Act Test 2009

2009 DECA Ontario Provincials Competition ACT Test 993 ACCOUNTING APPLICATIONS 1 1.
Which of the following is an example of a reason for dismissing an employee that might be considered illegal: A. Employee's specialized job no longer exists. C. Employee develops a physical disability. B. Employee is a consultant. D. Employee is a temporary worker. 2. The American Red Cross is an example of a(n) ___________ corporation. A. public C. "S" B. hybrid D. nonprofit 3. A group's physical and social characteristics (such as interests, ages, political views, incomes, and ethnic backgrounds) are called A. statistics. C. nationalities. B. profiles. D. demographics. 4. A supervisor has given instructions for performing a complex new skill and demonstrated the skill for an employee. What should be the next step? A. Let the employee practice the new skill B. Ask the employee to teach the skill to others C. Assume the employee can now perform the new skill D. Test the employee's ability to perform the new skill 5. Accounting managers who conduct staff meetings often assign one of their employees to take A. minutes. C. requests. B. messages. D. questions. 6. Learning a client's name and using it when greeting the client is a technique that promotes positive __________ relations. A. management C. employer B. customer D. employee 7. Interpreting business policies to clients is usually easier if the accounting firm has created a ____________ atmosphere. A. friendly C. remote B. distant D. superior 8. Which of the following statements is true: A. As human resources become limited, natural resources and capital goods become limited. B. As capital goods and human resources become limited, natural resources become limited. C. As natural and human resources become limited, capital goods become limited. D. As capital goods and natural resources become limited, human resources become limited. 9. Usefulness created when the ownership of a product is transferred from the seller to the buyer defines __________ utility. A. possession C. place B. time D. form 10. The connection between the social responsibility of an accounting firm and the community in which the accounting firm operates is that the accounting firm's social responsibility __________ the community. A. depends upon C. has an effect on B. targets only D. targets the area outside 11. What effect does competition have on the marketplace? A. Increased profits for businesses C. Improved goods and services B. Higher prices for goods and services D. Decreased services provided to consumers
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2009 DECA Ontario Provincials Competition ACT Test 993 ACCOUNTING APPLICATIONS 2 12. One of the positive effects that government regulation has on business is that many of the laws are intended to __________ business. A. protect C. defend B. restrict D. conserve 13. Why is the productivity of service businesses measured differently than that of manufacturing businesses? A. Manufacturers measure their productivity on a regular basis. B. Service businesses are less efficient than manufacturers. C. Service businesses are concerned about the appropriateness of their products. D. Manufacturers produce intangible goods. 14. Calculate the rate of unemployment if there are 170 million people in the labor force and 8.5 million people are unemployed. A. 5% C. 6% B. 4.5% D. 5.5% 15. Which of the following characteristics is a secondary dimension of diversity: A. Geographic location C. Ethnicity B. Race D. Gender 16. Which stage of negotiation do many people consider the most important part of the process: A. Mediation C. Assessment B. Concession D. Preparation 17. Which of the following is not one of the steps of the informal process of reaching a consensus: A. Create a list of alternatives. C. Discuss why everyone should agree. B. Write down your ideas. D. Revise your idea list. 18. You're starting an accounting firm in your town. Which of the following should you do to determine the necessary resources for your vision: A. Determine how much money you'll need for at least the next 20 years. B. Determine only how much money you'll need next year. C. Determine how much money you have and how much you will need. D. Determine only how much money you already have. 19. Carmen had an accuracy rating of 91 percent last year. This year, she won't be satisfied unless her accuracy rating is at least 92 percent or higher. Which behavior of an achievement-oriented person does this illustrate? A. Not being satisfied with current performance C. Demonstrating leadership B. Taking moderate risks D. Desiring feedback 20. Which of the following is a true statement about change: A. All changes are good. C. Change comes in only one form. B. Change can be avoided. D. Everyone reacts differently to change. 21. Workers who must rely on each other in order to carry out their jobs would be described as __________ workers. A. ineffective C. interdependent B. self-sufficient D. efficient 22. The arrangement by which businesses or individuals can purchase now and pay later is known as A. capacity. C. interest. B. credit. D. collateral.
2009 DECA Ontario Provincials Competition ACT Test 993 ACCOUNTING APPLICATIONS 3 23. Of the following ownership investments, which involves owning items that gain or lose value over time: A. Collectibles C. Real estate B. Stock mutual funds D. Stocks 24. Which of the following would a business use in order to know how much money is available to hire more staff: A. Income statement C. Accounting information B. Profit-and-loss statement D. Journal 25. What is a business's ending cash balance for the month if it has total cash receipts of $41,250, total cash paid out of $28,500, and assets worth $15,700? A. $12,750 C. $25,500 B. $12,800 D. $25,550 26. Which of the following is an internal procedure that many businesses use to control cash: A. Give receipts to all customers C. Track dividends paid to owners B. Monitor intangible assets D. Evaluate projected budgets 27. One way for a business to track the transaction when a customer returns an item is to prepare a(n) A. credit memorandum. C. expenditure report. B. uncollectible record. D. liability document. 28. When processing accounts payable checks, businesses factor in the invoice terms in order to calculate the A. amount to pay. C. sales tax. B. rate of interest. D. gross profit. 29. Some businesses prepare an accounts payable schedule based on available A. tax deductions. C. discount terms. B. interest rates. D. credit balances. 30. What do businesses often indicate on invoices when preparing customer statements? A. Sales discounts C. Credit policies B. Ordering information D. Loan principal 31. Calculate the amount a business should deduct from sales revenue based on the following information: total sales of $375,000, sales returns that equal 6% of sales; and allowances of $2,300: A. $21,050 C. $24,800 B. $22,500 D. $23,750 32. Hours worked, payroll dates, and type and amount of deductions are examples of information that businesses usually maintain in __________ records. A. accounts payable C. total liabilities B. employee earnings D. cash disbursement 33. Comparing budgeted and actual amounts can be used to evaluate A. the level of competition. C. most aspects of a business. B. employee performance. D. the accounting department. 34. Last year, a business had sales of $63,500. A downturn in the economy is expected to reduce sales by 15% this year. Forecast sales for this year based on this prediction. A. $73,025 C. $63,500 B. $9,525 D. $53,975
2009 DECA Ontario Provincials Competition Test 993 ACCOUNTING APPLICATIONS 35. One of the main reasons for maintaining accounting systems is to A. monitor profit. C. buy equipment. B. pay employees. D. analyze budgets.
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36. What is the base figure for calculating the amount of sales tax a business owes to the state if it had gross sales of $549,210 and exempt sales of $29,925? A. $549,210 C. $564,172 B. $519,285 D. $579,135 37. What does a business consider when applying the basic accounting equation to business transactions? A. Liabilities C. Cash flow B. Receivables D. Net profit 38. One reason businesses develop a chart of accounts is to reduce the possibility of A. crediting payment to the wrong customer. C. overpaying the utility expense. B. making errors in recording financial data. D. depreciating new equipment. 39. Which of the following examples provides the greatest cash flow for a business: A. Customer buys goods for $30,000 and pays in 120 days. B. Customer buys goods for $25,000 and pays in 90 days. C. Customer buys goods for $10,000 and pays in 60 days. D. Customer buys goods for $5,000 and pays in 15 days. 40. Why is it important for businesses to analyze daily transactions? A. To determine liquidity C. To verify tax data B. To calculate payroll D. To monitor profitability 41. Why is it important for businesses to periodically evaluate cash-handling techniques? A. To count change funds C. To reconcile deposits B. To audit payments D. To prevent shortages 42. What do businesses need to monitor to control their accounts payable? A. Type of raw materials C. Amount of credit to extend B. Value of assets D. Availability of cash 43. What do businesses often use to track and calculate the expense involved in producing products? A. Costing procedures C. Ordering techniques B. Purchasing policies D. Selling methods 44. Which of the following expenses do businesses consider when implementing costing procedures: A. Net profit and loss C. Interest rates and dividends B. Direct and indirect labor D. Sales returns and allowances 45. Why is it important for a business to age accounts receivable? A. To organize accounting information C. To determine cost of goods sold B. To analyze unpaid balances D. To prepare operational reports 46. What do businesses need to control in order to have cash available to pay expenses and continue to operate? A. Accounts receivable C. Sales trends B. Net worth D. Economic conditions 47. One reason businesses evaluate their ability to collect receivables that are many months past due and that they are having difficulty collecting is to decide how to A. depreciate old assets. C. report the earned interest. B. calculate late penalties. D. account for the bad debt. Students Demonstrating Excellence Celebrating Achievement since 1979
2009 DECA Ontario Provincials Competition Test 993 ACCOUNTING APPLICATIONS 48. When processing payroll time cards, which of the following is usually considered time for which employees must be compensated? A. Going to voluntary training C. Working at home B. Driving to work D. Being on call
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49. Calculate the base pay of a part-time employee who works five hours a day and is paid $13.50 an hour if the employee misses one day of work during the two-week pay period. A. $607.50 C. $621.25 B. $675.00 D. $648.75 50. Part of the process of allocating payroll costs involves adding the payroll amount to the __________ category. A. assets C. expenses B. accounts payable D. available cash 51. Why is it important for a business's accounting department to verify the receipt of new inventory? A. To process accounts receivable C. To calculate current value B. To regulate cash flow D. To analyze the transaction 52. Why do businesses calculate the depreciation of assets? A. To evaluate accounts receivable C. To determine an operating expense B. To decide when to buy new equipment D. To set up an inventory procedure 53. In which of the following situations is a business using the accelerated depreciation method to report the value of assets on financial statements: A. Depreciates an asset by the same amount each year for the life of an asset B. Depreciates assets higher the first year and less in subsequent years C. Depreciates assets according to the purchase price D. Depreciates an asset so that it has no value after the first year 54. A business sells a product for $750 and offers a customer cash discount terms of 3/15, n/30. If the customer pays within 15 days, what amount will the business report on its income statement? A. $727.50 C. $712.50 B. $637.50 D. $675.50 55. Why is it important for a business to manage its cash balance? A. To make investments C. To prevent loss B. To earn interest D. To chart sales 56. Why would a business in Country A buy products from a business in Country B and arrange to pay for the products in the currency of Country A? A. To simplify the procedure C. To take advantage of a discount B. To prevent an exchange loss D. To increase the payment time 57. To increase their liquidity, businesses often decide to keep an amount of emergency cash in A. mutual funds. C. savings accounts. B. certificates of deposit. D. government bonds. 58. If the Canadian dollar is worth $.90 in the U.S., calculate the value of 250 Canadian dollars in U.S. dollars. A. $225 C. $275 B. $250 D. $200 59. The budgeting process a business follows usually depends on the business's A. purchasing process. C. operating cycle. B. payroll system. D. delivery schedule.
2009 DECA Ontario Provincials Competition Test 993 ACCOUNTING APPLICATIONS 60. What do businesses consider when preparing a sales budget? A. Maintenance costs C. Operating expenses B. Inventory levels D. Economic conditions
