Question 1

________ ratios are designed to indicate how successful a firm is in terms of its earnings as compared with its assets or owners' equity.

Accepted Answer

A)  Profitability 
B)  Liquidity 
C)  Activity 
D)  Debt 
A)  Profitability 
B)  Liquidity 
C)  Activity 
D)  Debt

Question 2

The ________ was created by the Sarbanes-Oxley Act of 2002.

Accepted Answer

A)  Public Company Accounting Oversight Board 
B)  Securities & Exchange Commission 
C)  GAAP 
D)  FASB 
A)  Public Company Accounting Oversight Board 
B)  Securities & Exchange Commission 
C)  GAAP 
D)  FASB

Question 3

Professionals who are responsible for gathering,recording,reporting,and interpreting the financial information of an organization are ________.

Accepted Answer

A)  Managers 
B)  Statisticians 
C)  Accountants 
D)  IRS agents 
A)  Managers 
B)  Statisticians 
C)  Accountants 
D)  IRS agents

Question 4

Who is recognized worldwide as the body with sole responsibility and authority to issue pronouncements on international accounting standards?

Accepted Answer

A)  FASB 
B)  The World Bank 
C)  IASB 
D)  GAAP 
A)  FASB 
B)  The World Bank 
C)  IASB 
D)  GAAP

Question 5

An accountant employed by a business other than an accounting firm is called a management accountant.

Accepted Answer

A) True 
 B)False

Question 6

Explain the accounting equation.

Accepted Answer

The accounting equation states that asse

Question 7

An asset turnover ratio of 2.5 means that for every $1 in assets,the firm generates ________ in sales.

Accepted Answer

A)  $2.00 
B)  $2.50 
C)  $3.00 
D)  $0.50 
A)  $2.00 
B)  $2.50 
C)  $3.00 
D)  $0.50

Question 8

_____ measures the extent to which a firm relies on debt financing.

Accepted Answer

A) Chartered Accountant 
B) International Financial Reporting Standards 
C) Asset 
D) Liability 
E) owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Corruption of Foreign Public Officials Act
J)accrual accounting
K)open book management
L)Budget
M)GAAP
N)AcSB
O)profitability ratio
P)International Accounting Standards Committee
Q)liquidity ratios
r budget 
A) Chartered Accountant 
B) International Financial Reporting Standards 
C) Asset 
D) Liability 
E) owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Corruption of Foreign Public Officials Act
J)accrual accounting
K)open book management
L)Budget
M)GAAP
N)AcSB
O)profitability ratio
P)International Accounting Standards Committee
Q)liquidity ratios
r budget

Question 9

A(n)_____ is anything of value owned or leased by a business.

Accepted Answer

A) Chartered Accountant 
B) International Financial Reporting Standards 
C) Asset 
D) Liability 
E) owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Corruption of Foreign Public Officials Act
J)accrual accounting
K)open book management
L)Budget
M)GAAP
N)AcSB
O)profitability ratio
P)International Accounting Standards Committee
Q)liquidity ratios
r budget 
A) Chartered Accountant 
B) International Financial Reporting Standards 
C) Asset 
D) Liability 
E) owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Corruption of Foreign Public Officials Act
J)accrual accounting
K)open book management
L)Budget
M)GAAP
N)AcSB
O)profitability ratio
P)International Accounting Standards Committee
Q)liquidity ratios
r budget

Question 10

The _____ was established to promote worldwide consistency in financial reporting practices.

Accepted Answer

A) Chartered Accountant 
B) International Financial Reporting Standards 
C) Asset 
D) Liability 
E) owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Corruption of Foreign Public Officials Act
J)accrual accounting
K)open book management
L)Budget
M)GAAP
N)AcSB
O)profitability ratio
P)International Accounting Standards Committee
Q)liquidity ratios
r budget 
A) Chartered Accountant 
B) International Financial Reporting Standards 
C) Asset 
D) Liability 
E) owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Corruption of Foreign Public Officials Act
J)accrual accounting
K)open book management
L)Budget
M)GAAP
N)AcSB
O)profitability ratio
P)International Accounting Standards Committee
Q)liquidity ratios
r budget

Question 11

Ratios assist managers by interpreting actual performance and making comparisons with what should have happened.

Accepted Answer

A) True 
 B)False

Question 12

Olga owns a business and is reviewing her company's current financial statements.As a user of accounting information,Olga is most interested in using this information to ________.

Accepted Answer

A)  evaluate credit risk 
B)  approve new issues of stocks and bonds 
C)  evaluate tax liabilities 
D)  plan and control 
A)  evaluate credit risk 
B)  approve new issues of stocks and bonds 
C)  evaluate tax liabilities 
D)  plan and control

Question 13

What is the primary role of a government accountant?

Accepted Answer

A)  Determining how efficiently the organization accomplishes its objectives 
B)  Determining how much money the organization is taking in 
C)  Determining the cost of goods and services provided by the organization 
D)  Preparing the organization's tax return 
A)  Determining how efficiently the organization accomplishes its objectives 
B)  Determining how much money the organization is taking in 
C)  Determining the cost of goods and services provided by the organization 
D)  Preparing the organization's tax return

Question 14

The primary role of government accountants is to determine how efficiently their organizations have accomplished their objectives.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is a non-cash expense?

