Final Exam Review- Weeks 11-13

Question 1

Why is public speaking important?

Answer 1

Life skills, Personal, School, Career and work

Question 2

Should you use slides as a script?

Answer 2

no

Question 3

What are listening barriers?

Answer 3

outside distractions, personal concerns, information overload, and prejudice

Question 4

Critical listening

Answer 4

process of learning to evaluate the quality, appropriateness, value, and importance

Question 5

Critical thinking

Answer 5

the mental process of making judgments of conclusions presented

Question 6

Accounting

Answer 6

process of measuring, interpreting, and communicating financial information to enable people inside and outside the firm to make informed decisions

Question 7

Accounting cycle

Answer 7

set of activities involved in converting information about transactions into financial statements

Question 8

Accrual accounting

Answer 8

involves stating revenues and expenses as they occur, not necessarily when cash is received or paid out.

Question 9

Cash accounting

Answer 9

does not report any income or expenses until cash actually changes hands

Question 10

What is the accounting equation?

Answer 10

Assets= liabilities + owner’s equity

Question 11

Asset

Answer 11

anything of value owned or leased by a business’

Question 12

Liabilities

Answer 12

claims against a firm’s assets by a creditor

Question 13

Owner’s equity

Answer 13

owner’s initial investment in the business plus profits that were made to owners over time in firm in form of cash dividends

Question 14

Balance sheet

Answer 14

statement of a firm’s financial position on a particular date

Question 15

Income statement

Answer 15

financial record of a firm’s revenues, expenses, and profits over a longer period of time, usually a quarter or year

Question 15

Build up approach

Answer 15

To project sales, estimate the number of potential buyers in a geographic area. Then, multiply by the average expected sales

Question 15

Competitive approach

Answer 15

To project sales, look at other similar companies in similar areas to see what information you can discover

Question 16

Executive judgement

Answer 16

To project sales, the company uses the intuition of 1+ executives

Question 17

Delphi technique

Answer 17

To project sales, experts create initial forecasts, submit them to the company for averaging, and then refine them

Question 18

Time series analysis

Answer 18

Uses firm’s historical sales data to discover a pattern in sales over time

Question 19

Market test

Answer 19

making a product available to buyers in one or more test areas and measuring purchases and consumer responses to market effort

Question 20

Statement of cash flows

Answer 20

provides investors and creditors with relevant information about a cash recept and cash payment for operations, investments, and financing during accounting period

Question 21

Statement of owner’s equity

Answer 21

designed to show the components of the change in equity from the end of one fiscal year to the end of the next

Question 22

What does ratio analysis measure?

Answer 22

the firm’s liquidity, profitability, and reliance on debt financing, and the effectiveness of resource utilization. Assists managers by interpreting actual performance and making comparisons to what should have happened

Question 23

Liquidity ratios

Answer 23

measure a firm’s ability to meet it’s short term obligations when they must be paid

Question 24

Current ratio

Answer 24

mainly used to give an idea to the company’s ability to pay back it’s short-term liabilities with it’s short-term assets

Question 25

Acid-test (or quick) ratio

Answer 25

measures the ability of a firm to meet it’s debt payment on short notice- the amount of assets that can quickly be turned into cash without selling assets

Question 26

Activity rations

Answer 26

measure the effectiveness of management’s use of the firm’s resources

Question 27

Inventory ratio

Answer 27

Shows how many times a company’s inventory is sold and replaced over a period. They can vary widely. Higher total ratios indicate greater efficiency

Question 28

Total asset turnover ratios

Answer 28

Indicates how much in sales each dollar invested in assets generates

Question 29

Receivables turnover ratio

Answer 29

An accounting measure used to quantify a firm’s effectiveness in extending credit as well as collecting debts

Question 30

profitability ratios

Answer 30

measure the organization’s overall financial performance by evaluating it’s ability to generate revenues in excess of operating costs and other expenses

Question 31

Gross profit margin

Answer 31

indicates the percentage of sales dollars available for expenses and profit after the cost of merchandise is deducted from sales to measure how much out of every dollar of sales a company actually keeps on earnings

Question 32

Net profit margin

Answer 32

indicates the profit per sales dollar after all expenses are deducted from sales (after tax)

Question 33

Return on stockholder’s equity

Answer 33

reveals the % of profit after income taxes that corporation earned on its average common stockholder’s balances during the year

Question 34

leverage ratios

Answer 34

measure the extent to which a firm relies on debt financing