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61. Which of the following is an example of a variable expense that businesses estimate when preparing a selling expenses budget: A. Commission C. Utilities B. Purchases D. Depreciation 62. By evaluating a projected income statement, a business will be able to determine if A. cash is available to cover expenses. C. its assets are more than its liabilities. B. it is earning the desired level of profit. D. the owner's equity is increasing. 63. During the process of evaluating a projected balance statement, businesses often compare the balance statements with A. future credit options. C. last year's results. B. investment opportunities. D. capital expenditures. 64. By comparing the master budget to the business's actual performance, a business can determine if it is A. following the standards of the industry. C. achieving the desired level of profit. B. paying invoices before the due date. D. buying products from the lowest bidder. 65. One reason businesses evaluate long-term liabilities is to calculate A. payroll tax. C. actual cost. B. cash flow. D. net profit. 66. Why is it important for businesses to account for differences between actual and estimated expense? A. To review sales returns C. To make future decisions B. To plan collection procedures D. To generate source documents 67. What method of accounting for investments in other companies does a business use if it owns more than 50% of the common stock of another business? A. Equity C. Market value B. Consolidation D. External 68. When verifying payroll information, Michael should make sure that an hourly employee is compensated for A. local taxes. C. insurance. B. union dues. D. overtime. 69. How often are businesses required to prepare payroll tax reports and send tax payments to the government? A. Monthly C. Yearly B. Quarterly D. Semi-annually 70. One reason businesses value and report intangible assets on financial statements is because these assets have A. residual expenses. C. short lives. B. economic benefits. D. maintenance costs. 71. Which of the following is a reason why many businesses process voucher forms: A. To control operating costs C. To make requests of vendors B. To pay purchase orders D. To reimburse employees
2009 DECA Ontario Provincials Competition ACT Test 993 ACCOUNTING APPLICATIONS 7 72. If a business declares a $ .25 per-share dividend on 825,500 common shares, calculate the total amount of cash dividends the business owes investors. A. $205,125 C. $206,375 B. $206,250 D. $205,400 73. A business that buys a product for $15 and reports the inventory value of that product as $15 on financial statements is using the __________ concept of reporting inventory. A. estimated profit C. historical cost B. market value D. sales expense 74. The main purpose of an exit interview is to A. determine the employee's attitudes and feelings about the company. B. convince the employee not to leave. C. determine the employee's wage at the time of termination. D. prevent legal action. 75. Which of the following is a benefit to businesses of orienting new employees: A. Provides information C. Reduces turnover B. Increases profit D. Eliminates training 76. Which of the following is a form of harassment on the job: A. Mentoring C. Promoting B. Teasing D. Evaluating 77. Which of the following is an appropriate action for a manager to take in documenting the solution to an employee complaint: A. Discard the file when the complaint has been resolved B. Write a lengthy, detailed report of the solution C. Cover all of the critical aspects of the complaint D. Delegate the documentation of the solution to an employee 78. When an employee is paid a percentage of his/her sales, this is called A. piece rate. C. salary. B. commission. D. time wage. 79. The overall objective of the marketing process is the coordination of the A. pricing and promotion of goods and services. B. production and consumption of goods and services. C. supply chain and retail outlets. D. merchandise inventory and advertising plans. 80. When Roger retrieved a client's information and dialed the phone number listed, he discovered the information was incorrect. This is an example of the importance of __________ records. A. required C. digital B. archived D. quality 81. Computer technology makes it possible for businesses to monitor the payroll accounting process and quickly identify any A. deductions. C. calculations. B. irregularities. D. allowances. 82. One important way that accounting information is used in business is to prepare A. inventory controls. C. financial reports. B. operating procedures. D. pricing systems.
2009 DECA Ontario Provincials Competition Test 993 ACCOUNTING APPLICATIONS 83. Accounting firms should help employees to prevent accidents and injuries by providing A. attractive furnishings. C. a safe work environment. B. a comfortable lounge area. D. a convenient lunch room. 84. Who is usually responsible for planning a project? A. Project scheduler B. Project manager
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C. Project assistant D. Project coordinator
85. The buying of goods and services for a business is known as A. negotiating. C. transformation. B. selling. D. purchasing. 86. The primary reason that Porter and Barnes, a small accounting firm, monitors its supply of paper, pens, and staples is to make sure that it A. has enough stock on hand to sell to its clients. B. does not have to pay for unnecessary storage costs. C. obtains deep, bulk discounts for the items and gets free shipping. D. has enough items on hand to run the business smoothly. 87. A crucial part of creating a quality culture in an accounting firm involves encouraging all employees to A. find ways to improve. C. compete for attention. B. give up their authority. D. work without supervision. 88. Three part-time employees are paid $11.50 per hour to work five hours a day, five days a week. If they regularly come in 15 minutes late and leave 15 minutes early, calculate the amount the business is losing in payroll expense each week. A. $64.50 C. $75.75 B. $86.25 D. $57.50 89. A primary reason that a business conducts a break-even analysis is for A. determining strengths. C. evaluating weaknesses. B. planning profits. D. calculating taxes. 90. How does borrowing money to purchase a facility often result in a tax savings for a business? A. Ownership improves a business's credit rating. B. Interest paid on a mortgage is tax deductible. C. Mortgages require a substantial security deposit. D. Maintenance fees are part of the monthly payment. 91. Which of the following reflects a true relationship between decision making and problem solving: A. You need to solve a problem before making a decision. B. You need to make a decision before solving a problem. C. You don't make a decision when solving a problem. D. You don't have to have a problem to make a decision. 92. Job applicants often list on their rsums the names, positions, and addresses of several people who are willing to serve as A. colleagues. C. associates. B. companions. D. references. 93. The primary reason why many people engage in career-oriented networking activities is to A. cultivate a wide circle of social and personal contacts. B. develop an extensive list of sales prospects and contacts. C. obtain letters of recommendation from previous employers. D. connect with others who might help them accomplish professional goals.
2009 DECA Ontario Provincials Competition Test 993 ACCOUNTING APPLICATIONS 94. Which of the following is a reason why businesses calculate the break-even point: A. To estimate income from sales C. To determine capital needs B. To predict fixed expenses D. To evaluate promotional costs
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95. The original price of a product is $345 and a business discounts it by 15% to stimulate sales. Calculate the total amount of the discount and allowance if the business sells the product to an employee who is entitled to a 20% discount. A. $224.25 C. $120.75 B. $234.60 D. $110.40 96. If investment costs are high but the turnover rate is low, a business might decide to A. eliminate personnel. C. add shelf space. B. increase inventory. D. drop a product. 97. How does the design of an accounting firm's brochures compare with that of the firm's web site? A. Brochures should use fancy, script-like type, while web sites should stick to plain, basic type. B. Clients won't spend much time reading either one, so the copy on both should be as short as possible. C. Good design requires clean lines, readability, and plenty of white space, whether in a brochure or on a web site. D. Brochures allow the design to include as many photographs and illustrations as possible, while web sites usually only have room for one or two. 98. When Janine wants to know what others are willing to pay for a bond she owns, she looks at the A. bid price. C. coupon rate. B. bond rating. D. issuer. 99. Which of the following is the main purpose of management: A. To obtain the needed resources C. To accomplish the business's goals B. To reach a specific level of productivity D. To create a pleasant working atmosphere 100. Germaine will discuss his company's seven services in which part of the business plan? A. Table of contents C. Executive summary B. Company description D. Product(s) offered
2009 DECA Ontario Provincials Competition Test 993
ACT ACCOUNTING APPLICATIONS
10 1. C Employee develops a physical disability. A variety of personnel laws and regulations make it difficult for businesses to dismiss employees without a significant reason. These laws and regulations are intended to protect employees from being terminated for no legitimate reason. For example, it is not necessarily legal to dismiss an employee who develops a physical disability if the disability does not interfere with the employee's ability to work. People with disabilities are able to perform many jobs and they may not be dismissed simply because they develop a physical disability. For example, a person who uses a wheelchair is still able to perform many business functions. Consultants and temporary workers are not full-time employees of the business and may be dismissed legally. If an employee's specialized job no longer exists and there are no other comparable jobs available, it is legal for a business to dismiss the employee. SOURCE: BL:007 SOURCE: Dessler, G. (2000). Human resource management (8th ed.) [pp. 378-380]. Upper Saddle River, NJ: Prentice Hall. 2. D Nonprofit. A nonprofit corporation is a business structure that primarily operates to achieve a mission rather than to make a profit. Its income is used to cover operational expenses. A nonprofit can be exempt from paying some or all taxes. Educational, religious, charitable, or scientific organizations are often established under this form of ownership. Hybrid is a term that is used to describe a limited liability corporation (LLC) or limited liability partnership (LLP) because it combines the advantageous characteristics of a corporation and a partnership. The Subchapter "S," or "S," corporation is a private, state-chartered corporation whose owners are taxed as individuals in a partnership, if they meet certain conditions. It is limited to 75 or fewer shareholders, has limited shareholder liability, and requires little financial reporting. The public, or open, corporation usually sells millions of shares of stock to many stockholders. The public corporation must furnish information to the public and to prospective investors about its earnings, assets, and debts. SOURCE: BL:003 SOURCE: BA LAP 7Own It Your Way 3. D Demographics. Demographics are a group's physical and social characteristics, such as interests, ages, political views, incomes, and backgrounds. A profile is similar, but applies at the individual level. Nationality is one kind of demographic. Statistics are often used to report demographics, but are not the demographics themselves. SOURCE: CO:025 SOURCE: QS LAP 9Well Said! 4. A Let the employee practice the new skill. The employee should be given the opportunity to practice a new task or skill before s/he is responsible for its successful completion. Testing should occur after the employee has had the chance to practice the skill. A supervisor should always make sure employees understand instructions and can perform a skill satisfactorily before asking them to teach others. SOURCE: CO:139 SOURCE: Desimone, R., Werner, J., & Harris, D. (2002). Human resource development (3rd ed.) [pp. 193-195]. Orlando, FL: Harcourt. 5. A Minutes. Minutes are the official record of the proceedings of a meeting and summarize the meeting's important points. Accounting managers who conduct staff meetings often assign an employee to take minutes in order to have an accurate account of what was discussed and decided upon during the meeting. A copy of the minutes usually is provided to each employee who attended the meeting. A request involves asking for something. Messages are a type of communication. A question is asking for information. SOURCE: CO:140 SOURCE: Farese, L. S., Kimbrell, G., & Woloszyk, C.A. (2009). Marketing essentials (pp. 190-191). Woodland Hills, CA: Glencoe/McGraw-Hill. Students Demonstrating Excellence Celebrating Achievement since 1979
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ACCOUNTING APPLICATIONSKEY
