Question 1

Which of the following is an internal stakeholder in a college?

Accepted Answer

A) the company that employs graduates of the college 
B) the company which services the photocopy machines in the library 
C) the faculty 
D) the organization that accredits various degree programs of the college 
A) the company that employs graduates of the college 
B) the company which services the photocopy machines in the library 
C) the faculty 
D) the organization that accredits various degree programs of the college

Question 2

What distinguishes partnerships from sole proprietorships?

Accepted Answer

A) Involvement in day-to-day business activities by owners. 
B) The extent of liability for the debts of the business 
C) The amount of income tax the entity has to pay 
D) Mutual agency (each partner can act for other partners) 
A) Involvement in day-to-day business activities by owners. 
B) The extent of liability for the debts of the business 
C) The amount of income tax the entity has to pay 
D) Mutual agency (each partner can act for other partners)

Question 3

Match between columns
                        Premises: Southwest Airline
Union Pacific Railroad
Wendy's
Xerox
British Petroleum
Pepsi Cola
Macy's
Deloitte (Accounting Firm)

Accepted Answer

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

Question 4

Which of the following is an internal stakeholder?

Accepted Answer

A) general public 
B) creditors 
C) suppliers 
D) management 
A) general public 
B) creditors 
C) suppliers 
D) management

Question 5

Which of the following is the ratio for calculating the current ratio?

Accepted Answer

A) Current Assets / Current Liabilities 
B) Current Assets / Total Liabilities 
C) Current Liabilities / Current Assets 
D) Current Assets / Total Sales 
A) Current Assets / Current Liabilities 
B) Current Assets / Total Liabilities 
C) Current Liabilities / Current Assets 
D) Current Assets / Total Sales

Question 6

The business function designed to determine the wants and needs of consumers is referred to as:

Accepted Answer

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

Question 7

Investors read the Independent Auditors' Opinion because.

Accepted Answer

A) they want to know if financial statements are mathematically correct 
B) they want some assurance that the financial statements are fairly presented 
C) they want to determine if the auditors found any fraud 
D) they want to know if the auditor thinks the company is a good investment 
A) they want to know if financial statements are mathematically correct 
B) they want some assurance that the financial statements are fairly presented 
C) they want to determine if the auditors found any fraud 
D) they want to know if the auditor thinks the company is a good investment

Question 8

Which of the following statements is true?

Accepted Answer

A) Before the advent of a money economy,the double-entry accounting system was not feasible. 
B) Accounting systems developed in the 18th century because,by then,most people were literate. 
C) Double-entry accounting systems have existed for at least 2,000 years. 
D) The double-entry accounting system came about as a result of the Great Depression. 
A) Before the advent of a money economy,the double-entry accounting system was not feasible. 
B) Accounting systems developed in the 18th century because,by then,most people were literate. 
C) Double-entry accounting systems have existed for at least 2,000 years. 
D) The double-entry accounting system came about as a result of the Great Depression.

Question 9

A law firm is an example of which of the following?

Accepted Answer

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

Question 10

Match between columns
                        Premises: The financial statement designed to show the ending amounts of a company's assets, liabilities, and owners' equity.
A measure of company solvency and its ability to meet its long-term obligations.
A measure of company liquidity; the relationship between current assets and current liabilities.
The financial statement designed to show the changes to owners' equity during a specified time period.
An asset likely to be used or consumed within one year.
The financial statement designed to show the cash inflows and cash outflows of the company for a period of time.
A liability likely to be paid or otherwise discharged within one year.
A measure of company profitability; the relationship between net income and sales.
An increase in the owners’ equity as a result of the firm’s ongoing operations.

Accepted Answer

The Answer of Current Ratio and Return on Sales Ratio is...

Question 11

IFRS are produced by:

Accepted Answer

A) International Accounting Standards Board 
B) Securities and Exchange Commission 
C) Financial Accounting Standards Board 
D) International Accounting Committee 
A) International Accounting Standards Board 
B) Securities and Exchange Commission 
C) Financial Accounting Standards Board 
D) International Accounting Committee

Question 12

A supermarket is an example of a:

Accepted Answer

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

Question 13

Match between columns
                        Premises: The rights to use resources that have expected future economic benefit.
Represents the claims on the business to transfer the residual interest (net assets of the business) to the owners.
A company's total revenues less its total expenses for a period of time.
Assets minus liabilities
An amount earned from rendering services or transferring resources to customers.
An amount incurred from using resources or services in an effort to generate revenues.
The obligation to transfer economic resources to suppliers of goods and services at some point in the future.

