INTRODUCTİON TO BUSİNESS - Deneme Sınavı - 7

Adam Smith’s Wealth of Nations (1776) proposed the division of labor, in which the production process was broken down into a series of small tasks, each performed by a different worker. The specialization of the workers on limited, repetitive tasks allowed them to become very proficient at those tasks and further encouraged the development of specialized machinery.

The correct answer is B.

The concept of flexible manufacturing system (FMS) was conceived in Britain in the early 1960s, and the first physical FMS was established around 1967 in the United States. The flexible manufacturing system was introduced in response to a new demand for more variety and for greater responsiveness to changes in products, production technology, and markets. The objective of an FMS is to
carry out on a single system fabrication of several types of parts that can change over time with small conversion in time, at the required volume and quality, and with the aim of achieving productivity and flexibility at the same time.

The correct answer is C.

Mass customization means tailoring products to meet the needs of a large number of individual customers. Companies prefer to produce standard products in high volumes by low costs. On the other hand, customers want to buy products among a wide variety of products but with lowest possible cost. This situation creates a big problem for the companies and need to be solved. This can be achieved by mass customization, a strategy of producing standardized goods or services, but incorporating some degree of customization in the final product or service.

The correct answer is A.

Aggregate planning is concerned with the determination of production, inventory, and work force levels to meet fluctuating demand requirements over a planning horizon that ranges from six months to one year. 

Aggregate planning begins with a forecast of aggregate demand for the intermediate range. This is followed by a general plan to meet the demand requirements by setting output, employment, and finished goods inventory levels. Aggregate plans are updated periodically, often monthly, to take into account the updated forecasts and other changes.

The correct answer is E.

As knowledge technology became more sophisticated in the mid-2000s it became better known as business intelligence (BI). BI refers to a variety of software applications that analyze an organization’s raw data and take out useful insights from it. Business intelligence (BI) activities include data mining, online analytical process, querying and reporting. Marketing is one of the fields where BI is used, but not one of the activities of BI.

The correct answer is D.

An extranet is a private network that uses Internet technology and the public telecommunication system to securely share part of a business’s information or
operations with suppliers, vendors, partners, customers, or other businesses.

The correct answer is A.

As part of management information, businesses need decision support systems to support decision making. They focus on problems that are unique and rapidly changing, for which the procedure for arriving at a solution may not be fully predefined in advance. DSS use internal and external information together to answer the questions for decision making.

The correct answer is C.

An executive information system (EIS) is a decision support system used to help senior executives in decision-making processes in the company. The decision-making process is done by providing easy access to important data needed to achieve strategic goals in an organization.

The correct answer is B.

Many people confuse bookkeeping and accounting. They think that bookkeeping is accounting. Actually it is not. Bookkeeping is the act of recording and organizing financial transactions in the accounting system in accordance with the generally accepted accounting principles (GAAP). It ensures that records of the individual financial transactions are correct, up-to-date, and comprehensive. In modern accounting systems, bookkeeping is processed by computer software.

Internal users of accounting information are managers who plan, organize, and run a business. They include marketing managers, production supervisors, finance directors, and company officers. External users are individuals and organizations outside a company who need financial information about the company. The two most common types are investors and creditors. Current and prospective investors (owners) use accounting information to make decisions to buy, hold, or sell stock.

Financial accounting focuses on reporting to external parties such as stockholders, investors, governmental agencies, creditors, banks, and suppliers. Financial accounting measures and records business transactions and provides financial statements that are based on generally accepted accounting principles (GAAP).

All professions have regulations. Accountancy profession in Turkey is regulated through the law No. 3568, “The Law of Independent Accountancy, Certified Public Accountancy, and Sworn-in Certified Public Accountancy”. It was enacted in 1989. The law establishes accounting and auditing as a profession and defines those who are rendering services in these fields as professionals.

The Union of Chambers of Certified Public Accountants of Turkey (TÜRMOB) is the national umbrella organization for the 81 local chambers of CPAs (SMMMs) and Chambers of Sworn-in CPAs (YMMs). The Union is empowered to award professional licenses that Turkey’s accountants must have to render professional services.

The accounting cycle is a set of steps that are repeated in the same order every period to keep track of what happened in the business and to report the financial effect of those transactions. The accounting cycle is the financial process starting with obtaining data from business transactions and leading up to preparation of financial statements. This cycle starts when a business transaction occurs. It will end when the transaction has been included in the financial statements or reports of the company.

The accounting equation is the formula used to capture the company’s financial position at any point in time. The accounting equation shows how assets, liabilities, and owners’ equity are related to each other: assets = liabilities + owners’ equity.

A journal is the chronological record of transactions A ledger is the book holding all the accounts with their balances. Posting is the process of copying from the journal to the ledger

This transaction increases both the assets (in this case, cash) and the owner’s equity (capital) of the business by 10.000 dollars.

The excess of the current assets of a business over its current liabilities is called net working capital (NWC). The net working capital is often used in evaluating a company’s ability to meet currently maturing debts. Net working capital is the difference between current assets and current liabilities.

Outputs of accounting system;

• Balance sheet
• Income statement
• Cash flows statement
• Other reports

Processing;

• Journalizing
• Posting
• All accounts are summarized