Bus Admin - Ch 17-18 (1)

Question 1

A disadvantage for telecommuters is that their companies may lower their salary due to saving money by not commuting.

Accepted Answer

False

Question 2

The debts of company are called __________.

Accepted Answer

liabilities

Question 3

A worm is a special virus that invades a computer network and multiplies itself as it spreads throughout the network.

Accepted Answer

True

Question 4

A financial plan can be used to attract investors.

Accepted Answer

True

Question 5

Everyone involved in a business should understand some of the basics of accounting.

Accepted Answer

True

Question 6

A financial plan explains how a business will manage its records.

Accepted Answer

True

Question 7

The accounting equation is __________.

Accepted Answer

assets = liabilities + owner’s equity

Question 8

Financial records can be managed by __________.

Accepted Answer

all of these

Question 9

When computers were first used in business, they were small and easy to move.

Accepted Answer

False

Question 10

Unplanned growth __________.

Accepted Answer

can be chaotic

Question 11

A plan for the amount of cash the business owner spends on a daily, weekly, or monthly basis is a(n) __________.

Accepted Answer

cash budget

Question 12

When preparing a financial forecast, it is best to keep estimates of __________.

Accepted Answer

income low and expenses high

Question 13

The purpose of a financial plan is to __________.

Accepted Answer

all of the above

Question 14

The income statement is sometimes called __________.

Accepted Answer

a profit and loss statement

Question 15

The main reason start-up capital can be hard to obtain is because __________.

Accepted Answer

there is no track record to prove the venture will be successful

Question 16

Accounting includes all of the following except __________.

Accepted Answer

collecting marketing information

Question 17

Consumers have no use for electronic information transfer.

Accepted Answer

False

Question 18

A busget can be used to help control __________.

Accepted Answer

spending

Question 19

Operating expenses include __________.

Accepted Answer

utility bills

Question 20

An audit is a collection, recording, and reporting of financial transactions.

Accepted Answer

False

Question 21

Accounting is often called the language of __________.

Accepted Answer

business

Question 22

Fixed assets are assets that will be held for __________.

Accepted Answer

more than one year

Question 23

A cash budget is a company's estimation of cash inflows and outflows over a specific period of time.

Accepted Answer

True

Question 24

The World Wide Web is part of the Internet.

Accepted Answer

True

Question 25

GAAP is an acronym that stands for __________.

Accepted Answer

generally accepted accounting principles

Bus Admin - Ch 17-18 (1)

Questions 25

Bus Admin - Ch 17-18 (1)

Questions 25