Which of the following is NOT a reason credit is marketed so heavily

credit use is not socially accepted in the United States

Horizontal Integration allows a company to

Combine with othercompanies in a similar business

Early banking activities in ancientcivilizations included:

Coins made from precious metals

Net Present Value (NPV) calculates

Calculates value of investment minus initial investment

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Business Finance Final Exam Review

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Business Finance Final Exam. This review will serve as your study guide for the exam. Review this Quiz and you will be successful.

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Questions 82

Answers

1
A set of processes, people, and equipment for converting data into information:
Operating income
Financial Leverage
Information system
Financial Ratios
2
Accounting procedure that recognizes revenues and expenses when they are incurred is known as:
Expense and revenue matching
Full disclosure
The Accounting cycle
Accrual accounting
3
The process of selecting long-term assets, such as equipment and buildings
Capital Budgeting
ForecastBudgeting
PrimaryBudgeting
StateBudgeting
4
Which of the following is NOT a reason credit is marketed so heavily
There is strong consumer demand for big ticket items
credit use is not socially accepted in the United States
The credit industry has become extremely profitable
Credit laws in the United States were relax
5
A statement of financial performance issued at the end of a fiscal year
financial ratios
financial leverage
annual report
operating income
6
An initial public offering refers to:
A company going public
Doublingthe number of shares of stock
Issuingforeign bonds
Sellingstock without using an investment banker
7
According to financial theory, the major goal of a business organization should be:
A high market value
HigherSales
Lowercustomer complaints
Alow level of debt
8
These assets commonly include: trademarks,brand names, copyrights, patents, and software:
Intellectual Property
IntelligentProperty
IntangibleProperty
EntanglementProperty
9
Uncertainty that an expected profit will not be achieved:
Resources
Financial Risk
Economics
Stock Market
10
A Statement of financial performance issued at the end of a fiscal year:
Information System
Equities
Retained earnings
Annual Report
11
Amounts Owed that need to be paid within the next year:
AccountPayable
CurrentLiabilities
AccountsReceivable
LiabilityAccounts
12
A long plan that outlines in broad terms the firms basic strategy for the next 5to 10 years:
ProposedPlan
PrimaryPlan
Short-termplan
StrategicPlan
13
Which of the following is a responsibility of fiancé rather that accounting?
Financial Leverage
Operating income
Information system
Financial Ratios
14
Amount paid for the privilege of borrowing money
interest
budget discrepancies
assets
balance sheet
15
A dividend paid in the form of additional shareof stock rather than cash
Companydividend
Moneydividend
Investmentdividend
Stock Dividend
16
____________ agreement in which a borrowerreceives something of value for a promise to repay
Profit
Acontract
Apayment
Credit
17
Situations in which the acceptance of one project does not allow acceptance of others:
PermanentProject
Mutually Exclusive Project
ProprietaryProject
PersonalProject
18
______________ is a legal agreement to useproperty that belongs to another person.
Borrowing
Leasing
Financing
Renting
19
A tool used for planning cash inflows and outflows
Primarybudget
Discretionarybudget
Secondarybudget
Cash budget
20
A tool used for planning cash inflows and outflows:
Discretionarybudget
Secondarybudget
Primarybudget
Cashbudget
21
Unfinished goods used by a manufacturer to create a finished product:
AssociatedMaterials
IndirectMaterials
ProposedMaterials
DirectMaterials
22
A form that documents each employee’s pay history:
Time-On-ClockHistory
Payroll Record
WorkCompensation Record
HourlyWage Record
23
When creating a national bank, a charter must beobtained from:
Astate banking regulatory agency
TheFederal Deposit Insurance Corporation
The Federal Reserve
TheComptroller of Currency
24
A dividend paid in the form of additional share of stock rather than cash:
Companydividend
StockDividend
Moneydividend
Investmentdividend
25
Decline in the value of an asset
depreciation
time value of money
creditor
collateral
26
Investment instrument representing ownership of a debt: Investment instrument
Finance
Bond
Security
Liquidity
27
The interest rate used to evaluate a capital project:
Costof Capital
Capital Cost Budget
Costof Equity Budget
CapitalExpenditure Budget
28
Offers of ownership interest to investors:
Financial Leverage
Equity Financing
Annual Report
Financial Ratios
29
A(n) ________? ___________ bond is issued by the state and local governments:
An import
A Sales
An income
A property
30
The discount rate at which the net present valueis zero:
DiscountRate of Return
Internal Rate of Return
ExternalRate of Return
SocialRate of Return
31
A company in which decisions are made by top level managers
Centralized
Decentralized
Vertical
Horizontal
32
Commitment to completing all tasks thoroughly and with the highest level of quality:
Chief executive director
Financial ratios
Due Care
Information integrity
33
The construction or purchase of long-term assets, such as buildings and equipment
ResidualProject
PrimaryProject
FinancialProject
Capital Project
34
_____________ is a signed written promise to borrow money between a borrower and a lender:
LendingDevice
Lineof Credit
CreditAdvance
Promissory Note
35
Best return that could be earned on assets the firm already owns
AdditionalCost
Opportunity Cost
SupplementCost
PrimaryCost
36
Horizontal Integration allows a company to
Providelocal managers with decision making authority
Combine with othercompanies in a similar business
Reducerisks by selling a wide variety of products
Involved with different stages of production distribution
37
A system that electronically transfer net pay into an employee’s bank account:
DirectDeposit
DigitalPayment Wire
ElectronicTransfer
WireTransfer
38
Funds due from a customer:
