1 Which of the following terms refers to the comprehensive system for collecting, analyzing, and communicating financial information?

A) bookkeeping

B) accounting

C) controlling

D) auditing

E) budgeting

2 Which of the following has a fixed term?

A) demand deposits

B) time deposits

C) money market mutual funds

D) credit card accounts

E) savings accounts

3 Which of the following financial institutions earn profits from loans taken from the funds in each of its depositors' accounts?

A) securities investment firms

B) pension funds

C) credit unions

D) commercial banks

E) mutual savings banks

4 Which of the following terms refers to any economic resource that is expected to benefit a firm or individual who owns it?

A) asset

B) liability

C) equity

D) account

E) deposit

5 Who has access to intranets generally?

A) employees

B) suppliers

C) customers

D) shareholders

E) dealers

6 Which of the following refers to the rules and procedures governing the content and form of financial reports?

A) national bookkeeping standards

B) core competencies for accounting

C) accounting and financial rules

D) national guidelines of accounting principles

E) generally accepted accounting principles

7 Which of the following refers to the financial statement detailing a firm's assets, liabilities, and owners' equity?

A) income statement

B) statement of cash flows

C) balance sheet

D) expense report

E) annual budget

8 What is a stock's market value?

A) the current price of a share of stock in the stock market

B) the average price of one share of stock over the past year

C) the face value of a share of stock, set by the issuing company's board of directors

D) the price of the stock plus the previous year's dividend

E) the monthly average of a stock's price over a year

9 Which of the following political bodies appoints the members of the board of governors for the Federal Reserve System?

A) the Senate

B) the House of Representatives

C) the President of the United States

D) the Council of American Governors

E) the people of the United States

10 What system includes data conferencing and videoconferencing?

A) electronic communication systems

B) electronic conferencing

C) group systems

D) data communication networks

E) data mining

11 Which of the following affects the value of money?

A) how much currency is in circulation

B) how many units the currency can be divided into

C) how portable the form of currency is

D) how durable the form of currency is

E) how much currency has been saved

12 What value of a stock is calculated by dividing total shareholders' equity by the total number of shares of stock issued?

A) par value

B) market value

C) book value

D) chime value

E) total value

13What is the most common type of network used in businesses?

A) intranet

B) client-server

C) extranet

D) hotspot

E) anti-virus

14 What is the term for buying several different kinds of investments rather than just one?

A) spreading

B) shorting

C) margin buying

D) diversification

E) management

15 Which of the following indices indicates the relative strength of the currencies of two countries?

A) trade rate

B) exchange rate

C) trade balance

D) relative gross national products

E) international loan rate

16What type of network links computers and workstations, usually within one building?

A) satellite communication

B) global positioning

C) personal digital

D) wide area

E) local area

17Which of the following describes assets such as patents and trademarks?

A) liquid assets

B) fixed assets

C) intangible assets

D) current assets

E) limited assets

18 Money frees society from a system of barter. In doing so, money is performing which of the following functions?

A) store of value

B) measure of worth

C) unit of account

D) determination factor

E) medium of exchange

19 Which of the following terms refers to stocks, bonds, and mutual funds representing secured, or financially viable, claims on the part of investors?

A) private placements

B) securities

C) exchanges

D) commodities

E) dividends

20What feature does a firewall provide?

A) Internet access

B) protection from electrical surges

C) connectivity between stations in a LAN

D) privacy protection

E) links to computers in a WAN

21 Which of the following BEST describes the portability characteristic of money?

A) It neither dies nor spoils and if it wears out, it can be replaced.

B) Units of money can be matched with the value of goods.

C) It can be exchanged across national borders.

D) It allows people to measure the relative value of goods and services.

E) It is light and easy to handle.

22Which of the following terms refers to the difference calculated by subtracting income taxes paid from the operating income of an organization?

A) gross revenue

B) net income

C) gross profit

D) cash flow

E) leverage

23 What is the term for the proportion of funds invested in each of several investment alternatives?

A) spreading

B) shorting

C) margin buying

D) asset allocation

E) diversification

24 Which of the following is figured by dividing the yearly dollar amount of dividend income by the investment's current market value?

A) bond yield

B) current dividend yield

C) debenture

D) trading volume

E) EBIDA

25Which cybercriminal activity refers to the act of luring Internet users to bogus websites?

A) computer virus distribution

B) spamming

C) phishing

D) Trojan horse distribution

E) piracy

26 Which of the following is an electronic securities exchange?

A) Pacific Stock Exchange

B) NASDAQ

C) Osaka Securities Exchange

D) Securities and Exchange Commission

E) Europa

27Bennequin Accounting has been hired by XYZ Manufacturing to help plan its merger with ABC Distribution. Which of the following terms BEST describes the capacity for which Bennequin has been hired?

A) regulatory accounting

B) corporate bookkeeping

C) company auditing

D) fraud investigation

E) management advisory

28Which of the following BEST describes an extranet?

A) a software and hardware system that prevents outsiders from accessing a company's network

B) a tool that searches Web pages containing the user's search terms and then displays pages that match

C) a private network of internal websites and other sources of information available to a company's employees

D) an Internet connection allowing outsiders limited access to a firm's internal information system

E) a delivery system linked to production schedules

29 Which of the following terms refers to stocks, bonds, and mutual funds representing secured, or financially viable, claims on the part of investors?

A) private placements

B) securities

C) exchanges

D) commodities

E) dividends

30 Which of the following is NOT a primary tool for controlling the money supply?

A) taxation

B) reserve requirements

C) discount rate controls

D) credit controls

E) open-market operations