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6. B Customer. Recognizing customers and calling them by name makes them feel welcome and important to the business. They appreciate the recognition and are likely to return to the business. Positive management and employer and employee relations involve those in the work situation. SOURCE: CR:003 SOURCE: Rokes, B. (2000). Customer service: Business 2000 (pp. 52-53). Mason, OH: SouthWestern. 7. A Friendly. Treating clients in a friendly manner will make them feel more comfortable. They will feel that the accounting firm has a personal interest in them and be more accepting of any explanation of policies. Distant, remote, and superior are terms that refer to an unfriendly and cold atmosphere that would make clients feel uncomfortable. SOURCE: CR:007 SOURCE: Rokes, B. (2000). Customer service: Business 2000 (pp. 12-13). Mason, OH: SouthWestern. 8. C As natural and human resources become limited, capital goods become limited. Capital goods are items manufactured or produced from natural and human resources. Natural resources rely on nature to be produced, and human resources rely on the population. Capital goods will become limited if there is a shortage of people and materials to produce them. Natural resources do not rely on human resources. SOURCE: EC:003 SOURCE: Sexton, R.L. (2003). Essentials of economics (pp. 36-37, 49-50, 229-230). Mason, OH: South-Western. 9. A Possession. This type of utility is added to products through selling, promotion, and purchasing arrangements. Form utility is usefulness created by altering or changing the form of the product to make it more useful to the consumer. Time utility is usefulness created when products are made available when they are needed or wanted by consumers. Place utility is usefulness created by making sure that goods or services are available at the place where they are needed or wanted by consumers. SOURCE: EC:004 SOURCE: EC LAP 13Use It 10. C Has an effect on. The social responsibility of the accounting firm affects many aspects of community life by affecting the level of employment, supporting cultural activities and educational programs, and making donations to worthy community causes. The local community is not the only target for the accounting firm's social responsibility, but it is an important one. An accounting firm's social responsibility depends upon the firm, not the community. SOURCE: EC:070 SOURCE: EC LAP 20Business Connections (Business and Society) 11. C Improved goods and services. Competition in the marketplace leads to the production of higher quality goods and services. When businesses compete for customers, they try to keep their prices in line with competitors' prices. Services provided to consumers may be increased by competition due to businesses' vying for consumer dollars. Competition in the marketplace does not assure an increase in profit. SOURCE: EC:012 SOURCE: EC LAP 8Ready, Set, Compete!
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12. A Protect. Government regulation has a positive effect on businesses by protecting them from unfair competitive practices of other businesses. Regulations about the use of resources gives all businesses fair access to those resources. Also, a business's patents, trademarks, or copyrights provide legal protection for a company's products. The purpose of government regulation is not to restrict business, although some laws may limit what businesses are permitted to do. Businesses are expected to operate without government intervention designed specifically to conserve or defend them. SOURCE: EC:008 SOURCE: EC LAP 16Regulate and Protect (Government and Business) 13. C Service businesses are concerned about the appropriateness of their products. To measure the productivity of a service business, the quantity, quality, appropriateness, and timeliness of the service must be considered. Service businesses can be as efficient as manufacturers. Both service businesses and manufacturers may measure their productivity on a regular basis. Manufacturers produce tangible goods, while service businesses produce intangible outputs. SOURCE: EC:013 SOURCE: EC LAP 18Make the Most of It (Productivity) 14. A 5%. The labor force includes those who are working or those who are unemployed but actively looking for work. The unemployment rate is the percentage of the unemployed people in the labor force. To calculate the rate of unemployment, divide the number of unemployed by the number in the labor force (8.5 million 170 million = .05 or 5%). The rate of unemployment is used to analyze the condition of the economy. A low unemployment rate indicates a healthy economy because most of the people who want to work are working. On the other hand, a high unemployment rate indicates a slowdown in the economy with fewer goods and services produced and many people out of work. SOURCE: EC:082 SOURCE: McConnell, C.R., & Brue, S.L. (2005). Economics: Principles, problems, and policies (16th ed.) [pp. 135-136]. Boston: McGraw-Hill/Irwin. 15. A Geographic location. Geographic location is a secondary dimension of diversity. Secondary dimensions of diversity are those characteristics that may change at various points throughout one's lifetime. They include differences in language, religion, income, geographic location, family status, work experience, communication style, and education level. Race, ethnicity, and gender are primary dimensions of diversity. The primary dimensions are those inborn differences that cannot be changed and affect a person's entire life. SOURCE: EI:033 SOURCE: EI LAP 11Getting to Know You (Cultural Sensitivity) 16. D Preparation. Many experts believe that the key to getting what you want out of a negotiation depends upon how prepared you are for the session. Determining exactly what you will and will not give up before the negotiation is crucial. Also, it is important to research and obtain information you don't have, analyze the other side, and practice your responses by visualizing various situations and strategies. A concession is something that a person gives up during the negotiation. Assessment is the last step in the negotiation process in which the negotiator reviews how the negotiation went and determines changes s/he should make for the next negotiating session. Mediation is the involvement of a neutral third party to help resolve a conflict. SOURCE: EI:062 SOURCE: EI LAP 8Make It a Win-Win (Negotiation in Business)
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17. C Discuss why everyone should agree. In reaching a consensus by an informal method, three of the steps are to (1) Write down your ideas, (2) Revise your idea list, and (3) Create a list of alternatives. Discussing why everyone should agree is not one of them, because not everyone has to agree. Coming to a consensus might be impossible. SOURCE: EI:011 SOURCE: QS LAP 17All Aboard 18. C Determine how much money you have and how much you will need. When determining necessary resources to turn your vision into a reality, you must figure out what resources (such as money) you have available to you right now, as well as what resources you don't have, but will need in the future. It isn't enough to determine only how much money you already have or only how much you will need next year. It would be impossible, however, to predict how much you might need for the next 20 years. SOURCE: EI:063 SOURCE: QS LAP 11Picture This 19. A Not being satisfied with current performance. Carmen is not satisfied with her current performance. She won't be happy unless she can achieve an improvement on her accuracy rating next year. In this scenario, Carmen is not taking a moderate risk, demonstrating leadership, or desiring feedback. SOURCE: EI:027 SOURCE: EI LAP 10High Hopes (Developing an Achievement Orientation) 20. D Everyone reacts differently to change. Life is all about changes. Nothing ever stays the same. Some changes are good, and some changes are bad. And sometimes, it just depends on who you are and how you look at it. Change comes in various forms, and people react to it in many different ways, but one aspect of change is constantit is unavoidable! SOURCE: EI:005 SOURCE: QS LAP 2320/20 Foresight 21. C Interdependent. Things and people are said to be interdependent if they must rely upon one another for some reason. Being self-sufficient means relying on one's self. Being efficient is doing things without wasted time or effort. An ineffective worker is one who has trouble carrying out his/her job responsibilities. SOURCE: EI:037 SOURCE: EI LAP 5Can You Relate? 22. B Credit. Businesses use credit to obtain goods and services to sell, and consumers use credit to purchase those goods and services. Interest is the fee that lenders charge borrowers for the use of credit. Capacity is the individual's ability to earn income, one of the three C's of credit. Collateral is anything of value belonging to the borrower which is pledged to the lender to guarantee that the loan will be repaid. SOURCE: FI:002 SOURCE: FI LAP 2Credit and Its Importance 23. A Collectibles. Items that gain or lose value over time are collectiblessuch as antiques, gems, stamps, dolls, and sports memorabilia. Collecting usually involves owning these items, waiting until they become really valuable, and then selling them for a profit. With stocks and stock mutual funds, investors own pieces of corporations or agencies. With real estate investments, investors own property. SOURCE: FI:077 SOURCE: QS LAP 32Risky Business
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24. C Accounting information. Accounting is the process of keeping financial records. The accounting information in these records helps managers to make financial decisions that affect the business. The accounting information indicates to managers how much money they can spend for activities, such as hiring more staff. A profit-and-loss statement is an income statement which shows how much money the business has made or lost. Journals are special books or computer programs in which a business's transactions are recorded in the order in which they occur. SOURCE: FI:085 SOURCE: FI LAP 5Show Me the Money (Nature of Accounting) 25. A $12,750. Ending cash balance is the money that a business has left at the end of the month. It is calculated by subtracting total cash paid out from total cash receipts. A business's assets, unless sold for cash during the month, are not part of cash flow. In this example, subtract total cash paid out from total cash receipts to determine ending cash balance ($41,250 - $28,500 = $12,750). SOURCE: FI:091 SOURCE: FI LAP 6Count the Cash (Cash Flow) 26. A Give receipts to all customers. Most businesses use a variety of procedures to control cash. One of these is to train employees how to use the cash register and require that they ring up each sale on the register and give receipts to all customers. When an employee rings up a sale, the register automatically records the sale and prints a customer receipt. This procedure helps to control cash because it reduces the possibility of employees accepting payment from customers without recording the sale and issuing a receipt. Monitoring intangible assets, tracking dividends paid to owners, and evaluating projected budgets are not internal procedures that many businesses use to control cash. SOURCE: FI:113 SOURCE: Cunningham, B.M., Nikolai, L.A., & Bazley, J.D. (2000). Accounting: Information for business decisions (pp. 270-271). Orlando, FL: Harcourt. 27. A Credit memorandum. A credit memorandum is a source document that tracks transactions. A transaction takes place when a business accepts returned goods from a customer. One way to track this type of transaction is to prepare a credit memorandum. The customer receives a copy of the memorandum and the business keeps a copy to verify that the customer is entitled to a credit. The memorandum becomes a business document. Businesses do not prepare uncollectible records, expenditure reports, or liability documents to track the transaction when a customer returns an item. SOURCE: FI:115 SOURCE: Cunningham, B.M., Nikolai, L.A., & Bazley, J.D. (2000). Accounting: Information for business decisions (pp. 172-173). Orlando, FL: Harcourt. 28. A Amount to pay. Accounts payable checks are checks that businesses process to pay creditors. In many situations, the creditors are vendors or suppliers that offer the business terms to encourage prompt payment. Businesses factor in these terms in order to calculate the amount to pay when processing accounts payable checks. For example, if a business is paying an invoice that lists terms of 2/10, n/30, the business knows that it can take a 2% discount if it pays within 10 days. Before processing the check, the business first calculates the discount and subtracts it from the original invoice amount to determine the actual amount to pay. Businesses do not factor in the invoice terms in order to calculate the rate of interest, sales tax, or gross profit. SOURCE: FI:117 SOURCE: Farese, L. S., Kimbrell, G., & Woloszyk, C.A. (2009). Marketing essentials (pp. 116, 349-351). Woodland Hills, CA: Glencoe/McGraw-Hill.
