Question 1

Why are international accounting standards needed?

Accepted Answer

International accounting standards are n

Question 2

The business function which is responsible for managing a company's capital resources is referred to as:

Accepted Answer

A) marketing 
B) human resources 
C) finance 
D) operations 
A) marketing 
B) human resources 
C) finance 
D) operations

Question 3

Which of the following is the ratio for calculating the return on sales ratio?

Accepted Answer

A) Net Income / Total Stockholders' Equity 
B) Current Assets / Total Sales 
C) Current Liabilities / Total Sales 
D) Net Income / Total Sales 
A) Net Income / Total Stockholders' Equity 
B) Current Assets / Total Sales 
C) Current Liabilities / Total Sales 
D) Net Income / Total Sales

Question 4

If the Debt to Equity Ratio is greater than 1 it means.

Accepted Answer

A) The company is using debt more than owners' equity to finance its assets 
B) The company has less debt than equity 
C) The company has more debt than assets 
D) The company is using more of its assets to finance its debt 
A) The company is using debt more than owners' equity to finance its assets 
B) The company has less debt than equity 
C) The company has more debt than assets 
D) The company is using more of its assets to finance its debt

Question 5

Wal-Mart is an example of which of the following?

Accepted Answer

A) service firm 
B) merchandising firm 
C) manufacturing firm 
D) producer firm 
A) service firm 
B) merchandising firm 
C) manufacturing firm 
D) producer firm

Question 6

The Report of the Independent Auditor is the opinion of the CPA firm that examined the financial statements of a company and states which of the following?

Accepted Answer

A) The financial statements are correct as reported 
B) The financial statements are fairly presented 
C) The financial statements are free from fraud 
D) The financial statements are presented fairly in accordance with GAAP. 
A) The financial statements are correct as reported 
B) The financial statements are fairly presented 
C) The financial statements are free from fraud 
D) The financial statements are presented fairly in accordance with GAAP.

Question 7

Hoxie Inc is an advertising agency and has the following data for the most recent year.Using this data determine Hoxie's net income.What does the net income represent?
Revenues from Fees $855,000
Cash $25,000
Utilities Expense $52,000
Building $900,000
Notes Payable $300,000
Salaries Expense $125,000
Office Supplies $10,000
Interest Expense $30,000
Office Equipment $200,000
Administrative Expense $75,000

Accepted Answer

@#IMG-DLM& 
The net income represents th

Question 8

Which of the following is not a correct relationship?

Accepted Answer

A) Production Function - Determine Cost of Products Manufactured 
B) Marketing Function - Advertising 
C) Finance Function - Borrow Cash 
D) Human Resource Function - Layoff Employees 
E) All are correct relationship 
A) Production Function - Determine Cost of Products Manufactured 
B) Marketing Function - Advertising 
C) Finance Function - Borrow Cash 
D) Human Resource Function - Layoff Employees 
E) All are correct relationship

Question 9

Which of the following is not a cause for the number of partnerships to be relatively small?

Accepted Answer

A) Unlimited liability 
B) Mutual agency (each partner can act for other partners) 
C) Double taxation 
D) Difficulty of formation 
A) Unlimited liability 
B) Mutual agency (each partner can act for other partners) 
C) Double taxation 
D) Difficulty of formation

Question 10

Which of the following computer assisted techniques test products before they are produced?

Accepted Answer

A) CAD 
B) CAM 
C) CIM 
D) CPA 
A) CAD 
B) CAM 
C) CIM 
D) CPA

Question 11

For information to be useful,it must be relevant.Information is relevant when it

Accepted Answer

A) is verifiable. 
B) causes users to reach a different decision. 
C) mirrors the true economic situation of a business. 
D) is understandable. 
A) is verifiable. 
B) causes users to reach a different decision. 
C) mirrors the true economic situation of a business. 
D) is understandable.

Question 12

Which type of business may be owned by one individual?

Accepted Answer

A) corporation 
B) sole proprietorship 
C) partnership 
D) both a sole proprietorship and a corporation 
A) corporation 
B) sole proprietorship 
C) partnership 
D) both a sole proprietorship and a corporation

Question 13

The owner of XYZ Corporation includes his personal liabilities with business liabilities.What accounting concept is being violated?

Accepted Answer

A) Going concern 
B) Business entity 
C) Monetary unit 
D) Periodicity 
A) Going concern 
B) Business entity 
C) Monetary unit 
D) Periodicity

Question 14

The organization responsible for setting U.S.external financial reporting practice is the:

Accepted Answer

A) Securities and Exchange Commission 
B) Financial Accounting Standards Board 
C) Federal Government 
D) American Institute of Certified Public Accountants 
A) Securities and Exchange Commission 
B) Financial Accounting Standards Board 
C) Federal Government 
D) American Institute of Certified Public Accountants

Question 15

Match between columns
                        Premises: H & R Block
Grant Thornton (CPA Firm)
UPS
General Motors
Coors Brewing Company
Disney Theme Parks
Wal-Mart
Red Lobster

Accepted Answer

The Answer of Manufacturing and Service Firm and Merchandising is...

Question 16

Which of the following is not an objective of financial reporting specified in Concept Statement #1?

Accepted Answer

A) To provide information useful to investors and creditors 
B) To provide information helpful in assessing the future amounts and timing of cash
Flows. 
C) To provide information about the assets and claims on the assets of a firm. 
D) To prepare income statements on a timely basis. 
A) To provide information useful to investors and creditors 
B) To provide information helpful in assessing the future amounts and timing of cash
Flows. 
C) To provide information about the assets and claims on the assets of a firm. 
D) To prepare income statements on a timely basis.

