Question 1

Depreciation is based on which of the following assumptions?

Accepted Answer

A)  The period of utility of an asset is not fixed or determinable. 
B)  The value of an asset declines in a predictable manner over the period of utility. 
C)  The salvage value of an asset will not exist when the depreciation process is complete. 
D)  The value of an asset is not fixed or determinable. 
A)  The period of utility of an asset is not fixed or determinable. 
B)  The value of an asset declines in a predictable manner over the period of utility. 
C)  The salvage value of an asset will not exist when the depreciation process is complete. 
D)  The value of an asset is not fixed or determinable.

Question 2

The process of transforming materials,labor,and energy into goods or services is termed as _____.

Accepted Answer

A)  feedback 
B)  outflow 
C)  benchmarking 
D)  operations 
A)  feedback 
B)  outflow 
C)  benchmarking 
D)  operations

Question 3

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 4

What are the two major types of leases? Discuss the advantages and disadvantages of leasing.

Accepted Answer

There are two basic types of leases,oper

Question 5

_____ refers to the fixed,determinable period of utility of an asset.

Accepted Answer

A)  Useful life 
B)  Salvage value 
C)  Payback period 
D)  Disposal value 
A)  Useful life 
B)  Salvage value 
C)  Payback period 
D)  Disposal value

Question 6

Lily,a restaurant owner,is planning to invest in a multi-purpose ZS-13 baking oven.The oven costs $20,000 and will have a useful life of 10 years.The payback each year is $8,000.Assuming that the money is received evenly across the year,what will be the payback period if she decides to purchase the oven?

Accepted Answer

A)  1 year and 5 months 
B)  3 years and 3 months 
C)  2 years and 1 month 
D)  2 years and 6 months 
A)  1 year and 5 months 
B)  3 years and 3 months 
C)  2 years and 1 month 
D)  2 years and 6 months

Question 7

Define capital budgeting.Briefly explain the two most commonly used financial ratios for comparing investment alternatives including their advantages and disadvantages.

Accepted Answer

Capital budgeting is the process of deci

Question 8

The _____ is also called the reorder point.

Accepted Answer

A)  replacement value 
B)  disposal value 
C)  optimum stocking level 
D)  economic order quantity 
A)  replacement value 
B)  disposal value 
C)  optimum stocking level 
D)  economic order quantity

Question 9

_____ refers to the fixed and determinable value of an asset that will exist when the depreciation process is complete.

Accepted Answer

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

Question 10

Which of the following is a benefit of leasing?

Accepted Answer

A)  It is usually much easier to replace owned assets than it is to replace leased assets. 
B)  The cost of leasing an asset is less than the cost of purchasing it. 
C)  There are no restrictions on the use,maintenance,and disposal of leased assets. 
D)  An asset can be leased at a very low down payment. 
A)  It is usually much easier to replace owned assets than it is to replace leased assets. 
B)  The cost of leasing an asset is less than the cost of purchasing it. 
C)  There are no restrictions on the use,maintenance,and disposal of leased assets. 
D)  An asset can be leased at a very low down payment.

Question 11

Which of the following is an advantage of providing credit to customers?

Accepted Answer

A)  It reduces the need to borrow money. 
B)  It speeds up the receipt of cash. 
C)  It reduces the cost of selling. 
D)  It ensures all customers make on-time payments. 
A)  It reduces the need to borrow money. 
B)  It speeds up the receipt of cash. 
C)  It reduces the cost of selling. 
D)  It ensures all customers make on-time payments.

Question 12

Which of the following policies is a minimum standard for managing customer credit?

Accepted Answer

A)  Providing cash discounts to customers who delay payments 
B)  Continuing credit sales to customers who become significantly late in paying 
C)  Authorizing credit sales without any credit check to every individual customer 
D)  Filing suits and liens against the assets of customers who default on payment 
A)  Providing cash discounts to customers who delay payments 
B)  Continuing credit sales to customers who become significantly late in paying 
C)  Authorizing credit sales without any credit check to every individual customer 
D)  Filing suits and liens against the assets of customers who default on payment

Question 13

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 14

The total cost of obtaining an asset,including such costs as purchase price,transportation,installation,testing,and calibrating in order to ready it for its first productive use is termed as _____.