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29. C Discount terms. Accounts payable are debts or liabilities. In many cases, accounts payable include money owed to suppliers for purchases made on credit. Businesses often prepare an accounts payable schedule based on available discount terms that have been offered by suppliers. For example, a supplier might offer terms of 3/15, n/30 which means that the business can take a 3% discount if it pays within 15 days. To take advantage of the discount, a business might schedule to pay that account prior to the 15day deadline. Businesses do not prepare accounts payable schedules based on available interest rates, tax deductions, or credit balances. Accounts payable are credit balances that a business owes. SOURCE: FI:119 SOURCE: Cunningham, B.M., Nikolai, L.A., & Bazley, J.D. (2000). Accounting: Information for business decisions (pp. 462-464). Orlando, FL: Harcourt. 30. A Sales discounts. When businesses prepare customer statements, they often indicate if sales discounts are available. Sales discounts encourage customers to pay quickly to reduce the amount of the invoice. However, discounts also reduce sales revenue because customers are allowed to pay less than the original amount. If a business is offering a sales discount, it clearly states the terms of the discount on the customer's statement such as 5/15, n30. This tells the customer that 5% can be deducted from the amount due if the customer pays within 15 days. Businesses usually do not include ordering information, credit policies, or loan principals on invoices when preparing customer statements. SOURCE: FI:128 SOURCE: Cunningham, B.M., Nikolai, L.A., & Bazley, J.D. (2000). Accounting: Information for business decisions (p. 442). Orlando, FL: Harcourt. 31. C $24,800. Sales returns involve customers returning products which result in no sale. Allowances involve giving customers additional discounts or refunds of part of the original purchase price. Both situations result in deductions from sales revenue. In this example, the business processed sales returns that equaled 6% of total sales. To calculate that amount, multiply total sales by the percent of returns ($375,000 x 6% or .06 = $22,500). The business also gave sales allowances of $2,300. Add both figures to determine the amount the business should deduct from sales revenue ($22,500 + $2,300 = $24,800). SOURCE: FI:126 SOURCE: Cunningham, B.M., Nikolai, L.A., & Bazley, J.D. (2000). Accounting: Information for business decisions (pp. 171-173). Orlando, FL: Harcourt. 32. B Employee earnings. Businesses maintain payroll records for each employee that contain information about hours worked, wages, payroll date, type and amount of deductions, etc. Businesses maintain employee earnings records to be able to accurately compensate employees for their time and effort. Businesses also use this information to monitor the amount of money they pay employees because employee compensation is a major business expense. Accounts payable are the monies owed by the business to others. However, this does not include employees. Liabilities are debts the business owes. Cash disbursement records contain information about cash payments. Employees usually are not paid in cash. SOURCE: FI:134 SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.) [p. 391]. Cincinnati: South-Western. 33. C Most aspects of a business. Comparing budgeted and actual amounts can be used to evaluate most aspects of a business. Most aspects of a business are quantified in its budget and, therefore, can be evaluated by comparing budgeted and actual amounts (variances). These variances are not necessarily helpful in evaluating employee performance, and definitely are not helpful in evaluating the level of competition or the accounting department. SOURCE: FI:106 SOURCE: FI LAP 3Money Tracks (Nature of Budgeting)
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34. D $53,975. A sales forecast is a prediction of what a firm's sales will be during a specific future time period using a certain marketing plan. Among the factors that affect the sales forecast are changes in the economy. In this case, sales are expected to drop 15%, and 15% of $63,500 would be subtracted from last year's sales ($63,500 x 15% or .15 = $9,525; $63,500 - $9,525 = $53,975). SOURCE: FI:096 SOURCE: Etzel, M.J., Walker, B.J., & Stanton, W.J. (2007). Marketing (14th ed.) [pp. 160-164]. Boston: McGraw-Hill/Irwin. 35. A Monitor profit. Businesses need to know whether they are making a profit. By developing an accounting system and keeping accounting records, businesses can track their financial activities to determine if they are earning a profit. If businesses do not monitor this information, they may eventually discover that they are losing money and can no longer operate. It is important for businesses to maintain accounting systems to monitor profit so they will have sufficient funds to pay employees and buy equipment. An effective accounting system helps business to analyze their finances and develop budgets. SOURCE: FI:107 SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.) [pp. 383-384]. Cincinnati: South-Western. 36. B $519,285. Businesses must pay sales tax to the state on all taxable sales. Sales that are exempt from sales tax can be subtracted from gross sales. In this situation, subtracting $29,925 from $549,210 leaves an amount due of $519,285 ($549,210 - $29,925 = $519,285). SOURCE: FI:090 SOURCE: Stull, W.A. (1999). Marketing and essential math skills: Teacher's edition (pp. 134-137). Cincinnati: South-Western Educational. 37. A Liabilities. Liabilities are debts, usually money, that a business owes. Liabilities are a component of the basic accounting equation. Businesses consider liabilities when applying the accounting equation to transactions because liabilities affect a business's assets. Businesses try to limit liabilities in order to have more capital available. Receivables are all the monies owed to the business. Cash flow is the movement of funds into and out of a business. Net profit is the money remaining after operating expenses are subtracted from gross profit. SOURCE: FI:108 SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.) [pp. 411-413]. Cincinnati: South-Western. 38. B Making errors in recording financial data. A chart of accounts is a numbering system that helps businesses to organize their accounts. Each type of account is assigned a specific number. This system helps to reduce the possibility of making errors in recording financial data because the number must correspond to the account. For example, if the accounts payable account has a corresponding number of 405, then both the name and number will appear on financial records. As a result, it is more difficult to make recording errors. A chart of accounts lists the business's accounts rather than the accounts of each customer. Customer accounts are listed under the category of accounts receivable, which has an assigned number. Businesses do not develop a chart of accounts to reduce the possibility of overpaying the utility expense or depreciating new equipment. SOURCE: FI:110 SOURCE: Cunningham, B.M., Nikolai, L.A., & Bazley, J.D. (2000). Accounting: Information for business decisions (pp. 942-943). Orlando, FL: Harcourt.
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39. D Customer buys goods for $5,000 and pays in 15 days. A business's cash flow includes all of the money going into and coming out of the business. If a customer buys goods and pays quickly, such as in 15 days, the business is experiencing a positive cash flow because it is receiving the money it needs to cover expenses. The customer who buys $5,000 worth of goods and pays in 15 days is increasing the business's cash flow. Customers who buy goods for $10,000, $25,000, or $30,000 but do not pay for extended periods of time decrease a business's cash flow, because the business is not receiving the money that it needs to pay other expenses. SOURCE: FI:100 SOURCE: CCH Inc. (n.d.). Profit vs. cash flow. Business owner's toolkit. Retrieved October 7, 2008, from http://www.toolkit.cch.com/text/P06_4112.asp 40. D To monitor profitability. Businesses usually keep track of, and analyze, daily transactions which include cash sales, credit sales, and items returned. These transactions are important because they affect a business's profitability. For example, if a business has a lot of returns, the value of the returned items is subtracted from daily cash sales. As a result, the business is less profitable that day. Businesses do not analyze daily transactions to calculate payroll, verify tax data, or determine liquidity. SOURCE: FI:112 SOURCE: Cunningham, B.M., Nikolai, L.A., & Bazley, J.D. (2000). Accounting: Information for business decisions (pp. 134-135). Orlando, FL: Harcourt. 41. D To prevent shortages. Evaluating cash-handling techniques is important because ineffective methods often lead to losses for the business. For example, a business might decide to stop paying cash for small purchases as a result of evaluating that procedure and discovering that many times those payments were not recorded. The business spent money and has no record of the expense which results in a shortage of cash. Auditing payments, reconciling deposits, and counting change funds are cash-handling techniques that businesses might evaluate. SOURCE: FI:114 SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.) [pp. 387-388]. Cincinnati: South-Western. 42. D Availability of cash. Accounts payable are all the monies a business owes to others. In order to pay these accounts, businesses need cash. As a result, businesses usually try to control their accounts payable to correspond to the availability of cash. If a business knows money will be coming in, it can plan to make purchases because it will be able to pay its bills when they are due. Businesses do not control their accounts payable by monitoring the value of assets, the amount of credit to extend, or the type of raw materials. SOURCE: FI:120 SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.) [pp. 412-413]. Cincinnati: South-Western. 43. A Costing procedures. Businesses use some type of costing procedures to track and calculate the expense involved in producing products. Costing procedures take into consideration the various costs involved, such as raw materials and labor, as well as the process used to produce products. Then, businesses assign costs to the various production activities, and track those costs to calculate the total costs involved in producing products. Purchasing policies are the rules businesses follow when purchasing materials and supplies. Ordering techniques are the methods used to place orders. Selling methods are the techniques used to sell products. SOURCE: FI:121 SOURCE: Cunningham, B.M., Nikolai, L.A., & Bazley, J.D. (2000). Accounting: Information for business decisions (pp. 538-539). Orlando, FL: Harcourt.
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44. B Direct and indirect labor. There are three main categories of costs associated with implementing costing procedures: raw materials, labor, and overhead. Labor costs include both direct and indirect labor. Direct labor costs are those costs incurred by the employees who actually produce the product. Indirect labor costs are those costs associated with fringe benefits for employees and for employees performing tasks not directly related to producing products. Indirect labor costs are included in the overhead category rather than in the labor category. Net profit and loss, dividends, and sales returns and allowances are not expenses that a business considers when implementing costing procedures. Businesses might consider interest rates if there are loans associated with purchasing raw materials. SOURCE: FI:122 SOURCE: Cunningham, B.M., Nikolai, L.A., & Bazley, J.D. (2000). Accounting: Information for business decisions (pp. 540-542). Orlando, FL: Harcourt. 45. B To analyze unpaid balances. Businesses age accounts receivable to track customer payments. Many businesses sell on credit and send invoices to customers. Some customers pay in a timely manner while others are slow. Businesses need to age accounts to track unpaid balances and contact delinquent customers when necessary. If they do not age accounts, businesses may be unable to collect receivables. Businesses do not age accounts to organize accounting information, determine cost of goods sold, or prepare operational reports. SOURCE: FI:129 SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.) [pp. 490-492]. Cincinnati: South-Western. 46. A Accounts receivable. Accounts receivable are the monies owed to a business by its customers. Controlling accounts receivable is an important function because businesses need to collect from customers to have cash to pay expenses and continue to operate. Businesses often control accounts receivable by following up with customers when they are past due, setting credit limits, requiring deposits, requiring COD purchases, etc. Businesses usually take whatever measures are necessary to control accounts receivable to obtain payment in a timely manner. Net worth is the total value of the business. A sales trend is the direction in which sales are moving. Economic conditions indicate the state of the economy. SOURCE: FI:130 SOURCE: Cunningham, B.M., Nikolai, L.A., & Bazley, J.D. (2000). Accounting: Information for business decisions (pp. 420-421). Orlando, FL: Harcourt. 47. D Account for the bad debt. In some situations, businesses have difficulty collecting receivables from customers for a variety of reasons. When that occurs, businesses usually evaluate their ability to collect in order to decide how to account for the bad debt. If a customer has filed for bankruptcy or gone out of business, it may be impossible to collect receivables. Then, the business might decide to write off, or eliminate, the entire debt. In other cases, the business may work with the customer to obtain at least partial payment and write off only a portion of the debt. Businesses do not evaluate their ability to collect receivables in order to decide how to calculate late penalties, report earned interest, or depreciate old assets. SOURCE: FI:132 SOURCE: Cunningham, B.M., Nikolai, L.A., & Bazley, J.D. (2000). Accounting: Information for business decisions (pp. 427-428). Orlando, FL: Harcourt.
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48. C Working at home. Businesses process payroll time cards to prepare the payroll. Time cards often indicate the hours worked as well as an explanation of the type of work. For example, some businesses require employees to specify the amount of time they worked on certain projects, such as three hours on Project A. Also, some businesses allow employees to work at home and indicate this time on a time card. Working at home is time for which employees must be compensated if businesses know the employee is working at home and the business has a policy that permits working at home. Businesses are not required to compensate employees for the time spent driving to work or for attending training that is voluntary. Businesses usually do not have to compensate employees for being on call if the employees are at home and free to do whatever they want during that time. SOURCE: FI:135 SOURCE: CCH Inc. (n.d.). What counts as compensable work? Business owner's toolkit. Retrieved October 8, 2008, from http://www.toolkit.cch.com/text/P05_4115.asp 49. A $607.50. In most cases, part-time employees are paid only for the hours they work and are not paid for vacation or sick time. In this example, the employee missed one day of work during the two-week pay period for which s/he will not be paid. To calculate the base pay for the two-week pay period, first determine the number of hours worked by multiplying the days worked by the hours per day (5 hours x 9 days = 45 hours). Then, multiply the hourly rate by the number of hours ($13.50 x 45 = $607.50). SOURCE: FI:136 SOURCE: CCH Inc. (n.d.). Are incidental activities compensable? Business owner's toolkit. Retrieved October 8, 2008, from http://www.toolkit.cch.com/text/P05_4117.asp 50. C Expenses. Allocating payroll costs is a two-part process. First, a business deducts the amount of payroll from cash assets. Then, the business adds that same amount to the expenses category. Payroll is an expense to a business that is recorded as a decrease in cash assets as well as an increase in expenses. Accounts payable are the monies a business owes to other businesses, but does not include payroll. Assets are anything of value that a business owns. Payroll is deducted from cash. SOURCE: FI:139 SOURCE: Cunningham, B.M., Nikolai, L.A., & Bazley, J.D. (2000). Accounting: Information for business decisions (pp. 137-141). Orlando, FL: Harcourt. 51. C To calculate current value. Inventory is a business asset that has monetary value. When a business receives new inventory, the value of the current inventory increases. The accounting department needs to verify the receipt of new inventory in order to keep track of the value. This information is included in the business's financial reports. Also, at the end of the business's fiscal year, the business must pay tax on the value of the current inventory. The accounting department is responsible for keeping this information current. A business's accounting department does not verify the receipt of new inventory to regulate cash flow, process accounts receivable, or analyze the transaction. The receipt of new inventory usually affects accounts payable rather than accounts receivable. SOURCE: FI:142 SOURCE: Pinson, L., & Jinnett, J. (1998). Keeping the books: Basic recordkeeping and accounting for the small business (4th ed.) [pp. 32-37]. Chicago: Upstart. 52. C To determine an operating expense. Depreciation is the loss of value of a business's assets over a period of time. Many assets, such as equipment and furniture, lose value as they are used, and eventually must be replaced. This is a loss to a business that becomes an operating expense. Businesses usually set up a depreciation schedule to calculate the loss on a yearly basis. For example, a business might depreciate a $1,000 piece of equipment by $200 each year and list the $200 as an operating expense. Businesses do not calculate depreciation to decide when to buy new equipment, evaluate accounts receivable, or set up an inventory procedure. SOURCE: FI:143 SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.) [pp. 389-390]. Cincinnati: South-Western. Students Demonstrating Excellence Celebrating Achievement since 1979
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53. B Depreciates assets higher the first year and less in subsequent years. Under the accelerated method, a business depreciates assets higher the first year and less in subsequent years. The amount of depreciation listed on financial statements has an effect on the amount of taxes a business will pay. If a business depreciates assets more in the first year, it will pay less taxes because the value of the asset has decreased. Depreciating an asset by the same amount each year for the life of an asset is an example of the straight-line method of depreciation. Depreciating assets according to the purchase price is not an example of the accelerated method. Businesses depreciate assets over a period of time instead of only one year. SOURCE: FI:144 SOURCE: Cunningham, B.M., Nikolai, L.A., & Bazley, J.D. (2000). Accounting: Information for business decisions (pp. 744-746). Orlando, FL: Harcourt. 54. A $727.50. Offering cash discount terms is a sales policy that affects income statement reporting because it decreases sales revenue by the amount of the discount. Businesses include on the income statement only the amounts that customers actually pay for products rather than the original price. In this example, the business is offering cash discount terms of 3/15, n/30 on a product priced at $750. If the customer pays within 15 days, the customer is entitled to a 3% discount. Calculate the amount the business will report on its income statement by determining the amount of discount ($750 x 3% or .03 = $22.50). Then, subtract the discount from the original price ($750.00 - $22.50 = $727.50). SOURCE: FI:147 SOURCE: Cunningham, B.M., Nikolai, L.A., & Bazley, J.D. (2000). Accounting: Information for business decisions (pp. 170-171). Orlando, FL: Harcourt. 55. C To prevent loss. Businesses maintain a certain amount of assets in the form of cash to be able to pay expenses. Businesses also take in cash on a regular basis in the form of cash payments or checks from customers. It is important for businesses to manage the cash balance to make sure all the funds are accounted for accurately. If they do not, the opportunity exists for employees or others to make mistakes, fail to report cash payments, or tamper with the cash in other ways. The result often is a loss to the business. A business does not manage its cash balance to earn interest, make investments, or chart sales. SOURCE: FI:150 SOURCE: Cunningham, B.M., Nikolai, L.A., & Bazley, J.D. (2000). Accounting: Information for business decisions (pp. 270-271). Orlando, FL: Harcourt. 56. B To prevent an exchange loss. When a business in one country buys products from a business in another country, the two businesses must agree on the currency that will be used to pay for the products. Businesses often want to pay for purchases in the currency of their country, such as in U.S. dollars, to avoid a problem if the exchange rate changes. For example, if the exchange rate changes and the currency of Country B is worth more than the currency of Country A, the business in Country A will pay more for the products if it has agreed to pay in the currency of Country B. This results in a loss for the business in Country A. A business would not arrange to pay in the currency of another country to simplify the procedure, take advantage of a discount, or increase the payment time. SOURCE: FI:151 SOURCE: Cunningham, B.M., Nikolai, L.A., & Bazley, J.D. (2000). Accounting: Information for business decisions (pp. 433-435). Orlando, FL: Harcourt.
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57. C Savings accounts. Liquidity refers to a business's ability to turn investments into cash. To increase their liquidity, businesses often keep emergency cash in savings accounts because it is fairly easy to remove cash from those accounts. If the business has unexpected expenses, it can transfer funds from a savings account to a checking account to pay bills. It is not as easy to obtain cash from certificates of deposit, mutual funds, and government bonds because these investments usually are for an established period of time and have penalties attached for early withdrawal. SOURCE: FI:153 SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.) [p. 465]. Cincinnati: South-Western. 58. A $225. If the Canadian dollar is worth $.90 in the U.S., then the Canadian dollar has less value than the U.S. dollar. Therefore, the Canadian dollar will convert to fewer dollars and have less purchasing power than the U.S. dollar. To convert 250 Canadian dollars to U.S. dollars, multiply the Canadian dollars by the value in U.S. dollars (250 x $.90 or .90 = $225). SOURCE: FI:154 SOURCE: Cunningham, B.M., Nikolai, L.A., & Bazley, J.D. (2000). Accounting: Information for business decisions (pp. 466-467). Orlando, FL: Harcourt. 59. C Operating cycle. An operating cycle is the length of time it takes a business to buy or produce products, sell products, and collect payment from customers. Operating cycles are different depending on the type of business. Some businesses buy and sell products quickly while other businesses, such as advertising agencies, provide services over a long period of time and may collect payments only at the end of the advertising campaign. By considering the operating cycle, a business is able to budget funds to cover expenses based on when customers pay. The budgeting process is not based on the business's payroll system, purchasing process, or delivery schedule. SOURCE: FI:155 SOURCE: Cunningham, B.M., Nikolai, L.A., & Bazley, J.D. (2000). Accounting: Information for business decisions (pp. 87-89). Orlando, FL: Harcourt. 60. D Economic conditions. Economic conditions reflect the state of the economy at any given time. When preparing a sales budget, businesses consider the current economic conditions because they will have an effect on sales. If the economy is prospering, customers will have more money to spend so businesses may estimate increased sales. On the other hand, customers will spend less if the economy is depressed. Inventory levels are a factor when developing a merchandising budget. Businesses do not consider operating expenses or maintenance costs when preparing a sales budget. SOURCE: FI:157 SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.) [pp. 393-395]. Cincinnati: South-Western. 61. A Commission. Businesses prepare selling expenses budgets to account for all the expenses associated with selling. Most businesses have fixed expenses as well as variable expenses. Variable expenses are those that change according to the volume of sales. An example of a variable expense is commission. If a business pays salespeople a commission based on sales, the commission changes. By estimating that expense when preparing a selling expenses budget, a business will have an idea of what it will need to pay salespeople. A selling expenses budget does not include an estimate of purchases or depreciation. Utilities are considered fixed expenses because they do not change according to the volume of sales. SOURCE: FI:159 SOURCE: Cunningham, B.M., Nikolai, L.A., & Bazley, J.D. (2000). Accounting: Information for business decisions (pp. 97-98). Orlando, FL: Harcourt.
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62. B It is earning the desired level of profit. A projected income statement lists a business's expected expenses and revenues for a certain period. It is actually the plan the business hopes to follow to earn the desired level of profit. By evaluating a projected income statement, a business can compare the projections with actual figures to determine if it is earning the estimated profit. If profit is less than projected, a business can take steps to correct the problem. Businesses do not evaluate projected income statements to determine if cash is available to cover expenses, if its assets are more than its liabilities, or if the owner's equity is increasing. SOURCE: FI:160 SOURCE: Cunningham, B.M., Nikolai, L.A., & Bazley, J.D. (2000). Accounting: Information for business decisions (p. 102). Orlando, FL: Harcourt. 63. C Last year's results. A balance statement indicates the financial condition of the business at that particular moment. Some businesses develop projected balance statements based on how they think the business will perform in the future. Then, they evaluate the projected information by comparing it to last year's results. If a trend indicates the business is growing, it is realistic to project an increase in revenue and assets. During the process of evaluating a projected balance statement, businesses do not compare the balance statement with investment opportunities, future credit options, or capital expenditures. SOURCE: FI:161 SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.) [pp. 412-413]. Cincinnati: South-Western. 64. C Achieving the desired level of profit. The master budget is the overall financial plan for a business over a period of time, usually one year. It indicates all estimated revenues and expenses. By comparing the master budget to the business's actual performance, the business can determine if it is operating as planned and achieving the desired level of profit. A business cannot determine if it is paying invoices before the due date, following the standards of the industry, or buying products from the lowest bidder by comparing the master budget to the business's actual performance. SOURCE: FI:162 SOURCE: Cunningham, B.M., Nikolai, L.A., & Bazley, J.D. (2000). Accounting: Information for business decisions (pp. 103-105). Orlando, FL: Harcourt. 65. C Actual cost. Many businesses have long-term liabilities, or debts, because they have borrowed money to purchase expensive equipment or property. These liabilities are paid off over a long period of time, such as 10 or 20 years. As a result, the actual cost of the long-term liabilities is more than the original cost of the equipment or property. For example, a 10-year loan on $100,000 includes interest. Over the period of 10 years, the business pays significantly more than the $100,000. Businesses evaluate these liabilities in order to calculate the actual cost, and list the actual value of the liability on financial records. Cash flow is the money coming in and going out of a business. Businesses do not evaluate long-term liabilities to calculate payroll tax or net profit. SOURCE: FI:167 SOURCE: Cunningham, B.M., Nikolai, L.A., & Bazley, J.D. (2000). Accounting: Information for business decisions (pp. 795-797). Orlando, FL: Harcourt.
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66. C To make future decisions. Businesses estimate expense over a period of time and then compare it to actual expense to account for differences. Actual expense may be more than the estimate, or it may be less than the estimate. In either case, businesses use the information to make future decisions. For example, a business might find that the cost of supplies has increased slightly over a period of one year so that expense is more than the estimate. In the future, the business might decide to buy from a different vendor or purchase lower-quality supplies to reduce the amount of expense. Businesses do not account for differences between actual and estimated expense to plan collection procedures, review sales returns, or generate source documents. SOURCE: FI:168 SOURCE: Cunningham, B.M., Nikolai, L.A., & Bazley, J.D. (2000). Accounting: Information for business decisions (pp. 103-104). Orlando, FL: Harcourt. 67. B Consolidation. If a business owns more than 50% of the common stock of another business, it has control over the other business and is considered the parent company. The other business is a subsidiary. In this case, both companies maintain separate financial records throughout the year. However, at the end of the year the parent company prepares consolidated financial statements that cover both companies. The consolidation method allows a company to account for all the companies over which it has control. The equity method is used if a business owns between 20% and 50% of another business. The market value method is used if a business owns less than 20% of another business. External is not a method of accounting for investments in other companies. SOURCE: FI:125 SOURCE: Cunningham, B.M., Nikolai, L.A., & Bazley, J.D. (2000). Accounting: Information for business decisions (pp. 842-857). Orlando, FL: Harcourt. 68. D Overtime. When an employee works additional time that s/he was not scheduled to work, it is referred to as overtime. Although it depends on the jurisdiction (state), many governments require that businesses pay hourly employees for authorized or unauthorized overtime. Businesses usually require hourly employees complete a manual time sheet or enter a timecard in an automated machine to indicate their hours, which includes any overtime they work. Then, the employer must verify the payroll data and compensate employees for that time. Insurance, local taxes, and union dues are types of deductions that may be taken out of the employee's pay. SOURCE: FI:138 SOURCE: Business Owner's Toolkit. (n.d.). What counts as compensable work? Retrieved November 25, 2008, from http://www.toolkit.com/small_business_guide/sbg.aspx?nid=P05_4115 69. B Quarterly. Businesses are required to generate payroll tax reports on a quarterly basis, and send the reports and the tax payments to the government. The year is divided into four quarters ending in March, June, September, and December. At the end of each quarter, businesses report payroll tax to the government. At the end of the year, businesses compile year-end reports that summarize the information that was submitted quarterly. This information must agree with the quarterly information. Businesses do not generate payroll tax reports and send tax payments to the government on a monthly or semi-annual basis. SOURCE: FI:140 SOURCE: Guerrieri, D.J., Haber, F.B., Hoyt, W.B., & Turner, R.E. (2004). Accounting: Real-world applications & connections (Advanced Course) [pp. 323, 359]. New York: Glencoe/McGrawHill.
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70. B Economic benefits. Businesses have intangible assets as well as tangible assets that must be valued and reported on financial statements. Intangible assets often include patents, copyrights, goodwill, etc., that provide economic benefits to the business. For example, goodwill is valuable because a business's name and reputation often attract customers and increase sales. Therefore, goodwill is an intangible asset that has value and benefits the business. Businesses do not value and report intangible assets on financial statements because the assets have residual expenses, short lives, or maintenance costs. SOURCE: FI:146 SOURCE: Cunningham, B.M., Nikolai, L.A., & Bazley, J.D. (2000). Accounting: Information for business decisions (pp. 766-776). Orlando, FL: Harcourt. 71. D To reimburse employees. Most businesses reimburse employees for out-of-pocket expenses, such as travel and entertainment. To obtain reimbursement, employees complete a voucher explaining the expenses and usually include receipts. Once the business receives the voucher, the accounting department processes the voucher and authorizes payment to the employee. Businesses do not process voucher forms to pay purchase orders, make requests of vendors, or control operating costs. SOURCE: FI:164 SOURCE: University of Illinois. (2002, October). Business and financial policies and procedures. Retrieved October 8, 2008, from http://www.obfs.uillinois.edu/manual/central_p/sec8-2.html 72. C $206,375. Corporations pay cash dividends to investors who own shares of stock in the company. Dividends are based on a company's earnings and are a share of profits paid to stockholders. To calculate the cash dividends a business owes, multiply the per-share dividend by the number of common shares ($825,500 x $ .25 = $206,375). SOURCE: FI:165 SOURCE: Cunningham, B.M., Nikolai, L.A., & Bazley, J.D. (2000). Accounting: Information for business decisions (pp. 900-901). Orlando, FL: Harcourt. 73. C Historical cost. Businesses usually follow generally accepted accounting procedures (GAAP) when reporting inventory on financial statements. One accepted procedure is the historical cost concept which is based on reporting the value of inventory according to the price the business paid for the transaction. If a business buys a product for $15, the cost of the transaction is $15 and that is the value of the inventory. Using the market value concept involves reporting the product's value today, which may be lower than the price paid. Estimated profit and sales expense are not methods of reporting the value of inventory. SOURCE: FI:169 SOURCE: Cunningham, B.M., Nikolai, L.A., & Bazley, J.D. (2000). Accounting: Information for business decisions (pp. 655-656). Orlando, FL: Harcourt. 74. A Determine the employee's attitudes and feelings about the company. Exit interviews are used by companies to learn about the views of employees who are leaving the organization. It is a learning process that can assist a company in making changes that will help the company operate more effectively in the future. Conducting exit interviews does not help to shield the company from future legal action. At the time of the exit interview the employee has already made the decision to leave, and the interviewer should not try to change the employee's mind. The employee's wage at the time of departure does not assist the company in making changes. SOURCE: HR:357 SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.) [p. 640]. Cincinnati: South-Western.
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75. C Reduces turnover. The purpose of orienting new employees is to introduce them to the business and their new work environment, which includes supervisors and coworkers. When new employees are oriented properly, the turnover rate decreases because the new employees feel comfortable in their new surroundings and understand their role. One cause of high turnover among new employees is a lack of proper orientation because they do not know what is expected of them. Orienting new employees does not necessarily increase profit or eliminate training. The purpose of orientation is to provide information. SOURCE: HR:360 SOURCE: Desimone, R., Werner, J., & Harris, D. (2002). Human resource development (3rd ed.) [pp. 300-301]. Orlando, FL: Harcourt. 76. B Teasing. Harassment is any kind of behavior toward another person that is carried out for the purpose of annoying the individual. Teasing is a form of harassment because it is a way of poking fun at a person that can be done in an annoying manner. Mentoring is assisting a new worker to become established in the job or to move up the ladder. Evaluating is a way of determining an employee's level of competence on the job. Promoting is moving an employee to a higher level job position. SOURCE: HR:367 SOURCE: MN LAP 55Managing Diversity in the Workplace 77. C Cover all of the critical aspects of the complaint. Your objective in documenting the resolution of an employee complaint is to have proof of the way in which the problem was resolved. You should record the critical aspects of the complaint and the disposition of the problem and keep a copy in an individual's personnel file and/or in a master complaint/grievance file. This documentation, which need not be lengthy, can be quite useful, especially in case of a grievance or a lawsuit. The documentation is the manager's responsibility and should not be delegated to an employee. SOURCE: HR:366 SOURCE: Farese, L. S., Kimbrell, G., & Woloszyk, C.A. (2009). Marketing essentials (p. 248). Woodland Hills, CA: Glencoe/McGraw-Hill. 78. B Commission. This system compensates employees based on their volume of sales. Piece rate is payment for each piece of work completed. Time wage is payment for each hour of work. Salary is a specific amount paid for a certain time period worked. SOURCE: HR:351 SOURCE: Everard, K.E., & Burrow, J.L. (2001). Business principles and management (11th ed.) [p. 642]. Cincinnati: South-Western. 79. B Production and consumption of goods and services. The marketing process is made up of activities that help to link producers to consumers so that exchanges can take place. All other alternatives are aspects of the marketing process and strategy that help support the the overall objective. SOURCE: MK:001 SOURCE: BA LAP 11Have It Your Way 80. D Quality. Roger would have benefited from quality recordsrecords that are accurate and reliable. Archived records (stored for the long-term), digital records (stored in a computer-related medium), and required records (mandated by a governing authority) may or may not be quality records. SOURCE: NF:001 SOURCE: NF LAP 1Record It (Business Records)
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81. B Irregularities. Most businesses use computerized systems to perform the payroll accounting process. This is a fast and effective method because the computerized system accurately performs all of the necessary calculations. The benefit to businesses is that they can monitor the system and review printouts which will indicate any irregularities in the payroll process. For example, a computer printout might show an unusual amount of overtime pay that is significantly increasing the business's operating expenses. By identifying the irregularity, businesses can take steps to correct the problem and save money. Deductions and allowances are withholdings from employee's earnings. SOURCE: NF:017 SOURCE: Guerrieri, D.J., Haber, F.B., Hoyt, W.B., & Turner, R.E. (2007). Accounting: Real-world applications & connections (First-Year Course) [pp. 323-324]. New York: Glencoe/McGrawHill. 82. C Financial reports. Businesses are required to provide a variety of financial reports to many groups of people, such as governments for tax purposes and creditors for lending purposes. Therefore, businesses maintain accounting information that they use to prepare these financial reports. Depending on the size of the business, the accounting information may be simple or complex. Businesses do not use accounting information to prepare operating procedures, inventory controls, or pricing systems. SOURCE: NF:016 SOURCE: Cunningham, B.M., Nikolai, L.A., & Bazley, J.D. (2000). Accounting: Information for business decisions (pp. 11-12). Orlando, FL: Harcourt. 83. C A safe work environment. Accidents and their costs can be reduced considerably if accounting firms create safe work environments. Unsafe conditions can be prevented more easily than unsafe acts. Therefore, accounting firms should create safe work environments that prevent their employees from making hazardous mistakes. Comfortable lounge areas, attractive furnishings, and convenient lunch rooms are not factors that help prevent accidents and injuries. SOURCE: OP:009 SOURCE: Clark, B., Sobel, J., & Basteri, C. G. (2006). Marketing dynamics (pp. 406-410). Tinley Park, IL: The Goodheart-Willcox Company. 84. B Project manager. The person responsible for planning a project is usually the same person who is responsible for carrying it out: the project manager. Under the project manager, project assistants, coordinators, and schedulers may work on parts of the planning or information related to the planning. But they are not responsible for planning the entire project. SOURCE: OP:001 SOURCE: QS LAP 28From Here to Done 85. D Purchasing. As a marketing function, purchasing involves planning, establishing and following procedures in order to obtain goods and services for use in the business or for resale. Businesses must buy things that enable them to operate successfully. All businesses in our society engage in purchasing. Selling is a marketing function that involves responding to consumer needs and wants through planned, personalized communication in order to influence purchase decisions. Promotion is a marketing function that communicates information about goods, services, images, or ideas to customers or clients. Risk management is a marketing function that involves the procedures management uses to limit business losses and to optimize the relationship of potential loss to gain. SOURCE: OP:015 SOURCE: OP LAP 2Buy Right (Purchasing)
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86. D Has enough items on hand to run the business smoothly. Accounting firms need supplies so that they can operate efficiently. If an accounting firm runs out of printer toner, it cannot print letters, reports, or invoices, or conduct other activities that are necessary to keep the firm up and running. To reduce the risk of running out of supplies, accounting firms often develop inventory control systems to track their supplies. Since Porter and Barnes is an accounting firm, it sells services and, therefore, does not sell the office supplies to clients. Generally, small firms do not need as many office supplies as big companies. Because Porter and Barnes is a small accounting firm, it probably does not purchase too many items in bulk. Suppliers do not always offer free shipping. Businesses do not incur storage costs if their supplies are stored on their premises. SOURCE: OP:031 SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (p. 355). Tinley Park, IL: Goodheart-Willcox. 87. A Find ways to improve. Accounting firms that have a quality culture are continually trying to improve the firm, its services, and its relationships with clients. As part of this overall movement to create quality, accounting firms encourage all employees to find ways to improve. Employees contribute to the quality culture by finding ways to do their jobs better and more efficiently, by suggesting ways to improve the product, and by doing everything they can to serve the client. Involving employees is often the best way to create a quality culture. Creating a quality culture does not involve encouraging employees to give up their authority, compete for attention, or work without supervision. SOURCE: OP:019 SOURCE: Kimbrell, G., & Vineyard, B.S. (2006). Succeeding in the world of work (pp. 282-283). New York: Glencoe/McGraw-Hill. 88. B $86.25. One of the biggest business expenses is payroll. If employees come in late and leave early, they are increasing the business's expenses because they are being paid for time that they do not work. In this example, three employees come in 15 minutes late and leave 15 minutes early which amounts to 30 minutes per day per employee for a total of 90 minutes per day (15 + 15 = 30; 30 x 3 = 90). To calculate the total number of minutes for the week, multiply that time by five days (90 x 5 = 450) which equals 7.5 hours (450 / 60 minutes = 7.5 hours). To calculate the amount the business loses in payroll each week, multiply the number of lost hours by the hourly wage (7.5 x $11.50 = $86.25). Although this may not seem like a significant amount per week, if it occurs for an entire year, the business loses $4,485 ($86.25 x 52 weeks = $4,485). SOURCE: OP:025 SOURCE: MN LAP 56Employee Role in Expense Control 89. B Planning profits. The break-even point is the level of sales at which revenues equal total costs. The purpose of conducting a break-even analysis is to identify the level of sales needed to reach the breakeven point at various prices. By knowing the break-even points at various prices, the business can estimate its profits, which is helpful information when planning business activities. A business uses a SWOT analysis to determine its strengths and to evaluate its threats. Businesses consider taxes when planning business activities and evaluating revenue, but taxes are not the primary reason for conducting a break-even analysis. SOURCE: OP:192 SOURCE: Kuratko, D.F., & Hodgetts, R.M. (2001). Entrepreneurship: A contemporary approach (5th ed.) [pp. 271-275]. Mason, OH: South-Western.
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90. B Interest paid on a mortgage is tax deductible. Businesses often obtain mortgages to finance the purchase of facilities because they do not have sufficient funds to pay cash. The interest that businesses pay on mortgages each year is tax deductible and may result in a significant tax savings. The amount of savings varies from business to business and depends on a business's overall profitability. However, all businesses can take mortgage interest as a deduction which will result in a tax savings. Ownership may improve a business's credit rating but will not result in a tax savings. Businesses pay security deposits to lease facilities rather than obtain mortgages. Maintenance fees usually are included in monthly lease payments. SOURCE: OP:028 SOURCE: Business Owner's Toolkit. (n.d.). When buying makes sense. Retrieved October 13, 2008, from http://www.toolkit.cch.com/text/P04_3009.asp 91. D You don't have to have a problem to make a decision. To make a decision, you don't have to have a problem first. You can just make a decision by selecting one alternative out of two or more options. You don't have to solve a problem before you pick your selection. And, though you can use decision making to solve a problem, you don't have to make a decision before you solve a problem. SOURCE: PD:017 SOURCE: PD LAP 10Weigh Your Options 92. D References. Many job applicants include the names, positions, and addresses of several people who have agreed to be their references. References are people who can provide information about an applicant's character and qualifications. References often include former teachers and employers and long-time family friends. Companions and associates are terms for people who work, travel, and participate in activities together. Colleagues are coworkers. SOURCE: PD:031 SOURCE: Bailey, L.J. (2003). Working: Career success for the 21st century (3rd ed.) [pp. 45-48]. Mason, OH: South-Western. 93. D Connect with others who might help them accomplish professional goals. People engage in networking activities by communicating with customers, friends, family, teachers, and former coworkers. Networking often provides people with information regarding work-related opportunities, such as job openings. Although networking is often used to develop a list of sales prospects and contacts, many people are not involved in selling activities in their occupation. Career-networking activities are primarily used to improve or enhance work-related situations rather than social standing. Obtaining letters of recommendations is often a result of networking activities. However, it is not always the primary reason why people network. SOURCE: PD:037 SOURCE: Rich, J. (2001). Your career: Coach yourself to success (pp. 157-158). New York: LearningExpress, LLC. 94. C To determine capital needs. Calculating break-even helps a business to make important decisions, such as determining capital needs. All businesses need capital, or money, with which to operate and to buy goods for resale. Calculating break-even tells the business when it will begin to earn profits, which helps it to decide how much money to borrow and how much to set aside. Predicting fixed expenses and estimating income from sales are steps in calculating break-even. Evaluating promotional costs is not a reason for calculating break-even. SOURCE: PI:006 SOURCE: PI LAP 4Tipping Point (Calculating Break-Even)
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95. D $110.40. Businesses often discount, or reduce, the price of products to stimulate sales. Many businesses also give discounts to employees, which are allowances that reduce the price of a product. To calculate the total amount of the discount and allowance, first calculate the sale discount by multiplying the percentage by the original price ($345 x 15% or .15 = $51.75). That amount will be deducted from the original price to determine the sale price ($345.00 - $51.75 = $293.25). An employee who is entitled to a 20% discount buys the item at the sale price. To calculate the additional discount allowance, multiply the sale price by the employee discount ($293.25 x 20% or .20 = $58.65). Add the two discounts to calculate the total amount of the sale discount and employee allowance ($51.75 + $58.65 = $110.40). SOURCE: PI:060 SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.) [pp. 401-402]. Upper Saddle River, NJ: Prentice Hall. 96. D Drop a product. Businesses consider many factors when planning the type of merchandise to stock or keep on the shelves. If a particular product is costly to purchase and promote as well as difficult to sell, a business might decide to drop the product. In this situation, the business might have too high of an investment in a product that does not turn over fast enough to generate a sufficient profit. The answer to the problem is to drop the product. Businesses do not increase inventory or add shelf space for products that have a low turnover rate. The business would not eliminate personnel. SOURCE: PM:201 SOURCE: Berman, B., & Evans, J.R. (2004). Retail management: A strategic approach (9th ed.) [p. 353]. Upper Saddle River, NJ: Prentice Hall. 97. C Good design requires clean lines, readability, and plenty of white space, whether in a brochure or on a web site. There are certain basics that apply, regardless of the medium, and those have to do with making it as enticing and easy as possible for clients to read the material. A clean, uncluttered layout, readable type, and white space are all appealing to the eye. Copy length is determined by the objectives and requirements of the material, not by an expectation of clients' responses to it. Many are tempted to fill brochure space just because it is there; however, in any medium, each graphic element should be selected judiciously for a specific reason. Ditto for typeit should be selected to achieve a specific purpose. SOURCE: PR:141 SOURCE: Farese, L. S., Kimbrell, G., & Woloszyk, C.A. (2009). Marketing essentials (pp. 425-433). Woodland Hills, CA: Glencoe/McGraw-Hill. 98. A Bid price. The bid price is what others are willing to pay for the bond. If $93.90 is the bid price, buyers are willing to pay only 93.9% of the bond's par value. In contrast, if the bid price is $101.55, buyers are willing to pay 101.55% of the bond's par value. If you're buying a bond, you want the bid price to be under $100. But, if you're selling a bond, you want it to be over $100. The issuer is the corporation or governing body issuing the bond, or borrowing the money. The bond rating is the ranking that shows how likely it is that an issuer will repay the bond. The bond's interest rate is its coupon rate. SOURCE: SE:428 SOURCE: QS LAP 33The Name's Bond...Just Bond 99. C To accomplish the business's goals. Management is the logical process of coordinating resources, such as money and employees, in order to accomplish an organization's goals. Some ways that management can do this are by obtaining needed resources and creating a good working atmosphere in which workers can be as productive as possible. SOURCE: SM:001 SOURCE: BA LAP 6Manage This!
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100. D Product(s) offered. All of the goods and services of the company are described in the product(s) offered. The company description accurately portrays the new company or venture, provides a history of the company, and shows the current business structure, among other things. The executive summary gives an overview of the entire document. The table of contents lists all of the business plan's sections with corresponding page numbers, so that information is easily accessible. SOURCE: SM:007 SOURCE: SM LAP 1Plan Now, Succeed Later

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2009 DECA Ontario Provincials Competition ACT Test 993 ACCOUNTING APPLICATIONS 1 1.

Students Demonstrating Excellence Celebrating Achievement since 1979

Students Demonstrating Excellence Celebrating Achievement since 1979

Students Demonstrating Excellence Celebrating Achievement since 1979

Students Demonstrating Excellence Celebrating Achievement since 1979

Students Demonstrating Excellence Celebrating Achievement since 1979

Students Demonstrating Excellence Celebrating Achievement since 1979

C. Project assistant D. Project coordinator

Students Demonstrating Excellence Celebrating Achievement since 1979

Students Demonstrating Excellence Celebrating Achievement since 1979

2009 DECA Ontario Provincials Competition Test 993

ACT ACCOUNTING APPLICATIONS

Students Demonstrating Excellence Celebrating Achievement since 1979

Students Demonstrating Excellence Celebrating Achievement since 1979

Students Demonstrating Excellence Celebrating Achievement since 1979

Students Demonstrating Excellence Celebrating Achievement since 1979

Students Demonstrating Excellence Celebrating Achievement since 1979

Students Demonstrating Excellence Celebrating Achievement since 1979

Students Demonstrating Excellence Celebrating Achievement since 1979

Students Demonstrating Excellence Celebrating Achievement since 1979

Students Demonstrating Excellence Celebrating Achievement since 1979

Students Demonstrating Excellence Celebrating Achievement since 1979

Students Demonstrating Excellence Celebrating Achievement since 1979

Students Demonstrating Excellence Celebrating Achievement since 1979

Students Demonstrating Excellence Celebrating Achievement since 1979

Students Demonstrating Excellence Celebrating Achievement since 1979

Students Demonstrating Excellence Celebrating Achievement since 1979

Students Demonstrating Excellence Celebrating Achievement since 1979

Students Demonstrating Excellence Celebrating Achievement since 1979

Students Demonstrating Excellence Celebrating Achievement since 1979

Students Demonstrating Excellence Celebrating Achievement since 1979

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