Exam 15: Understanding Accounting and Financial Statements

Daily business decisions are generally unaffected by accounting information; long-term decisions,however,are affected by accounting information and the interpretation of financial reports.

Using the following balance sheet information,find the firm's acid-test ratio. Cash and marketable securities \ 20 million Accounts receivable \ 10 million Inventory \ 30 million Current liabilities \ 30 million

Which of the following do companies prepare on a monthly basis?

_______ at the federal level manage public funds,investigate white-collar crime,perform audits for government agencies,and stay up-to-date on emerging accounting and regulatory issues.

Marks 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 Marks Inc.?

Which of the following financial statements is also called a profit and loss statement?

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

All of the following are tangible assets EXCEPT

Which of the following is an accounting software?

If a U.S.company has substantial operations in Europe and the value of the euro falls relative to the U.S.dollar,the company's profits,stated in U.S.dollars,will also fall.

Cash budgets are typically prepared on a weekly basis.

Depreciation is reported as an expense on the firm's income statement,but it does not involve any actual cash.

An accountant employed by a business other than a public accounting firm is called a ______,who typically collects and records financial transactions and prepares financial statements used by the company's managers in decision making.

Public accountants are typically employees of the firm for which they are providing services.

Which of these activities focus on providing valuable assets to a business?

An international firm's consolidated financial statements must reflect any gains or losses due to changes in exchange rates during specific periods of time.

An asset turnover ratio of 2.5 means that for every $1 in assets,the firm generates _____ in sales.

Two commonly used liquidity ratios are the inventory turnover ratio and the leverage ratio.

Bianca wishes to create a financial blueprint for a future period that reflects such items as expected sales revenues,operating expenses,and cash receipts and disbursements.Bianca wants to create a(n)

Ramon 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