Question 17

The body responsible for establishing international accounting standards today is the:

Accepted Answer

A) FASB 
B) GAAP 
C) SEC 
D) IASB 
A) FASB 
B) GAAP 
C) SEC 
D) IASB

Question 18

In each of the following situations,choose the accounting concept that pertains: business entity concept,going concern concept,monetary unit concept,or periodicity concept.
(a.)  A Japanese company reports its earnings in yen.
(b.)  The owner of a sole proprietorship pays for the real estate taxes on her personal residence from her personal savings rather than from the business's checking account.
(c.)  A corporation whose stock is traded on the American Stock Exchange prepares a report of its financial condition for the SEC on a quarterly basis.
(d.)  Mike and Mattie are partners in a shoe repair business. The business is profitable with plans to show increased profitability into the foreseeable future.

Accepted Answer

(a.) monetary unit concept
(b.

Question 19

Which of the following explains why it is relatively easy for corporations to raise large amounts of money?

Accepted Answer

A) Owners have unlimited liability for the debts of the business. 
B) Close supervision by owners of day-to-day operations 
C) Corporations raise capital by seeking relatively small amounts from many people. 
D) Corporations are not subject to as much regulation as partnerships and sole proprietorships. 
A) Owners have unlimited liability for the debts of the business. 
B) Close supervision by owners of day-to-day operations 
C) Corporations raise capital by seeking relatively small amounts from many people. 
D) Corporations are not subject to as much regulation as partnerships and sole proprietorships.

Question 20

Dell Corporation is an example of a:

Accepted Answer

A) service firm 
B) merchandising firm 
C) manufacturing firm 
D) distributor firm 
A) service firm 
B) merchandising firm 
C) manufacturing firm 
D) distributor firm

Why are international accounting standards needed?

The business function which is responsible for managing a company's capital resources is referred to as:

Which of the following is the ratio for calculating the return on sales ratio?

If the Debt to Equity Ratio is greater than 1 it means.

Wal-Mart is an example of which of the following?

The Report of the Independent Auditor is the opinion of the CPA firm that examined the financial statements of a company and states which of the following?

Which of the following is not a correct relationship?

Which of the following is not a cause for the number of partnerships to be relatively small?

Which of the following computer assisted techniques test products before they are produced?

For information to be useful,it must be relevant.Information is relevant when it

Which type of business may be owned by one individual?

The owner of XYZ Corporation includes his personal liabilities with business liabilities.What accounting concept is being violated?

The organization responsible for setting U.S.external financial reporting practice is the:

Which of the following is not an objective of financial reporting specified in Concept Statement #1?

The body responsible for establishing international accounting standards today is the:

Which of the following explains why it is relatively easy for corporations to raise large amounts of money?

Dell Corporation is an example of a:

Business Processes and Accounting Information

Operating Processes: Planning and Control

Short-Term Decision Making

Strategic Planning Regarding Operating Processes

Planning, The Balanced Scorecard, and Budgeting

Accounting Information Systems

Purchasinghuman Resourcespayment Process: Recording and Evaluating Expenditure Process Activities

Recording and Evaluating Conversion Process Activities

Recording and Evaluating Revenue Process Activities

Time Value of Money

Planning Investments: Capital Budgeting

Planning Equity Financing

Planning Debt Financing

Recording and Evaluating Capital Resource Process Activities: Financing

Recording and Evaluating Capital Resource Process Activities: Investing

Company Performance: Profitability

Company Performance: Owners Equity and Financial Position

Company Performance: Cash Flows

Company Performance: Comprehensive Evaluation

Filters

Exam 1: Accounting and Business

Why are international accounting standards needed?

The business function which is responsible for managing a company's capital resources is referred to as:

Which of the following is the ratio for calculating the return on sales ratio?

If the Debt to Equity Ratio is greater than 1 it means.

Wal-Mart is an example of which of the following?

The Report of the Independent Auditor is the opinion of the CPA firm that examined the financial statements of a company and states which of the following?

Which of the following is not a correct relationship?

Which of the following is not a cause for the number of partnerships to be relatively small?

Which of the following computer assisted techniques test products before they are produced?

For information to be useful,it must be relevant.Information is relevant when it

Which type of business may be owned by one individual?

The owner of XYZ Corporation includes his personal liabilities with business liabilities.What accounting concept is being violated?

The organization responsible for setting U.S.external financial reporting practice is the:

Which of the following is not an objective of financial reporting specified in Concept Statement #1?

The body responsible for establishing international accounting standards today is the:

Which of the following explains why it is relatively easy for corporations to raise large amounts of money?

Dell Corporation is an example of a:

Business Processes and Accounting Information

Operating Processes: Planning and Control

Short-Term Decision Making

Strategic Planning Regarding Operating Processes

Planning, The Balanced Scorecard, and Budgeting

Accounting Information Systems

Purchasinghuman Resourcespayment Process: Recording and Evaluating Expenditure Process Activities

Recording and Evaluating Conversion Process Activities

Recording and Evaluating Revenue Process Activities

Time Value of Money

Planning Investments: Capital Budgeting

Planning Equity Financing

Planning Debt Financing

Recording and Evaluating Capital Resource Process Activities: Financing

Recording and Evaluating Capital Resource Process Activities: Investing

Company Performance: Profitability

Company Performance: Owners Equity and Financial Position

Company Performance: Cash Flows

Company Performance: Comprehensive Evaluation

Filters