Question 1

Accounting provides information about the financial condition and operating performance of a firm.

Accepted Answer

A) True 
 B)False

Question 2

The value of what stockholders own in a corporation is called:

Accepted Answer

A) assets. 
B) owners' equity. 
C) contra receivables. 
D) liabilities. 
A) assets. 
B) owners' equity. 
C) contra receivables. 
D) liabilities.

Question 3

In an effort to maintain a competitive advantage,most firms do not share accounting information with people outside of the firm.

Accepted Answer

A) True 
 B)False

Question 4

The ability to read and understand financial statements is no longer an important skill for managers.

Accepted Answer

A) True 
 B)False

Question 5

Many managers are concerned with how their decisions affect the "bottom line" of their company's income statement.These managers are concerned with the impact of their decisions on net income.

Accepted Answer

A) True 
 B)False

Question 6

A______ summarizes all the data in the account ledgers to verify that they balance.

Accepted Answer

A) balance sheet 
B) statement of cash flows 
C) ledger statement 
D) trial balance 
A) balance sheet 
B) statement of cash flows 
C) ledger statement 
D) trial balance

Question 7

Felicia is a public accountant.She has been asked to prepare the financial statements for McNick's Auto Body Shop.She is at the stage of the accounting cycle where she wants to summarize all of the data in the accounting ledgers to see whether the figures appear to be correct and balanced.Felicia will need to prepare a statement of cash flows in order to complete this stage of the cycle.

Accepted Answer

A) True 
 B)False

Question 8

Ralph owns a small business.Some friends have suggested that he should switch from his current manual accounting system to one that is computerized.Ralph is not certain he wants to use computers in his small firm's accounting system.He is concerned about the time it would take in learning the system,and wonders whether the benefits will justify the costs of setting up the system.As a small business owner,Ralph would probably find that:

Accepted Answer

A) today's accounting software tends to be very complex,so only people with extensive accounting experience can understand its features and use it effectively. 
B) even though it is not yet cost effective,he should go ahead and adopt a computerized system,because government regulations will require most business functions to be computerized in the near future. 
C) such systems actually reduce costs,because they eliminate the need to ever consult with an accountant. 
D) computer software tends to be very helpful to small business owners who lack strong accounting support within their companies. 
A) today's accounting software tends to be very complex,so only people with extensive accounting experience can understand its features and use it effectively. 
B) even though it is not yet cost effective,he should go ahead and adopt a computerized system,because government regulations will require most business functions to be computerized in the near future. 
C) such systems actually reduce costs,because they eliminate the need to ever consult with an accountant. 
D) computer software tends to be very helpful to small business owners who lack strong accounting support within their companies.

Question 9

A firm's balance sheet reports its financial condition on a specific date.

Accepted Answer

A) True 
 B)False

Question 10

If a firm can reduce its cost of goods sold and continue to sell its product for the same price,we would expect the firm to enjoy an increase in its _______.

Accepted Answer

A) revenue 
B) liabilities 
C) gross margin 
D) employee turnover 
A) revenue 
B) liabilities 
C) gross margin 
D) employee turnover

Question 11

What is the difference between a journal and a ledger? How are journals and ledgers incorporated into the accounting cycle?

Accepted Answer

A journal is a record book or computer p

Question 12

Double-entry bookkeeping can help identify a recording error made by a bookkeeper.

Accepted Answer

A) True 
 B)False

Question 13

The owners' equity in a firm is listed as an asset on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 14

A firm's______ reports the profit or loss for the firm over a specified time period.

Accepted Answer

A) cash flow statement 
B) bank statement 
C) balance sheet 
D) income statement 
A) cash flow statement 
B) bank statement 
C) balance sheet 
D) income statement

Question 15

Net income before taxes is found by deducting operating expenses from gross profit.

Accepted Answer

A) True 
 B)False

Question 16

Martha is a member of a conservative political group that wants to identify and publicize examples of wasteful government spending.The type of accounting information that Martha and her group will follow most closely will be provided by certified public accountants.

Accepted Answer

A) True 
 B)False

Question 17

The cost of goods sold includes all the costs of buying and keeping merchandise available for sale.

Accepted Answer

A) True 
 B)False

Question 18

An extremely high inventory turnover ratio may represent lost sales due to holding inadequate stocks of merchandise.

