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Business Essentials Standard 4.00 – 5.00 Test Study Guide

Total questions: 59

Worksheet time: 39mins

Name
Class
Date
1.

The process of keeping the financial record of a business is known as

a)

financing

b)

accounting

c)

controlling

d)

bookkeping

2.

the overall purpose of accounting is to

a)

compile the business's expenses

b)

keep track of sales

c)

control the finances of the business

d)

maintain accurate reports

3.

why are accurate accounting records important to a business

a)

they show the business how it is doing

b)

they prevent any financial losses

c)

they increase the return on investments

d)

they give the business an image of success

4.

which of the following groups make regular use a business's managerial accounting information

a)

creditors

b)

customers

c)

managers

d)

investors

5.

for an accounting system to be useful to the business, the accounting information contains must be

a)

posted by an accountant

b)

accurate and up to date

c)

approved the chief executive officer

d)

recorded using the accrual method

6.

checks, receipts, invoices, and purchase orders are examples of

a)

source documents

b)

financial statements

c)

department ledgers

d)

accounting standards

7.

what type of accounting method would most likely be used by a small business owner who does not offer credit

a)

COD method

b)

cash method

c)

check method

d)

accrual method

8.

what type of accounting method would most likely be used by a large business that has a large number of outstanding loans and customer charge accounts

a)

accrual method

b)

COD method

c)

cash method

d)

check method

9.

accouting records for a business show that the week's total sales revenues were $125,000. Cash sales accounted for $50,000 and credit sales, $75,000. This is an example of

a)

the accrual method of accounting

b)

an income statement

c)

classifying financial information

d)

the cash accounting method

10.

which of the following is a true statement

a)

bookkeeping is the same as accounting

b)

bookkeeping records business transactions

c)

bookkeeping does not use computers

d)

bookkeeping is limited to information on sales

11.

the operations function consists mainly of activities that are performed an a...

a)

monthly

b)

yearly

c)

weekly

d)

daily

12.

which of the following is an example of one of the business's inputs

a)

services

b)

products

c)

employees

d)

goods

13.

operations managers have two main goals in mind- efficiency (keeping costs low) and

a)

legality (keeping the business in good standing with the law)

b)

effectiveness (keeping customers satisfied)

c)

reputation (keeping up the business's good name)

d)

productivity (keeping business running fast)

14.

which of the following is NOT a main factor in a business's site selection decision

a)

media

b)

community

c)

costs

d)

labor

15.

a clothing manufacturer checks on pair of pants out every shipment to ensure the quality of the product. This process is known as quality

a)

guarantee

b)

delivery

c)

assurance

d)

inspection

16.

a clothing manufacturer builds quality into its operating system, placing responsibility on each employee. This process is known as quality

a)

assurance

b)

delivery

c)

inspection

d)

guarentee

17.

the money it takes to keep inventory in stock is called a _______ cost

a)

production

b)

holding

c)

stockout

d)

purchasing

18.

complying with environmental laws is part of which operations activity

a)

safety and security

b)

logistics

c)

inventory control

d)

purchasing

19.

the difference between service providers' and manufacturers' operations activities is that service providers produce __________ outputs

a)

tangible

b)

useful

c)

expensive

d)

intangible

20.

operations managers must work closely with managers and employees in

a)

competing businesses

b)

foreign markets

c)

all other parts of the business

d)

the marketing department only

21.

marketing links producers to

a)

customers

b)

retailers

c)

distributors

d)

marketers

22.

which of the following is a marketing activity

a)

lowering operational expenses

b)

communicating with customers

c)

leading a project team

d)

balancing customer needs with wants

23.

what provides the basis for all marketing goals and actions

a)

retailing

b)

pricing

c)

budgeting

d)

planning

24.

which of the following influences is the process of determining price

a)

sales promotion

b)

customers' perception of value

c)

publicity

d)

purchase location

25.

which of the following is an example of communicating with customers

a)

developing a marketing plan

b)

creating a new product

c)

choosing a store to distribute products

d)

sponsoring a charity event

26.

the purpose of communicating with customers is to

a)

attract customers' interest

b)

befriend customers

c)

gather participants for a survey

d)

determine prices

27.

of the following, which is a durable good

a)

insect repellent

b)

lip balm

c)

coffee mug

d)

hamburger

28.

according to the marketing concept, which option shows company commitment

a)

setting aside funds to research what customer want

b)

leaving marketing to the marketing department

c)

pricing a products to maximize profitability per item

d)

teaching marketing to college marketing students

29.

which of the following is them most common reason for businesses to search for ways to their products better and cheaper

a)

service marketing

b)