Accepted Answer

A)  Depreciation 
B)  Cost of goods sold 
C)  Income taxes 
D)  Operating costs 
A)  Depreciation 
B)  Cost of goods sold 
C)  Income taxes 
D)  Operating costs

Question 16

Samantha works for a mid-sized manufacturing company.Her responsibility is to examine the firm's financial practices to ensure that records include accurate data and that the firm's operations are in compliance with federal,state,and local laws and regulations.Samantha is a ________.

Accepted Answer

A)  government accountant 
B)  cost accountant 
C)  internal auditor 
D)  tax accountant 
A)  government accountant 
B)  cost accountant 
C)  internal auditor 
D)  tax accountant

Question 17

The procedure used by accountants to convert transactions into financial statements is called ________.

Accepted Answer

A)  the accounting cycle 
B)  processing financial information 
C)  recording financial information 
D)  summarizing financial information 
A)  the accounting cycle 
B)  processing financial information 
C)  recording financial information 
D)  summarizing financial information

Question 18

Accounting is the language of business.

Accepted Answer

A) True 
 B)False

Question 19

A(n)________ is a financial statement that is directly based on the accounting equation.

Accepted Answer

A)  income statement 
B)  balance sheet 
C)  statement of cash flows 
D)  statement of changes in retained earnings 
A)  income statement 
B)  balance sheet 
C)  statement of cash flows 
D)  statement of changes in retained earnings

Question 20

A debt ratio of 20 percent means that the firm is relying more on borrowed money than owners' equity.

Accepted Answer

A) True 
 B)False

________ ratios are designed to indicate how successful a firm is in terms of its earnings as compared with its assets or owners' equity.

The ________ was created by the Sarbanes-Oxley Act of 2002.

Professionals who are responsible for gathering,recording,reporting,and interpreting the financial information of an organization are ________.

Who is recognized worldwide as the body with sole responsibility and authority to issue pronouncements on international accounting standards?

An accountant employed by a business other than an accounting firm is called a management accountant.

Explain the accounting equation.

An asset turnover ratio of 2.5 means that for every $1 in assets,the firm generates ________ in sales.

_____ measures the extent to which a firm relies on debt financing.

A(n)_____ is anything of value owned or leased by a business.

The _____ was established to promote worldwide consistency in financial reporting practices.

Ratios assist managers by interpreting actual performance and making comparisons with what should have happened.

Olga owns a business and is reviewing her company's current financial statements.As a user of accounting information,Olga is most interested in using this information to ________.

What is the primary role of a government accountant?

The primary role of government accountants is to determine how efficiently their organizations have accomplished their objectives.

Which of the following is a non-cash expense?

Samantha works for a mid-sized manufacturing company.Her responsibility is to examine the firm's financial practices to ensure that records include accurate data and that the firm's operations are in compliance with federal,state,and local laws and regulations.Samantha is a ________.

The procedure used by accountants to convert transactions into financial statements is called ________.

Accounting is the language of business.

A(n)________ is a financial statement that is directly based on the accounting equation.

A debt ratio of 20 percent means that the firm is relying more on borrowed money than owners' equity.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

Competing in World Markets

Forms of Business Ownership and Organization

Starting Your Own Business: The Entrepreneurship Alternative

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labour Relations

Top Performance through Empowerment, Teamwork, and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

The Financial System

Financial Management

Filters

Exam 15: Understanding Accounting and Financial Statements

________ ratios are designed to indicate how successful a firm is in terms of its earnings as compared with its assets or owners' equity.

The ________ was created by the Sarbanes-Oxley Act of 2002.

Professionals who are responsible for gathering,recording,reporting,and interpreting the financial information of an organization are ________.

Who is recognized worldwide as the body with sole responsibility and authority to issue pronouncements on international accounting standards?

An accountant employed by a business other than an accounting firm is called a management accountant.

Explain the accounting equation.

An asset turnover ratio of 2.5 means that for every $1 in assets,the firm generates ________ in sales.

_____ measures the extent to which a firm relies on debt financing.

A(n)_____ is anything of value owned or leased by a business.

The _____ was established to promote worldwide consistency in financial reporting practices.

Ratios assist managers by interpreting actual performance and making comparisons with what should have happened.

Olga owns a business and is reviewing her company's current financial statements.As a user of accounting information,Olga is most interested in using this information to ________.

What is the primary role of a government accountant?

The primary role of government accountants is to determine how efficiently their organizations have accomplished their objectives.

Which of the following is a non-cash expense?

Samantha works for a mid-sized manufacturing company.Her responsibility is to examine the firm's financial practices to ensure that records include accurate data and that the firm's operations are in compliance with federal,state,and local laws and regulations.Samantha is a ________.

The procedure used by accountants to convert transactions into financial statements is called ________.

Accounting is the language of business.

A(n)________ is a financial statement that is directly based on the accounting equation.

A debt ratio of 20 percent means that the firm is relying more on borrowed money than owners' equity.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

Competing in World Markets

Forms of Business Ownership and Organization

Starting Your Own Business: The Entrepreneurship Alternative

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labour Relations

Top Performance through Empowerment, Teamwork, and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

The Financial System

Financial Management

Filters