Texas Business and Finance 6-12 (276) Questions with well explained answers

When a company is trying to regulate its spending and track incoming funds, the accountant should prepare an income statement once - every month. What is convertible securities used for - to convert another security (usually stock or bond) and raise capital by way equity. What is the best way to identify the use of debt financing to raise capital by way of equity. - Convertible securities Direct stock offerings Initial public offerings are all equity financing In the accounting cycle, closing journal entries are required in order to - Transfer balances in temporary accounts to retained earnings. (Move from temp. to perm. accounts. A lending company will review a borrower's accounting documentation to evaluate - creditworthiness and cashflow Which of the following doctrines prevents a person from insuring a neighbor's house? - Doctrine of subrogation - Substitute What is the definition of contribution? - A defendant that has paid more than his or her share of the award has a claim against others. What is the definition of indemnification? - Ability to financially restore property as it was prior to incident. Which of the following inventory systems is designed to record the actual costs associated with the inventory using a physical count? - The perpetual inventory systemWhich inventory system does not become part of count of goods to be sold. - The periodic inventory system Which inventory system is not on hand until needed - Just in time inventory system In which of the following sections of the balance sheet is prepaid insurance recorded? - Assets Which of the following statements is generally true about the purchasing function today? - Purchasing is evolving into strategic supply management. The owner of a small boat rental company opened the business as a sole proprietorship but has since decided to bring a friend into the business. It is best for the owner, who is concerned about the cost of changing the form of the company's organization, to change the business structure to a - partnership. Kim, a young college student, has decided to start a business. She does not have much capital but believes the business can generate capital through an initial public offering (IPO). An IPO is categorized as - equity. The marketing department of a small business wants to obtain information about how and why a product continues to be successful after many years. Which of the following research techniques will be most effective? - Requesting user surveys Which of the following best describes management practices that promote adaptability in a global business environment? - Changing strategies to accommodate local conditions Which of the following types of compensation has the greatest positive effect on employee motivation and productivity? - Varied and attainable pay mix To have the greatest impact on long-term employee productivity, businesses must - conduct effective employee evaluations.RXJW is a publicly traded company that is required by law to register its code of ethics with the Securities and Exchange Commission and ensure that its senior financial officers are aware of the policy. Which of the following mandates this requirement? - Sarbanes-Oxley Act