Question 1

The Sarbanes-Oxley Act outlaws ________.

Accepted Answer

A)  loans by corporations to their own executives 
B)  the use of external auditors 
C)  internal financial tests by companies 
D)  loans obtained through pledging assets 
E)  having financial experts in the director board 
A)  loans by corporations to their own executives 
B)  the use of external auditors 
C)  internal financial tests by companies 
D)  loans obtained through pledging assets 
E)  having financial experts in the director board

Question 2

A firm has $30,000 cash and other current assets amount to $55,000.Total amount of current liabilities add up to $50,000.Calculate the total working capital of this firm.

Accepted Answer

A)  $20,000 
B)  $5,000 
C)  $30,000 
D)  $85,000 
E)  $35,000 
A)  $20,000 
B)  $5,000 
C)  $30,000 
D)  $85,000 
E)  $35,000

Question 3

Which of the following is a key difference between financial accounting and management accounting?

Accepted Answer

A)  Financial accounting is concerned with preparing cost analyses, whereas management accounting is concerned with creating reports. 
B)  Financial accounting considers such aspects as profitability, whereas management accounting does not consider profitability. 
C)  Financial accounting creates information for outsiders, whereas management accounting is for insiders. 
D)  Management accounting is based on historical data, whereas financial accounting is based on real time data. 
E)  Accounting knowledge is crucial to perform management accounting, whereas limited accounting knowledge is sufficient for financial accounting. 
A)  Financial accounting is concerned with preparing cost analyses, whereas management accounting is concerned with creating reports. 
B)  Financial accounting considers such aspects as profitability, whereas management accounting does not consider profitability. 
C)  Financial accounting creates information for outsiders, whereas management accounting is for insiders. 
D)  Management accounting is based on historical data, whereas financial accounting is based on real time data. 
E)  Accounting knowledge is crucial to perform management accounting, whereas limited accounting knowledge is sufficient for financial accounting.

Question 4

A fiscal year is a 12-month accounting period that begins on January 1 and ends on December 31.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following expenses is classified as accounts payable?

Accepted Answer

A)  electricity charges 
B)  sales commissions 
C)  employee salaries 
D)  interest on bonds 
E)  loans from banks 
A)  electricity charges 
B)  sales commissions 
C)  employee salaries 
D)  interest on bonds 
E)  loans from banks

Question 6

A U.S.company issues bonds to generate money for expanding its business to China.The company generates a sum of $50,000 in this fashion.This money is an example of a(n)________.

Accepted Answer

A)  short-term finance 
B)  long-term liability 
C)  owners' equity 
D)  accrued expense 
E)  payable account 
A)  short-term finance 
B)  long-term liability 
C)  owners' equity 
D)  accrued expense 
E)  payable account

Question 7

Which of the following is a key difference between depreciation and amortization?

Accepted Answer

A)  Amortization is applicable for long-term assets, whereas depreciation is applicable for short-term assets. 
B)  Depreciation applies to tangible assets, whereas amortization applies to intangible assets. 
C)  Amortization is calculated for liabilities, whereas depreciation is calculated for assets. 
D)  Amortization is calculated for assets, whereas depreciation is calculated for liabilities. 
E)  Depreciation is applicable for long-term assets, whereas amortization is applicable for short-term assets. 
A)  Amortization is applicable for long-term assets, whereas depreciation is applicable for short-term assets. 
B)  Depreciation applies to tangible assets, whereas amortization applies to intangible assets. 
C)  Amortization is calculated for liabilities, whereas depreciation is calculated for assets. 
D)  Amortization is calculated for assets, whereas depreciation is calculated for liabilities. 
E)  Depreciation is applicable for long-term assets, whereas amortization is applicable for short-term assets.

Question 8

The ________ oversees GAAP in the United States.

Accepted Answer

A)  Consumer Financial Protection Agency (CFP
A)  
B)  Financial Management Service (FMS) 
C)  Securities and Exchange Commission (SE
C)  
D)  Financial Accounting Standards Board (FAS
B)  
E)  Office of Terrorism and Financial Intelligence (OTFI) 
A)  Consumer Financial Protection Agency (CFP
A)  
B)  Financial Management Service (FMS) 
C)  Securities and Exchange Commission (SE
C)  
D)  Financial Accounting Standards Board (FAS
B)  
E)  Office of Terrorism and Financial Intelligence (OTFI)

Question 9

Financial accounting is concerned with preparing cost analyses,profitability reports,budgets,and other information for insiders such as management and other company decision makers.

Accepted Answer

A) True 
 B)False

Question 10

A firm's current liabilities amount to $30,000.It does not have any marketable securities and receivables amount to $20,000.Calculate the acid-test ratio of the firm if it has $40,000 cash in hand.

Accepted Answer

A)  2.0 
B)  0.5 
C)  1.0 
D)  1.67 
E)  1.5 
A)  2.0 
B)  0.5 
C)  1.0 
D)  1.67 
E)  1.5

Question 11

Independent accounting firms that provide auditing services for public companies are called ________.

Accepted Answer

A)  forensic auditors 
B)  external auditors 
C)  cost accountants 
D)  domestic auditors 
E)  financial analysts 
A)  forensic auditors 
B)  external auditors 
C)  cost accountants 
D)  domestic auditors 
E)  financial analysts

Question 12

Samuel works as a finance executive in a United States-based firm.His major task is calculating and analyzing the production and operating expenditures of the organization.The tasks that Samuel performs refer to ________.