Accepted Answer

The Answer of Owners' Equity and Expense and Liability and is...

Question 14

The accounting concept requiring that an accounting system reflect information relating only to those economic events pertaining to a particular entity is the:

Accepted Answer

A) business entity concept 
B) going entity concept 
C) monetary unit concept 
D) periodicity concept 
A) business entity concept 
B) going entity concept 
C) monetary unit concept 
D) periodicity concept

Question 15

Which of the following is true about the relationships between the financial statements?

Accepted Answer

A) The ending balances of the retained earnings found in the Statement of Changes in Stockholders' Equity are found on the Balance Sheet. 
B) The net income reported on the Income Statement is also found on the balance sheet. 
C) The cash inflows identified on the Statement of Cash Flows are reported on the Income Statement. 
D) The cash reported on the Income Statement is reported on the Statement of Cash Flows 
A) The ending balances of the retained earnings found in the Statement of Changes in Stockholders' Equity are found on the Balance Sheet. 
B) The net income reported on the Income Statement is also found on the balance sheet. 
C) The cash inflows identified on the Statement of Cash Flows are reported on the Income Statement. 
D) The cash reported on the Income Statement is reported on the Statement of Cash Flows

Question 16

A company that makes and sells steel is a:

Accepted Answer

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

Question 17

An accountant who has the legal authority to attest to the fair presentation of information in the financial statements of any company is called a/an:

Accepted Answer

A) certified public accountant 
B) internal auditor 
C) controller 
D) chief financial officer 
A) certified public accountant 
B) internal auditor 
C) controller 
D) chief financial officer

Question 18

Match between columns
                        Premises: Note Receivable from customer due in 5 years
Inventory
Common Stock
Interest Receivable
Building
Interest Payable
Land
Cash
Note Payable (Due in 10 Years)
Patent
Interest Expense
Note Receivable due in 60 days
1000 shares of Microsoft Stock
Salary Expense
Accounts Payable

Accepted Answer

The Answer of Intangible Assets and Stockholders' Equity and Investments is...

Question 19

Which of the following has the shortest product life cycle?

Accepted Answer

A) Automobile 
B) Game Show 
C) Airplane 
D) Wireless Communication 
A) Automobile 
B) Game Show 
C) Airplane 
D) Wireless Communication

Question 20

Determine each of the following:
If your current ratio is 2 and your current assets are $600,000 what is the amount of your current liabilities?
If your debt to equity ratio is 1.5 and your total liabilities are $200,000 what is your total stockholders' equity?
If your return on sales is 8% and your net income is $2,000,000,how much sales did you generate during the year?

Accepted Answer

A.$600,000 / Current Liabilities = 2 the

Which of the following is an internal stakeholder in a college?

What distinguishes partnerships from sole proprietorships?

Which of the following is an internal stakeholder?

Which of the following is the ratio for calculating the current ratio?

The business function designed to determine the wants and needs of consumers is referred to as:

Investors read the Independent Auditors' Opinion because.

Which of the following statements is true?

A law firm is an example of which of the following?

IFRS are produced by:

A supermarket is an example of a:

The accounting concept requiring that an accounting system reflect information relating only to those economic events pertaining to a particular entity is the:

Which of the following is true about the relationships between the financial statements?

A company that makes and sells steel is a:

An accountant who has the legal authority to attest to the fair presentation of information in the financial statements of any company is called a/an:

Which of the following has the shortest product life cycle?

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

Which of the following is an internal stakeholder in a college?

What distinguishes partnerships from sole proprietorships?

Which of the following is an internal stakeholder?

Which of the following is the ratio for calculating the current ratio?

The business function designed to determine the wants and needs of consumers is referred to as:

Investors read the Independent Auditors' Opinion because.

Which of the following statements is true?

A law firm is an example of which of the following?

IFRS are produced by:

A supermarket is an example of a:

The accounting concept requiring that an accounting system reflect information relating only to those economic events pertaining to a particular entity is the:

Which of the following is true about the relationships between the financial statements?

A company that makes and sells steel is a:

An accountant who has the legal authority to attest to the fair presentation of information in the financial statements of any company is called a/an:

Which of the following has the shortest product life cycle?

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