Accepted Answer

A)  replacement cost 
B)  cost of operating 
C)  cost of disposition 
D)  acquisition cost 
A)  replacement cost 
B)  cost of operating 
C)  cost of disposition 
D)  acquisition cost

Question 15

_____ is a process of communicating within or to an organization about how the outputs worked or were received.

Accepted Answer

A)  Productivity 
B)  Valuation 
C)  Feedback 
D)  Operations 
A)  Productivity 
B)  Valuation 
C)  Feedback 
D)  Operations

Question 16

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 17

Selling the rights to collect accounts receivable to an entity outside the business is called _____.

Accepted Answer

A)  factoring 
B)  pledging 
C)  reconciling 
D)  outsourcing 
A)  factoring 
B)  pledging 
C)  reconciling 
D)  outsourcing

Question 18

Which of the following is a feature of the perpetual inventory system?

Accepted Answer

A)  It is the method with the lowest cost for maintaining records. 
B)  It maintains a constant record of the receipt and sale of inventory. 
C)  It requires very little time for constant record keeping. 
D)  It is the process of physically counting inventories on a set schedule. 
A)  It is the method with the lowest cost for maintaining records. 
B)  It maintains a constant record of the receipt and sale of inventory. 
C)  It requires very little time for constant record keeping. 
D)  It is the process of physically counting inventories on a set schedule.

Question 19

Intangibility,inseparability,and perishability are the three characteristics of services that impact operations choices and decision making.

Accepted Answer

A) True 
 B)False

Depreciation is based on which of the following assumptions?

The process of transforming materials,labor,and energy into goods or services is termed as _____.

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

What are the two major types of leases? Discuss the advantages and disadvantages of leasing.

_____ refers to the fixed,determinable period of utility of an asset.

Define capital budgeting.Briefly explain the two most commonly used financial ratios for comparing investment alternatives including their advantages and disadvantages.

The _____ is also called the reorder point.

_____ refers to the fixed and determinable value of an asset that will exist when the depreciation process is complete.

Which of the following is a benefit of leasing?

Which of the following is an advantage of providing credit to customers?

Which of the following policies is a minimum standard for managing customer credit?

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

The total cost of obtaining an asset,including such costs as purchase price,transportation,installation,testing,and calibrating in order to ready it for its first productive use is termed as _____.

_____ is a process of communicating within or to an organization about how the outputs worked or were received.

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

Selling the rights to collect accounts receivable to an entity outside the business is called _____.

Which of the following is a feature of the perpetual inventory system?

Intangibility,inseparability,and perishability are the three characteristics of services that impact operations choices and decision making.

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

Marketing Plans: Saying How Youll Get Salespart Four: Cash, Accounting, and Finance in the Small Business

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

Achieving Success in the Small Business

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Exam 16: Assets: Inventory and Operations Management

Depreciation is based on which of the following assumptions?

The process of transforming materials,labor,and energy into goods or services is termed as _____.

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

What are the two major types of leases? Discuss the advantages and disadvantages of leasing.

_____ refers to the fixed,determinable period of utility of an asset.

Define capital budgeting.Briefly explain the two most commonly used financial ratios for comparing investment alternatives including their advantages and disadvantages.

The _____ is also called the reorder point.

_____ refers to the fixed and determinable value of an asset that will exist when the depreciation process is complete.

Which of the following is a benefit of leasing?

Which of the following is an advantage of providing credit to customers?

Which of the following policies is a minimum standard for managing customer credit?

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

The total cost of obtaining an asset,including such costs as purchase price,transportation,installation,testing,and calibrating in order to ready it for its first productive use is termed as _____.

_____ is a process of communicating within or to an organization about how the outputs worked or were received.

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

Selling the rights to collect accounts receivable to an entity outside the business is called _____.

Which of the following is a feature of the perpetual inventory system?

Intangibility,inseparability,and perishability are the three characteristics of services that impact operations choices and decision making.

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

Marketing Plans: Saying How Youll Get Salespart Four: Cash, Accounting, and Finance in the Small Business

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

Achieving Success in the Small Business

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