Question 1

The GAAP is overseen in the United States by the ________.

Accepted Answer

A)  Consumer Financial Protection Agency 
B)  Financial Management Service 
C)  Office of Financial Stability 
D)  Financial Accounting Standards Board 
E)  Office of Terrorism and Financial Intelligence 
A)  Consumer Financial Protection Agency 
B)  Financial Management Service 
C)  Office of Financial Stability 
D)  Financial Accounting Standards Board 
E)  Office of Terrorism and Financial Intelligence

Question 2

The Public Company Accounting Reform and Investor Protection Act is informally known as the ________ Act.

Accepted Answer

A)  Sarbanes-Oxley 
B)  Mann 
C)  Cable 
D)  Basel 
E)  Glass-Steagall 
A)  Sarbanes-Oxley 
B)  Mann 
C)  Cable 
D)  Basel 
E)  Glass-Steagall

Question 3

Depreciation is an accounting procedure used for intangible assets.

Accepted Answer

A) True 
 B)False

Question 4

Accrued expenses are expenses that ________.

Accepted Answer

A)  are likely to be incurred at a future time in a different financial year 
B)  have been incurred but for which bills have not yet been received 
C)  are long-term liabilities that have been incurred in a financial year 
D)  have been incurred and for which the bills have been received 
E)  are likely to be incurred at a future time in the same financial year 
A)  are likely to be incurred at a future time in a different financial year 
B)  have been incurred but for which bills have not yet been received 
C)  are long-term liabilities that have been incurred in a financial year 
D)  have been incurred and for which the bills have been received 
E)  are likely to be incurred at a future time in the same financial year

Question 5

A company has $20,000 cash and $100,000 worth of land.Other assets of the company amount to $300,000.The firm has an outstanding loan of $200,000 and other liabilities adding up to $25,000.What is the owner's equity of the company?

Accepted Answer

A)  $395,000 
B)  $95,000 
C)  $195,000 
D)  $175,000 
E)  $220,000 
A)  $395,000 
B)  $95,000 
C)  $195,000 
D)  $175,000 
E)  $220,000

Question 6

Which of the following is a leverage ratio?

Accepted Answer

A)  inventory turnover ratio 
B)  debt-to-equity ratio 
C)  current ratio 
D)  acid-test ratio 
E)  accounts receivable turnover ratio 
A)  inventory turnover ratio 
B)  debt-to-equity ratio 
C)  current ratio 
D)  acid-test ratio 
E)  accounts receivable turnover ratio

Question 7

Statement of cash flows is a statement of a firm's cash receipts and cash payments.

Accepted Answer

A) True 
 B)False

Question 8

Analyze the major postulates of the international financial reporting standards and conduct a class discussion on its relevance.

Accepted Answer

Students should form groups and prepare

Question 9

What is a balance sheet? Why is it called a balance sheet?

Accepted Answer

Balance sheet is a statement of a firm's

Question 10

Financial accounting is concerned with preparing cost analyses,profitability reports,budgets,and other information for insiders such as management and other company decision makers.

Accepted Answer

A) True 
 B)False

Question 11

Transferring net revenue and expense account balances to retained earnings for the period is referred to as closing the books.

Accepted Answer

A) True 
 B)False

Question 12

Obtain the financial statements of a public company of your choice.Conduct a ratio analysis to determine the leverage ratios of the company.Comment on the company's growth potential and risk based on your analysis.

Accepted Answer

A company's ability to pay its long-term

Question 13

Which of the following is an example of company's asset?

Accepted Answer

A)  inventory in the warehouse 
B)  mortgage loans 
C)  bonds issued by the company 
D)  short-term loans 
E)  debt security raised by the company 
A)  inventory in the warehouse 
B)  mortgage loans 
C)  bonds issued by the company 
D)  short-term loans 
E)  debt security raised by the company

Question 14

Which of the following refers to evaluating a company's performance and the economic implications of strategic decisions such as product pricing,employee benefits,and business acquisitions?

Accepted Answer

A)  financial analysis 
B)  tax accounting 
C)  bookkeeping 
D)  cost accounting 
E)  forensic accounting 
A)  financial analysis 
B)  tax accounting 
C)  bookkeeping 
D)  cost accounting 
E)  forensic accounting

Question 15

Net sales - cost of goods sold = ________.

Accepted Answer

A)  working capital 
B)  current asset 
C)  gross profit 
D)  net profit 
E)  current liability 
A)  working capital 
B)  current asset 
C)  gross profit 
D)  net profit 
E)  current liability

Question 16

Explain how private accountants function.

Accepted Answer

Private accountants work for corporation

Question 17

A reduction in a manufacturer's inventory turnover ratio is likely to indicate that the ________.

Accepted Answer

A)  market growth has been very high 
B)  sales are slowing down 
C)  forecasting has been accurate 
D)  company is in a strong financial position 
E)  company has long-term debt obligations 
A)  market growth has been very high 
B)  sales are slowing down 
C)  forecasting has been accurate 
D)  company is in a strong financial position 
E)  company has long-term debt obligations

Question 18

Controller is the highest-ranking accountant in a company.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following expenses is classified as accounts payable?

