Question 1

Buster's Hot Dogs bought supplies on credit from a supplier. Which of the following is the amount the firm owes to the supplier?

Accepted Answer

A)  long-term liabilities 
B)  loans payable 
C)  accounts receivable 
D)  accounts payable 
A)  long-term liabilities 
B)  loans payable 
C)  accounts receivable 
D)  accounts payable

Question 2

How would trademarks and copyrights be listed on a company's balance sheet?

Accepted Answer

A)  fixed assets 
B)  intangible assets 
C)  owners' equity 
D)  short-term investments 
A)  fixed assets 
B)  intangible assets 
C)  owners' equity 
D)  short-term investments

Question 3

What is another name for the statement of financial position?

Accepted Answer

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

Question 4

Which of the following best describes the organization of a statement of cash flows?

Accepted Answer

A)  assets = liabilities + shareholders' equity 
B)  operating, investing, and financing cash flows 
C)  cash in, cash out 
D)  payments - receipts = cash 
A)  assets = liabilities + shareholders' equity 
B)  operating, investing, and financing cash flows 
C)  cash in, cash out 
D)  payments - receipts = cash

Question 5

When Nathaniel Products applied for a loan to expand its sailboat business, the bank requested several financial reports so that it could assess the company's ability to repay the loan. Which category of accounting would be responsible for the preparation of these financial reports?

Accepted Answer

A)  managerial accounting 
B)  financial accounting 
C)  forensic accounting 
D)  cost accounting 
A)  managerial accounting 
B)  financial accounting 
C)  forensic accounting 
D)  cost accounting

Question 6

Looking back at previous income statements shows similar trends for each company. Which company do you choose to invest in and why?

Accepted Answer

A)  SweetFeet, because analyzing both the balance sheet and income statement show that it has a healthier financial position than SportsAde. 
B)  SportsAde, because the balance sheet shows that its assets are higher than SweetFeet's assets. 
C)  SweetFeet, because the income statement shows that it has a higher profit than SportsAde. 
D)  SportsAde, because analyzing both the balance sheet and income statement show that it has a healthier financial position than SweetFeet. 
A)  SweetFeet, because analyzing both the balance sheet and income statement show that it has a healthier financial position than SportsAde. 
B)  SportsAde, because the balance sheet shows that its assets are higher than SweetFeet's assets. 
C)  SweetFeet, because the income statement shows that it has a higher profit than SportsAde. 
D)  SportsAde, because analyzing both the balance sheet and income statement show that it has a healthier financial position than SweetFeet.

Question 7

Chopra Industries is preparing for its annual shareholders meeting. What will Chopra's managers use to provide shareholders with information about how fast the company is growing, how much it is worth, and how they are performing compared to others in the industry?

Accepted Answer

A)  formulas 
B)  bank statements 
C)  financials 
D)  inventory statements 
A)  formulas 
B)  bank statements 
C)  financials 
D)  inventory statements

Question 8

According to the accountant for Virunder's Floral Supply, the firm's assets are $124,000 and its liabilities are $31,000. Which of the following statements is correct?

Accepted Answer

A)  The owners' equity is $93,000. 
B)  The firm's current assets are $62,000. 
C)  The firm's current liabilities are $24,000. 
D)  The firm's accounting equation won't balance. 
A)  The owners' equity is $93,000. 
B)  The firm's current assets are $62,000. 
C)  The firm's current liabilities are $24,000. 
D)  The firm's accounting equation won't balance.

Question 9

Whirlpool purchases land to build a new factory. How is this listed on the statement of cash flows?

Accepted Answer

A)  cash flows from operating activities 
B)  a liability 
C)  cash flows from investing activities 
D)  operating expenses 
A)  cash flows from operating activities 
B)  a liability 
C)  cash flows from investing activities 
D)  operating expenses

Question 10

Which financial statement provides information about a firm's operating, investing, and financing activities during an accounting period?

Accepted Answer

A)  balance sheet 
B)  income statement 
C)  cash flow statement 
D)  financial analysis statement 
A)  balance sheet 
B)  income statement 
C)  cash flow statement 
D)  financial analysis statement

Question 11

Jennifer is hired by Ruby Tuesday to help with budgeting, determining the costs of the firm's meal services, and recording transactions and creating financial statements for use by its restaurant managers. Which type of accountant is Jennifer?

Accepted Answer

A)  managerial 
B)  financial 
C)  public 
D)  tax 
A)  managerial 
B)  financial 
C)  public 
D)  tax

Question 12

On an income statement, revenue less cost of goods sold (COGS) equals which of the following?

