Question 1

If you wanted to evaluate the financial condition of Target Stores, a leading discount chain, you would most likely compare its financial ratios to ____ ratios.

Accepted Answer

A)  Wal-Mart's 
B)  JCPenney's 
C)  General Electric's 
D)  small retailer industry's average 
E)  Target in future years 
A)  Wal-Mart's 
B)  JCPenney's 
C)  General Electric's 
D)  small retailer industry's average 
E)  Target in future years

Question 2

Jessica has worked for one week but her employer only pays its employees every two weeks.The amount of money her company owes her is classified as _____.

Accepted Answer

A)  accounts notable 
B)  accounts receivable 
C)  notes payable 
D)  prepaid wages 
E)  salaries payable 
A)  accounts notable 
B)  accounts receivable 
C)  notes payable 
D)  prepaid wages 
E)  salaries payable

Question 3

Wal-Mart takes its net sales and subtracts the cost of goods sold during the previous period.The result is Wal-Mart's _____.

Accepted Answer

A)  gross sales 
B)  net income 
C)  gross profit 
D)  net margin 
E)  net purchases 
A)  gross sales 
B)  net income 
C)  gross profit 
D)  net margin 
E)  net purchases

Question 4

GAAP is an abbreviation that stands for generally accepted accounting principles.

Accepted Answer

A) True 
 B)False

Question 5

Marilyn provides piano lessons to students in her home four days a week.The money she earns from providing these services would be called ____ on an income statement.

Accepted Answer

A)  expenses 
B)  cash 
C)  revenues 
D)  retained earnings 
E)  equity 
A)  expenses 
B)  cash 
C)  revenues 
D)  retained earnings 
E)  equity

Question 6

The value of a firm's reputation, location, earning capacity, and other intangibles that make the business profitable is called its _____.

Accepted Answer

A)  good character 
B)  franchise 
C)  goodwill 
D)  distinction 
E)  prestige 
A)  good character 
B)  franchise 
C)  goodwill 
D)  distinction 
E)  prestige

Question 7

Heather is a stockholder of Eddie Bauer.From her perspective, the best indicator of Eddie Bauer's success is the _____.

Accepted Answer

A)  return on inventory 
B)  acid-test ratio 
C)  debt-to-equity ratio 
D)  earnings per share 
E)  current ratio 
A)  return on inventory 
B)  acid-test ratio 
C)  debt-to-equity ratio 
D)  earnings per share 
E)  current ratio

Question 8

The certified management accountant exam is designed to develop and measure not only accounting skills but also decision-making and critical-thinking skills.

Accepted Answer

A) True 
 B)False

Question 9

Managers and other groups interested in a business firm's financial records must be able to "trust the numbers." Unfortunately, a large number of accounting scandals have caused people to doubt the numbers.Why do you think corporate executives "cook" their company's books?

Accepted Answer

There are several reasons why corporate

Question 10

The ratio obtained by dividing net income after taxes by net sales is the _____.

Accepted Answer

A)  return on sales ratio 
B)  acid-test ratio 
C)  return on equity ratio 
D)  earnings per share 
E)  working capital 
A)  return on sales ratio 
B)  acid-test ratio 
C)  return on equity ratio 
D)  earnings per share 
E)  working capital

Question 11

When Betty Tran prepared a personal income statement, the remainder or residual value is called _____.

Accepted Answer

A)  net asset total 
B)  total assets 
C)  total revenues 
D)  retained earnings 
E)  cash surplus 
A)  net asset total 
B)  total assets 
C)  total revenues 
D)  retained earnings 
E)  cash surplus

Question 12

Mallard Decoy Manufacturing has total liabilities of $40,000 and total assets of $120,000.The owners' equity for the firm is $100,000.What is the firm's debt-to-owners' equity ratio?

Accepted Answer

A)  83 percent 
B)  40 percent 
C)  33 percent 
D)  3 percent 
E)  1.2 percent 
A)  83 percent 
B)  40 percent 
C)  33 percent 
D)  3 percent 
E)  1.2 percent

Question 13

KYZ Radio pays salaries, rent, insurance, and utilities each month.These are all _____.

Accepted Answer

A)  current assets 
B)  operating expenses 
C)  cost of merchandise sold 
D)  fixed liabilities 
E)  None of the above are correct. 
A)  current assets 
B)  operating expenses 
C)  cost of merchandise sold 
D)  fixed liabilities 
E)  None of the above are correct.

Question 14

The cost of goods sold equals beginning inventory plus net purchases minus ending inventory.

Accepted Answer

A) True 
 B)False

Question 15

Cash, marketable securities, notes receivable, and merchandise inventory are examples of _____.

Accepted Answer

A)  current assets 
B)  expenses 
C)  acid-test assets 
D)  fixed assets 
E)  overhead costs 
A)  current assets 
B)  expenses 
C)  acid-test assets 
D)  fixed assets 
E)  overhead costs

Question 16

____ is the process of recording financial transactions in a general journal.

Accepted Answer

A)  Recording 
B)  Transcribing 
C)  Entering 
D)  Journalizing 
E)  Posting 
A)  Recording 
B)  Transcribing 
C)  Entering 
D)  Journalizing 
E)  Posting

Question 17

Today much of the pressure on corporate executives to "cook" the books is driven by the desire to look good to Wall Street analysts and investors.

Accepted Answer

A) True 
 B)False

Question 18

According to the Occupational Outlook Handbook, job opportunities for accountants, auditors, and managers in the accounting area are expected to experience average growth between now and the year 2016.

Accepted Answer

A) True 
 B)False

Question 19

General Motors decides to close one of its manufacturing plants in the Midwest.GM sells the facility to a new foreign automobile manufacturer.The money GM receives from this sale would belong in the ____ section of the statement of cash flows.

