Question 1

Accountants play fundamental roles in not only business but also other aspects of society.

Accepted Answer

A) True 
 B)False

Question 2

MATCHING
Complete the following using the terms listed.
-A(n) _____ is anything of value owned or leased by a business.

Accepted Answer

A) certified public accountant 
B) International Financial Reporting Standards 
C) asset 
D) liability 
E) Owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Foreign Corruption Practices Act
J)accrual accounting
K)open book management
L)budget
M)generally accepted accounting principles (GAAP)
N)Financial Accounting Standards Board (FAS
B) 
O)profitability ratios
P)International Accounting Standards Committee (IAS
C) 
Q)Leverage ratios
r
management accountant 
A) certified public accountant 
B) International Financial Reporting Standards 
C) asset 
D) liability 
E) Owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Foreign Corruption Practices Act
J)accrual accounting
K)open book management
L)budget
M)generally accepted accounting principles (GAAP)
N)Financial Accounting Standards Board (FAS
B) 
O)profitability ratios
P)International Accounting Standards Committee (IAS
C) 
Q)Leverage ratios
r
management accountant

Question 3

A firm's acid-test ratio can never be higher than its current ratio.

Accepted Answer

A) True 
 B)False

Question 4

MATCHING
Complete the following using the terms listed.
-An organization's overall financial performance is measured by its _____, which evaluates the ability to generate revenues in excess of operating costs and other expenses.

Accepted Answer

A) certified public accountant 
B) International Financial Reporting Standards 
C) asset 
D) liability 
E) Owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Foreign Corruption Practices Act
J)accrual accounting
K)open book management
L)budget
M)generally accepted accounting principles (GAAP)
N)Financial Accounting Standards Board (FAS
B) 
O)profitability ratios
P)International Accounting Standards Committee (IAS
C) 
Q)Leverage ratios
r
management accountant 
A) certified public accountant 
B) International Financial Reporting Standards 
C) asset 
D) liability 
E) Owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Foreign Corruption Practices Act
J)accrual accounting
K)open book management
L)budget
M)generally accepted accounting principles (GAAP)
N)Financial Accounting Standards Board (FAS
B) 
O)profitability ratios
P)International Accounting Standards Committee (IAS
C) 
Q)Leverage ratios
r
management accountant

Question 5

Identify and briefly describe the four categories of financial ratios.

Accepted Answer

The four categories of ratios are liquid

Question 6

Accrual accounting recognizes revenues and expenses when cash changes hands.

Accepted Answer

A) True 
 B)False

Question 7

Who appoints the members of the Public Company Accounting Oversight Board?

Accepted Answer

A)  FASB 
B)  American Association of CPAs 
C)  Federal Trade Commission 
D)  Securities and Exchange Commission 
A)  FASB 
B)  American Association of CPAs 
C)  Federal Trade Commission 
D)  Securities and Exchange Commission

Question 8

MATCHING
Complete the following using the terms listed.
-The _____ was established to promote worldwide consistency in financial reporting practices.

Accepted Answer

A) certified public accountant 
B) International Financial Reporting Standards 
C) asset 
D) liability 
E) Owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Foreign Corruption Practices Act
J)accrual accounting
K)open book management
L)budget
M)generally accepted accounting principles (GAAP)
N)Financial Accounting Standards Board (FAS
B) 
O)profitability ratios
P)International Accounting Standards Committee (IAS
C) 
Q)Leverage ratios
r
management accountant 
A) certified public accountant 
B) International Financial Reporting Standards 
C) asset 
D) liability 
E) Owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Foreign Corruption Practices Act
J)accrual accounting
K)open book management
L)budget
M)generally accepted accounting principles (GAAP)
N)Financial Accounting Standards Board (FAS
B) 
O)profitability ratios
P)International Accounting Standards Committee (IAS
C) 
Q)Leverage ratios
r
management accountant

Question 9

A firm has $12 million in current assets, of which $8 million is inventory. If the company has $4 million in current liabilities, then its current ratio equals 1.0.

