Discuss the selected answers.

1. April is a college student who wants to open a bank account for the first time. She has $500 cash to

deposit in the account initially. The bank she chooses is not near her dorm, and it's difficult for her to get

there. She has a part-time job and receives a bi-weekly paycheck that will be directly deposited into her

account. Which account should she ask for in the bank.

2. Explain why shareholder sheet is not a standard financial statement:

3. The numbers listed in a stock table's 52-week high and low column tell you

A. the best prices for the stock.

B. if the stock price is overvalued.

C. the range of prices for the year.

D. the range of where the stock price should be.

4. Which of the following are not true statements about ticker symbols:

A. They uniquely identify a company.

B. They tell you what kind of stock it is.

C. They are made up of the first three letters of a company's name.

D. They are only given to companies on the New York Stock Exchange.

5. Explain why bonds is an example of a lending investment:

6. Bennett has just finished college and has moved into her own apartment that is located on a bus line.

She'll be able to take the bus to her new job that she's scheduled to start in a month. In fact, she'll need

to rely on bus transportation until she saves money to buy a car. What insurance coverage should she

have? Explain

A. Renter's insurance and temporary short-term health insurance

B. Health and life insurance

C. Renter's insurance and COBRA

D. Auto insurance and temporary short-term health insurance

7. A labor strike against a major employer is an example of a(n) __________ risk.

A. human C. economic

B. natural D. internal

8. What type of financial records do businesses need to maintain in order to keep track of their

transactions?

A. Tax identification C. Payroll information

B. Accounts receivable D. Operating procedure

9. Which of the following is the basic calculation used to analyze an income statement:

A. Assets minus liabilities C. Income minus expenses

B. Revenue plus sales D. Sales plus operating costs

10. Which of the following is a common financial-information management problem:

A. Multiple financial data sources and systems within an organization

B. Overreliance on a master source and system for financial data

C. Strict organizational data governance policies and processes

D. Insufficient financial information due to compliance regulations

11. A primary responsibility of financial-information management is to

A. report financial transactions. C. develop new products.

B. negotiate contracts with vendors. D. implement sales policies.

12. Which of the following is an example of a businessperson exhibiting unethical behavior in relation to a

business's financial information:

A. An unauthorized employee reviews a client's financial information.

B. An auditor verifies the accuracy of a corporation's financial statements.

C. A banker requests financial information from a business to process a loan.

D. A manager examines the business's financial records to develop a budget.

13. Which of the following is a technological tool that businesses use to archive their financial records:

A. Electronic data interchange C. Digital microfilm scanner

B. Direct-response software D. Web-development programs

14. Why has online technology's use increased in financial-information management?

A. Recognition that the security of transactions is no longer an issue

B. Removal of electronic information exchange procedures

C. Passage of laws that recognize electronic documents as legally binding

D. Protection of customers' right to privacy

15. The primary reason that businesses use data mining techniques to obtain various types of financial

information is to

A. manage their working capital effectively.

B. develop their financial goals.

C. identify relationships and patterns among data.

D. analyze the accuracy of their accounting records.

16. Alyssa is starting a small business out of her home. When she accesses a business "how-to" web site,

Alyssa finds software downloads and printable worksheets that will help her plan and manage her

business's income and expenses. The software and worksheets are types of

A. statistical information. C. budgeting tools.

B. legal data. D. organizational charts.

17. What is a benefit of managing budgeting data efficiently through budgeting applications?

A. Decreases auditors' ability to trace the numbers used in budgets

B. Increases amount of time that needs to be spent on value-added activities

C. Decreases the need for having an audit trail

D. Increases management's confidence in budgets

18. Businesses often use computer-spreadsheet software for "what-if" financial planning by plugging in

different numerical data into formulas, which provide possible

A. distribution methods. C. financial outcomes.

B. production strategies. D. accounting standards.

19. In which of the following situations would a firm use cost-analysis applications:

A. To predict sales volume for a certain period of time

B. To determine the number of delinquent accounts

C. To assess income changes over a certain period of time

D. To evaluate the amount of money associated with inventory storage

20. To obtain specific financial information from a complex database, the user has to set

A. queries. C. tabs.

B. symbols. D. panels.

21. Because the Keller Company is a public corporation, it must provide its shareholders with accurate

financial information in a(n)

A. accounting portfolio. C. complex memorandum.

B. informal monthly contract. D. annual report.

22. To ensure compliance with government regulations, an independent auditor is required to verify the

accuracy of a public corporation's

A. financial reports. C. diversification efforts.

B. selling policies. D. accounting philosophies.

23. Which of the following is a financial report that financial institutions often review to decide if they will

approve applicants' requests for business loans:

A. Payment voucher C. Petty-cash summary

B. Corporation charter D. Cash-flow statement

24. The accounting system used to report a business's financial position that is intended for internal users is

the __________ accounting system.

A. financial C. computerized

B. management D. manual

25. In relation to recording business transactions, a primary difference between the cost and accrual

accounting systems is

A. complexity. C. frequency.

B. scope. D. timing.

26. Which of the following is essential to the identification of trends in financial data for a horizontal analysis:

A. Data in a Statement of Cash Flows

B. Data from the most recent financial report

C. Data in financial reports from multiple time periods

D. Data from a zero-based budget

27. By analyzing a customer's financial information, a finance professional should be able to

A. protect the security of the customer's financial information.

B. declare Chapter 11 bankruptcy for the customer.

C. develop a financial strategy to help the customer.

D. determine the customer's newest target market.