SpotRate
Acredit period
Accounts Receivable
Discountedpaycheck
39
A(n) ___________? __________ tax is a common source of revenue for state and local governments:
Sales tax
Savings
Municipal
Local
40
A legal agreement created when one party manageproperty for the benefit of another is:
DirectDeposit
Trust
Safe-depositbox
DebitCard
41
Amount of money borrowed
trend analysis
liabilities
capital budget
principal
42
Electronic banking service that would beused to transfer funds each month for a mortgage is:
Directdeposit
Prepaiddebit card
Automatic bill payment
Point-of-salepayment
43
The receptionist of credit is known as the:
Customer
Debtor
Creditor
Payee
44
Early banking activities in ancientcivilizations included:
Creditcards
Coins made from precious metals
Checkingaccounts that earned interest
Onlinebanking
45
Wages or salary along with other financial benefits paid to employees:
PieceRate
DirectCompensation
Compensation
IndirectCompensation
46
Treasury bills, Treasury notes, and Treasury bonds are issued by the _____ ________:
County
City
State
Federal
47
Net Present Value (NPV) calculates
Calculates value of investment minus initial investment
Value of cash flows for a project minus initial investment.
Amount of money owed to creditors minus liabilities.
Noneof the Above.
48
The best return that could be earned on assetsa firm already owns
SupplementCost
AdditionalCost
OpportunityCost
PrimaryCost
49
Compensation earned by salespeople or others as a percentage of sales:
Commodities
Commissary
ComplimentaryFinancing
Commission
50
Uncertainty that an expected profit will not be achieved:
Financial return
Foreign Currency
Financial risks
Capital markets
51
_____________ is an agreement that allows acompany to obtain additional loans without a
Loan
MutualFund
Line of Credit
Allotment
52
To increase the money supply, the Fed would:
Raisethe discount rate
Sellgovernment securities
Lowerthe discount rate
Raise the reserverequirement
53
Taxes are collected by the _______? _______ component of a financial system
Business
Agency
Government
Consumer
54
The federal debt security with the longestmaturity is the:
Treasury bond
Municipalbond
Treasurynote
Treasurybill
55
Difference between current assets and current liabilities
direct deposit
finished goods
variable cost
working capital
56
An example of a deposit institution is a:
An electric bill
Advertising
Commercial Bank
A truck
57
____________ is unsecured, short-term debtinstruments issued by corporations
RetailLoan
PromissoryNote
Liabilities
Commercial Paper
58
An investment that allows a person to own avariety of companies is called
acorporate bond
preferredstock
municipalbond
mutual fund
59
The combination of a low cost of capital and maximum market value:
Noneof the Above
OptimalCapital Structure
CapitalExpenditure Structure
PrimaryResponse Capital Structure
60
Which of the following is not considered to be ashort-term credit?
Commercial paper
Promissorynote
Mortgagenote
Lineof credit
61
Opportunity cost is sometimes called:
all the above
risk management
a personal financial goal
a trade-off
62
_________ bond allows investors toexchange the bond for common stock in a company:
Convertible
Mortgage
Debenture
Callable
63
Business structure allows company decisions to be made at lower levels
PrimaryOrganization
Noneof the Above
DecentralizedOrganization
CentralizedOrganization
64
Security Representing ownership in a corporation:
Stock
Tax Revenue
Property Tax
Money
65
Plan that outlines in broad terms the firms basic strategy for the next 5 to 10
PrimaryPlan
Short-termplan
ProposedPlan
Strategic Plan
66
An expense that has been paid that will not affect capital decisions:
PresentCost
FutureCost
Sunk Cost
PastCost
67
When a company first issues shares of a stock,it is referred to as the _____ market?
Secondary
Primary
Stock
Bond
68
Common Stock holders have the right to:
Vote for the members ofthe board of directors
Receivea set amount of dividends
Receivepayments before preferred stockholders
Converttheir stock into other types of securities
69
A common benefit of debt is:
Interest payments reducethe amount of taxes
Stockholdersmay not receive their dividends
Lowerrisk than equity
Reducedchance of company bankruptcy
70
The first step of the personal financial planning process is to:
Determine your current situation
Review your progress
Create an action plan
Set financial goals
71
Organization likely to meet local needs of a country improving economic situations would be the
RegionalDevelopment Bank
InternationalMonetary Fund
Organization of EconomicCooperation and Development
WorldBank
72
When a company changes the number shares ofstock to bring the market price down
Aninitial public offering
Sellingshort
Amutual fund
A Stock split
73
To determine an appropriate level of working capital, a company might calculate its:
CapitalFunding
CurrentRatio
FiscalFinancial Analysis
CreditCard Funding
74
Items in various stages of completion:
Workin Process
Structuresin Process
Analysisin Process
Materialsin Process
75
Established direction for the financial plans of a business
interest rate
Migos
business financial goals
Capital budget
76
An example of a commercial banking service is:
Bridge loan
Anindividual checking account
Safedeposit box
Ahome equity line of credit
77
Amounts owed to suppliers and others for items bought on credit:
AccountsReceivable
CreditCard Accounts
AccountsPayable
LiabilityAccounts
78
Interstate commerce refers to business:
Within the same year
In the same city
In more than one state
In more than one country
79
The ability of an organization to meet its financial obligation as they become due
Accounting Transaction
Annual report
Solvency
Accounting Cycle
80
Loans that have no specific collateral
credit terms
unsecured loan
working capital
payroll record
81
Items of value in an organization that will likely be converted to cash within a year are:
FinancialAssets
CashControl Assets
Current Assets
AccountsReceivable Assets
82
Steps completed to ensure the accuracy of accounting records:
Information Integrity
Ration Analysis
Due Care
Accounting Cycle

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