Accepted Answer

A) True 
 B)False

Question 10

All of the following are profitability ratios EXCEPT _____.

Accepted Answer

A)  inventory turnover 
B)  return on equity 
C)  net profit margin 
D)  gross profit margin 
A)  inventory turnover 
B)  return on equity 
C)  net profit margin 
D)  gross profit margin

Question 11

All of the following are assets EXCEPT _____.

Accepted Answer

A)  inventory 
B)  cash 
C)  patents 
D)  bank loans 
A)  inventory 
B)  cash 
C)  patents 
D)  bank loans

Question 12

Cash budgets are typically prepared on a weekly basis.

Accepted Answer

A) True 
 B)False

Question 13

Zane Corporation sells $1,000 worth of goods on July 25 on credit. The customer sends the company a check on August 15. The customer receives the goods on September 1. Assuming the company uses accrual accounting, the sale will be recorded in _____.

Accepted Answer

A)  August 
B)  July 
C)  September 
D)  either July, August, or September 
A)  August 
B)  July 
C)  September 
D)  either July, August, or September

Question 14

Camille is an accountant who works for a firm providing auditing services to other businesses. Camille is a public accountant.

Accepted Answer

A) True 
 B)False

Question 15

Financing activities focus on providing valuable assets required to run a business.

Accepted Answer

A) True 
 B)False

Question 16

MATCHING
Complete the following using the terms listed.
-A(n) _____ is a planning and controlling tool that reflects a firm's expected sales revenues, operating expenses, and cash receipts and outlays.

Accepted Answer

A) certified public accountant 
B) International Financial Reporting Standards 
C) asset 
D) liability 
E) Owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Foreign Corruption Practices Act
J)accrual accounting
K)open book management
L)budget
M)generally accepted accounting principles (GAAP)
N)Financial Accounting Standards Board (FAS
B) 
O)profitability ratios
P)International Accounting Standards Committee (IAS
C) 
Q)Leverage ratios
r
management accountant 
A) certified public accountant 
B) International Financial Reporting Standards 
C) asset 
D) liability 
E) Owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Foreign Corruption Practices Act
J)accrual accounting
K)open book management
L)budget
M)generally accepted accounting principles (GAAP)
N)Financial Accounting Standards Board (FAS
B) 
O)profitability ratios
P)International Accounting Standards Committee (IAS
C) 
Q)Leverage ratios
r
management accountant

Question 17

Cash budgets include all of the following EXCEPT a(n) _____.

Accepted Answer

A)  analysis of interest on cash earned from company profits 
B)  statement of the company's cash inflows and outflows 
C)  indication when the company can invest excess funds in securities 
D)  tangible standard against which to compare actual cash inflows and outflows 
A)  analysis of interest on cash earned from company profits 
B)  statement of the company's cash inflows and outflows 
C)  indication when the company can invest excess funds in securities 
D)  tangible standard against which to compare actual cash inflows and outflows

Question 18

_____ activities focus on selling goods and services.

Accepted Answer

A)  Marketing 
B)  Operating 
C)  Financing 
D)  Investing 
A)  Marketing 
B)  Operating 
C)  Financing 
D)  Investing

Question 19

Which of the following current assets is NOT included when calculating the acid-test ratio?

Accepted Answer

A)  Inventory 
B)  Marketable securities 
C)  Cash 
D)  Accounts receivable 
A)  Inventory 
B)  Marketable securities 
C)  Cash 
D)  Accounts receivable

Question 20

Preston performs professional services similar to those of a management accountant while working for the city of Portland. Preston can best be described as a _____.

Accepted Answer

A)  public accountant 
B)  cost accountant 
C)  tax accountant 
D)  government accountant 
A)  public accountant 
B)  cost accountant 
C)  tax accountant 
D)  government accountant

Accountants play fundamental roles in not only business but also other aspects of society.

MATCHING Complete the following using the terms listed. -A(n) _____ is anything of value owned or leased by a business.