Accepted Answer

A)  operating 
B)  investing 
C)  business 
D)  selling 
E)  financing 
A)  operating 
B)  investing 
C)  business 
D)  selling 
E)  financing

Question 20

Long-term liabilities need not be repaid for at least one year.

Accepted Answer

A) True 
 B)False

If you wanted to evaluate the financial condition of Target Stores, a leading discount chain, you would most likely compare its financial ratios to ____ ratios.

Jessica has worked for one week but her employer only pays its employees every two weeks.The amount of money her company owes her is classified as _____.

Wal-Mart takes its net sales and subtracts the cost of goods sold during the previous period.The result is Wal-Mart's _____.

GAAP is an abbreviation that stands for generally accepted accounting principles.

Marilyn provides piano lessons to students in her home four days a week.The money she earns from providing these services would be called ____ on an income statement.

The value of a firm's reputation, location, earning capacity, and other intangibles that make the business profitable is called its _____.

Heather is a stockholder of Eddie Bauer.From her perspective, the best indicator of Eddie Bauer's success is the _____.

The certified management accountant exam is designed to develop and measure not only accounting skills but also decision-making and critical-thinking skills.

Managers and other groups interested in a business firm's financial records must be able to "trust the numbers." Unfortunately, a large number of accounting scandals have caused people to doubt the numbers.Why do you think corporate executives "cook" their company's books?

The ratio obtained by dividing net income after taxes by net sales is the _____.

When Betty Tran prepared a personal income statement, the remainder or residual value is called _____.

Mallard Decoy Manufacturing has total liabilities of $40,000 and total assets of $120,000.The owners' equity for the firm is $100,000.What is the firm's debt-to-owners' equity ratio?

KYZ Radio pays salaries, rent, insurance, and utilities each month.These are all _____.

The cost of goods sold equals beginning inventory plus net purchases minus ending inventory.

Cash, marketable securities, notes receivable, and merchandise inventory are examples of _____.

____ is the process of recording financial transactions in a general journal.

Today much of the pressure on corporate executives to "cook" the books is driven by the desire to look good to Wall Street analysts and investors.

According to the Occupational Outlook Handbook, job opportunities for accountants, auditors, and managers in the accounting area are expected to experience average growth between now and the year 2016.

General Motors decides to close one of its manufacturing plants in the Midwest.GM sells the facility to a new foreign automobile manufacturer.The money GM receives from this sale would belong in the ____ section of the statement of cash flows.

Long-term liabilities need not be repaid for at least one year.

Exploring the World of Business and Economics

Being Ethical and Socially Responsible

Exploring Global Business

Choosing a Form of Business Ownership

Small Business, Entrepreneurship, and Franchises

Understanding the Management Process

Creating a Flexible Organization

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating and Satisfying Employees and Teams

Building Customer Relationships Through Effective Marketing

Creating and Pricing Products That Satisfy Customers

Distributing and Promoting Products

Understanding Information and E-Business

Mastering Financial Management

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Exam 15: Using Accounting Information

If you wanted to evaluate the financial condition of Target Stores, a leading discount chain, you would most likely compare its financial ratios to ____ ratios.

Jessica has worked for one week but her employer only pays its employees every two weeks.The amount of money her company owes her is classified as _____.

Wal-Mart takes its net sales and subtracts the cost of goods sold during the previous period.The result is Wal-Mart's _____.

GAAP is an abbreviation that stands for generally accepted accounting principles.

Marilyn provides piano lessons to students in her home four days a week.The money she earns from providing these services would be called ____ on an income statement.

The value of a firm's reputation, location, earning capacity, and other intangibles that make the business profitable is called its _____.

Heather is a stockholder of Eddie Bauer.From her perspective, the best indicator of Eddie Bauer's success is the _____.

The certified management accountant exam is designed to develop and measure not only accounting skills but also decision-making and critical-thinking skills.

Managers and other groups interested in a business firm's financial records must be able to "trust the numbers." Unfortunately, a large number of accounting scandals have caused people to doubt the numbers.Why do you think corporate executives "cook" their company's books?

The ratio obtained by dividing net income after taxes by net sales is the _____.

When Betty Tran prepared a personal income statement, the remainder or residual value is called _____.

Mallard Decoy Manufacturing has total liabilities of $40,000 and total assets of $120,000.The owners' equity for the firm is $100,000.What is the firm's debt-to-owners' equity ratio?

KYZ Radio pays salaries, rent, insurance, and utilities each month.These are all _____.

The cost of goods sold equals beginning inventory plus net purchases minus ending inventory.

Cash, marketable securities, notes receivable, and merchandise inventory are examples of _____.

____ is the process of recording financial transactions in a general journal.

Today much of the pressure on corporate executives to "cook" the books is driven by the desire to look good to Wall Street analysts and investors.

According to the Occupational Outlook Handbook, job opportunities for accountants, auditors, and managers in the accounting area are expected to experience average growth between now and the year 2016.

General Motors decides to close one of its manufacturing plants in the Midwest.GM sells the facility to a new foreign automobile manufacturer.The money GM receives from this sale would belong in the ____ section of the statement of cash flows.

Long-term liabilities need not be repaid for at least one year.

Exploring the World of Business and Economics

Being Ethical and Socially Responsible

Exploring Global Business

Choosing a Form of Business Ownership

Small Business, Entrepreneurship, and Franchises

Understanding the Management Process

Creating a Flexible Organization

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating and Satisfying Employees and Teams

Building Customer Relationships Through Effective Marketing

Creating and Pricing Products That Satisfy Customers

Distributing and Promoting Products

Understanding Information and E-Business

Mastering Financial Management

Filters