Question 1

Horizontal analysis is the comparison of:

Accepted Answer

A) stakeholders' equity values for each owner in the same financial year. 
B) sales figures of different divisions of a firm over one financial quarter. 
C) reported account values of two different firms in the same financial year. 
D) account values reported on financial statements over two or more years. 
A) stakeholders' equity values for each owner in the same financial year. 
B) sales figures of different divisions of a firm over one financial quarter. 
C) reported account values of two different firms in the same financial year. 
D) account values reported on financial statements over two or more years. D

Question 2

Congress passed the _________ of 2002 to combat widespread accounting malpractice.

Accepted Answer

A) Sarbanes-Oxley Act 
B) Securities Exchange Act 
C) Glass-Steagall Act 
D) McCain-Feingold Act 
A) Sarbanes-Oxley Act 
B) Securities Exchange Act 
C) Glass-Steagall Act 
D) McCain-Feingold Act A

Question 3

Alexis decides to check with his accountant how much money his company owes to the raw materials supplier. To determine that, Alexis needs to ask his accountant to provide him with the company's balance sheet.

Accepted Answer

A) True 
 B)False  True

Question 4

Kyra Inc.has applied for a business loan in the United Bank. In order to best assess the loan case, the loan officer at the bank, Sirigu, decides to look at the company's net income figure. Sirigu will find this information in Kyra's _____.

Accepted Answer

A) profit and loss statement 
B) budgeted income statement 
C) stockholders' equity statement 
D) statement of retained earnings 
A) profit and loss statement 
B) budgeted income statement 
C) stockholders' equity statement 
D) statement of retained earnings

Question 5

Managerial accounting:

Accepted Answer

A) provides reports and analysis to external stakeholders to show them the current business state. 
B) is the branch of accounting that adheres most strictly to the generally accepted accounting principles. 
C) provides managers information about a firm's financial situation on a predetermined schedule. 
D) provides reports and analysis to managers to help them make informed business decisions. 
A) provides reports and analysis to external stakeholders to show them the current business state. 
B) is the branch of accounting that adheres most strictly to the generally accepted accounting principles. 
C) provides managers information about a firm's financial situation on a predetermined schedule. 
D) provides reports and analysis to managers to help them make informed business decisions.

Question 6

_________ would be listed in the owners' equity section of a balance sheet.

Accepted Answer

A) Revenue 
B) Expenses 
C) Net income 
D) Retained earnings 
A) Revenue 
B) Expenses 
C) Net income 
D) Retained earnings

Question 7

The members of the Financial Accounting Standards Board (FASB)are appointed by the Securities and Exchange Commission.

Accepted Answer

A) True 
 B)False

Question 8

John and Elizabeth are evaluating three telecommunication companies to determine the best company to invest in. Horizontal analysis will enable them to make comparisons of financial statements of the three companies over the past several years and help determine the increase in their profits.

Accepted Answer

A) True 
 B)False

Question 9

The capital expenditure budget:

Accepted Answer

A) provides quarterly estimates of the number of units of each product a firm expects to sell. 
B) identifies a firm's planned investments in major fixed assets and long-term projects. 
C) identifies short-term fluctuations in cash flows that display cash deficits and surpluses. 
D) contains the budgets for direct labor, direct materials, and overhead costs. 
A) provides quarterly estimates of the number of units of each product a firm expects to sell. 
B) identifies a firm's planned investments in major fixed assets and long-term projects. 
C) identifies short-term fluctuations in cash flows that display cash deficits and surpluses. 
D) contains the budgets for direct labor, direct materials, and overhead costs.

Question 10

Matt is asked by Clint Publishers to carry out an external audit of its books. He is also asked to prepare the tax returns for another client, Mrs. Zhirkov. Matt is a _____.

Accepted Answer

A) public accountant 
B) management accountant 
C) government accountant 
D) cost accountant 
A) public accountant 
B) management accountant 
C) government accountant 
D) cost accountant

Question 11

Which of the following statements is true of activity-based costing?

