Exam 15: The Role of Accountants and Accounting Information

How much profit does a company which has a total of $5 million invested by its owners and $4 million in liabilities need to make in order to have an assets-to-liabilities ratio of 2: 1?

Which of the following terms refers to the examination of a company's accounting system to determine whether its financial reports fairly represent its operations?

Santos's executives are most interested in seeing the company's short-term solvency ratios.Based on this information,what question do they MOST likely want to have answered?

Give three examples of management advisory services.

Which of the following questions would a balance sheet NOT be able to help answer about the current state of Streeter & Sons?

In general,the accounting standards from the IASB and from the U.S.GAAP align nearly perfectly.

Which of the following terms refers to the formal recording and reporting of revenues in financial statements?

The primary goal for the standard practices and principles in accountant reporting is to ensure external users that the information is accurate and has meaning.

Bookkeeping is a comprehensive system for collecting,analyzing,and communicating financial information.

Which of the following refers to the rules and procedures governing the content and form of financial reports?

Which of the following is NOT an unethical or illegal accounting action?

Which of the following refers to the financial statement detailing a firm's assets,liabilities,and owners' equity?

Which of the following,if true,would weaken the case that more than one type of financial statement should be examined in order to determine a company's financial health?

What are the major categories within an income statement?

Which of the following,if true,supports the mother's position?

Which are the two major fields of accounting?

An audit examines whether a firm's financial statement conforms to generally accepted accounting principles.

A local bakery is suddenly inundated with many more orders for wedding cakes than it has the physical capacity to make.Rather than turn away customers,the owner decides to rent another kitchen across town to fulfill all of the orders.But she needs to borrow money to pay for the rent and additional workers,the additional cost of which will be paid by the profits from the additional cakes.Which of the following ratios will be MOST affected by this decision?

Due to investor disgruntlement,Howard Industries needs to provide a complete review of its financial records in order to confirm that they have been conforming with generally accepted accounting principles.Which of the following processes does Howard Industries need to start?

What distinguishes the two most commonly used categories of owners' equity?