Question 1

Generating a(n)________ is a function of financial accounting.

Accepted Answer

A)  organizational budget 
B)  balance sheet 
C)  cost analysis 
D)  profitability report 
E)  productivity analysis 
A)  organizational budget 
B)  balance sheet 
C)  cost analysis 
D)  profitability report 
E)  productivity analysis

Question 2

The Sarbanes-Oxley Act requires ________.

Accepted Answer

A)  the board of directors to be comprised of at least fifteen members 
B)  external auditors to provide nonaudit services also 
C)  directors and executives to avail loans from the corporate 
D)  companies to publicize operational budgets 
E)  corporate lawyers to report evidence of financial wrongdoing 
A)  the board of directors to be comprised of at least fifteen members 
B)  external auditors to provide nonaudit services also 
C)  directors and executives to avail loans from the corporate 
D)  companies to publicize operational budgets 
E)  corporate lawyers to report evidence of financial wrongdoing

Question 3

Which of the following is a leverage ratio?

Accepted Answer

A)  inventory turnover ratio 
B)  debt-to-equity ratio 
C)  current ratio 
D)  acid-test ratio 
E)  accounts receivable turnover ratio 
A)  inventory turnover ratio 
B)  debt-to-equity ratio 
C)  current ratio 
D)  acid-test ratio 
E)  accounts receivable turnover ratio

Question 4

Which of the following refers to evaluating a company's performance and the economic implications of strategic decisions such as product pricing,employee benefits,and business acquisitions?

Accepted Answer

A)  financial analysis 
B)  tax accounting 
C)  bookkeeping 
D)  cost accounting 
E)  forensic accounting 
A)  financial analysis 
B)  tax accounting 
C)  bookkeeping 
D)  cost accounting 
E)  forensic accounting

Question 5

Which of the following ratios is used to measure a firm's short-term liquidity?

Accepted Answer

A)  accounts receivable turnover ratio 
B)  inventory turnover ratio 
C)  quick ratio 
D)  debt-to-equity ratio 
E)  equity-to-debt ratio 
A)  accounts receivable turnover ratio 
B)  inventory turnover ratio 
C)  quick ratio 
D)  debt-to-equity ratio 
E)  equity-to-debt ratio

Question 6

Audit is a formal evaluation of the fairness and reliability of a client's financial statements.

Accepted Answer

A) True 
 B)False

Question 7

Robex Woodworks is a furniture manufacturer.The company has purchased timber worth $5,000 from one of its suppliers and has not paid them yet.This amount is recorded as ________ in the balance sheet.

Accepted Answer

A)  accrued expense 
B)  owners' equity 
C)  supplier's equity 
D)  accounts payable 
E)  deferred expense 
A)  accrued expense 
B)  owners' equity 
C)  supplier's equity 
D)  accounts payable 
E)  deferred expense

Question 8

Expenses incurred through marketing and distributing a product are referred to as ________ expenses.

Accepted Answer

A)  organization 
B)  permanent 
C)  general 
D)  selling 
E)  administration 
A)  organization 
B)  permanent 
C)  general 
D)  selling 
E)  administration

Question 9

Assets - Liabilities = ________.

Accepted Answer

A)  variable cost 
B)  fixed cost 
C)  liquidity 
D)  business cost 
E)  owner's equity 
A)  variable cost 
B)  fixed cost 
C)  liquidity 
D)  business cost 
E)  owner's equity

Question 10

Balance sheet presents a firm's financial position on a particular date.

Accepted Answer

A) True 
 B)False

Question 11

Robert Consultants was incorporated in the year 2010.The company is now performing a formal evaluation to ensure and certify the integrity and reliability of the company's financial statements.This formal evaluation is referred to as ________.

Accepted Answer

A)  cost accounting 
B)  control 
C)  bookkeeping 
D)  audit 
E)  management accounting 
A)  cost accounting 
B)  control 
C)  bookkeeping 
D)  audit 
E)  management accounting

Question 12

Public accountants are professionals who provide ________.

Accepted Answer

A)  accounting services to businesses and individuals for a fee 
B)  accounting services to publically owned firms only 
C)  financial services to not-for-profit organizations 
D)  financial services without charging a fee for them 
E)  financial services to people who trade in the stock market 
A)  accounting services to businesses and individuals for a fee 
B)  accounting services to publically owned firms only 
C)  financial services to not-for-profit organizations 
D)  financial services without charging a fee for them 
E)  financial services to people who trade in the stock market

Question 13

Compare and contrast accrual basis accounting and cash basis accounting.

Accepted Answer

Accountants match revenue to expenses by

Question 14

________ ratio is calculated by dividing current assets by current liabilities.

Accepted Answer

A)  Debt-to-equity 
B)  Current 
C)  Quick 
D)  Acid-test 
E)  Inventory turnover 
A)  Debt-to-equity 
B)  Current 
C)  Quick 
D)  Acid-test 
E)  Inventory turnover

Question 15

Net income refers to profit earned or loss incurred by a firm.