Accepted Answer

A) It determines the direct cost per unit of production. 
B) It is more complex than the direct labor method. 
C) It involves a three-stage process. 
D) It assigns costs based on the "one size fits all" rule. 
A) It determines the direct cost per unit of production. 
B) It is more complex than the direct labor method. 
C) It involves a three-stage process. 
D) It assigns costs based on the "one size fits all" rule.

Question 12

A firm's operating budget represents a firm's overall plan of action for a specified time period.

Accepted Answer

A) True 
 B)False

Question 13

The balance sheet of Ranger Inc.shows its liabilities and owners' equity as $150,000 and $75,000, respectively. In this case, Ranger's _____.

Accepted Answer

A) total assets are $225,000 
B) total income is $75,000 
C) net income for the current year is $225,000 
D) net cash flow for the current year is $75,000 
A) total assets are $225,000 
B) total income is $75,000 
C) net income for the current year is $225,000 
D) net cash flow for the current year is $75,000

Question 14

_____ is a branch of accounting that addresses the needs of external stakeholders, including stockholders, creditors, and government regulators.

Accepted Answer

A) Forensic accounting 
B) Investigative accounting 
C) Managerial accounting 
D) Financial accounting 
A) Forensic accounting 
B) Investigative accounting 
C) Managerial accounting 
D) Financial accounting

Question 15

What does the adverse opinion of an auditor mean in terms of a firm's financial statement?

Accepted Answer

​When auditors discover serious and wide

Question 16

Which of the following refers to the claims that stockholders have against their firm's assets?

Accepted Answer

A) Loans payable 
B) Owners' equity 
C) Liabilities 
D) Explicit costs 
A) Loans payable 
B) Owners' equity 
C) Liabilities 
D) Explicit costs

Question 17

Betty's job entails detecting problems such as embezzlement, waste, mismanagement, and employee theft at her organization. In this case, Betty is a(n)_____.

Accepted Answer

A) management consultant 
B) government accountant 
C) internal auditor 
D) certified public accountant 
A) management consultant 
B) government accountant 
C) internal auditor 
D) certified public accountant

Question 18

Which of the following is a disadvantage of participatory budgeting?

Accepted Answer

A) It can lead to budgetary slack. 
B) It fails to motivate middle and first-line managers. 
C) It results in inadequate representation of the issues facing individual departments. 
D) It fails to identify the resources needed to achieve goals. 
A) It can lead to budgetary slack. 
B) It fails to motivate middle and first-line managers. 
C) It results in inadequate representation of the issues facing individual departments. 
D) It fails to identify the resources needed to achieve goals.

Question 19

Accounts receivable is categorized as a(n)_________.

Accepted Answer

A) current liability 
B) immovable asset 
C) current asset 
D) depreciated liability 
A) current liability 
B) immovable asset 
C) current asset 
D) depreciated liability

Question 20

Which of the following is a key external user of a company's accounting information?

Accepted Answer

A) Competitors 
B) Managers 
C) Employees 
D) Departmental managers 
A) Competitors 
B) Managers 
C) Employees 
D) Departmental managers

Horizontal analysis is the comparison of:

Congress passed the _________ of 2002 to combat widespread accounting malpractice.

Alexis decides to check with his accountant how much money his company owes to the raw materials supplier. To determine that, Alexis needs to ask his accountant to provide him with the company's balance sheet.

Kyra Inc.has applied for a business loan in the United Bank. In order to best assess the loan case, the loan officer at the bank, Sirigu, decides to look at the company's net income figure. Sirigu will find this information in Kyra's _____.

Managerial accounting:

_________ would be listed in the owners' equity section of a balance sheet.

The members of the Financial Accounting Standards Board (FASB)are appointed by the Securities and Exchange Commission.

John and Elizabeth are evaluating three telecommunication companies to determine the best company to invest in. Horizontal analysis will enable them to make comparisons of financial statements of the three companies over the past several years and help determine the increase in their profits.

The capital expenditure budget:

Matt is asked by Clint Publishers to carry out an external audit of its books. He is also asked to prepare the tax returns for another client, Mrs. Zhirkov. Matt is a _____.

Which of the following statements is true of activity-based costing?

A firm's operating budget represents a firm's overall plan of action for a specified time period.

The balance sheet of Ranger Inc.shows its liabilities and owners' equity as $150,000 and $75,000, respectively. In this case, Ranger's _____.

