Question 1

A budget is an example of a common external report.

Accepted Answer

A) True 
 B)False

Question 2

A cash flow statement prepared using the direct method will reconcile net income with the cash flow from operations.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not one of the categories of cash flow on a statement of cash flows?

Accepted Answer

A)  Operating cash flows 
B)  Producing cash flows 
C)  Investing cash flows 
D)  Financing cash flows 
A)  Operating cash flows 
B)  Producing cash flows 
C)  Investing cash flows 
D)  Financing cash flows

Question 4

You would expect to find the account "land" in which of the following places in the financial statements?

Accepted Answer

A)  In the balance sheet 
B)  In the income statement 
C)  In the statement of changes in shareholders' equity 
D)  In a cash flow statement prepared using the indirect method 
A)  In the balance sheet 
B)  In the income statement 
C)  In the statement of changes in shareholders' equity 
D)  In a cash flow statement prepared using the indirect method

Question 5

All of the following are bad practices in preparing graphs, except

Accepted Answer

A)  Selectivity (presenting graphs of only accounts with good news) 
B)  Data distortion 
C)  Selective enhancements 
D)  Showing data variation, not design variation 
A)  Selectivity (presenting graphs of only accounts with good news) 
B)  Data distortion 
C)  Selective enhancements 
D)  Showing data variation, not design variation

Question 6

Tables are usually better than graphs in presenting precise values for numbers.

Accepted Answer

A) True 
 B)False

Question 7

Limitations of financial statements, as discussed in the text, include

Accepted Answer

A)  The statements are usually not the most timely source of information. 
B)  Financial statements focus on the information needed by owners, and not other users, such as workers. 
C)  Financial statements are often highly summarized. 
D)  All of the above 
A)  The statements are usually not the most timely source of information. 
B)  Financial statements focus on the information needed by owners, and not other users, such as workers. 
C)  Financial statements are often highly summarized. 
D)  All of the above

Question 8

All of the following are common internal reports except

Accepted Answer

A)  Budgets 
B)  Performance reports 
C)  Variance reports 
D)  Statements of comprehensive income 
A)  Budgets 
B)  Performance reports 
C)  Variance reports 
D)  Statements of comprehensive income

Question 9

A budget is an example of a common internal report.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following items would be shown in the statement of comprehensive income, but not as part of ""net income""?

Accepted Answer

A)  Sales 
B)  Gains from holding long-term securities that increased in value during the year 
C)  Losses on the sale of land 
D)  Interest income 
A)  Sales 
B)  Gains from holding long-term securities that increased in value during the year 
C)  Losses on the sale of land 
D)  Interest income

Question 11

The income statement shows revenues, expenses, and net owners' equity.

Accepted Answer

A) True 
 B)False

Question 12

An example of a sentence using the active voice is ""The company sold 20,000 cars last week.""

Accepted Answer

A) True 
 B)False

Question 13

You would not expect to find the account "cash dividends paid" on the balance sheet.

Accepted Answer

A) True 
 B)False

A budget is an example of a common external report.

A cash flow statement prepared using the direct method will reconcile net income with the cash flow from operations.

Which of the following is not one of the categories of cash flow on a statement of cash flows?

You would expect to find the account "land" in which of the following places in the financial statements?

All of the following are bad practices in preparing graphs, except

Tables are usually better than graphs in presenting precise values for numbers.

Limitations of financial statements, as discussed in the text, include

All of the following are common internal reports except

A budget is an example of a common internal report.

Which of the following items would be shown in the statement of comprehensive income, but not as part of ""net income""?

The income statement shows revenues, expenses, and net owners' equity.

An example of a sentence using the active voice is ""The company sold 20,000 cars last week.""

You would not expect to find the account "cash dividends paid" on the balance sheet.

How Accounting Works

Selecting Your Business Structure

Managing Your Accounts

Accounting for Inventory

Doing Business Day to Day

Tackling the General Ledger

Reconciling Bank and Credit Card Statements

Setting up New Team Members

Understanding Insurance

Other Benefits and Reimbursements

Payroll Taxes

Appendix

Filters

Exam 3: Choosing Accounting Software

A budget is an example of a common external report.

A cash flow statement prepared using the direct method will reconcile net income with the cash flow from operations.

Which of the following is not one of the categories of cash flow on a statement of cash flows?

You would expect to find the account "land" in which of the following places in the financial statements?

All of the following are bad practices in preparing graphs, except

Tables are usually better than graphs in presenting precise values for numbers.

Limitations of financial statements, as discussed in the text, include

All of the following are common internal reports except

A budget is an example of a common internal report.

Which of the following items would be shown in the statement of comprehensive income, but not as part of ""net income""?

The income statement shows revenues, expenses, and net owners' equity.

An example of a sentence using the active voice is ""The company sold 20,000 cars last week.""

You would not expect to find the account "cash dividends paid" on the balance sheet.

How Accounting Works

Selecting Your Business Structure

Managing Your Accounts

Accounting for Inventory

Doing Business Day to Day

Tackling the General Ledger

Reconciling Bank and Credit Card Statements

Setting up New Team Members

Understanding Insurance

Other Benefits and Reimbursements

Payroll Taxes

Appendix

Filters