Accepted Answer

A) True 
 B)False

Question 19

A journal is where the initial record of a day's transactions is entered.

Accepted Answer

A) True 
 B)False

Question 20

What are the four key types of ratios businesses use to measure financial performance?

Accepted Answer

Liquidity ratios,leverage (deb

Accounting provides information about the financial condition and operating performance of a firm.

The value of what stockholders own in a corporation is called:

In an effort to maintain a competitive advantage,most firms do not share accounting information with people outside of the firm.

The ability to read and understand financial statements is no longer an important skill for managers.

Many managers are concerned with how their decisions affect the "bottom line" of their company's income statement.These managers are concerned with the impact of their decisions on net income.

A______ summarizes all the data in the account ledgers to verify that they balance.

A firm's balance sheet reports its financial condition on a specific date.

If a firm can reduce its cost of goods sold and continue to sell its product for the same price,we would expect the firm to enjoy an increase in its _______.

What is the difference between a journal and a ledger? How are journals and ledgers incorporated into the accounting cycle?

Double-entry bookkeeping can help identify a recording error made by a bookkeeper.

The owners' equity in a firm is listed as an asset on the balance sheet.

A firm's______ reports the profit or loss for the firm over a specified time period.

Net income before taxes is found by deducting operating expenses from gross profit.

Martha is a member of a conservative political group that wants to identify and publicize examples of wasteful government spending.The type of accounting information that Martha and her group will follow most closely will be provided by certified public accountants.

The cost of goods sold includes all the costs of buying and keeping merchandise available for sale.

An extremely high inventory turnover ratio may represent lost sales due to holding inadequate stocks of merchandise.

A journal is where the initial record of a day's transactions is entered.

What are the four key types of ratios businesses use to measure financial performance?

The Dynamic Business Environment

How Economic Issues Affect Business

Competing in Global Markets

The Role of Government in Business Appendix a Working Within the Legal Environment of Business

Ethics and Social Responsibility

Forms of Business Ownership

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Producing World-Class Goods and Services

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employeemdashmanagement Issues and Relations

Marketing: Helping Buyers Buy

Managing the Marketing Mix: Product, Price, Place, and Promotion

Financial Management Appendix C Managing Risk

The Financial Services Industry in Canada

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Exam 16: Understanding Accounting and Financial Information

Accounting provides information about the financial condition and operating performance of a firm.

The value of what stockholders own in a corporation is called:

In an effort to maintain a competitive advantage,most firms do not share accounting information with people outside of the firm.

The ability to read and understand financial statements is no longer an important skill for managers.

Many managers are concerned with how their decisions affect the "bottom line" of their company's income statement.These managers are concerned with the impact of their decisions on net income.

A______ summarizes all the data in the account ledgers to verify that they balance.

A firm's balance sheet reports its financial condition on a specific date.

If a firm can reduce its cost of goods sold and continue to sell its product for the same price,we would expect the firm to enjoy an increase in its _______.

What is the difference between a journal and a ledger? How are journals and ledgers incorporated into the accounting cycle?

Double-entry bookkeeping can help identify a recording error made by a bookkeeper.

The owners' equity in a firm is listed as an asset on the balance sheet.

A firm's______ reports the profit or loss for the firm over a specified time period.

Net income before taxes is found by deducting operating expenses from gross profit.

Martha is a member of a conservative political group that wants to identify and publicize examples of wasteful government spending.The type of accounting information that Martha and her group will follow most closely will be provided by certified public accountants.

The cost of goods sold includes all the costs of buying and keeping merchandise available for sale.

An extremely high inventory turnover ratio may represent lost sales due to holding inadequate stocks of merchandise.

A journal is where the initial record of a day's transactions is entered.

What are the four key types of ratios businesses use to measure financial performance?

The Dynamic Business Environment

How Economic Issues Affect Business

Competing in Global Markets

The Role of Government in Business Appendix a Working Within the Legal Environment of Business

Ethics and Social Responsibility

Forms of Business Ownership

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Producing World-Class Goods and Services

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employeemdashmanagement Issues and Relations

Marketing: Helping Buyers Buy

Managing the Marketing Mix: Product, Price, Place, and Promotion

Financial Management Appendix C Managing Risk

The Financial Services Industry in Canada

Filters