Question 1

Bookkeeping is only one aspect of accounting and involves the recording of routine,day-to-day business transactions.

Accepted Answer

A) True 
 B)False  True

Question 2

What have you done to identify and fix BrainDrain's problems?

Accepted Answer

A)  You looked at the statement of cash flows and found nothing wrong 
B)  You did some ratio analysis 
C)  You asked an advisor to identify and solve the issue 
D)  You have asked for a complete set of the company's financial statements 
E)  Nothing because you do not have the appropriate expertise 
A)  You looked at the statement of cash flows and found nothing wrong 
B)  You did some ratio analysis 
C)  You asked an advisor to identify and solve the issue 
D)  You have asked for a complete set of the company's financial statements 
E)  Nothing because you do not have the appropriate expertise D

Question 3

All of the following are outsiders who rely on information from an organization's financial statements except

Accepted Answer

A)  lenders. 
B)  the Internal Revenue Service. 
C)  stockholders. 
D)  creditors. 
E)  managers. 
A)  lenders. 
B)  the Internal Revenue Service. 
C)  stockholders. 
D)  creditors. 
E)  managers. E

Question 4

At the end of each accounting period,the dollar amounts in all the revenue and expense accounts on the income statement are moved into an account called "Retained Earnings."

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is the first step in the accounting cycle?

Accepted Answer

A)  Examine source documents. 
B)  Record transactions. 
C)  Post transactions. 
D)  Prepare financial statements. 
E)  Generate annual reports. 
A)  Examine source documents. 
B)  Record transactions. 
C)  Post transactions. 
D)  Prepare financial statements. 
E)  Generate annual reports.

Question 6

Owners' equity includes financial obligations to short-term creditors and amounts owed to suppliers to goods and services purchased on credit.

Accepted Answer

A) True 
 B)False

Question 7

A balance sheet shows the financial position of an organization at any given moment in time.

Accepted Answer

A) True 
 B)False

Question 8

Ratio analysis is used to determine all of the following except

Accepted Answer

A)  what a firm is worth. 
B)  how much a firm made or lost. 
C)  how a firm compares to others in the industry. 
D)  how a firm compares to its stated goals. 
E)  how a company's cash flows changed from the beginning to the end of an accounting period. 
A)  what a firm is worth. 
B)  how much a firm made or lost. 
C)  how a firm compares to others in the industry. 
D)  how a firm compares to its stated goals. 
E)  how a company's cash flows changed from the beginning to the end of an accounting period.

Question 9

The financial statement that represents an accumulation of all of a company's transactions since it began is the

Accepted Answer

A)  income statement. 
B)  balance sheet. 
C)  profit and loss statement. 
D)  statement of cash flow. 
E)  income tax form. 
A)  income statement. 
B)  balance sheet. 
C)  profit and loss statement. 
D)  statement of cash flow. 
E)  income tax form.

Question 10

Liquidity is judged by how easily an asset can be turned into cash.

Accepted Answer

A) True 
 B)False

Question 11

Billy Banker has to decide whether to lend the Safe Toy Company $10,000 to pay suppliers.He will

Accepted Answer

A)  review the company's financial statements. 
B)  give it the loan because he likes its toys. 
C)  see if its gum blows good bubbles. 
D)  ask its competition what to do. 
E)  turn down the loan application. 
A)  review the company's financial statements. 
B)  give it the loan because he likes its toys. 
C)  see if its gum blows good bubbles. 
D)  ask its competition what to do. 
E)  turn down the loan application.

Question 12

The financial document that shows a company's revenue,expenses,and profits over a period of time is called a(n)

Accepted Answer

A)  income statement. 
B)  balance sheet. 
C)  budget. 
D)  statement of cash flow. 
E)  discount statement. 
A)  income statement. 
B)  balance sheet. 
C)  budget. 
D)  statement of cash flow. 
E)  discount statement.

Question 13

One of the best ways to analyze a company's financial performance is to compare its ratios with those of

Accepted Answer

A)  suppliers who work in the field. 
B)  manufacturers producing their products. 
C)  companies in the same industry. 
D)  the U.S.government. 
E)  foreign governments. 
A)  suppliers who work in the field. 
B)  manufacturers producing their products. 
C)  companies in the same industry. 
D)  the U.S.government. 
E)  foreign governments.

Question 14

Private accountants do all of the following except

Accepted Answer

A)  work for a corporation,government,or other organization to prepare and analyze its financial information. 
B)  have titles such as controller or internal auditor. 
C)  prepare and interpret a firm's financial statements. 
D)  express an official unbiased opinion regarding the accuracy of a client's financial statements. 
E)  take part in internal planning and decision making. 
A)  work for a corporation,government,or other organization to prepare and analyze its financial information. 
B)  have titles such as controller or internal auditor. 
C)  prepare and interpret a firm's financial statements. 
D)  express an official unbiased opinion regarding the accuracy of a client's financial statements. 
E)  take part in internal planning and decision making.

Question 15

Only businesses use accounting information to demonstrate how their funds are being used.

Accepted Answer

A) True 
 B)False

Question 16

Liquidity ratios show how fast a company can turn current assets into cash to pay off short-term debt.

