Question 1

Which of the following is not a benefit of correctly documenting your business processes?

Accepted Answer

A)  There should be less waste and scrap in your processes. 
B)  There should be fewer employee mistakes. 
C)  The process is self-sufficient and does not require much time to review or update. 
D)  Extensive documentation will make selling your business much easier. 
A)  There should be less waste and scrap in your processes. 
B)  There should be fewer employee mistakes. 
C)  The process is self-sufficient and does not require much time to review or update. 
D)  Extensive documentation will make selling your business much easier. C

Question 2

The amount of time it takes a business to earn back the funds it paid out to obtain a capital asset is referred to as the _____.

Accepted Answer

A)  payback period 
B)  synodic period 
C)  chargeback period 
D)  grace period 
A)  payback period 
B)  synodic period 
C)  chargeback period 
D)  grace period A

Question 3

Which of the following statements is not true of joint ventures?

Accepted Answer

A)  Joint ventures make economic sense when each party has limited use of an expensive asset. 
B)  Joint ventures are the most commonly used method of reducing the costs and risks of acquiring capital assets. 
C)  Some leasing companies have created an ownership structure similar to joint ventures,called fractional ownership. 
D)  A joint venture is a formalized partnership between two or more businesses for some specific purpose. 
A)  Joint ventures make economic sense when each party has limited use of an expensive asset. 
B)  Joint ventures are the most commonly used method of reducing the costs and risks of acquiring capital assets. 
C)  Some leasing companies have created an ownership structure similar to joint ventures,called fractional ownership. 
D)  A joint venture is a formalized partnership between two or more businesses for some specific purpose. B

Question 4

The purchase of inventory-typical with Internet-based businesses-only after a sale is made is called a _____.

Accepted Answer

A)  periodic inventory 
B)  micro inventory 
C)  perpetual inventory 
D)  point-of-sale system 
A)  periodic inventory 
B)  micro inventory 
C)  perpetual inventory 
D)  point-of-sale system

Question 5

A lease is simply a rental agreement that specifies a minimum period of time for which one must make rental payments.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements is true of documenting the operations of your business?

Accepted Answer

A)  Every business process does not have to be extensively documented. 
B)  You will not have to give up any personal control of your business,even if you have employees. 
C)  Businesses with no employees use a different process than do those businesses with employees. 
D)  A typical start to the task of documenting the processes of an operating business is to start from the bottom up. 
A)  Every business process does not have to be extensively documented. 
B)  You will not have to give up any personal control of your business,even if you have employees. 
C)  Businesses with no employees use a different process than do those businesses with employees. 
D)  A typical start to the task of documenting the processes of an operating business is to start from the bottom up.

Question 7

How can a business use its accounts receivable as a source of financing?

Accepted Answer

Accounts receivable are money that is ow

Question 8

Small businesses use the periodic inventory method because it:

Accepted Answer

A)  gives instant access to accurate inventory records. 
B)  records the receipt and sale of each item as it occurs. 
C)  meets the requirements of local and federal taxing agencies. 
D)  uses bar codes that are unique to each item of inventory. 
A)  gives instant access to accurate inventory records. 
B)  records the receipt and sale of each item as it occurs. 
C)  meets the requirements of local and federal taxing agencies. 
D)  uses bar codes that are unique to each item of inventory.

Question 9

Which of the following is not generally considered to be very useful for any purpose other than accounting and income taxes?

Accepted Answer

A)  Book value 
B)  Salvage value 
C)  Replacement value 
D)  Disposal value 
A)  Book value 
B)  Salvage value 
C)  Replacement value 
D)  Disposal value

Question 10

_____ are assets that are expected to provide economic benefits for periods of time greater than one year.

Accepted Answer

A)  Accounts receivables 
B)  Hard assets 
C)  Contingent assets 
D)  Capital assets 
A)  Accounts receivables 
B)  Hard assets 
C)  Contingent assets 
D)  Capital assets

Question 11

A lease in which at the end of the lease period the asset becomes the property of the lessee,possibly with an additional payment is called a(n)_____ lease.

Accepted Answer

A)  capital 
B)  leveraged 
C)  direct 
D)  operating 
A)  capital 
B)  leveraged 
C)  direct 
D)  operating

Question 12

Assigning a high value to inventory results in increased sales margin and reported profit,but at the price of paying increased income taxes.

Accepted Answer

A) True 
 B)False

Question 13

The three primary inventories of manufacturing are raw materials,work in process,and finished goods.

Accepted Answer

A) True 
 B)False

Question 14

The _____ methods define utility as being the net cash inflows that the asset will produce.

Accepted Answer

A)  residual income valuation 
B)  discounted cash flow valuation 
C)  inventory valuation 
D)  pre-money valuation 
A)  residual income valuation 
B)  discounted cash flow valuation 
C)  inventory valuation 
D)  pre-money valuation

Question 15

Which of the following is a disadvantage of renting capital assets?

Accepted Answer

A)  It does not protect a business from unexpected costs of repairs. 
B)  It is not easily available. 
C)  It requires the business to make regular,timely payments. 
D)  It requires a major cash investment. 
A)  It does not protect a business from unexpected costs of repairs. 
B)  It is not easily available. 
C)  It requires the business to make regular,timely payments. 
D)  It requires a major cash investment.

Question 16

Which of the following is a statistical technique that determines the size of inventory that a business must hold to minimize total inventory cost?

Accepted Answer

A)  Benchmarking 
B)  Factoring 
C)  Pull-push strategy 
D)  Economic order quantity 
A)  Benchmarking 
B)  Factoring 
C)  Pull-push strategy 
D)  Economic order quantity

Question 17

Disposal value is based on determining the price of either a new asset or a used asset for which there is an organized market.