Accepted Answer

A) True 
 B)False

Question 16

Compare and contrast public accountants and private accountants.

Accepted Answer

Private accountants are in-house account

Question 17

Sarbanes-Oxley Act prohibits companies from testing their internal financial controls and processes.

Accepted Answer

A) True 
 B)False

Question 18

External auditors are independent accounting firms that provide auditing services for public companies.

Accepted Answer

A) True 
 B)False

Question 19

Leverage ratios indicate a company's ability to pay its long-term debts.

Accepted Answer

A) True 
 B)False

Question 20

Transferring net revenue and expense account balances to retained earnings for the period is referred to as ________.

Accepted Answer

A)  multiple-entry bookkeeping 
B)  matching the account 
C)  closing the books 
D)  single-entry bookkeeping 
E)  measuring current balance 
A)  multiple-entry bookkeeping 
B)  matching the account 
C)  closing the books 
D)  single-entry bookkeeping 
E)  measuring current balance

Generating a(n)________ is a function of financial accounting.

The Sarbanes-Oxley Act requires ________.

Which of the following is a leverage ratio?

Which of the following refers to evaluating a company's performance and the economic implications of strategic decisions such as product pricing,employee benefits,and business acquisitions?

Which of the following ratios is used to measure a firm's short-term liquidity?

Audit is a formal evaluation of the fairness and reliability of a client's financial statements.

Robex Woodworks is a furniture manufacturer.The company has purchased timber worth $5,000 from one of its suppliers and has not paid them yet.This amount is recorded as ________ in the balance sheet.

Expenses incurred through marketing and distributing a product are referred to as ________ expenses.

Assets - Liabilities = ________.

Balance sheet presents a firm's financial position on a particular date.

Robert Consultants was incorporated in the year 2010.The company is now performing a formal evaluation to ensure and certify the integrity and reliability of the company's financial statements.This formal evaluation is referred to as ________.

Public accountants are professionals who provide ________.

Compare and contrast accrual basis accounting and cash basis accounting.

________ ratio is calculated by dividing current assets by current liabilities.

Net income refers to profit earned or loss incurred by a firm.

Compare and contrast public accountants and private accountants.

Sarbanes-Oxley Act prohibits companies from testing their internal financial controls and processes.

External auditors are independent accounting firms that provide auditing services for public companies.

Leverage ratios indicate a company's ability to pay its long-term debts.

Transferring net revenue and expense account balances to retained earnings for the period is referred to as ________.

Developing a Business Mindset

Understanding Basic Economics

The Global Marketplace

Business Ethics and Corporate Social Responsibility

Forms of Ownership

Entrepreneurship and Small Business Ownership

Management Roles, Functions, and Skills

Organization and Teamwork

Production Systems

Employee Motivation

Human Resources Management

Labor Relations

The Art and Science of Marketing

Product and Pricing Strategies

Distribution and Marketing Logistics

Customer Communication

Financial Management

Financial Markets and Investment Strategies

The Money Supply and Banking Systems

Filters

Exam 17: Financial Information and Accounting Concepts

Generating a(n)________ is a function of financial accounting.

The Sarbanes-Oxley Act requires ________.

Which of the following is a leverage ratio?

Which of the following refers to evaluating a company's performance and the economic implications of strategic decisions such as product pricing,employee benefits,and business acquisitions?

Which of the following ratios is used to measure a firm's short-term liquidity?

Audit is a formal evaluation of the fairness and reliability of a client's financial statements.

Robex Woodworks is a furniture manufacturer.The company has purchased timber worth $5,000 from one of its suppliers and has not paid them yet.This amount is recorded as ________ in the balance sheet.

Expenses incurred through marketing and distributing a product are referred to as ________ expenses.

Assets - Liabilities = ________.

Balance sheet presents a firm's financial position on a particular date.

Robert Consultants was incorporated in the year 2010.The company is now performing a formal evaluation to ensure and certify the integrity and reliability of the company's financial statements.This formal evaluation is referred to as ________.

Public accountants are professionals who provide ________.

Compare and contrast accrual basis accounting and cash basis accounting.

________ ratio is calculated by dividing current assets by current liabilities.

Net income refers to profit earned or loss incurred by a firm.

Compare and contrast public accountants and private accountants.

Sarbanes-Oxley Act prohibits companies from testing their internal financial controls and processes.

External auditors are independent accounting firms that provide auditing services for public companies.

Leverage ratios indicate a company's ability to pay its long-term debts.

Transferring net revenue and expense account balances to retained earnings for the period is referred to as ________.

Developing a Business Mindset

Understanding Basic Economics

The Global Marketplace

Business Ethics and Corporate Social Responsibility

Forms of Ownership

Entrepreneurship and Small Business Ownership

Management Roles, Functions, and Skills

Organization and Teamwork

Production Systems

Employee Motivation

Human Resources Management

Labor Relations

The Art and Science of Marketing

Product and Pricing Strategies

Distribution and Marketing Logistics

Customer Communication

Financial Management

Financial Markets and Investment Strategies

The Money Supply and Banking Systems

Filters