratio Return on Sales Ratio Debt to Equity Ratio Return on Investment Ratio Return on Owners' Equity Accounts Receivable Turnover Inventory Turnover Accounts Payable Turnover

Which of the following is considered value added time?

The process responsible for updating the information technology of a business is: