Question 1

Jane Cook started a small manufacturing firm two years ago. Now, after two years, she decides it is time to hire an accountant to work in the office and process all her financial data. This accountant will be a

Accepted Answer

A)  certified auditor.
B)  certified bookkeeper.
C)  managerial bookkeeping clerk.
D)  private accountant.
E)  public accountant.F) None of the above
G) B) and D)

Question 2

Energizer offers its customers a reduction in price if they pay for their shipments of batteries within ten days of receiving them. This is a(n)

Accepted Answer

A)  sales allowance.
B)  trade discount.
C)  sales return.
D)  sales discount.
E)  inventory reduction.F) C) and D)
G) B) and E)

Question 3

Walmart takes its net sales and subtracts the cost of goods sold during the previous period. The result is Walmart's

Accepted Answer

A)  gross sales.
B)  net income.
C)  gross profit.
D)  net margin.
E)  net purchases.F) A) and D)
G) A) and C)

Question 4

What is the correct order for the balance sheet?

Accepted Answer

A)  Assets, owners' equity, liabilities
B)  Owners' equity, financial position, assets
C)  Liabilities, owners' equity, assets
D)  Assets, liabilities, owners' equity
E)  Owners' equity, assets, liabilitiesF) A) and B)
G) A) and C)

Question 5

Management and employees are the groups that would be most likely to evaluate the risk associated with investing in a company's stocks, bonds, or securities.

Accepted Answer

A) True 
 B)False

Question 6

An airplane that FedEx owns and uses to deliver packages is a(n)  ____ of FedEx.

Accepted Answer

A)  liability
B)  asset
C)  owners' equity
D)  expense
E)  revenueF) A) and B)
G) A) and C)

Question 7

Selling expenses are considered to be a type of

Accepted Answer

A)  current liability.
B)  general expense.
C)  prepaid expense.
D)  operating expense.
E)  fixed liability.F) A) and B)
G) C) and E)

Question 8

The specific types of information that managers need depend on their area of management and on their

Accepted Answer

A)  level within the firm.
B)  understanding of data.
C)  background in computer science.
D)  use of the information.
E)  accounting background.F) B) and C)
G) None of the above

Question 9

During the year Comer, Inc., had $200,000 in goods available for sale. At the end of the accounting period it had an ending inventory of $40,000. The cost of goods sold by Comer was therefore

Accepted Answer

A)  $200,000.
B)  $160,000.
C)  $40,000.
D)  $20,000.
E)  $10,000.F) C) and D)
G) A) and B)

Question 10

Describe the three activities of a statement of cash flows. Where does each section fall on the statement and what does it account for?
​

Accepted Answer

A firm's statement of cash flow illustra...

Question 11

The number of times a firm sells and replaces its merchandise inventory in one year is known as its

Accepted Answer

A)  cost of goods sold.
B)  gross profit on operations.
C)  inventory turnover.
D)  accounts receivable turnover.
E)  net purchases.F) All of the above
G) A) and E)

Question 12

Mary Nettles works for a marketing and advertising firm. She must choose one ad piece from a number of potential ad pieces. To ensure that she makes the right decision, she should

Accepted Answer

A)  put a brief description of each ad piece in a hat and draw one.
B)  ignore any feedback that she gets from coworkers and consumers and make the decision herself.
C)  gather information from coworkers and consumers on their reaction to the different ad pieces.
D)  let her supervisor choose the ad piece.
E)  discard all ad pieces and develop a new advertising campaign.F) A) and E)
G) B) and E)

Question 13

The cash that Coca-Cola receives from providing customers with Coke and other soft drinks and juices would appear in the ____ section of the statement of cash flows.

Accepted Answer

A)  financing
B)  business
C)  receiving
D)  operating
E)  investingF) C) and E)
G) B) and E)

Question 14

Typically, the majority of the data gathered for an MIS come from external sources.

Accepted Answer

A) True 
 B)False

Question 15

Long-term liabilities need not be repaid for at least one year.

Accepted Answer

A) True 
 B)False

Question 16

The Cheese Shoppe's liabilities total $59,000 and its owners' equity is $124,000. Which of the following is true?

