Question 1

Depreciation is used to recognize the cost of an asset in the year in which it is purchased.

Accepted Answer

A) True 
 B)False

Question 2

Land,building,and equipment are ________.

Accepted Answer

A)  liquid assets 
B)  fixed assets 
C)  depleted assets 
D)  current assets 
A)  liquid assets 
B)  fixed assets 
C)  depleted assets 
D)  current assets

Question 3

Bookkeeping is a comprehensive system for collecting,analyzing,and communicating financial information.

Accepted Answer

A) True 
 B)False

Question 4

The ________ is often referred to as the "banker's ratio" because it concerns a firm's creditworthiness.

Accepted Answer

A)  acid test ratio 
B)  current ratio 
C)  profit ratio 
D)  return on equity 
A)  acid test ratio 
B)  current ratio 
C)  profit ratio 
D)  return on equity

Question 5

The American Institute of Certified Public Accountants (AICPA)prepares CPA exams and provides technical support and discipline in matters of ethics.

Accepted Answer

A) True 
 B)False

Question 6

Managerial accounting is ________.

Accepted Answer

A)  a systematic examination of a company's accounting system to determine whether its financial reports fairly represent its operations 
B)  a field of accounting that serves internal users of a company's financial information 
C)  the rules and procedures governing the content and form of financial reports 
D)  the field of accounting concerned with external users of a company's financial information 
A)  a systematic examination of a company's accounting system to determine whether its financial reports fairly represent its operations 
B)  a field of accounting that serves internal users of a company's financial information 
C)  the rules and procedures governing the content and form of financial reports 
D)  the field of accounting concerned with external users of a company's financial information

Question 7

Private accountants are generally employed by CPA firms.

Accepted Answer

A) True 
 B)False

Question 8

Fixed assets are merchandise that has been acquired for sale and is still on hand.

Accepted Answer

A) True 
 B)False

Question 9

________ is concerned with external users of information: consumers groups,unions,stockholders,and government agencies.

Accepted Answer

A)  Managerial accounting 
B)  Government accounting 
C)  Financial accounting 
D)  Stock market accounting 
A)  Managerial accounting 
B)  Government accounting 
C)  Financial accounting 
D)  Stock market accounting

Question 10

________ is a comprehensive system for collecting,analyzing,and communicating financial information.

Accepted Answer

A)  Bookkeeping 
B)  Accounting 
C)  Controlling 
D)  Auditing 
A)  Bookkeeping 
B)  Accounting 
C)  Controlling 
D)  Auditing

Question 11

Which of the following could be classified as an asset?

Accepted Answer

A)  land 
B)  buildings 
C)  equipment 
D)  all of these 
A)  land 
B)  buildings 
C)  equipment 
D)  all of these

Question 12

Earnings per share are classified as which of the following?

Accepted Answer

A)  balance sheet conventions 
B)  inventory determinants 
C)  cash-on-hand figures 
D)  profitability ratios 
A)  balance sheet conventions 
B)  inventory determinants 
C)  cash-on-hand figures 
D)  profitability ratios

Question 13

Many private accountants hold the ________ designation.

Accepted Answer

A)  SEC 
B)  CMA 
C)  CFP 
D)  CPA 
A)  SEC 
B)  CMA 
C)  CFP 
D)  CPA

Question 14

In the United States,the ________ enforces accounting and auditing rules and procedures.

Accepted Answer

A)  Accounting Disclosure Board 
B)  New York Stock Exchange 
C)  Securities and Exchange Commission 
D)  American Institute of Certified Public Accountants 
A)  Accounting Disclosure Board 
B)  New York Stock Exchange 
C)  Securities and Exchange Commission 
D)  American Institute of Certified Public Accountants

Question 15

Cash receipts and payments from buying and selling property and equipment would be classified as cash flows from ________ on the statement of cash flows.

Accepted Answer

A)  operations 
B)  budgeting 
C)  investing 
D)  planning 
A)  operations 
B)  budgeting 
C)  investing 
D)  planning

Question 16

What are the types of assets that will be found on a balance sheet?

Accepted Answer

A)  short-term, long-term, and medium 
B)  land, buildings, and liquid 
C)  current, fixed, and intangible 
D)  local, national, and international 
A)  short-term, long-term, and medium 
B)  land, buildings, and liquid 
C)  current, fixed, and intangible 
D)  local, national, and international

Question 17

Short Case Scenario 14-1
Mary Ann has always loved to cook and is interested in starting a catering business. Being aware of the failure rate of new businesses, she is considering buying an existing catering business that is up for sale. The current owners claim that the business is highly profitable, but Mary Ann has her doubts. She wonders why the owners would be so interested in selling the business if it is such a money maker. Furthermore, the price that they are asking seems high to Mary Ann. Without any formal training in accounting, Mary Ann asks a friend, Rolanda, for advice.
-Of what does owners' equity consist?

