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Major Field Test Business Study Set.
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Major Field Test Business Study Set.
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Name: Score:197 Multiple choice questions
Definition 1 of 197
A series of equal dollar payments that continue for a specific number of years.
Depreciation
Income Statement
Perpetuity
Annuity
Definition 2 of 197
Measures the number of times interest expense is converted to income, and if the company
can pay its interest expense using the profits generated. EBIT is earnings before interest and
taxes. (Leverage Ratio)
_____ = EBIT / Interest Expense
Gross Profit Margin
Times Interest Earned
Return On Assets
Net Income Margin
Definition 3 of 197
Employees should be given the necessary level of freedom to create and carry out plans.
Order (management)
Initiative (Management)
Remuneration (management)
Scalar chain (management)
,Definition 4 of 197
Gauges a company's liquidity. (Liquidity Ratio)
_____ = (Cash + Marketable Securities + Accounts receivable) / Current Liabilities
Gross profit margin
Quick Ratio (Acid Test Ratio)
Current ratio
Debt to equity ratio
Definition 5 of 197
Do not typically engage in transactions with a company and thus are not essential for its
survival.
Media, trade associations, special interest groups, community
Secondary Stakeholders
Corporate Governance
Manufacturing Overhead
Primary Stakeholders
Definition 6 of 197
Extent that people value duty to groups to which they belong, and value group harmony.
Collectivists tend to identify themselves by group membership and value harmonious
relationships with their members.
Collectivism
Sustainability
Interdependence
Individualism
,Definition 7 of 197
The focal point of financial management in a firm is:
the dollars profits earned by the firm.
individuals buying and selling the stock.
the creation of value for shareholders.
the number and types of products or services provided by the firm.
Definition 8 of 197
Revenue is recognized in the accounting period in which the revenue is earned, regardless of
when the associated revenue is received. (Recorded when the sale is made, not when it is paid
for.)
Accrual Basis Accounting
Periodic Inventory Accounting
Income Statement
Depreciation
Definition 9 of 197
Consists of the rules,orders, and decisions of administrative agencies. These agencies are often
given rule making, investigation, and enforcement powers.
Administrative Law
Criminal Law
Civil Law
Statutes
, Definition 10 of 197
"Shareholder wealth" in a firm is represented by:
the total assets owned by the firm.
the number of shares issued by the firm.
the annual revenue generated by the firm.
the market price per share of the firm's common stock.
Definition 11 of 197
Beginning Inventory + Purchases = Goods
Inventory Turnover
Fundamental Attribution Error
The Creation of Value for Shareholders.
Basic Inventory Equation for Goods
Definition 12 of 197
A civil wrong committed against a individual. (negligence, malpractice, etc.)
Civil Law
Tort
Income Statement
Contract
Definition 13 of 197
The belief that power and status differences should exist in an organization.
Individualism
Democracy
Authoritarianism
Totalitarianism
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