Question 1

The ________ is a company's chief accounting officer.

Accepted Answer

A)  budget manager 
B)  bookkeeper 
C)  controller 
D)  auditor 
A)  budget manager 
B)  bookkeeper 
C)  controller 
D)  auditor

Question 2

Which of the following is the most commonly used liquidity ratio?

Accepted Answer

A)  return on equity 
B)  return on sales 
C)  current ratio 
D)  quick ratio 
A)  return on equity 
B)  return on sales 
C)  current ratio 
D)  quick ratio

Question 3

The process of distributing the cost of an asset over its life is known as ________.

Accepted Answer

A)  prepaid expenses 
B)  subtracting methods 
C)  depreciation 
D)  licensing 
A)  prepaid expenses 
B)  subtracting methods 
C)  depreciation 
D)  licensing

Question 4

In general,a current ratio of 2:1 or higher is satisfactory.

Accepted Answer

A) True 
 B)False

Question 5

Which are the two major fields of accounting?

Accepted Answer

A)  financial and managerial 
B)  primary and secondary 
C)  industrial and consumer 
D)  public and private 
A)  financial and managerial 
B)  primary and secondary 
C)  industrial and consumer 
D)  public and private

Question 6

What is liquidity?

Accepted Answer

Liquidity is the eas

Question 7

The tax services of a CPA firm include assistance not only with tax return preparation but also with ________.

Accepted Answer

A)  tax evasion 
B)  tax planning 
C)  tax calculation 
D)  tax changes 
A)  tax evasion 
B)  tax planning 
C)  tax calculation 
D)  tax changes

Question 8

The beginning of the earnings cycle determines the timing for revenue recognition in a firm's financial statement.

Accepted Answer

A) True 
 B)False

Question 9

Retained earnings are net profits minus dividend payments to stockholders.

Accepted Answer

A) True 
 B)False

Question 10

Owners' equity may also be described as net worth.

Accepted Answer

A) True 
 B)False

Question 11

The controller is a company's chief accounting officer.

Accepted Answer

A) True 
 B)False

Question 12

________ consist(s)of money originally invested by owners and profits earned and reinvested in the company.

Accepted Answer

A)  Assets 
B)  Owners' equity 
C)  Inventory 
D)  Debits 
A)  Assets 
B)  Owners' equity 
C)  Inventory 
D)  Debits

Question 13

Which of the following four areas of the Certified Fraud Examiner (CFE)exam includes theories of fraud prevention?

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 14

Which organization provides guidelines for ethical conduct for the accounting profession?

Accepted Answer

A)  AICPA 
B)  CPA 
C)  GAAP 
D)  CMA 
A)  AICPA 
B)  CPA 
C)  GAAP 
D)  CMA

Question 15

Administrative and general expenses result from activities related to selling goods or services.

Accepted Answer

A) True 
 B)False

Question 16

Financial 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 17

What are the six ethics-related areas enforced by the American Institute of Certified Public Accountants?

Accepted Answer

These areas include responsibi

Question 18

What two sources of capital make up owners' equity?

Accepted Answer

Owners' equity includes the am

Question 19

________ offer accounting services to the public and are licensed at the state level.

Accepted Answer

A)  Bookkeepers 
B)  Certified Public Accountants 
C)  Certified Management Accountants 
D)  Controllers 
A)  Bookkeepers 
B)  Certified Public Accountants 
C)  Certified Management Accountants 
D)  Controllers

Question 20

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.
-Rolanda suggests that Mary Ann may benefit from the services of a noncertified public accountant.What types of services could be provided?

Accepted Answer

Noncertified public accountant

The ________ is a company's chief accounting officer.

Which of the following is the most commonly used liquidity ratio?

The process of distributing the cost of an asset over its life is known as ________.

In general,a current ratio of 2:1 or higher is satisfactory.

Which are the two major fields of accounting?

What is liquidity?

The tax services of a CPA firm include assistance not only with tax return preparation but also with ________.

The beginning of the earnings cycle determines the timing for revenue recognition in a firm's financial statement.

Retained earnings are net profits minus dividend payments to stockholders.

Owners' equity may also be described as net worth.

The controller is a company's chief accounting officer.

________ consist(s)of money originally invested by owners and profits earned and reinvested in the company.

Which of the following four areas of the Certified Fraud Examiner (CFE)exam includes theories of fraud prevention?

Which organization provides guidelines for ethical conduct for the accounting profession?

Administrative and general expenses result from activities related to selling goods or services.

Financial accounting is ________.

What are the six ethics-related areas enforced by the American Institute of Certified Public Accountants?

What two sources of capital make up owners' equity?

________ offer accounting services to the public and are licensed at the state level.

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

The ________ is a company's chief accounting officer.

Which of the following is the most commonly used liquidity ratio?

The process of distributing the cost of an asset over its life is known as ________.

In general,a current ratio of 2:1 or higher is satisfactory.

Which are the two major fields of accounting?

What is liquidity?

The tax services of a CPA firm include assistance not only with tax return preparation but also with ________.

The beginning of the earnings cycle determines the timing for revenue recognition in a firm's financial statement.

Retained earnings are net profits minus dividend payments to stockholders.

Owners' equity may also be described as net worth.

The controller is a company's chief accounting officer.

________ consist(s)of money originally invested by owners and profits earned and reinvested in the company.

Which of the following four areas of the Certified Fraud Examiner (CFE)exam includes theories of fraud prevention?

Which organization provides guidelines for ethical conduct for the accounting profession?

Administrative and general expenses result from activities related to selling goods or services.

Financial accounting is ________.

What are the six ethics-related areas enforced by the American Institute of Certified Public Accountants?

What two sources of capital make up owners' equity?

________ offer accounting services to the public and are licensed at the state level.

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