E-commerce

c)

competition

d)

publicity

30.

marketing encourages people form different countries to _____ frequently

a)

train

b)

travel

c)

think

d)

trade

31.

which of the following actions is a part of information management

a)

observing competitors

b)

disseminating information

c)

creating data

d)

creating technology

32.

which of the following is a true statement about a management information system (MIS)

a)

it includes people, processes, and practices

b)

it may be one part of a business's overall information management program

c)

it is the same things as information management program

d)

it does not assist with a business's information management program

33.

which of the following is a true statement about information

a)

it has not value for an organization

b)

it is the same thing as data

c)

it is simple to manage

d)

it is data put into a useful form

34.

a benefit of informed decisions is that they

a)

hurt a business's chances at competition

b)

cost less money

c)

reduce a business's risk

d)

are usually bad decisions

35.

how does appropriate information management affect a business's relationship with its customers

a)

business earn higher profits

b)

business serve customers more effectively

c)

business lose focus oncutomers

d)

business make better financial decisions

36.

appropriate information management helps a business build a good reputation by

a)

offering quality products

b)

eliminating all mistakes

c)

charging high prices

d)

being consistent

37.

managing information regarding copyrights and trademarks helps a company preserve its

a)

correspondence

b)

inventory

c)

customers

d)

identity

38.

who is responsible for information management

a)

everyone in the organization

b)

the chief executive officer

c)

the information management department

d)

the information manager

39.

The information management ca be a challenge because

a)

no one wants to participate in it

b)

many people don't understand what it is

c)

there is often enough information to manage

d)

there is only one right way to do it

40.

a risk involved with information management is leaving customers unprotected from

a)

faulty products

b)

high prices

c)

bad customer service

d)

identity theft

41.

technology is the practical application of which of the following studies to society and industry

a)

literature

b)

history

c)

science

d)

economics

42.

which of the following is not considered a technological innovation

a)

the cell phone

b)

the weather

c)

the wheel

d)

the internet

43.

which of the following is a benefit that businesses recieve from using the internet

a)

the ability to call employees on the road

b)

improved methods of manufacturing

c)

faster connection with suppliers

d)

easier use of satellite radio

44.

a computer's internal processor is part of its

a)

hardware

b)

software

c)

expert systems

d)

virtual training

45.

a medical professional enteras a patient's symptoms into a computer program designed to help diagnose illnesses. This program is known as a(n)

a)

computer-aided design

b)

virtual doctor

c)

voice over internet protocol

d)

expert system

46.

when a business uses computer technology to manage its money and move it among different accounts, it is taking advantage of

a)

electronic data interchange

b)

electronic transfer of funds

c)

hardware

d)

expert systems

47.

computers direct robots and other machines to do specific tasks in a technology known as

a)

internet telephony

b)

computer-aided manufacturing

c)

hardware

d)

virtual training

48.

what is the biggest impact of technology on the computer industry

a)

technology changed the computer industry

b)

technology created the computer industry

c)

technology is not related to the computer industry

d)

technology eliminated the computer industry

49.

Phil works from his home office on tuesdays and thursdays. this is known as

a)

telecommuting

b)

networking

c)

collaborating

d)

information gathering

50.

which of the following is a method of technological information gathering that businesses can use to enhance customer relations

a)

a customer receives a coupon in the mail from the business

b)

a customer writes a letter of complaint to the company

c)

a customer registers on the company website

d)

a customer comes to the store to fill out the warranty card

51.

finance is the business function that involves managing

a)

production

b)

marketing

c)

information

d)

money

52.

the goals of the finance function are to ensure profitability and

a)

advertise products

b)

reduce risk

c)

give out information

d)

manufacture raw materials

53.

accounting is distinct from finance because its main focus is on

a)

acquisition of funds

b)

record keeping activities

c)

money management decisions

d)

administration of assets

54.

decisions about financing refer to the

a)

accounting department

b)

administration of assets

c)

accounts receivable

d)

acquisition of funds

55.

money the business owes is known as

a)

accounts receivable

b)

accounts payable

c)

equity

d)

assets

56.

the finance function is usually responsible for which of the following processes

a)

manufacturing

b)

research

c)

budgeting

d)

operations

57.

the finance function would finitely be involved in a decision regarding

a)

new business projects and strategies

b)

public relations and publicity

c)

personal selling

d)

hiring

58.

a company's current balance of assets and liabilities falls under the focus of

a)

the cash conversion cycle

b)

return on capital

c)

working capital management

d)

capital investment decisions

59.

which of the following is a measure of how well a business generates cash flow

a)

accounts payable

b)

capital structure

c)

accounts payable

d)

return on capital