QUESTION Interest is A) the fee that a bank or other institution pays you for the use of your money. B) the fee that you pay a bank in order to use a personal or business checking account. C) the money you set aside in a savings account every time you get paid. D) the […]
Date: September 3rd, 2020
QUESTION Which of the following is the most likely objection to open book management? A) Employees will feel disrespected by management if the company’s financial performance is poor. B) The company will be violating laws about keeping financial information confidential. C) The firm’s financial information will get into the hands of competitors. D) Employees will […]
Date: September 3rd, 2020
QUESTION The fundamental accounting equation is Assets = Liabilities + Owners’ Equity. Indicate whether the statement is true or false ANSWER TRUE
Date: September 3rd, 2020
QUESTION Open book management improves employees’ quality of life because A) it creates a work environment characterized by reduced stress. B) it ensures employees a steady paycheck. C) it enables employees to buy higher-quality goods and services. D) it frees employees from having to contribute ideas for improving the company’s performance. ANSWER A
Date: September 3rd, 2020
QUESTION The “bottom line” is A) the lowest possible revenue a company can earn without having to declare bankruptcy. B) the final decision a CEO makes regarding whether to sell the company or divest a division. C) an accounting calculation that figures out a company’s financial performance based on net profit. D) an equation showing […]
Date: September 3rd, 2020
QUESTION Which of the following is a well-stated business goal? A) “Strengthen our ability to manufacture products without error.” B) “Enhance morale and engagement throughout our workforce.” C) “Improve our ability to innovate new products and services.” D) “Increase revenues twofold by the end of the fiscal year.” ANSWER D
Date: September 3rd, 2020
QUESTION In a company using open book management, which of the following incentives would likely motivate the majority of employees to improve their performance? A) vacations to resorts on distant, exotic locations B) gift certificates to local cultural and sports events C) a profit-sharing or equity-sharing program D) a bonus check that is a specific […]
Date: September 3rd, 2020
QUESTION Financial statements help managers and employees A) understand their company’s previous, current, and possibly future performance. B) improve their standard of living but not their quality of life. C) select other companies that may be worth investing in. D) distinguish differences between their company’s and rival companies’ offerings. ANSWER A
Date: September 3rd, 2020
QUESTION Which of the following are NOT reflected in a company’s cash flow statement? A) purchases of office supplies needed by the business B) payments from customers for products C) monies the company owes investors D) rent checks from a property the company is subleasing. ANSWER C
Date: September 3rd, 2020
QUESTION You are comparing cash flow statements for your business from the current month and the previous month. Which of the following would you be able to figure out? A) what denominations the business’s cash is in B) whether the business has cash C) how much cash the business has D) whether the business has […]
Date: September 3rd, 2020
