Question 1

Balance sheets show assets,liabilities,and expenses over a period of time.

Accepted Answer

A) True 
 B)False

Question 2

What is the difference between a certified public accountant (CPA)and a private accountant?

Accepted Answer

A certified public accountant (CPA)is an

Question 3

If a company is relying on borrowing and credit too extensively,this will probably be reflected in which ratio?

Accepted Answer

A)  Current usage 
B)  Past utilization 
C)  Debt utilization 
D)  Liquid utilization 
E)  Fixed asset usage 
A)  Current usage 
B)  Past utilization 
C)  Debt utilization 
D)  Liquid utilization 
E)  Fixed asset usage

Question 4

___________ is an account showing money owed to a company by its clients or customers.

Accepted Answer

A)  Accounts payable 
B)  Accounts receivable 
C)  Current assets 
D)  Current liabilities 
E)  Balance sheet 
A)  Accounts payable 
B)  Accounts receivable 
C)  Current assets 
D)  Current liabilities 
E)  Balance sheet

Question 5

What is owners' equity?

Accepted Answer

A)  A firm's economic resources 
B)  A firm's 'goodwill' or reputation 
C)  Debts the firm owes to others 
D)  Outstanding loans and credit 
E)  All the money that the firm has that does not need to be paid back 
A)  A firm's economic resources 
B)  A firm's 'goodwill' or reputation 
C)  Debts the firm owes to others 
D)  Outstanding loans and credit 
E)  All the money that the firm has that does not need to be paid back

Question 6

The accounting cycle includes all but which of the following?

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 7

Only business organizations have revenue to report.

Accepted Answer

A) True 
 B)False

Question 8

Budgets are valuable tools because they break down cash inflows and outflows to help individuals and organizations clearly see where financial problems may lie.

Accepted Answer

A) True 
 B)False

Question 9

After ratios are computed,it is not much help to compare them with those of similar organizations.

Accepted Answer

A) True 
 B)False

Question 10

The financial document that has been likened to a snapshot of how the company's finances are doing at that moment is called a(n)

Accepted Answer

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

Question 11

What are the fundamentals of the accounting process?

Accepted Answer

A)  Journals and ledgers 
B)  The accounting equation and the double-entry bookkeeping system 
C)  The accounting equation and the accounting cycle 
D)  Double-entry bookkeeping and the accounting cycle 
E)  Ledgers and financial statements 
A)  Journals and ledgers 
B)  The accounting equation and the double-entry bookkeeping system 
C)  The accounting equation and the accounting cycle 
D)  Double-entry bookkeeping and the accounting cycle 
E)  Ledgers and financial statements

Question 12

All of a firm's unpaid financial obligations are occasionally consolidated into an account called

Accepted Answer

A)  current liabilities. 
B)  accounts payable. 
C)  cost of goods sold. 
D)  accrued expenses. 
E)  long-term liabilities. 
A)  current liabilities. 
B)  accounts payable. 
C)  cost of goods sold. 
D)  accrued expenses. 
E)  long-term liabilities.

Question 13

Income statements show revenue,expenses,and income over a period of time.

Accepted Answer

A) True 
 B)False

Question 14

The owners' contributions to a company and all earnings retained to finance continued growth and product development are

Accepted Answer

A)  owners' equity. 
B)  assets. 
C)  liabilities. 
D)  revenue. 
E)  profits. 
A)  owners' equity. 
B)  assets. 
C)  liabilities. 
D)  revenue. 
E)  profits.

Question 15

The financial statement that explains how a firm's cash changed from the beginning of the accounting period to the end is called the

Accepted Answer

A)  statement of cash flows. 
B)  balance sheet. 
C)  income statement. 
D)  master budget. 
E)  profit-loss statement. 
A)  statement of cash flows. 
B)  balance sheet. 
C)  income statement. 
D)  master budget. 
E)  profit-loss statement.

Question 16

Define the "cost of goods sold" line on an income statement and explain how to calculate it.

Accepted Answer

Cost of goods sold is the amount of mone

Question 17

If Evelyn Chang is a self-employed,state-certified accountant who provides various types of accounting services for different companies and organizations,she is probably a

Accepted Answer

A)  private accountant. 
B)  certified management accountant. 
C)  certified public accountant. 
D)  noncertified accountant. 
E)  forensic accountant. 
A)  private accountant. 
B)  certified management accountant. 
C)  certified public accountant. 
D)  noncertified accountant. 
E)  forensic accountant.

