Question 1

The use of computers in accounting has:

Accepted Answer

A) made it possible for most firms to operate without the expense of hiring or consulting with accountants. 
B) reduced the pressure on managers in making financial decisions. 
C) created an environment in which accounting has become nothing more than glorified bookkeeping,as all accountants are required to do is enter data into the system and monitor the results the program generates. 
D) allowed firms to have continuous auditing ability so that they can continuously track financial problems and quickly spot problems like cash flow difficulties. 
A) made it possible for most firms to operate without the expense of hiring or consulting with accountants. 
B) reduced the pressure on managers in making financial decisions. 
C) created an environment in which accounting has become nothing more than glorified bookkeeping,as all accountants are required to do is enter data into the system and monitor the results the program generates. 
D) allowed firms to have continuous auditing ability so that they can continuously track financial problems and quickly spot problems like cash flow difficulties.

Question 2

The "bottom line" of an income statement shows the firm's:

Accepted Answer

A) owners' equity. 
B) net income or net loss. 
C) retained earnings. 
D) gross margin. 
A) owners' equity. 
B) net income or net loss. 
C) retained earnings. 
D) gross margin.

Question 3

Accounting provides financial information that can be useful to the owners,creditors,suppliers,employees,and competitors of an organization.

Accepted Answer

A) True 
 B)False

Question 4

If you know how to keep your customers satisfied,you can successfully manage a business without knowing anything about accounting.

Accepted Answer

A) True 
 B)False

Question 5

It is always better for a firm to have a high inventory turnover ratio than a low turnover ratio.

Accepted Answer

A) True 
 B)False

Question 6

A cash flow statement summarizes a company's cash receipts and cash payments over a period of time.

Accepted Answer

A) True 
 B)False

Question 7

A cash flow statement reports the receipts and disbursements of cash in a given time period as the result of three types of activities: operations,investments,and financing.

Accepted Answer

A) True 
 B)False

Question 8

What group or groups are interested in a company's financial statements?

Accepted Answer

Owners,creditors,sup

Question 9

A major part of a bookkeeper's job is to interpret financial data and suggest strategies for improving the firm.

Accepted Answer

A) True 
 B)False

Question 10

To effectively run a business,it is necessary to:

Accepted Answer

A) understand and use accounting information. 
B) use a public accounting firm. 
C) know the differences between accounting and bookkeeping. 
D) hire a full-time accountant. 
A) understand and use accounting information. 
B) use a public accounting firm. 
C) know the differences between accounting and bookkeeping. 
D) hire a full-time accountant.

Question 11

The equipment a firm owns and the money it has in its bank account would both be considered among its assets.

Accepted Answer

A) True 
 B)False

Question 12

Net income is simply the difference between revenue and cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 13

Leondra works for a textbook publishing firm preparing budgets and reporting production costs.She works in the field of:

Accepted Answer

A) tax accounting. 
B) financial accounting. 
C) managerial accounting. 
D) auditing. 
A) tax accounting. 
B) financial accounting. 
C) managerial accounting. 
D) auditing.

Question 14

involves the recording of business transactions.

Accepted Answer

A) Auditing 
B) Marketing 
C) Economics 
D) Bookkeeping 
A) Auditing 
B) Marketing 
C) Economics 
D) Bookkeeping

Question 15

After recording a business' transactions,accountants usually classify the transactions into groups with common characteristics.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following would be classified as a general expense on an income statement?

Accepted Answer

A) costs associated with an advertising campaign 
B) payments made for insurance 
C) salaries paid to salespeople 
D) dividends paid to stockholders 
A) costs associated with an advertising campaign 
B) payments made for insurance 
C) salaries paid to salespeople 
D) dividends paid to stockholders

Question 17

For firms that sometimes have difficulty selling their inventory of goods,the current ratio is likely to be a better measure of liquidity than the acid-test ratio.

Accepted Answer

A) True 
 B)False

Question 18

Patents and copyrights are examples of intangible assets.

