Question 1

Owners' equity refers to the total assets of a company.

Accepted Answer

A) True 
 B)False

Question 2

Explain the significance of the income statement of a business.

Accepted Answer

The income statement,or profit-and-loss

Question 3

Fiscal year is a 12-month accounting period that begins on January 1 and ends on December 31.

Accepted Answer

A) True 
 B)False

Question 4

AccBiz is a tool used commonly by small businesses.It is a simple application that records financial transactions.It records such transactions as sales,purchases,income,receipts,and payments.However,the software cannot be used for financial analyses or higher-level applications.The functions that AccBiz performs can be referred to as ________.

Accepted Answer

A)  forensic accounting 
B)  bookkeeping 
C)  auditing 
D)  cost analysis 
E)  cost accounting 
A)  forensic accounting 
B)  bookkeeping 
C)  auditing 
D)  cost analysis 
E)  cost accounting

Question 5

________ is a financial record of a company's revenues,expenses,and profits over a given period of time.

Accepted Answer

A)  Statement of current assets 
B)  Income statement 
C)  Balance sheet 
D)  Cash flow statement 
E)  Statement of financial position 
A)  Statement of current assets 
B)  Income statement 
C)  Balance sheet 
D)  Cash flow statement 
E)  Statement of financial position

Question 6

Which of the following is classified as a general expense?

Accepted Answer

A)  promotional expenses 
B)  wages of salespeople 
C)  legal fees paid 
D)  advertising costs 
E)  depreciation costs of showroom 
A)  promotional expenses 
B)  wages of salespeople 
C)  legal fees paid 
D)  advertising costs 
E)  depreciation costs of showroom

Question 7

________ is a statement of a firm's financial position on a particular date and is known as a statement of financial position.

Accepted Answer

A)  Cash flow statement 
B)  Balance sheet 
C)  Income statement 
D)  Expense report 
E)  Profit and loss statement 
A)  Cash flow statement 
B)  Balance sheet 
C)  Income statement 
D)  Expense report 
E)  Profit and loss statement

Question 8

Which of the following ratios is used to measure a firm's short-term liquidity?

Accepted Answer

A)  accounts receivable turnover ratio 
B)  inventory turnover ratio 
C)  quick ratio 
D)  debt-to-equity ratio 
E)  equity-to-debt ratio 
A)  accounts receivable turnover ratio 
B)  inventory turnover ratio 
C)  quick ratio 
D)  debt-to-equity ratio 
E)  equity-to-debt ratio

Question 9

Financial analysis refers to combining accounting and investigating skills to assist in legal and criminal matters.

Accepted Answer

A) True 
 B)False

Question 10

Samuel works as a finance executive in a U.S.-based firm.His major task is calculating and analyzing the production and operating expenditures of the organization.The tasks that Samuel performs refer to ________.

Accepted Answer

A)  tax accounting 
B)  bookkeeping 
C)  cost accounting 
D)  auditing 
E)  forensic accounting 
A)  tax accounting 
B)  bookkeeping 
C)  cost accounting 
D)  auditing 
E)  forensic accounting

Question 11

Double-entry bookkeeping is a method that requires to keep the accounting equation in balance.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following terms refers to a formal evaluation of the fairness and reliability of a client's financial statements?

Accepted Answer

A)  cost accounting 
B)  audit 
C)  control 
D)  bookkeeping 
E)  management accounting 
A)  cost accounting 
B)  audit 
C)  control 
D)  bookkeeping 
E)  management accounting

Question 13

What is GAAP?

Accepted Answer

GAAP refers to generally accepted accoun

Question 14

Compare and contrast accrual basis accounting and cash basis accounting.

Accepted Answer

Accountants match revenue to expenses by

Question 15

Charles Associates is an accounting firm that provides accounting services to many companies across the United States.The company follows an accounting system where it records revenue only when the money is actually received.Identify the accounting system that this company is using.

Accepted Answer

A)  depreciation 
B)  deferral basis 
C)  accrual basis 
D)  profit basis 
E)  cash basis 
A)  depreciation 
B)  deferral basis 
C)  accrual basis 
D)  profit basis 
E)  cash basis

Question 16

Bookkeeping refers to ________.