Accepted Answer

A) True 
 B)False

Question 17

The debts Anna's Flowers owes to the Small Business Administration and her company's suppliers represent which of the following?

Accepted Answer

A)  Owners' equity 
B)  Assets 
C)  Liabilities 
D)  Stock 
E)  Bonds 
A)  Owners' equity 
B)  Assets 
C)  Liabilities 
D)  Stock 
E)  Bonds

Question 18

An income statement shows

Accepted Answer

A)  revenues,expenses,and net income over a period of time. 
B)  assets,liabilities,and equity. 
C)  the company's status at a particular point in time. 
D)  how much income each employee earned. 
E)  how much income the CEO earned. 
A)  revenues,expenses,and net income over a period of time. 
B)  assets,liabilities,and equity. 
C)  the company's status at a particular point in time. 
D)  how much income each employee earned. 
E)  how much income the CEO earned.

Question 19

When an accountant allocates the cost of a piece of equipment over a period of time,this is called

Accepted Answer

A)  discounting. 
B)  appreciation. 
C)  cost plus. 
D)  expense designation. 
E)  depreciation. 
A)  discounting. 
B)  appreciation. 
C)  cost plus. 
D)  expense designation. 
E)  depreciation.

Question 20

Owners' equity includes owners' contributions to their business along with income retained to finance growth and development.

Accepted Answer

A) True 
 B)False

Bookkeeping is only one aspect of accounting and involves the recording of routine,day-to-day business transactions.

What have you done to identify and fix BrainDrain's problems?

All of the following are outsiders who rely on information from an organization's financial statements except

At the end of each accounting period,the dollar amounts in all the revenue and expense accounts on the income statement are moved into an account called "Retained Earnings."

Which of the following is the first step in the accounting cycle?

Owners' equity includes financial obligations to short-term creditors and amounts owed to suppliers to goods and services purchased on credit.

A balance sheet shows the financial position of an organization at any given moment in time.

Ratio analysis is used to determine all of the following except

The financial statement that represents an accumulation of all of a company's transactions since it began is the

Liquidity is judged by how easily an asset can be turned into cash.

Billy Banker has to decide whether to lend the Safe Toy Company $10,000 to pay suppliers.He will

The financial document that shows a company's revenue,expenses,and profits over a period of time is called a(n)

One of the best ways to analyze a company's financial performance is to compare its ratios with those of

Private accountants do all of the following except

Only businesses use accounting information to demonstrate how their funds are being used.

Liquidity ratios show how fast a company can turn current assets into cash to pay off short-term debt.

The debts Anna's Flowers owes to the Small Business Administration and her company's suppliers represent which of the following?

An income statement shows

When an accountant allocates the cost of a piece of equipment over a period of time,this is called

Owners' equity includes owners' contributions to their business along with income retained to finance growth and development.

The Dynamics of Business and Economics

Business Ethics and Social Responsibility

Business in a Borderless World

Options for Organizing Business

Small Business, entrepreneurship, and Franchising

The Nature of Management

Organization, teamwork, and Communication

Managing Service and Manufacturing Operations

Motivating the Workforce

Managing Human Resources

Customer-Driven Marketing

Dimensions of Marketing Strategy

Digital Marketing and Social Networking

Money and the Financial System

Financial Management and Securities Markets

Filters

Exam 14: Accounting and Financial Statements

Bookkeeping is only one aspect of accounting and involves the recording of routine,day-to-day business transactions.

What have you done to identify and fix BrainDrain's problems?

All of the following are outsiders who rely on information from an organization's financial statements except

At the end of each accounting period,the dollar amounts in all the revenue and expense accounts on the income statement are moved into an account called "Retained Earnings."

Which of the following is the first step in the accounting cycle?

Owners' equity includes financial obligations to short-term creditors and amounts owed to suppliers to goods and services purchased on credit.

A balance sheet shows the financial position of an organization at any given moment in time.

Ratio analysis is used to determine all of the following except

The financial statement that represents an accumulation of all of a company's transactions since it began is the

Liquidity is judged by how easily an asset can be turned into cash.

Billy Banker has to decide whether to lend the Safe Toy Company $10,000 to pay suppliers.He will

The financial document that shows a company's revenue,expenses,and profits over a period of time is called a(n)

One of the best ways to analyze a company's financial performance is to compare its ratios with those of

Private accountants do all of the following except

Only businesses use accounting information to demonstrate how their funds are being used.

Liquidity ratios show how fast a company can turn current assets into cash to pay off short-term debt.

The debts Anna's Flowers owes to the Small Business Administration and her company's suppliers represent which of the following?

An income statement shows

When an accountant allocates the cost of a piece of equipment over a period of time,this is called

Owners' equity includes owners' contributions to their business along with income retained to finance growth and development.

The Dynamics of Business and Economics

Business Ethics and Social Responsibility

Business in a Borderless World

Options for Organizing Business

Small Business, entrepreneurship, and Franchising

The Nature of Management

Organization, teamwork, and Communication

Managing Service and Manufacturing Operations

Motivating the Workforce

Managing Human Resources

Customer-Driven Marketing

Dimensions of Marketing Strategy

Digital Marketing and Social Networking

Money and the Financial System

Financial Management and Securities Markets

Filters