Accepted Answer

A)  tax accounting 
B)  bookkeeping 
C)  cost accounting 
D)  auditing 
E)  forensic accounting 
A)  tax accounting 
B)  bookkeeping 
C)  cost accounting 
D)  auditing 
E)  forensic accounting

Question 13

Compare and contrast quick ratio and current ratio.Which one do you think is more accurate?

Accepted Answer

Current ratio is a measure of a firm's s

Question 14

Marketing and distributing expenses are examples of general expenses.

Accepted Answer

A) True 
 B)False

Question 15

Jefferson Accounting is an independent accounting firm that provides auditing services for public companies.The firm thoroughly evaluates its clients' financial statements and certifies them.The firm is a(n)________.

Accepted Answer

A)  forensic auditor 
B)  cost accountant 
C)  external auditor 
D)  domestic auditor 
E)  financial analyst 
A)  forensic auditor 
B)  cost accountant 
C)  external auditor 
D)  domestic auditor 
E)  financial analyst

Question 16

Quick ratio is a measure of a firm's long-term liquidity.

Accepted Answer

A) True 
 B)False

Question 17

Compare and contrast different types of financial ratios.

Accepted Answer

Organizations can analyze how well a com

Question 18

You are planning to invest in a real estate firm.You want to analyze the firm's financial strengths in terms of the overall assets and liabilities.Which of the following reports is best suited to estimate this on a particular date?

Accepted Answer

A)  long-term expense report 
B)  profit and loss statement 
C)  balance sheet 
D)  cash flow statement 
E)  short-term expense report 
A)  long-term expense report 
B)  profit and loss statement 
C)  balance sheet 
D)  cash flow statement 
E)  short-term expense report

Question 19

Which of the following is an example of an activity ratio?

Accepted Answer

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

Question 20

Compare and contrast management accounting with financial accounting.

Accepted Answer

Because outsiders and insiders use accou

The Sarbanes-Oxley Act outlaws ________.

A firm has $30,000 cash and other current assets amount to $55,000.Total amount of current liabilities add up to $50,000.Calculate the total working capital of this firm.

Which of the following is a key difference between financial accounting and management accounting?

A fiscal year is a 12-month accounting period that begins on January 1 and ends on December 31.

Which of the following expenses is classified as accounts payable?

A U.S.company issues bonds to generate money for expanding its business to China.The company generates a sum of $50,000 in this fashion.This money is an example of a(n)________.

Which of the following is a key difference between depreciation and amortization?

The ________ oversees GAAP in the United States.

Financial accounting is concerned with preparing cost analyses,profitability reports,budgets,and other information for insiders such as management and other company decision makers.

A firm's current liabilities amount to $30,000.It does not have any marketable securities and receivables amount to $20,000.Calculate the acid-test ratio of the firm if it has $40,000 cash in hand.

Independent accounting firms that provide auditing services for public companies are called ________.

Samuel works as a finance executive in a United States-based firm.His major task is calculating and analyzing the production and operating expenditures of the organization.The tasks that Samuel performs refer to ________.

Compare and contrast quick ratio and current ratio.Which one do you think is more accurate?

Marketing and distributing expenses are examples of general expenses.

Jefferson Accounting is an independent accounting firm that provides auditing services for public companies.The firm thoroughly evaluates its clients' financial statements and certifies them.The firm is a(n)________.

Quick ratio is a measure of a firm's long-term liquidity.

Compare and contrast different types of financial ratios.

You are planning to invest in a real estate firm.You want to analyze the firm's financial strengths in terms of the overall assets and liabilities.Which of the following reports is best suited to estimate this on a particular date?

Which of the following is an example of an activity ratio?

Compare and contrast management accounting with financial accounting.

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

The Sarbanes-Oxley Act outlaws ________.

A firm has $30,000 cash and other current assets amount to $55,000.Total amount of current liabilities add up to $50,000.Calculate the total working capital of this firm.

Which of the following is a key difference between financial accounting and management accounting?

A fiscal year is a 12-month accounting period that begins on January 1 and ends on December 31.

Which of the following expenses is classified as accounts payable?

A U.S.company issues bonds to generate money for expanding its business to China.The company generates a sum of $50,000 in this fashion.This money is an example of a(n)________.

Which of the following is a key difference between depreciation and amortization?

The ________ oversees GAAP in the United States.

Financial accounting is concerned with preparing cost analyses,profitability reports,budgets,and other information for insiders such as management and other company decision makers.

A firm's current liabilities amount to $30,000.It does not have any marketable securities and receivables amount to $20,000.Calculate the acid-test ratio of the firm if it has $40,000 cash in hand.

Independent accounting firms that provide auditing services for public companies are called ________.

Samuel works as a finance executive in a United States-based firm.His major task is calculating and analyzing the production and operating expenditures of the organization.The tasks that Samuel performs refer to ________.

Compare and contrast quick ratio and current ratio.Which one do you think is more accurate?

Marketing and distributing expenses are examples of general expenses.

Jefferson Accounting is an independent accounting firm that provides auditing services for public companies.The firm thoroughly evaluates its clients' financial statements and certifies them.The firm is a(n)________.

Quick ratio is a measure of a firm's long-term liquidity.

Compare and contrast different types of financial ratios.

You are planning to invest in a real estate firm.You want to analyze the firm's financial strengths in terms of the overall assets and liabilities.Which of the following reports is best suited to estimate this on a particular date?

Which of the following is an example of an activity ratio?

Compare and contrast management accounting with financial accounting.

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