Accepted Answer

A) True 
 B)False

Question 19

Horst works as an accountant for a mid-sized retail store.He has just completed a trial balance that turned up no unexpected problems.Horst's next major task is likely to be:

Accepted Answer

A) taking a well-deserved vacation,since he has just finished the last step in the accounting cycle for the current period. 
B) preparing the store's balance sheet and other major financial statements. 
C) preparing a tax return for the company. 
D) conducting the full audit. 
A) taking a well-deserved vacation,since he has just finished the last step in the accounting cycle for the current period. 
B) preparing the store's balance sheet and other major financial statements. 
C) preparing a tax return for the company. 
D) conducting the full audit.

Question 20

Liquidity refers to how fast a(n)______can be converted to cash.

Accepted Answer

A) asset 
B) liability 
C) equity 
D) debt 
A) asset 
B) liability 
C) equity 
D) debt

The use of computers in accounting has:

The "bottom line" of an income statement shows the firm's:

Accounting provides financial information that can be useful to the owners,creditors,suppliers,employees,and competitors of an organization.

If you know how to keep your customers satisfied,you can successfully manage a business without knowing anything about accounting.

It is always better for a firm to have a high inventory turnover ratio than a low turnover ratio.

A cash flow statement summarizes a company's cash receipts and cash payments over a period of time.

A cash flow statement reports the receipts and disbursements of cash in a given time period as the result of three types of activities: operations,investments,and financing.

What group or groups are interested in a company's financial statements?

A major part of a bookkeeper's job is to interpret financial data and suggest strategies for improving the firm.

To effectively run a business,it is necessary to:

The equipment a firm owns and the money it has in its bank account would both be considered among its assets.

Net income is simply the difference between revenue and cost of goods sold.

Leondra works for a textbook publishing firm preparing budgets and reporting production costs.She works in the field of:

involves the recording of business transactions.

After recording a business' transactions,accountants usually classify the transactions into groups with common characteristics.

Which of the following would be classified as a general expense on an income statement?

For firms that sometimes have difficulty selling their inventory of goods,the current ratio is likely to be a better measure of liquidity than the acid-test ratio.

Patents and copyrights are examples of intangible assets.

Horst works as an accountant for a mid-sized retail store.He has just completed a trial balance that turned up no unexpected problems.Horst's next major task is likely to be:

Liquidity refers to how fast a(n)______can be converted to cash.

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

Exam 16: Understanding Accounting and Financial Information

The use of computers in accounting has:

The "bottom line" of an income statement shows the firm's:

Accounting provides financial information that can be useful to the owners,creditors,suppliers,employees,and competitors of an organization.

If you know how to keep your customers satisfied,you can successfully manage a business without knowing anything about accounting.

It is always better for a firm to have a high inventory turnover ratio than a low turnover ratio.

A cash flow statement summarizes a company's cash receipts and cash payments over a period of time.

A cash flow statement reports the receipts and disbursements of cash in a given time period as the result of three types of activities: operations,investments,and financing.

What group or groups are interested in a company's financial statements?

A major part of a bookkeeper's job is to interpret financial data and suggest strategies for improving the firm.

To effectively run a business,it is necessary to:

The equipment a firm owns and the money it has in its bank account would both be considered among its assets.

Net income is simply the difference between revenue and cost of goods sold.

Leondra works for a textbook publishing firm preparing budgets and reporting production costs.She works in the field of:

involves the recording of business transactions.

After recording a business' transactions,accountants usually classify the transactions into groups with common characteristics.

Which of the following would be classified as a general expense on an income statement?

For firms that sometimes have difficulty selling their inventory of goods,the current ratio is likely to be a better measure of liquidity than the acid-test ratio.

Patents and copyrights are examples of intangible assets.

Horst works as an accountant for a mid-sized retail store.He has just completed a trial balance that turned up no unexpected problems.Horst's next major task is likely to be:

Liquidity refers to how fast a(n)______can be converted to cash.

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