Accepted Answer

A)  net income or loss 
B)  gross profit 
C)  operating expenses 
D)  net profit 
A)  net income or loss 
B)  gross profit 
C)  operating expenses 
D)  net profit

Question 13

If Reebok wanted to know how quickly it could convert its assets to cash in order to pay off short-term debts, which ratio would it use?

Accepted Answer

A)  current assets ÷ current liabilities 
B)  total liabilities ÷ total owner's equity 
C)  net revenue after taxes ÷ revenue 
D)  sales ÷ total assets 
A)  current assets ÷ current liabilities 
B)  total liabilities ÷ total owner's equity 
C)  net revenue after taxes ÷ revenue 
D)  sales ÷ total assets

Question 14

If assets of Martin's Pet Store are $107,000 and owners' equity is $75,000, which of the following statements is correct?

Accepted Answer

A)  The current assets are worth $32,000. 
B)  The new income for the period is $32,000. 
C)  The long-term liabilities are $75,000. 
D)  The liabilities are $32,000. 
A)  The current assets are worth $32,000. 
B)  The new income for the period is $32,000. 
C)  The long-term liabilities are $75,000. 
D)  The liabilities are $32,000.

Question 15

Chase starts a new auto detailing business. He obtains a loan for $10,000 and uses the funds to build a small workshop in his backyard and to buy tools and supplies. At this point, his assets are _____, liabilities are _____, and owners' equity is _____.

Accepted Answer

A)  $10,000; $5000; $15,000 
B)  $10,000; $10,000; $0 
C)  $5000; $0; $5000 
D)  $10,000; $5000; $5000 
A)  $10,000; $5000; $15,000 
B)  $10,000; $10,000; $0 
C)  $5000; $0; $5000 
D)  $10,000; $5000; $5000

Question 16

When Betty Tran prepared a personal income statement, she subtracted her expenses from her income. What is the remainder or residual value called?

Accepted Answer

A)  total assets 
B)  total revenues 
C)  retained earnings 
D)  cash surplus 
A)  total assets 
B)  total revenues 
C)  retained earnings 
D)  cash surplus

Question 17

Which of the following describes assets that can be quickly converted into cash or consumed in one year or less?

Accepted Answer

A)  overhead costs 
B)  current assets 
C)  acid-test assets 
D)  fixed assets 
A)  overhead costs 
B)  current assets 
C)  acid-test assets 
D)  fixed assets

Question 18

Which of the following is the profitability ratio that is calculated by dividing net income after taxes by revenue?

Accepted Answer

A)  debt-to-equity ratio 
B)  current ratio 
C)  return on sales 
D)  net profit margin ratio 
A)  debt-to-equity ratio 
B)  current ratio 
C)  return on sales 
D)  net profit margin ratio

Question 19

Which of the following is a summary of a firm's revenues and expenses during a specified accounting period, such as a year?

Accepted Answer

A)  income statement 
B)  balance sheet 
C)  statement of financial position 
D)  statement of owners' equity 
A)  income statement 
B)  balance sheet 
C)  statement of financial position 
D)  statement of owners' equity

Question 20

Raymond works for a manufacturing company in the accounting department. He is primarily responsible for the preparation of financial statements and reports that will be used by bankers, investors, creditors, and the government. Raymond is which type of accountant?

Accepted Answer

A)  investment 
B)  managerial 
C)  financial 
D)  cost 
A)  investment 
B)  managerial 
C)  financial 
D)  cost

Buster's Hot Dogs bought supplies on credit from a supplier. Which of the following is the amount the firm owes to the supplier?

How would trademarks and copyrights be listed on a company's balance sheet?

What is another name for the statement of financial position?

Which of the following best describes the organization of a statement of cash flows?

When Nathaniel Products applied for a loan to expand its sailboat business, the bank requested several financial reports so that it could assess the company's ability to repay the loan. Which category of accounting would be responsible for the preparation of these financial reports?

Looking back at previous income statements shows similar trends for each company. Which company do you choose to invest in and why?

Chopra Industries is preparing for its annual shareholders meeting. What will Chopra's managers use to provide shareholders with information about how fast the company is growing, how much it is worth, and how they are performing compared to others in the industry?

According to the accountant for Virunder's Floral Supply, the firm's assets are $124,000 and its liabilities are $31,000. Which of the following statements is correct?

Whirlpool purchases land to build a new factory. How is this listed on the statement of cash flows?

Which financial statement provides information about a firm's operating, investing, and financing activities during an accounting period?

Jennifer is hired by Ruby Tuesday to help with budgeting, determining the costs of the firm's meal services, and recording transactions and creating financial statements for use by its restaurant managers. Which type of accountant is Jennifer?

On an income statement, revenue less cost of goods sold (COGS) equals which of the following?