Accepted Answer

A) True 
 B)False

Question 18

________ is the series of steps and activities required to complete a process.

Accepted Answer

A)  Work instructions 
B)  A procedure 
C)  Operations 
D)  GAAP 
A)  Work instructions 
B)  A procedure 
C)  Operations 
D)  GAAP

Question 19

A process is what a business does when it takes some raw material and converts it into a valuable output.This does not apply to service businesses.

Accepted Answer

A) True 
 B)False

Question 20

The primary advantage of the payback period is that:

Accepted Answer

A)  it calculates the amount required to attain a capital asset. 
B)  it incorporates the time value of money. 
C)  it allows easy comparisons of alternatives. 
D)  it incorporates all cash flows that occur after the payback period. 
A)  it calculates the amount required to attain a capital asset. 
B)  it incorporates the time value of money. 
C)  it allows easy comparisons of alternatives. 
D)  it incorporates all cash flows that occur after the payback period.

Which of the following is not a benefit of correctly documenting your business processes?

The amount of time it takes a business to earn back the funds it paid out to obtain a capital asset is referred to as the _____.

Which of the following statements is not true of joint ventures?

The purchase of inventory-typical with Internet-based businesses-only after a sale is made is called a _____.

A lease is simply a rental agreement that specifies a minimum period of time for which one must make rental payments.

Which of the following statements is true of documenting the operations of your business?

How can a business use its accounts receivable as a source of financing?

Small businesses use the periodic inventory method because it:

Which of the following is not generally considered to be very useful for any purpose other than accounting and income taxes?

_____ are assets that are expected to provide economic benefits for periods of time greater than one year.

A lease in which at the end of the lease period the asset becomes the property of the lessee,possibly with an additional payment is called a(n)_____ lease.

Assigning a high value to inventory results in increased sales margin and reported profit,but at the price of paying increased income taxes.

The three primary inventories of manufacturing are raw materials,work in process,and finished goods.

The _____ methods define utility as being the net cash inflows that the asset will produce.

Which of the following is a disadvantage of renting capital assets?

Which of the following is a statistical technique that determines the size of inventory that a business must hold to minimize total inventory cost?

Disposal value is based on determining the price of either a new asset or a used asset for which there is an organized market.

________ is the series of steps and activities required to complete a process.

A process is what a business does when it takes some raw material and converts it into a valuable output.This does not apply to service businesses.

The primary advantage of the payback period is that:

Small Business: Its Opportunities and Rewards

Small Business Entrepreneurs: Characteristics and Competencies

Small Business Environment: Managing External Relations

Small Business Ideas: Creativity, opportunity, and Feasibility

Small Business Entry: Paths to Part-Time Entrepreneurship

Small Business Entry: Paths to Full-Time Entrepreneurship

Small Business Strategies: Imitation With a Twist

Business Plans: Seeing Audiences and Your Business Clearly

Small Business Marketing: Product and Pricing Strategies

Small Business Promotion: Capturing the Eyes of Your Market

Small Business Distribution and Location

Small Business Accounting: Projecting and Evaluating Performance

Cash: Lifeblood of the Business

Small Business Finance: Using Equity, debt, and Gifts

Small Business Protection: Risk Management and Insurance

Legal Issues: Recognizing Your Small Business Needs

Human Resource Management: Small Business Considerations

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Exam 15: Assets: Inventory and Operations Management

Which of the following is not a benefit of correctly documenting your business processes?

The amount of time it takes a business to earn back the funds it paid out to obtain a capital asset is referred to as the _____.

Which of the following statements is not true of joint ventures?

The purchase of inventory-typical with Internet-based businesses-only after a sale is made is called a _____.

A lease is simply a rental agreement that specifies a minimum period of time for which one must make rental payments.

Which of the following statements is true of documenting the operations of your business?

How can a business use its accounts receivable as a source of financing?

Small businesses use the periodic inventory method because it:

Which of the following is not generally considered to be very useful for any purpose other than accounting and income taxes?

_____ are assets that are expected to provide economic benefits for periods of time greater than one year.

A lease in which at the end of the lease period the asset becomes the property of the lessee,possibly with an additional payment is called a(n)_____ lease.

Assigning a high value to inventory results in increased sales margin and reported profit,but at the price of paying increased income taxes.

The three primary inventories of manufacturing are raw materials,work in process,and finished goods.

The _____ methods define utility as being the net cash inflows that the asset will produce.

Which of the following is a disadvantage of renting capital assets?

Which of the following is a statistical technique that determines the size of inventory that a business must hold to minimize total inventory cost?

Disposal value is based on determining the price of either a new asset or a used asset for which there is an organized market.

________ is the series of steps and activities required to complete a process.

A process is what a business does when it takes some raw material and converts it into a valuable output.This does not apply to service businesses.

The primary advantage of the payback period is that:

Small Business: Its Opportunities and Rewards

Small Business Entrepreneurs: Characteristics and Competencies

Small Business Environment: Managing External Relations

Small Business Ideas: Creativity, opportunity, and Feasibility

Small Business Entry: Paths to Part-Time Entrepreneurship

Small Business Entry: Paths to Full-Time Entrepreneurship

Small Business Strategies: Imitation With a Twist

Business Plans: Seeing Audiences and Your Business Clearly

Small Business Marketing: Product and Pricing Strategies

Small Business Promotion: Capturing the Eyes of Your Market

Small Business Distribution and Location

Small Business Accounting: Projecting and Evaluating Performance

Cash: Lifeblood of the Business

Small Business Finance: Using Equity, debt, and Gifts

Small Business Protection: Risk Management and Insurance

Legal Issues: Recognizing Your Small Business Needs

Human Resource Management: Small Business Considerations

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