Question 18

Discuss how analysts can use ratio analysis to evaluate a company's financial performance.

Accepted Answer

In evaluating a company's financial perf

Question 19

A forensic accountant

Accepted Answer

A)  investigates crime scenes. 
B)  works for a public corporation. 
C)  analyzes financial documents in search of fraudulent entries or financial misconduct. 
D)  investigates workplace accidents to determine fault. 
E)  analyzes annual reports to ensure that corporations have adequate corporate governance mechanisms. 
A)  investigates crime scenes. 
B)  works for a public corporation. 
C)  analyzes financial documents in search of fraudulent entries or financial misconduct. 
D)  investigates workplace accidents to determine fault. 
E)  analyzes annual reports to ensure that corporations have adequate corporate governance mechanisms.

Question 20

The information presented in an income statement could be described using which of the following equations?

Accepted Answer

A)  Equity = liabilities - assets 
B)  Equity = assets - liabilities 
C)  Revenues - expenses = net income 
D)  Net income = expenses - revenues + taxes 
E)  Costs of goods sold = beginning inventory + interim purchases - ending inventory 
A)  Equity = liabilities - assets 
B)  Equity = assets - liabilities 
C)  Revenues - expenses = net income 
D)  Net income = expenses - revenues + taxes 
E)  Costs of goods sold = beginning inventory + interim purchases - ending inventory

Balance sheets show assets,liabilities,and expenses over a period of time.

What is the difference between a certified public accountant (CPA)and a private accountant?

If a company is relying on borrowing and credit too extensively,this will probably be reflected in which ratio?

___________ is an account showing money owed to a company by its clients or customers.

What is owners' equity?

The accounting cycle includes all but which of the following?

Only business organizations have revenue to report.

Budgets are valuable tools because they break down cash inflows and outflows to help individuals and organizations clearly see where financial problems may lie.

After ratios are computed,it is not much help to compare them with those of similar organizations.

The financial document that has been likened to a snapshot of how the company's finances are doing at that moment is called a(n)

What are the fundamentals of the accounting process?

All of a firm's unpaid financial obligations are occasionally consolidated into an account called

Income statements show revenue,expenses,and income over a period of time.

The owners' contributions to a company and all earnings retained to finance continued growth and product development are

The financial statement that explains how a firm's cash changed from the beginning of the accounting period to the end is called the

Define the "cost of goods sold" line on an income statement and explain how to calculate it.

If Evelyn Chang is a self-employed,state-certified accountant who provides various types of accounting services for different companies and organizations,she is probably a

Discuss how analysts can use ratio analysis to evaluate a company's financial performance.

A forensic accountant

The information presented in an income statement could be described using which of the following equations?

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

Balance sheets show assets,liabilities,and expenses over a period of time.

What is the difference between a certified public accountant (CPA)and a private accountant?

If a company is relying on borrowing and credit too extensively,this will probably be reflected in which ratio?

___________ is an account showing money owed to a company by its clients or customers.

What is owners' equity?

The accounting cycle includes all but which of the following?

Only business organizations have revenue to report.

Budgets are valuable tools because they break down cash inflows and outflows to help individuals and organizations clearly see where financial problems may lie.

After ratios are computed,it is not much help to compare them with those of similar organizations.

The financial document that has been likened to a snapshot of how the company's finances are doing at that moment is called a(n)

What are the fundamentals of the accounting process?

All of a firm's unpaid financial obligations are occasionally consolidated into an account called

Income statements show revenue,expenses,and income over a period of time.

The owners' contributions to a company and all earnings retained to finance continued growth and product development are

The financial statement that explains how a firm's cash changed from the beginning of the accounting period to the end is called the

Define the "cost of goods sold" line on an income statement and explain how to calculate it.

If Evelyn Chang is a self-employed,state-certified accountant who provides various types of accounting services for different companies and organizations,she is probably a

Discuss how analysts can use ratio analysis to evaluate a company's financial performance.

A forensic accountant

The information presented in an income statement could be described using which of the following equations?

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