_____ is a branch of accounting that addresses the needs of external stakeholders, including stockholders, creditors, and government regulators.

What does the adverse opinion of an auditor mean in terms of a firm's financial statement?

Which of the following refers to the claims that stockholders have against their firm's assets?

Betty's job entails detecting problems such as embezzlement, waste, mismanagement, and employee theft at her organization. In this case, Betty is a(n)_____.

Which of the following is a disadvantage of participatory budgeting?

Accounts receivable is categorized as a(n)_________.

Which of the following is a key external user of a company's accounting information?

Business Now: Change Is the Only Constant

Economics: The Framework for Business

The World Marketplace: Business Without Borders

Business Ethics and Social Responsibility: Doing Well by Doing Good

Business Communication: Creating and Delivering Messages that Matter

Business Formation: Choosing the Form that Fits

Small Business and Entrepreneurship: Economic Rocket Fuel

Finance: Acquiring and Using Funds to Maximize Value

Financial Markets: Allocating Financial Resources

Marketing: Building Profitable Customer Connections

Product and Promotion: Creating and Communicating Value

Distribution and Pricing: Right Product, Right Person, Right Place, Right Price

Management, Motivation and Leadership: Bringing Business to Life

Human Resources Management: Building a Top Quality Workforce

Managing Information and Technology: Finding New Ways to Learn and Link

Operations Management: Putting It All Together

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Exam 8: Accounting: Decision Making by the Numbers

Horizontal analysis is the comparison of:

Congress passed the _________ of 2002 to combat widespread accounting malpractice.

Alexis decides to check with his accountant how much money his company owes to the raw materials supplier. To determine that, Alexis needs to ask his accountant to provide him with the company's balance sheet.

Kyra Inc.has applied for a business loan in the United Bank. In order to best assess the loan case, the loan officer at the bank, Sirigu, decides to look at the company's net income figure. Sirigu will find this information in Kyra's _____.

Managerial accounting:

_________ would be listed in the owners' equity section of a balance sheet.

The members of the Financial Accounting Standards Board (FASB)are appointed by the Securities and Exchange Commission.

John and Elizabeth are evaluating three telecommunication companies to determine the best company to invest in. Horizontal analysis will enable them to make comparisons of financial statements of the three companies over the past several years and help determine the increase in their profits.

The capital expenditure budget:

Matt is asked by Clint Publishers to carry out an external audit of its books. He is also asked to prepare the tax returns for another client, Mrs. Zhirkov. Matt is a _____.

Which of the following statements is true of activity-based costing?

A firm's operating budget represents a firm's overall plan of action for a specified time period.

The balance sheet of Ranger Inc.shows its liabilities and owners' equity as $150,000 and $75,000, respectively. In this case, Ranger's _____.

_____ is a branch of accounting that addresses the needs of external stakeholders, including stockholders, creditors, and government regulators.

What does the adverse opinion of an auditor mean in terms of a firm's financial statement?

Which of the following refers to the claims that stockholders have against their firm's assets?

Betty's job entails detecting problems such as embezzlement, waste, mismanagement, and employee theft at her organization. In this case, Betty is a(n)_____.

Which of the following is a disadvantage of participatory budgeting?

Accounts receivable is categorized as a(n)_________.

Which of the following is a key external user of a company's accounting information?

Business Now: Change Is the Only Constant

Economics: The Framework for Business

The World Marketplace: Business Without Borders

Business Ethics and Social Responsibility: Doing Well by Doing Good

Business Communication: Creating and Delivering Messages that Matter

Business Formation: Choosing the Form that Fits

Small Business and Entrepreneurship: Economic Rocket Fuel

Finance: Acquiring and Using Funds to Maximize Value

Financial Markets: Allocating Financial Resources

Marketing: Building Profitable Customer Connections

Product and Promotion: Creating and Communicating Value

Distribution and Pricing: Right Product, Right Person, Right Place, Right Price

Management, Motivation and Leadership: Bringing Business to Life

Human Resources Management: Building a Top Quality Workforce

Managing Information and Technology: Finding New Ways to Learn and Link

Operations Management: Putting It All Together

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