TEST BANK For Financial and Managerial Accounting:
Managerial Chapters, 7th Edition (Miller-Nobles)
Premium-Pricing Strategy - ANSWER: where a company tries to design and produce
product or services that serve unique market needs, allowing it to charge premium
prices
Low-Cost Strategy - ANSWER: where a company designs and produces products or
service at a lower cost than its competitors
Limited Liability Company - ANSWER: combines attributes of a partnership
Corporation - ANSWER: is organized under state or federal statues as a separate
legal entity
Partnership - ANSWER: is owned by two or more individuals
Proprietorship - ANSWER: is owned by one individual
Manufacturing Businesses - ANSWER: change basic inputs into products that are sold
to customers
Service Businesses - ANSWER: provide services rather than products to customers
Merchandising Businesses - ANSWER: sell products they purchase from other
businesses
Business - ANSWER: an organization in which basic resources (inputs), such as
materials and labor, are assembled and processed to provide goods or services
(outputs) to customers
Capital Market Stakeholders - ANSWER: provide the financing for a company to
begin and continue its operations
Product or Service Market Shareholders - ANSWER: purchase the company's
products or services or sell their products or services to the company
Government Stakeholders - ANSWER: such as federal, state, county, and city
governments that collect taxes from companies
Internal Stakeholders - ANSWER: such as managers and employees depend upon the
continued success of the company for keeping their jobs
Investing Activities - ANSWER: to obtain the assets such as buildings and equipment
to begin and operate the company
, Accounts Payable - ANSWER: liabilities for amounts incurred from purchases of
products or services in the normal operations of a business
Liability - ANSWER: is a legal obligation to repay the amount borrow according to the
terms of the borrowing agreement
Financing Activities - ANSWER: to obtain the necessary funds (monies) to organize
and operate the company
Bonds - ANSWER: are sold to investors and require repayment normally with interest
Face Value - ANSWER: amount of the bonds
Bonds Payable - ANSWER: bond obligations (long-term)
Interest Payable - ANSWER: any interest that is due
Note Payable - ANSWER: requires payment of the amount borrowed plus interest
(long & short terms)
Common Stock - ANSWER: the basic type of stock issued to stockholders of a
corporation when a corporation has issued only one class of stock
Capital Stock - ANSWER: the portion of a corporations stockholders equity
contributed by investors (owners) in exchange for shares of stock
Dividends - ANSWER: distributions of the earnings of a corporation to its
stockholders
Cost of Goods Sold - ANSWER: cost of products sold
Cost Concept - ANSWER: an accounting concept that limits the economic data in the
accounting system of a specific business or entity to data related directly to the
activities of that business or entity
Business Entity Concept - ANSWER: an accounting concept that limits the economic
data in the accounting entity to data related directly to the activities of that business
or entity
Balance Sheet - ANSWER: a list of the assets, liabilities and owners equity as of a
specific date usually at the close of the last day of the month
Assets - ANSWER: the resources owned by a business
Accounts Receivable - ANSWER: receivables created by selling merchandise or
services on credit
Managerial Chapters, 7th Edition (Miller-Nobles)
Premium-Pricing Strategy - ANSWER: where a company tries to design and produce
product or services that serve unique market needs, allowing it to charge premium
prices
Low-Cost Strategy - ANSWER: where a company designs and produces products or
service at a lower cost than its competitors
Limited Liability Company - ANSWER: combines attributes of a partnership
Corporation - ANSWER: is organized under state or federal statues as a separate
legal entity
Partnership - ANSWER: is owned by two or more individuals
Proprietorship - ANSWER: is owned by one individual
Manufacturing Businesses - ANSWER: change basic inputs into products that are sold
to customers
Service Businesses - ANSWER: provide services rather than products to customers
Merchandising Businesses - ANSWER: sell products they purchase from other
businesses
Business - ANSWER: an organization in which basic resources (inputs), such as
materials and labor, are assembled and processed to provide goods or services
(outputs) to customers
Capital Market Stakeholders - ANSWER: provide the financing for a company to
begin and continue its operations
Product or Service Market Shareholders - ANSWER: purchase the company's
products or services or sell their products or services to the company
Government Stakeholders - ANSWER: such as federal, state, county, and city
governments that collect taxes from companies
Internal Stakeholders - ANSWER: such as managers and employees depend upon the
continued success of the company for keeping their jobs
Investing Activities - ANSWER: to obtain the assets such as buildings and equipment
to begin and operate the company
, Accounts Payable - ANSWER: liabilities for amounts incurred from purchases of
products or services in the normal operations of a business
Liability - ANSWER: is a legal obligation to repay the amount borrow according to the
terms of the borrowing agreement
Financing Activities - ANSWER: to obtain the necessary funds (monies) to organize
and operate the company
Bonds - ANSWER: are sold to investors and require repayment normally with interest
Face Value - ANSWER: amount of the bonds
Bonds Payable - ANSWER: bond obligations (long-term)
Interest Payable - ANSWER: any interest that is due
Note Payable - ANSWER: requires payment of the amount borrowed plus interest
(long & short terms)
Common Stock - ANSWER: the basic type of stock issued to stockholders of a
corporation when a corporation has issued only one class of stock
Capital Stock - ANSWER: the portion of a corporations stockholders equity
contributed by investors (owners) in exchange for shares of stock
Dividends - ANSWER: distributions of the earnings of a corporation to its
stockholders
Cost of Goods Sold - ANSWER: cost of products sold
Cost Concept - ANSWER: an accounting concept that limits the economic data in the
accounting system of a specific business or entity to data related directly to the
activities of that business or entity
Business Entity Concept - ANSWER: an accounting concept that limits the economic
data in the accounting entity to data related directly to the activities of that business
or entity
Balance Sheet - ANSWER: a list of the assets, liabilities and owners equity as of a
specific date usually at the close of the last day of the month
Assets - ANSWER: the resources owned by a business
Accounts Receivable - ANSWER: receivables created by selling merchandise or
services on credit
