SM131 EXAM 2 KNOWLEDGE CHECK
Q'S QUESTIONS AND ANSWERS WITH
CORRECT SOLUTIONS 100%
Which of the following is NOT a reason Walmart is effective in managing their supply
chain? - CORRECT ANSWES -- Closely guarded demand data for competitive
advantage
Optimal cost of quality is reached when prevention costs and appraisal cost are at their
lowest point. - CORRECT ANSWES -- FALSE - when actually they are higher !
Companies in the same industry tend follow the same supply chain design approach. -
CORRECT ANSWES -- FALSE = incredibly diverse!!!
Accounting can be described as an 'information system' that does all of the following,
EXCEPT: - CORRECT ANSWES -- Is mainly preoccupied with tax issues
In the United States, what is the name/acronym for the rules we use for Accounting? -
CORRECT ANSWES -- GAAP
The profits realized by a firm become: - CORRECT ANSWES -- dividends/ and or
equity
In Accounting, what is the formula used for a Balance Sheet? - CORRECT ANSWES --
- Assets = liabilities + owner's equity
On a Balance Sheet, Assets are things purchased by the company. - CORRECT
ANSWES -- True
Which of the following is true? - CORRECT ANSWES -- Which of the following is true?
A. Balance sheet tells "where the company is" and Income statement tells "what
happened"
B. Income statement tells both "where the company is" and "what happened"
C. Balance sheet and income statements both tell "what happened"
D. Balance sheet tells "what happened" and income statement tells "where the
company is"
E. Balance sheet tells both "where the company is" and "what happened"
A
, Small Business LLC has $25,000 in cash, $275,000 in long term assets, and they owe
$200,000 for a mortgage. How much do they have in equity? - CORRECT ANSWES --
100,000
On an Income Statement, what are the costs of running a company called? -
CORRECT ANSWES -- Expenses
A software company will usually have a lot fewer current assets than long term assets?
- CORRECT ANSWES -- False
Operating Income is determined after interest and tax are deducted. - CORRECT
ANSWES -- False
Hyun and Asha have started a Fruit Stand business in a rented store front. For this
year, they bought fruits for $400,000, they ran ads in the local paper for $5,000. During
the same period, they sold $600,000 of fruits and paid $100,000 in payroll for the two of
them? What is their operating income? - CORRECT ANSWES -- NOT ENOUGH INFO -
COGS
Typically, operating income is greater than gross profit - CORRECT ANSWES -- False -
gp is first
Financial accountants do the following, EXCEPT: - CORRECT ANSWES -- Review
systems, process, controls, and the numbers
- that is what auditors do
During an accounting audit, the auditors spends many hours look checking every
financial transaction in the company. - CORRECT ANSWES -- False
Only check few
What does cost of sales represent? - CORRECT ANSWES -- The direct cost of goods
provided to customers
- KNOW
Branding, Advertising campaigns, and online strategies are the main components of
marketing.
TrueFalse - CORRECT ANSWES -- FALSE
To be successful a company must realize all the following, EXCEPT: - CORRECT
ANSWES -- . Customers must be willing to pay for the product or services
B. Innovation must solve needs or relieves a pain point better than competing
alternatives
C. Innovation success is predicated on having the right business model
Q'S QUESTIONS AND ANSWERS WITH
CORRECT SOLUTIONS 100%
Which of the following is NOT a reason Walmart is effective in managing their supply
chain? - CORRECT ANSWES -- Closely guarded demand data for competitive
advantage
Optimal cost of quality is reached when prevention costs and appraisal cost are at their
lowest point. - CORRECT ANSWES -- FALSE - when actually they are higher !
Companies in the same industry tend follow the same supply chain design approach. -
CORRECT ANSWES -- FALSE = incredibly diverse!!!
Accounting can be described as an 'information system' that does all of the following,
EXCEPT: - CORRECT ANSWES -- Is mainly preoccupied with tax issues
In the United States, what is the name/acronym for the rules we use for Accounting? -
CORRECT ANSWES -- GAAP
The profits realized by a firm become: - CORRECT ANSWES -- dividends/ and or
equity
In Accounting, what is the formula used for a Balance Sheet? - CORRECT ANSWES --
- Assets = liabilities + owner's equity
On a Balance Sheet, Assets are things purchased by the company. - CORRECT
ANSWES -- True
Which of the following is true? - CORRECT ANSWES -- Which of the following is true?
A. Balance sheet tells "where the company is" and Income statement tells "what
happened"
B. Income statement tells both "where the company is" and "what happened"
C. Balance sheet and income statements both tell "what happened"
D. Balance sheet tells "what happened" and income statement tells "where the
company is"
E. Balance sheet tells both "where the company is" and "what happened"
A
, Small Business LLC has $25,000 in cash, $275,000 in long term assets, and they owe
$200,000 for a mortgage. How much do they have in equity? - CORRECT ANSWES --
100,000
On an Income Statement, what are the costs of running a company called? -
CORRECT ANSWES -- Expenses
A software company will usually have a lot fewer current assets than long term assets?
- CORRECT ANSWES -- False
Operating Income is determined after interest and tax are deducted. - CORRECT
ANSWES -- False
Hyun and Asha have started a Fruit Stand business in a rented store front. For this
year, they bought fruits for $400,000, they ran ads in the local paper for $5,000. During
the same period, they sold $600,000 of fruits and paid $100,000 in payroll for the two of
them? What is their operating income? - CORRECT ANSWES -- NOT ENOUGH INFO -
COGS
Typically, operating income is greater than gross profit - CORRECT ANSWES -- False -
gp is first
Financial accountants do the following, EXCEPT: - CORRECT ANSWES -- Review
systems, process, controls, and the numbers
- that is what auditors do
During an accounting audit, the auditors spends many hours look checking every
financial transaction in the company. - CORRECT ANSWES -- False
Only check few
What does cost of sales represent? - CORRECT ANSWES -- The direct cost of goods
provided to customers
- KNOW
Branding, Advertising campaigns, and online strategies are the main components of
marketing.
TrueFalse - CORRECT ANSWES -- FALSE
To be successful a company must realize all the following, EXCEPT: - CORRECT
ANSWES -- . Customers must be willing to pay for the product or services
B. Innovation must solve needs or relieves a pain point better than competing
alternatives
C. Innovation success is predicated on having the right business model
