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 Net profit, when used alone, shows a company’s true financial health. Indicate whether the statement is true or false ANSWER FALSE
Date: September 3rd, 2020
QUESTION A budget quantifies all of a company’s expected inflows and outflows of cash. Indicate whether the statement is true or false ANSWER TRUE
Date: September 3rd, 2020
QUESTION Income and revenue are not the same thing. Indicate whether the statement is true or false ANSWER TRUE
Date: September 3rd, 2020