Accepted Answer

A)  electricity charges 
B)  sales commissions 
C)  employee salaries 
D)  interest on bonds 
E)  loans from banks 
A)  electricity charges 
B)  sales commissions 
C)  employee salaries 
D)  interest on bonds 
E)  loans from banks

Question 20

Which of the following statements is true of the order in which assets are listed in the balance sheet?

Accepted Answer

A)  Assets such as property and plant are mentioned first in a balance sheet. 
B)  Fixed assets are listed before current assets in a balance sheet. 
C)  Current assets are not generally mentioned in a balance sheet. 
D)  Assets are listed in descending order by liquidity in the balance sheet. 
E)  Current and fixed assets are listed in no particular order in a balance sheet. 
A)  Assets such as property and plant are mentioned first in a balance sheet. 
B)  Fixed assets are listed before current assets in a balance sheet. 
C)  Current assets are not generally mentioned in a balance sheet. 
D)  Assets are listed in descending order by liquidity in the balance sheet. 
E)  Current and fixed assets are listed in no particular order in a balance sheet.

The GAAP is overseen in the United States by the ________.

The Public Company Accounting Reform and Investor Protection Act is informally known as the ________ Act.

Depreciation is an accounting procedure used for intangible assets.

Accrued expenses are expenses that ________.

A company has $20,000 cash and $100,000 worth of land.Other assets of the company amount to $300,000.The firm has an outstanding loan of $200,000 and other liabilities adding up to $25,000.What is the owner's equity of the company?

Which of the following is a leverage ratio?

Statement of cash flows is a statement of a firm's cash receipts and cash payments.

Analyze the major postulates of the international financial reporting standards and conduct a class discussion on its relevance.

What is a balance sheet? Why is it called a balance sheet?

Financial accounting is concerned with preparing cost analyses,profitability reports,budgets,and other information for insiders such as management and other company decision makers.

Transferring net revenue and expense account balances to retained earnings for the period is referred to as closing the books.

Obtain the financial statements of a public company of your choice.Conduct a ratio analysis to determine the leverage ratios of the company.Comment on the company's growth potential and risk based on your analysis.

Which of the following is an example of company's asset?

Which of the following refers to evaluating a company's performance and the economic implications of strategic decisions such as product pricing,employee benefits,and business acquisitions?

Net sales - cost of goods sold = ________.

Explain how private accountants function.

A reduction in a manufacturer's inventory turnover ratio is likely to indicate that the ________.

Controller is the highest-ranking accountant in a company.

Which of the following expenses is classified as accounts payable?

Which of the following statements is true of the order in which assets are listed in the balance sheet?

Developing a Business Mindset

Understanding Basic Economics

The Global Marketplace

Business Ethics and Corporate Social Responsibility

Forms of Ownership

Entrepreneurship and Small Business Ownership

Management Roles, Functions, and Skills

Organization and Teamwork

Production Systems

Employee Motivation

Human Resources Management

Labor Relations

The Art and Science of Marketing

Product and Pricing Strategies

Distribution and Marketing Logistics

Customer Communication

Financial Management

Financial Markets and Investment Strategies

The Money Supply and Banking Systems

Filters

Exam 17: Financial Information and Accounting Concepts

The GAAP is overseen in the United States by the ________.

The Public Company Accounting Reform and Investor Protection Act is informally known as the ________ Act.

Depreciation is an accounting procedure used for intangible assets.

Accrued expenses are expenses that ________.

A company has $20,000 cash and $100,000 worth of land.Other assets of the company amount to $300,000.The firm has an outstanding loan of $200,000 and other liabilities adding up to $25,000.What is the owner's equity of the company?

Which of the following is a leverage ratio?

Statement of cash flows is a statement of a firm's cash receipts and cash payments.

Analyze the major postulates of the international financial reporting standards and conduct a class discussion on its relevance.

What is a balance sheet? Why is it called a balance sheet?

Financial accounting is concerned with preparing cost analyses,profitability reports,budgets,and other information for insiders such as management and other company decision makers.

Transferring net revenue and expense account balances to retained earnings for the period is referred to as closing the books.

Obtain the financial statements of a public company of your choice.Conduct a ratio analysis to determine the leverage ratios of the company.Comment on the company's growth potential and risk based on your analysis.

Which of the following is an example of company's asset?

Which of the following refers to evaluating a company's performance and the economic implications of strategic decisions such as product pricing,employee benefits,and business acquisitions?

Net sales - cost of goods sold = ________.

Explain how private accountants function.

A reduction in a manufacturer's inventory turnover ratio is likely to indicate that the ________.

Controller is the highest-ranking accountant in a company.

Which of the following expenses is classified as accounts payable?

Which of the following statements is true of the order in which assets are listed in the balance sheet?

Developing a Business Mindset

Understanding Basic Economics

The Global Marketplace

Business Ethics and Corporate Social Responsibility

Forms of Ownership

Entrepreneurship and Small Business Ownership

Management Roles, Functions, and Skills

Organization and Teamwork

Production Systems

Employee Motivation

Human Resources Management

Labor Relations

The Art and Science of Marketing

Product and Pricing Strategies

Distribution and Marketing Logistics

Customer Communication

Financial Management

Financial Markets and Investment Strategies

The Money Supply and Banking Systems

Filters