Question 1

Identify and briefly describe the four categories of financial ratios.

Accepted Answer

The four categories of ratios are liquid

Question 2

_____ ratios are designed to evaluate a firm's ability to generate revenues in excess of operating costs and other expenses.

Accepted Answer

A) Activity 
B) Liquidity 
C) Profitability 
D) Debt 
A) Activity 
B) Liquidity 
C) Profitability 
D) Debt

Question 3

Campbell Inc. ,a construction company,recorded a gross profit of $12,000.Its operating expenses stood at $2,000.The amount of depreciation was calculated to be $3,000.Campbell paid out $2,500 in income taxes.Which of the following figures captures Campbell's bottom line?

Accepted Answer

A) $10,000 
B) $4,500 
C) $3,500 
D) $7,000 
A) $10,000 
B) $4,500 
C) $3,500 
D) $7,000

Question 4

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

Question 5

What is accounting? Provide examples of tasks that accountants perform.

Accepted Answer

Accounting is the process of measuring,i

Question 6

The current ratio is a leverage ratio.

Accepted Answer

A) True 
 B)False

Question 7

_____ activities focus on providing valuable assets to a business.

Accepted Answer

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

Question 8

The three principal financial statements are the balance sheet,income statement,and the statement of retained earnings.

Accepted Answer

A) True 
 B)False

Question 9

Roger has been hired to collect and record financial transactions and prepare financial statements for a Christian organization affiliated to a church,which makes him a _____.

Accepted Answer

A) not-for-profit accountant 
B) government accountant 
C) public accountant 
D) management accountant 
A) not-for-profit accountant 
B) government accountant 
C) public accountant 
D) management accountant

Question 10

A firm has total assets of $50 million and owner's equity of $40 million.What is the firm's debt ratio?

Accepted Answer

A) 70% 
B) 50% 
C) 30% 
D) 20% 
A) 70% 
B) 50% 
C) 30% 
D) 20%

Question 11

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 12

The natural progression of a business begins with _____.

Accepted Answer

A) operating 
B) investing 
C) financing 
D) selling 
A) operating 
B) investing 
C) financing 
D) selling

Question 13

Accrual accounting recognizes revenues and expenses when cash changes hands.

Accepted Answer

A) True 
 B)False

Question 14

Complete the following using the terms listed.
-The _____ are regulations and interpretations adopted by the International Accounting Standards Board.

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 15

Deborah Inc. ,an online retail store,recorded an inventory of $3,000 as of December 31,2012.Its inventory stood at $3,500 on December 31,2013.The cost of goods sold for the corresponding year was $15,000.Which of the following indicates the inventory turnover ratio of Deborah Inc.?

Accepted Answer

A) 5 
B) 4.28 
C) 4.61 
D) 5.22 
A) 5 
B) 4.28 
C) 4.61 
D) 5.22

Identify and briefly describe the four categories of financial ratios.

_____ ratios are designed to evaluate a firm's ability to generate revenues in excess of operating costs and other expenses.

Campbell Inc. ,a construction company,recorded a gross profit of $12,000.Its operating expenses stood at $2,000.The amount of depreciation was calculated to be $3,000.Campbell paid out $2,500 in income taxes.Which of the following figures captures Campbell's bottom line?

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 _____.

What is accounting? Provide examples of tasks that accountants perform.

The current ratio is a leverage ratio.

_____ activities focus on providing valuable assets to a business.

The three principal financial statements are the balance sheet,income statement,and the statement of retained earnings.

Roger has been hired to collect and record financial transactions and prepare financial statements for a Christian organization affiliated to a church,which makes him a _____.

A firm has total assets of $50 million and owner's equity of $40 million.What is the firm's debt ratio?

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

The natural progression of a business begins with _____.

Accrual accounting recognizes revenues and expenses when cash changes hands.

Complete the following using the terms listed. -The _____ are regulations and interpretations adopted by the International Accounting Standards Board.

Deborah Inc. ,an online retail store,recorded an inventory of $3,000 as of December 31,2012.Its inventory stood at $3,500 on December 31,2013.The cost of goods sold for the corresponding year was $15,000.Which of the following indicates the inventory turnover ratio of Deborah Inc.?

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

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Exam 15: Understanding Accounting and Financial Statements

Identify and briefly describe the four categories of financial ratios.

_____ ratios are designed to evaluate a firm's ability to generate revenues in excess of operating costs and other expenses.

Campbell Inc. ,a construction company,recorded a gross profit of $12,000.Its operating expenses stood at $2,000.The amount of depreciation was calculated to be $3,000.Campbell paid out $2,500 in income taxes.Which of the following figures captures Campbell's bottom line?

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 _____.

What is accounting? Provide examples of tasks that accountants perform.

The current ratio is a leverage ratio.

_____ activities focus on providing valuable assets to a business.

The three principal financial statements are the balance sheet,income statement,and the statement of retained earnings.

Roger has been hired to collect and record financial transactions and prepare financial statements for a Christian organization affiliated to a church,which makes him a _____.

A firm has total assets of $50 million and owner's equity of $40 million.What is the firm's debt ratio?

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

The natural progression of a business begins with _____.

Accrual accounting recognizes revenues and expenses when cash changes hands.

Complete the following using the terms listed. -The _____ are regulations and interpretations adopted by the International Accounting Standards Board.

Deborah Inc. ,an online retail store,recorded an inventory of $3,000 as of December 31,2012.Its inventory stood at $3,500 on December 31,2013.The cost of goods sold for the corresponding year was $15,000.Which of the following indicates the inventory turnover ratio of Deborah Inc.?

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