A firm's acid-test ratio can never be higher than its current ratio.

MATCHING Complete the following using the terms listed. -An organization's overall financial performance is measured by its _____, which evaluates the ability to generate revenues in excess of operating costs and other expenses.

Identify and briefly describe the four categories of financial ratios.

Accrual accounting recognizes revenues and expenses when cash changes hands.

Who appoints the members of the Public Company Accounting Oversight Board?

MATCHING Complete the following using the terms listed. -The _____ was established to promote worldwide consistency in financial reporting practices.

A firm has $12 million in current assets, of which $8 million is inventory. If the company has $4 million in current liabilities, then its current ratio equals 1.0.

All of the following are profitability ratios EXCEPT _____.

All of the following are assets EXCEPT _____.

Cash budgets are typically prepared on a weekly basis.

Zane Corporation sells $1,000 worth of goods on July 25 on credit. The customer sends the company a check on August 15. The customer receives the goods on September 1. Assuming the company uses accrual accounting, the sale will be recorded in _____.

Camille is an accountant who works for a firm providing auditing services to other businesses. Camille is a public accountant.

Financing activities focus on providing valuable assets required to run a business.

MATCHING Complete the following using the terms listed. -A(n) _____ is a planning and controlling tool that reflects a firm's expected sales revenues, operating expenses, and cash receipts and outlays.

Cash budgets include all of the following EXCEPT a(n) _____.

_____ activities focus on selling goods and services.

Which of the following current assets is NOT included when calculating the acid-test ratio?

Preston performs professional services similar to those of a management accountant while working for the city of Portland. Preston can best be described as a _____.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

Competing in World Markets

Forms of Business Ownership and Organization

Starting Your Own Business: the Entrepreneurship Alternative

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labor Relations

Top Performance Through Empowerment, Teamwork, and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

The Financial System

Financial Management

Filters

Exam 15: Understanding Accounting and Financial Statements

Accountants play fundamental roles in not only business but also other aspects of society.

MATCHING Complete the following using the terms listed. -A(n) _____ is anything of value owned or leased by a business.

A firm's acid-test ratio can never be higher than its current ratio.

MATCHING Complete the following using the terms listed. -An organization's overall financial performance is measured by its _____, which evaluates the ability to generate revenues in excess of operating costs and other expenses.

Identify and briefly describe the four categories of financial ratios.

Accrual accounting recognizes revenues and expenses when cash changes hands.

Who appoints the members of the Public Company Accounting Oversight Board?

MATCHING Complete the following using the terms listed. -The _____ was established to promote worldwide consistency in financial reporting practices.

A firm has $12 million in current assets, of which $8 million is inventory. If the company has $4 million in current liabilities, then its current ratio equals 1.0.

All of the following are profitability ratios EXCEPT _____.

All of the following are assets EXCEPT _____.

Cash budgets are typically prepared on a weekly basis.

Zane Corporation sells $1,000 worth of goods on July 25 on credit. The customer sends the company a check on August 15. The customer receives the goods on September 1. Assuming the company uses accrual accounting, the sale will be recorded in _____.

Camille is an accountant who works for a firm providing auditing services to other businesses. Camille is a public accountant.

Financing activities focus on providing valuable assets required to run a business.

MATCHING Complete the following using the terms listed. -A(n) _____ is a planning and controlling tool that reflects a firm's expected sales revenues, operating expenses, and cash receipts and outlays.

Cash budgets include all of the following EXCEPT a(n) _____.

_____ activities focus on selling goods and services.

Which of the following current assets is NOT included when calculating the acid-test ratio?

Preston performs professional services similar to those of a management accountant while working for the city of Portland. Preston can best be described as a _____.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

Competing in World Markets

Forms of Business Ownership and Organization

Starting Your Own Business: the Entrepreneurship Alternative

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labor Relations

Top Performance Through Empowerment, Teamwork, and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

The Financial System

Financial Management

Filters