If Reebok wanted to know how quickly it could convert its assets to cash in order to pay off short-term debts, which ratio would it use?

If assets of Martin's Pet Store are $107,000 and owners' equity is $75,000, which of the following statements is correct?

Chase starts a new auto detailing business. He obtains a loan for $10,000 and uses the funds to build a small workshop in his backyard and to buy tools and supplies. At this point, his assets are ___, liabilities are _, and owners' equity is ___.

When Betty Tran prepared a personal income statement, she subtracted her expenses from her income. What is the remainder or residual value called?

Which of the following describes assets that can be quickly converted into cash or consumed in one year or less?

Which of the following is the profitability ratio that is calculated by dividing net income after taxes by revenue?

Which of the following is a summary of a firm's revenues and expenses during a specified accounting period, such as a year?

Raymond works for a manufacturing company in the accounting department. He is primarily responsible for the preparation of financial statements and reports that will be used by bankers, investors, creditors, and the government. Raymond is which type of accountant?

Exploring the World of Business and Economics

Being Ethical and Socially Responsible

Exploring Global Business

Choosing a Form of Business Ownership

Considering Small Business Entrepreneurship and Franchises

Understanding the Management Process

Creating a Flexible Organization

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating Employees and Teams

Enhancing Employee Management Relations

Building Customer Relationships Through Effective Marketing

Developing and Managing Products

Managing Distribution and Pricing

Developing Integrated Marketing Communications

Exploring Business Technology

Understanding Money Banking and Credit

Recognizing the Basics of Financial Management

Understanding Personal Finance and Investments

Filters

Exam 17: Using Accounting and Financial Information

Buster's Hot Dogs bought supplies on credit from a supplier. Which of the following is the amount the firm owes to the supplier?

How would trademarks and copyrights be listed on a company's balance sheet?

What is another name for the statement of financial position?

Which of the following best describes the organization of a statement of cash flows?

When Nathaniel Products applied for a loan to expand its sailboat business, the bank requested several financial reports so that it could assess the company's ability to repay the loan. Which category of accounting would be responsible for the preparation of these financial reports?

Looking back at previous income statements shows similar trends for each company. Which company do you choose to invest in and why?

Chopra Industries is preparing for its annual shareholders meeting. What will Chopra's managers use to provide shareholders with information about how fast the company is growing, how much it is worth, and how they are performing compared to others in the industry?

According to the accountant for Virunder's Floral Supply, the firm's assets are $124,000 and its liabilities are $31,000. Which of the following statements is correct?

Whirlpool purchases land to build a new factory. How is this listed on the statement of cash flows?

Which financial statement provides information about a firm's operating, investing, and financing activities during an accounting period?

Jennifer is hired by Ruby Tuesday to help with budgeting, determining the costs of the firm's meal services, and recording transactions and creating financial statements for use by its restaurant managers. Which type of accountant is Jennifer?

On an income statement, revenue less cost of goods sold (COGS) equals which of the following?

If Reebok wanted to know how quickly it could convert its assets to cash in order to pay off short-term debts, which ratio would it use?

If assets of Martin's Pet Store are $107,000 and owners' equity is $75,000, which of the following statements is correct?

Chase starts a new auto detailing business. He obtains a loan for $10,000 and uses the funds to build a small workshop in his backyard and to buy tools and supplies. At this point, his assets are _____, liabilities are _____, and owners' equity is _____.

When Betty Tran prepared a personal income statement, she subtracted her expenses from her income. What is the remainder or residual value called?

Which of the following describes assets that can be quickly converted into cash or consumed in one year or less?

Which of the following is the profitability ratio that is calculated by dividing net income after taxes by revenue?

Which of the following is a summary of a firm's revenues and expenses during a specified accounting period, such as a year?

Raymond works for a manufacturing company in the accounting department. He is primarily responsible for the preparation of financial statements and reports that will be used by bankers, investors, creditors, and the government. Raymond is which type of accountant?

Exploring the World of Business and Economics

Being Ethical and Socially Responsible

Exploring Global Business

Choosing a Form of Business Ownership

Considering Small Business Entrepreneurship and Franchises

Understanding the Management Process

Creating a Flexible Organization

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating Employees and Teams

Enhancing Employee Management Relations

Building Customer Relationships Through Effective Marketing

Developing and Managing Products

Managing Distribution and Pricing

Developing Integrated Marketing Communications

Exploring Business Technology

Understanding Money Banking and Credit

Recognizing the Basics of Financial Management

Understanding Personal Finance and Investments

Filters

Chase starts a new auto detailing business. He obtains a loan for $10,000 and uses the funds to build a small workshop in his backyard and to buy tools and supplies. At this point, his assets are ___, liabilities are _, and owners' equity is ___.