Prelim

Question 1

the Process of identifying, measuring and communicating Economic Information to
Permit Informed judgment and Decision

Answer 1

accounting

Question 2

Service Activity which Function is to provide
Quantitative Information, primarily financial in nature, about Economic Entities that is Intended to be useful in making Economic
Decisions

Answer 2

accounting

Question 3

an Activity which is Primarily for Money or Profit

Answer 3

business

Question 4

in which duty to public service, not money, is the primary consideration

Answer 4

profession

Question 5

one who takes the risk of putting up a business to produce and sell goods and services

Answer 5

entrepreneur

Question 6

is the element of uncertainty in an outcome

Answer 6

risk

Question 7

a form of Business Organization Conducted for Profit by a single Individual

Answer 7

sole proprietorship

Question 8

Two or more persons bind themselves together
to contribute Money, Property, or Industry
to a Common fund, with the Intention of Dividing the profits among themselves

Answer 8

partnership

Question 9

is an Artificial Being
Created by Operation of Law
having the Right of Succession
and the Powers, Attributes, and Properties
expressly Authorized by Law
or incidental to its existence

Answer 9

corporation

Question 10

Principle of Scientific Management (aka Taylorism): has emerged in the late 1800s to improve economic efficiency.

Answer 10

Frederick Taylor

Question 11

Hawthorne Experiments: he concluded that human factors were more critical to motivating employees to greater levels
of productivity.

Answer 11

Elton Mayo

Question 12

the driving force behind the 1930s research on organizational development and group dynamics

Answer 12

Kurt Lewin

Question 13

in a book called “Motivation and Personality:” he expanded on his hierarchy of needs.

Answer 13

Abraham Maslow

Question 14

“Two-Factor Theory:” also an additional theory of human motivation which included hygiene and motivational
factors

Answer 14

Frederick Herzberg

Question 15

viewed an organization as an organism that could direct its future and improve its capabilities

Answer 15

Peter Senge

Question 16

the Achievement of Organizational Objectives through People and other Resources

Answer 16

The management concept

Question 17

able to minimize wastage of its resources

Answer 17

efficient

Question 18

able to achieve its goals

Answer 18

effectiveness

Question 19

the Process of Establishing Objectives and suitable courses of action Before Taking Action

Answer 19

Planning

Question 20

a Methodical way of Achieving Desired Results

Answer 20

Plan

Question 21

Strategic Planning for Top Management

Answer 21

Policies

Question 22

Intermediate Planning for Middle Management

Answer 22

contribution of sub units

Question 23

Operational Planning for Lower Management

Answer 23

specific task with available resources

Question 24

could be marketing, production, financial, human resources

Answer 24

functional areas

Question 25

could be short and long term (more than one year)

Answer 25

time horizon

Question 26

could be standing (repeated) or single-use plan

Answer 26

frequency of use

Question 27

the Process of Arranging an Organization’s structure and Coordinating its Managerial Practices and Use of Resources to Achieve its Goals

Answer 27

organizing

Question 28

to Facilitate the Implementation of Plans

Answer 28

reason for organizing

Question 29

the part of the system that has legitimacy and official recognition. It is what is depicted in the organization chart.

Answer 29

the formal organization

Question 30

a Diagram of the organization’s Official Positions and formal Lines of Authority.

Answer 30

organization chart

Question 31

Provides written descriptions of authority relationships, Details the functions of major organizational units, and Describes job procedures.

Answer 31

organization manual

Question 32

Describes Personnel Activities and Company Policies.

Answer 32

policy manual

Question 33

degree to which tasks are divided in the organization

Answer 33

work specialization

Question 34

refers to the grouping of jobs based on coordination and control of activities

Answer 34

Departmentation

Question 35

extent by which organization members are allowed to make [independent] decisions

Answer 35

authority pattern

Question 36

the number of subordinates reporting to a supervisor

Answer 36

control span

Question 37

linking of organizational activities

Answer 37

activity coordination

Question 38

design is based on function

Answer 38

functional design

Question 39

design is based on activities which produce goods or services

Answer 39

divisional design

Question 40

combination of divisional units and functional departments

Answer 40

hybrid design

Question 41

one that implements functional and divisional structures simultaneously in each department

Answer 41

matrix design

Question 42

the Process of Monitoring actual Organizational Activities to See that they Conform to Planned Activities and correcting deviations or flaws

Answer 42

controlling

Question 43

Confidential Information Leak

Answer 43

data breach

Question 44

unnecessary additions to the workforce

Answer 44

hiring more than the required number of employees

Question 45

wrong behavior of business people

Answer 45

unethical conduct

Question 46

what has to be achieved must first be determined.

Answer 46

establishing performance objectives and standards

Question 47

expressed in terms of money

Answer 47

sales targets

Question 48

expressed in terms of quantity and quality

Answer 48

production target

Question 49

expressed in terms of rate of absences

Answer 49

worker attendance

Question 50

expressed in terms recorded accidents

Answer 50

safety records

Question 51

expressed in terms of quantity

Answer 51

supplies used

Question 52

adjustments could be made when shortcomings occur.

Answer 52

measuring actual performance

Question 53

work done is compared to what the organization seeks to achieve.

Answer 53

comparing actual performance to objectives and standards

Question 54

taking of corrective action when needed.

Answer 54

taking necessary actions

Question 55

anticipation and prevention of problems before operations

Answer 55

feedforward control

Question 56

measures to detect variances during operations

Answer 56

concurrent control

Question 57

information gathering after work completion

Answer 57

feedback control

Question 58

the Process of Determining the Available Alternatives and Choosing the Best Solution that suits a given Problem

Answer 58

decision making

Question 59

use of Intuition and Subjective judgment

Answer 59

qualitative evaluation

Question 60

use of Rational and Analytical judgment through quantitative techniques

Answer 60

quantitative evaluation

Question 61

this is based on three (3) elements called assets, liabilities, and owner’s equity (or capital)

Answer 61

financial position of a business

Question 62

this is based on two (2) elements called revenue and expense

Answer 62

financial performance

Question 63

economic resources owned by the business

Answer 63

assets

Question 64

debts of the business owing to outside parties

Answer 64

liabilities

Question 65

residual right or interest of the owner/s in the entity’s net assets

Answer 65

equity or capital

Question 66

Represented by: Cash, accounts receivable, notes receivable, merchandise, supplies, land, furniture, equipment, building, machinery

Answer 66

assets

Question 67

Identified by the word “payable” – hence, represented by: Accounts payable, notes payable, loans payable and mortgage payable

Answer 67

liabilities

Question 68

investments made by the owner

Answer 68

owner's capital

Question 69

used when there is recovery of investment in the assets of the business through personal withdrawal by the owner

Answer 69

owner's drawing

Question 70

refer to how an accountant sees a business

Answer 70

assumptions

Question 71

rules on recording and presenting business transactions

Answer 71

principles

Question 72

these are the limitations of accounting; sometimes accounting cannot provide all information needed by a user

Answer 72

constraints