Question 1

If Perry Enterprises has a debt ratio of 40%,it means that for every $1 in _____,the firm has 40 cents in _____.

Accepted Answer

A) owners' equity;liabilities 
B) assets;liabilities 
C) owners' equity;assets 
D) assets;owners' equity 
A) owners' equity;liabilities 
B) assets;liabilities 
C) owners' equity;assets 
D) assets;owners' equity

Question 2

The natural progression of a business begins with operating the business.

Accepted Answer

A) True 
 B)False

Question 3

Complete the following using the terms listed.
-A(n)_____ is a planning and controlling tool that reflects a company'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)Sarbanes-Oxley Act (SOX)
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)Sarbanes-Oxley Act (SOX)
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 4

On a balance sheet,total assets must always equal the sum of liabilities and owners' equity.

Accepted Answer

A) True 
 B)False

Question 5

Reese works as a tax accountant at a mid-sized manufacturing company.Reese would be considered a _____.

Accepted Answer

A) management consultant 
B) public accountant 
C) management accountant 
D) government accountant 
A) management consultant 
B) public accountant 
C) management accountant 
D) government accountant

Question 6

Complete the following using the terms listed.
-The claims of a company's creditors are a(n)_____.

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)Sarbanes-Oxley Act (SOX)
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)Sarbanes-Oxley Act (SOX)
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 7

If a firm has an asset turnover ratio of 2.00,it means that it needs $2 in assets to generate a $1 in sales.

Accepted Answer

A) True 
 B)False

Question 8

Complete the following using the terms listed.
-_____ represents the proprietors' claims (those of stockholders,in the case of a corporation)against the firm's assets.

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)Sarbanes-Oxley Act (SOX)
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)Sarbanes-Oxley Act (SOX)
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

Rivera owns a business and is reviewing her company's current financial statements.As a user of accounting information,Rivera is most interested in using this information to _____.

Accepted Answer

A) evaluate credit risk 
B) approve new issues of stocks and bonds 
C) plan and control activities 
D) evaluate tax liabilities 
A) evaluate credit risk 
B) approve new issues of stocks and bonds 
C) plan and control activities 
D) evaluate tax liabilities

Question 10

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 11

All of the following are liabilities EXCEPT _____.

Accepted Answer

A) accumulated profits not paid in dividends 
B) accounts payable 
C) bank loans 
D) wages payable 
A) accumulated profits not paid in dividends 
B) accounts payable 
C) bank loans 
D) wages payable

Question 12

Public accountants typically perform all of the following tasks for a business client EXCEPT _____.

Accepted Answer

A) tax planning 
B) reviewing a firm's financial statements 
C) developing the firm's marketing strategy 
D) management consulting 
A) tax planning 
B) reviewing a firm's financial statements 
C) developing the firm's marketing strategy 
D) management consulting

Question 13

A budget is essentially a long-term financial plan.

Accepted Answer

A) True 
 B)False

Question 14

Accounting is the language of business.

Accepted Answer

A) True 
 B)False

Question 15

The not-for-profit sector is one of the fastest growing segments of accounting practice.

Accepted Answer

A) True 
 B)False

Question 16

The rapidly growing field of _____ involves investigating white-collar crimes such as business fraud,improper financial reporting,and illegal investment schemes.

Accepted Answer

A) budgeting 
B) public accounting 
C) forensic accounting 
D) internal auditing 
A) budgeting 
B) public accounting 
C) forensic accounting 
D) internal auditing

Question 17

Frank,chief financial officer for a company,wants to take a look at the summary of expenses,revenues,and profits of the firm for the most recent quarter.He can best find this information by consulting the _____.

Accepted Answer

A) balance sheet 
B) cash flow statement 
C) statement of owners' equity 
D) income statement 
A) balance sheet 
B) cash flow statement 
C) statement of owners' equity 
D) income statement

Question 18

Investing activities focus on selling goods and services,but they also consider cost control as an important element of sound financial management.

