Question 1

Accounting involves a great deal of precision and some degrees of interpretation; therefore, accounting is ________.

Accepted Answer

A) only an art 
B) neither an art nor a science 
C) only a science 
D) both an art and a science 
A) only an art 
B) neither an art nor a science 
C) only a science 
D) both an art and a science

Question 2

What are three measurements used to analyze an income statement?

Accepted Answer

Measurements that reveal how effectively

Question 3

Your boss asks you to email a spreadsheet that shows how much money came into the company and how much money the company spent last month. When sending the email, you MOST LIKELY will attach the file named ________.

Accepted Answer

A) Operating_Budget 
B) Income_Statement 
C) Balance_Sheet 
D) Statement_of_Cash_Flows 
A) Operating_Budget 
B) Income_Statement 
C) Balance_Sheet 
D) Statement_of_Cash_Flows

Question 4

Numbers used to compare current data to data from previous years, competitors' data, or industry averages is called ________ analysis.

Accepted Answer

A) ratio 
B) current 
C) debt 
D) inventory 
A) ratio 
B) current 
C) debt 
D) inventory

Question 5

A company's budget outlines all of the following EXCEPT ________.

Accepted Answer

A) staffing recommendations 
B) planned cash flows 
C) expected operating expenses 
D) anticipated revenues 
A) staffing recommendations 
B) planned cash flows 
C) expected operating expenses 
D) anticipated revenues

Question 6

Total liabilities at New Fashion Stores, Inc. are $5 million, and total owners' equity is $4 million. The company's debt to equity ratio is ________.

Accepted Answer

A) 4)00 
B) 5)00 
C) 1)25 
D) 0)80 
A) 4)00 
B) 5)00 
C) 1)25 
D) 0)80

Question 7

The Sarbanes-Oxley Act established the Public Company Accounting Oversight Board, which is responsible for overseeing financial audits of public companies.

Accepted Answer

A) True 
 B)False

Question 8

In her work as an accountant, Sandra Garcia recognizes that for every transaction that affects an asset, an equal transaction must also affect either a liability or owners' equity. Sandra is using ________ bookkeeping.

Accepted Answer

A) double profit 
B) double entry 
C) bottom line 
D) triple entry 
A) double profit 
B) double entry 
C) bottom line 
D) triple entry

Question 9

Current Assets - Current Liabilities = ________ Capital.

Accepted Answer

A) Working 
B) Current 
C) Equity 
D) Ratio 
A) Working 
B) Current 
C) Equity 
D) Ratio

Question 10

You work at a fast food restaurant. Your wages are an example of operating expenses.

Accepted Answer

A) True 
 B)False

Question 11

Depreciation helps keep the accounting equation in balance by matching the expense of a liability with the revenue that liability is expected to generate.

Accepted Answer

A) True 
 B)False

Question 12

Your boss asks you to email a spreadsheet that shows the exchange of money between the company and everyone else it deals with over a period of time. When sending the email, you MOST LIKELY will attach the file named ________.

Accepted Answer

A) Statement_of_Asset_Flows 
B) Statement_of_Liability_Flows 
C) Statement_of_Cash_Flows 
D) Statement_of_Equity_Flows 
A) Statement_of_Asset_Flows 
B) Statement_of_Liability_Flows 
C) Statement_of_Cash_Flows 
D) Statement_of_Equity_Flows

Question 13

Factoring is the process of selling accounts ________ for cash.

Accepted Answer

A) general 
B) loanable 
C) payable 
D) receivable 
A) general 
B) loanable 
C) payable 
D) receivable

Question 14

If a company has negative working capital, its current assets ________ its current liabilities.

Accepted Answer

A) equal 
B) are divided by 
C) are less than 
D) are greater than 
A) equal 
B) are divided by 
C) are less than 
D) are greater than

Question 15

Financial statements represent what has happened in the past.

Accepted Answer

A) True 
 B)False

Question 16

Housing Repair Co. has total revenue of $100,000. COGS is $40,000. The company's gross profit margin is ________.

Accepted Answer

A) 0)40 
B) 1)40 
C) 0)67 
D) 0)60 
A) 0)40 
B) 1)40 
C) 0)67 
D) 0)60

Question 17

What would be a project to be worked on in a managerial accounting department?

Accepted Answer

Student answers will vary. Managerial ac

Question 18

________ is often called the language of business.

Accepted Answer

A) English 
B) Accounting 
C) Marketing 
D) Spanish 
A) English 
B) Accounting 
C) Marketing 
D) Spanish

Question 19

Long-term financing generated by the owners of a company is called ________ financing.

Accepted Answer

A) secured 
B) debenture 
C) equity 
D) debt 
A) secured 
B) debenture 
C) equity 
D) debt

Question 20

Mark Lewis manages a corporate department that reviews and evaluates the accuracy of financial reports. Mark works in ________.

Accepted Answer

A) auditing 
B) tax accounting 
C) not-for-profit accounting 
D) government accounting 
A) auditing 
B) tax accounting 
C) not-for-profit accounting 
D) government accounting

Exam 15: Financing and Tracking Business Operations

Accounting involves a great deal of precision and some degrees of interpretation; therefore, accounting is ________.

What are three measurements used to analyze an income statement?

Your boss asks you to email a spreadsheet that shows how much money came into the company and how much money the company spent last month. When sending the email, you MOST LIKELY will attach the file named ________.

Numbers used to compare current data to data from previous years, competitors' data, or industry averages is called ________ analysis.

A company's budget outlines all of the following EXCEPT ________.

Total liabilities at New Fashion Stores, Inc. are $5 million, and total owners' equity is $4 million. The company's debt to equity ratio is ________.

The Sarbanes-Oxley Act established the Public Company Accounting Oversight Board, which is responsible for overseeing financial audits of public companies.

In her work as an accountant, Sandra Garcia recognizes that for every transaction that affects an asset, an equal transaction must also affect either a liability or owners' equity. Sandra is using ________ bookkeeping.

Current Assets - Current Liabilities = ________ Capital.

You work at a fast food restaurant. Your wages are an example of operating expenses.

Depreciation helps keep the accounting equation in balance by matching the expense of a liability with the revenue that liability is expected to generate.

Your boss asks you to email a spreadsheet that shows the exchange of money between the company and everyone else it deals with over a period of time. When sending the email, you MOST LIKELY will attach the file named ________.

Factoring is the process of selling accounts ________ for cash.

If a company has negative working capital, its current assets ________ its current liabilities.

Financial statements represent what has happened in the past.

Housing Repair Co. has total revenue of $100,000. COGS is $40,000. The company's gross profit margin is ________.

What would be a project to be worked on in a managerial accounting department?

________ is often called the language of business.

Long-term financing generated by the owners of a company is called ________ financing.

Mark Lewis manages a corporate department that reviews and evaluates the accuracy of financial reports. Mark works in ________.

Business in the United States

Economics and Banking

Ethics and Social Responsibility

Business in a Global Economy

Entrepreneurs and Small Businesses

Forms of Business Ownership

Functions and Skills of Management

Motivation, Leadership, and Teamwork

Human Resources and Labor Relations

Business Technology: Management Information Systems

Production and Operations Management

Marketing and Consumer Behavior

Product Development and Pricing Strategies

Promotion and Distribution

Securities and Investments

Mini E-Commerce

Mini Constructing a Successful Business Plan

Mini Business Communications

Mini Finding Employment

Mini Personal Finance

Filters