Accepted Answer

A)  The total assets equal $65,000.
B)  The firm's assets are $124,000.
C)  The current liabilities are less than the current assets.
D)  The total assets equal $183,000.
E)  The firm's sales are $183,000.F) B) and D)
G) A) and D)

Question 17

Most data gathered for an MIS come from

Accepted Answer

A)  customers.
B)  bankers.
C)  external sources.
D)  internal sources.
E)  information obtained from data firms.F) A) and E)
G) A) and D)

Question 18

​The number of times a company sells and replaces its merchandise inventory in one year is known as

Accepted Answer

A)  ​inventory turnover.
B)  ​net purchases.
C)  ​FIFO inventory.
D)  ​LIFO inventory.E) A) and B)
F) A) and C)

Question 19

In your own words, describe the relationship between information and risk and how this relationship could impact the business decision-making process.
​

Accepted Answer

Answers will vary. Although risk is inhe...

Question 20

​What is the average inventory of a business that turns over inventory 10.0 times a year and has a cost of goods sold of $300,000?

Accepted Answer

A)  ​$30,000
B)  ​$300,010
C)  ​$ 3,000,000
D)  ​$ 3,000E) All of the above
F) C) and D)

Exam 15: Using Management Information Systems and Accounting Information

Management and employees are the groups that would be most likely to evaluate the risk associated with investing in a company's stocks, bonds, or securities.

Correct AnswerverifiedShow Answer

Selling expenses are considered to be a type of

Correct AnswerverifiedShow Answer

Describe the three activities of a statement of cash flows. Where does each section fall on the statement and what does it account for? ​

Correct AnswerverifiedA firm's statement of cash flow illustra...View AnswerShow Answer

Jane Cook started a small manufacturing firm two years ago. Now, after two years, she decides it is time to hire an accountant to work in the office and process all her financial data. This accountant will be a

Correct AnswerverifiedShow Answer

Energizer offers its customers a reduction in price if they pay for their shipments of batteries within ten days of receiving them. This is a(n)

Correct AnswerverifiedShow Answer

Most data gathered for an MIS come from

Correct AnswerverifiedShow Answer

The Cheese Shoppe's liabilities total $59,000 and its owners' equity is $124,000. Which of the following is true?

Correct AnswerverifiedShow Answer

Long-term liabilities need not be repaid for at least one year.

Correct AnswerverifiedShow Answer

The number of times a firm sells and replaces its merchandise inventory in one year is known as its

Correct AnswerverifiedShow Answer

In your own words, describe the relationship between information and risk and how this relationship could impact the business decision-making process. ​

Correct AnswerverifiedAnswers will vary. Although risk is inhe...View AnswerShow Answer

​What is the average inventory of a business that turns over inventory 10.0 times a year and has a cost of goods sold of $300,000?

Correct AnswerverifiedShow Answer

Mary Nettles works for a marketing and advertising firm. She must choose one ad piece from a number of potential ad pieces. To ensure that she makes the right decision, she should

Correct AnswerverifiedShow Answer

During the year Comer, Inc., had $200,000 in goods available for sale. At the end of the accounting period it had an ending inventory of $40,000. The cost of goods sold by Comer was therefore

Correct AnswerverifiedShow Answer

​The number of times a company sells and replaces its merchandise inventory in one year is known as

Correct AnswerverifiedShow Answer

The specific types of information that managers need depend on their area of management and on their

Correct AnswerverifiedShow Answer

Walmart takes its net sales and subtracts the cost of goods sold during the previous period. The result is Walmart's

Correct AnswerverifiedShow Answer

An airplane that FedEx owns and uses to deliver packages is a(n) ____ of FedEx.

Correct AnswerverifiedShow Answer

Typically, the majority of the data gathered for an MIS come from external sources.

Correct AnswerverifiedShow Answer

What is the correct order for the balance sheet?

Correct AnswerverifiedShow Answer

The cash that Coca-Cola receives from providing customers with Coke and other soft drinks and juices would appear in the ____ section of the statement of cash flows.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Describe the three activities of a statement of cash flows. Where does each section fall on the statement and what does it account for?

Correct Answer
verified
A firm's statement of cash flow illustra...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
verified

In your own words, describe the relationship between information and risk and how this relationship could impact the business decision-making process.

Correct Answer
verified
Answers will vary. Although risk is inhe...
View Answer

What is the average inventory of a business that turns over inventory 10.0 times a year and has a cost of goods sold of $300,000?

Correct Answer
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Correct Answer
verified

Correct Answer
verified

The number of times a company sells and replaces its merchandise inventory in one year is known as

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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