Accepted Answer

A) True 
 B)False

Question 19

Complete the following using the terms listed.
-The accounting method that records revenues and expenses when they occur is called _____.

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)Sarbanes-Oxley Act (SOX)
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)Sarbanes-Oxley Act (SOX)
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 20

Monica is involved in obtaining new funds to run and expand the business.She is engaged in an investing activity.

Accepted Answer

A) True 
 B)False

If Perry Enterprises has a debt ratio of 40%,it means that for every $1 in _,the firm has 40 cents in _.

The natural progression of a business begins with operating the business.

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

On a balance sheet,total assets must always equal the sum of liabilities and owners' equity.

Reese works as a tax accountant at a mid-sized manufacturing company.Reese would be considered a _____.

Complete the following using the terms listed. -The claims of a company's creditors are a(n)_____.

If a firm has an asset turnover ratio of 2.00,it means that it needs $2 in assets to generate a $1 in sales.

Complete the following using the terms listed. -_____ represents the proprietors' claims (those of stockholders,in the case of a corporation)against the firm's assets.

Rivera owns a business and is reviewing her company's current financial statements.As a user of accounting information,Rivera is most interested in using this information to _____.

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 liabilities EXCEPT _____.

Public accountants typically perform all of the following tasks for a business client EXCEPT _____.

A budget is essentially a long-term financial plan.

Accounting is the language of business.

The not-for-profit sector is one of the fastest growing segments of accounting practice.

The rapidly growing field of _____ involves investigating white-collar crimes such as business fraud,improper financial reporting,and illegal investment schemes.

Frank,chief financial officer for a company,wants to take a look at the summary of expenses,revenues,and profits of the firm for the most recent quarter.He can best find this information by consulting the _____.

Investing activities focus on selling goods and services,but they also consider cost control as an important element of sound financial management.

Complete the following using the terms listed. -The accounting method that records revenues and expenses when they occur is called _____.

Monica is involved in obtaining new funds to run and expand the business.She is engaged in an investing activity.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Todays 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

Trends in E-Commerce

Filters

Exam 15: Understanding Accounting and Financial Statements

If Perry Enterprises has a debt ratio of 40%,it means that for every $1 in _____,the firm has 40 cents in _____.

The natural progression of a business begins with operating the business.

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

On a balance sheet,total assets must always equal the sum of liabilities and owners' equity.

Reese works as a tax accountant at a mid-sized manufacturing company.Reese would be considered a _____.

Complete the following using the terms listed. -The claims of a company's creditors are a(n)_____.

If a firm has an asset turnover ratio of 2.00,it means that it needs $2 in assets to generate a $1 in sales.

Complete the following using the terms listed. -_____ represents the proprietors' claims (those of stockholders,in the case of a corporation)against the firm's assets.

Rivera owns a business and is reviewing her company's current financial statements.As a user of accounting information,Rivera is most interested in using this information to _____.

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 liabilities EXCEPT _____.

Public accountants typically perform all of the following tasks for a business client EXCEPT _____.

A budget is essentially a long-term financial plan.

Accounting is the language of business.

The not-for-profit sector is one of the fastest growing segments of accounting practice.

The rapidly growing field of _____ involves investigating white-collar crimes such as business fraud,improper financial reporting,and illegal investment schemes.

Frank,chief financial officer for a company,wants to take a look at the summary of expenses,revenues,and profits of the firm for the most recent quarter.He can best find this information by consulting the _____.

Investing activities focus on selling goods and services,but they also consider cost control as an important element of sound financial management.

Complete the following using the terms listed. -The accounting method that records revenues and expenses when they occur is called _____.

Monica is involved in obtaining new funds to run and expand the business.She is engaged in an investing activity.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Todays 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

Trends in E-Commerce

Filters

If Perry Enterprises has a debt ratio of 40%,it means that for every $1 in _,the firm has 40 cents in _.