Accepted Answer

Owner's equity includes the am

Question 18

The Certified Fraud Examiners (CFE)designation is administered by the American Institute of Certified Public Accountants (AICPA).

Accepted Answer

A) True 
 B)False

Question 19

Which of the following four areas of the Certified Fraud Examiner (CFE)exam pertains to tracing illicit transactions,evaluating deception,and interviewing and taking statements.

Accepted Answer

A)  criminology and ethics 
B)  financial transactions 
C)  fraud investigation 
D)  legal elements of fraud 
A)  criminology and ethics 
B)  financial transactions 
C)  fraud investigation 
D)  legal elements of fraud

Question 20

________ requires that financial statements include not only numbers,but also management's interpretations and explanations of those figures.

Accepted Answer

A)  Full disclosure 
B)  Revenue recognition 
C)  Compliance 
D)  Matching 
A)  Full disclosure 
B)  Revenue recognition 
C)  Compliance 
D)  Matching

Depreciation is used to recognize the cost of an asset in the year in which it is purchased.

Land,building,and equipment are ________.

Bookkeeping is a comprehensive system for collecting,analyzing,and communicating financial information.

The ________ is often referred to as the "banker's ratio" because it concerns a firm's creditworthiness.

The American Institute of Certified Public Accountants (AICPA)prepares CPA exams and provides technical support and discipline in matters of ethics.

Managerial accounting is ________.

Private accountants are generally employed by CPA firms.

Fixed assets are merchandise that has been acquired for sale and is still on hand.

________ is concerned with external users of information: consumers groups,unions,stockholders,and government agencies.

________ is a comprehensive system for collecting,analyzing,and communicating financial information.

Which of the following could be classified as an asset?

Earnings per share are classified as which of the following?

Many private accountants hold the ________ designation.

In the United States,the ________ enforces accounting and auditing rules and procedures.

Cash receipts and payments from buying and selling property and equipment would be classified as cash flows from ________ on the statement of cash flows.

What are the types of assets that will be found on a balance sheet?

The Certified Fraud Examiners (CFE)designation is administered by the American Institute of Certified Public Accountants (AICPA).

Which of the following four areas of the Certified Fraud Examiner (CFE)exam pertains to tracing illicit transactions,evaluating deception,and interviewing and taking statements.

________ requires that financial statements include not only numbers,but also management's interpretations and explanations of those figures.

The U.S.Business Environment

Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

The Global Context of Business

Business Management

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Pricing, Distributing, and Promoting Products

Money and Banking

Managing Finances

Filters

Exam 14: The Role of Accountants and Accounting Information

Depreciation is used to recognize the cost of an asset in the year in which it is purchased.

Land,building,and equipment are ________.

Bookkeeping is a comprehensive system for collecting,analyzing,and communicating financial information.

The ________ is often referred to as the "banker's ratio" because it concerns a firm's creditworthiness.

The American Institute of Certified Public Accountants (AICPA)prepares CPA exams and provides technical support and discipline in matters of ethics.

Managerial accounting is ________.

Private accountants are generally employed by CPA firms.

Fixed assets are merchandise that has been acquired for sale and is still on hand.

________ is concerned with external users of information: consumers groups,unions,stockholders,and government agencies.

________ is a comprehensive system for collecting,analyzing,and communicating financial information.

Which of the following could be classified as an asset?

Earnings per share are classified as which of the following?

Many private accountants hold the ________ designation.

In the United States,the ________ enforces accounting and auditing rules and procedures.

Cash receipts and payments from buying and selling property and equipment would be classified as cash flows from ________ on the statement of cash flows.

What are the types of assets that will be found on a balance sheet?

The Certified Fraud Examiners (CFE)designation is administered by the American Institute of Certified Public Accountants (AICPA).

Which of the following four areas of the Certified Fraud Examiner (CFE)exam pertains to tracing illicit transactions,evaluating deception,and interviewing and taking statements.

________ requires that financial statements include not only numbers,but also management's interpretations and explanations of those figures.

The U.S.Business Environment

Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

The Global Context of Business

Business Management

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Pricing, Distributing, and Promoting Products

Money and Banking

Managing Finances

Filters