Accepted Answer

A)  the cost accounting component of accounting 
B)  analyzing financial information 
C)  preparing financial forecasts 
D)  the clerical aspect of accounting 
E)  performing profitability analysis for a company 
A)  the cost accounting component of accounting 
B)  analyzing financial information 
C)  preparing financial forecasts 
D)  the clerical aspect of accounting 
E)  performing profitability analysis for a company

Question 17

________ ratio is calculated by dividing current assets by current liabilities.

Accepted Answer

A)  Debt-to-equity 
B)  Current 
C)  Quick 
D)  Acid-test 
E)  Inventory turnover 
A)  Debt-to-equity 
B)  Current 
C)  Quick 
D)  Acid-test 
E)  Inventory turnover

Question 18

A(n)________ is the highest-ranking accountant in a company,responsible for overseeing all accounting functions.

Accepted Answer

A)  inventory manager 
B)  controller 
C)  treasurer 
D)  credit manager 
E)  cost accountant 
A)  inventory manager 
B)  controller 
C)  treasurer 
D)  credit manager 
E)  cost accountant

Question 19

A U.S.company issues bonds to generate money for expanding its business to China.The company generates a sum of $50,000 in this fashion.This money is an example of a(n)________.

Accepted Answer

A)  short-term finance 
B)  long-term liability 
C)  owners' equity 
D)  accrued expense 
E)  payable account 
A)  short-term finance 
B)  long-term liability 
C)  owners' equity 
D)  accrued expense 
E)  payable account

Question 20

________ is an accounting procedure for systematically spreading the cost of a tangible asset over its estimated useful life.

Accepted Answer

A)  Profit basis 
B)  Accrual basis 
C)  Cash basis 
D)  Depreciation 
E)  Deferral basis 
A)  Profit basis 
B)  Accrual basis 
C)  Cash basis 
D)  Depreciation 
E)  Deferral basis

Owners' equity refers to the total assets of a company.

Explain the significance of the income statement of a business.

Fiscal year is a 12-month accounting period that begins on January 1 and ends on December 31.

________ is a financial record of a company's revenues,expenses,and profits over a given period of time.

Which of the following is classified as a general expense?

________ is a statement of a firm's financial position on a particular date and is known as a statement of financial position.

Which of the following ratios is used to measure a firm's short-term liquidity?

Financial analysis refers to combining accounting and investigating skills to assist in legal and criminal matters.

Samuel works as a finance executive in a U.S.-based firm.His major task is calculating and analyzing the production and operating expenditures of the organization.The tasks that Samuel performs refer to ________.

Double-entry bookkeeping is a method that requires to keep the accounting equation in balance.

Which of the following terms refers to a formal evaluation of the fairness and reliability of a client's financial statements?

What is GAAP?

Compare and contrast accrual basis accounting and cash basis accounting.

Charles Associates is an accounting firm that provides accounting services to many companies across the United States.The company follows an accounting system where it records revenue only when the money is actually received.Identify the accounting system that this company is using.

Bookkeeping refers to ________.

________ ratio is calculated by dividing current assets by current liabilities.

A(n)________ is the highest-ranking accountant in a company,responsible for overseeing all accounting functions.

A U.S.company issues bonds to generate money for expanding its business to China.The company generates a sum of $50,000 in this fashion.This money is an example of a(n)________.

________ is an accounting procedure for systematically spreading the cost of a tangible asset over its estimated useful life.

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

Owners' equity refers to the total assets of a company.

Explain the significance of the income statement of a business.

Fiscal year is a 12-month accounting period that begins on January 1 and ends on December 31.

________ is a financial record of a company's revenues,expenses,and profits over a given period of time.

Which of the following is classified as a general expense?

________ is a statement of a firm's financial position on a particular date and is known as a statement of financial position.

Which of the following ratios is used to measure a firm's short-term liquidity?

Financial analysis refers to combining accounting and investigating skills to assist in legal and criminal matters.

Samuel works as a finance executive in a U.S.-based firm.His major task is calculating and analyzing the production and operating expenditures of the organization.The tasks that Samuel performs refer to ________.

Double-entry bookkeeping is a method that requires to keep the accounting equation in balance.

Which of the following terms refers to a formal evaluation of the fairness and reliability of a client's financial statements?

What is GAAP?

Compare and contrast accrual basis accounting and cash basis accounting.

Charles Associates is an accounting firm that provides accounting services to many companies across the United States.The company follows an accounting system where it records revenue only when the money is actually received.Identify the accounting system that this company is using.

Bookkeeping refers to ________.

________ ratio is calculated by dividing current assets by current liabilities.

A(n)________ is the highest-ranking accountant in a company,responsible for overseeing all accounting functions.

A U.S.company issues bonds to generate money for expanding its business to China.The company generates a sum of $50,000 in this fashion.This money is an example of a(n)________.

________ is an accounting procedure for systematically spreading the cost of a tangible asset over its estimated useful life.

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