Exam 15: Understanding Accounting and Financial Statements

Angelina works for a mid-sized manufacturing company.Her responsibility is to examine the company's financial practices to ensure that records include accurate data and that the company's operations are in compliance with federal,state,and local laws and regulations.Angelina is a(n)

(Multiple Choice)

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Question 41

________ is the owner's initial investment in the business plus profits that were not paid out to owners over time in the form of cash dividends.

(Multiple Choice)

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Question 42

Assets can include intangible possessions such as patents and trademarks.

(True/False)

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Question 43

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

(Multiple Choice)

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Question 44

Which of the following financial statements shows a company's financial position on a particular date?

(Multiple Choice)

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Question 45

Which of the following represents the accounting equation?

(Multiple Choice)

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Question 46

A company's overall operating budget is a composite of many individual budgets for separate units of the firm.

(True/False)

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Question 47

The current ratio is a type of leverage ratio.

(True/False)

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Question 48

The right side of the balance sheet lists claims against assets.

(True/False)

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Question 49

Excel Corporation sells $1,000 worth of goods on July 25 on credit.The customer sends the company a check on August 15.The customer receives the goods on September 1.Assuming the company uses accrual accounting,the sale will be recorded in

(Multiple Choice)

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Question 50

In the United States,______ is primarily responsible for evaluating,setting,or modifying GAAP?

(Multiple Choice)

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Question 51

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

(Multiple Choice)

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Question 52

All of the following are liabilities EXCEPT

(Multiple Choice)

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Question 53

A(n)_____ is a financial statement that is directly based on the accounting equation.

(Multiple Choice)

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Question 54

The _____ was created by the Sarbanes-Oxley Act of 2002.

(Multiple Choice)

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Question 55

The GAAP standard of relevance ensures that one firm's financial statements can be compared with those of similar businesses.

(True/False)

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Question 56

The primary role of government accountants is to determine how efficiently their organizations have accomplished their objectives.

(True/False)

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Question 57

Lorna is an accountant who works for a firm providing auditing services to other businesses.Lorna is a public accountant.

(True/False)

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Question 58

Which of the following is a noncash expense?

(Multiple Choice)

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Question 59

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.

(True/False)

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Question 60

Showing 41 - 60 of 115

Angelina works for a mid-sized manufacturing company.Her responsibility is to examine the company's financial practices to ensure that records include accurate data and that the company's operations are in compliance with federal,state,and local laws and regulations.Angelina is a(n)

________ is the owner's initial investment in the business plus profits that were not paid out to owners over time in the form of cash dividends.

Assets can include intangible possessions such as patents and trademarks.

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

Which of the following financial statements shows a company's financial position on a particular date?

Which of the following represents the accounting equation?

A company's overall operating budget is a composite of many individual budgets for separate units of the firm.

The current ratio is a type of leverage ratio.

The right side of the balance sheet lists claims against assets.

Excel Corporation sells $1,000 worth of goods on July 25 on credit.The customer sends the company a check on August 15.The customer receives the goods on September 1.Assuming the company uses accrual accounting,the sale will be recorded in

In the United States,______ is primarily responsible for evaluating,setting,or modifying GAAP?

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

All of the following are liabilities EXCEPT

A(n)_____ is a financial statement that is directly based on the accounting equation.

The _____ was created by the Sarbanes-Oxley Act of 2002.

The GAAP standard of relevance ensures that one firm's financial statements can be compared with those of similar businesses.

The primary role of government accountants is to determine how efficiently their organizations have accomplished their objectives.

Lorna is an accountant who works for a firm providing auditing services to other businesses.Lorna is a public accountant.

Which of the following is a noncash expense?

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.

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