Question 1

What are operating budgets, financial budgets, and master budget?

Accepted Answer

​Operating budgets are budgets that iden

Question 2

_____ is a management tool that explicitly shows how a firm will acquire and use the resources needed to achieve its goals over a specific time period.

Accepted Answer

A) Investing 
B) Trading 
C) Budgeting 
D) Auditing 
A) Investing 
B) Trading 
C) Budgeting 
D) Auditing

Question 3

Sebastian is an employee of Power Trans Inc.His duties include preparing reports and analyzing company accounting data.He also appraises financial performances, verifies the accuracy and validity of the company's internal records and accounting procedures. Sebastian's role is that of a _____.

Accepted Answer

A) forensic accountant 
B) government auditor 
C) certified fraud examiner 
D) management accountant 
A) forensic accountant 
B) government auditor 
C) certified fraud examiner 
D) management accountant

Question 4

The _____ reports the financial position of a firm by identifying and reporting the value of the firm's assets, liabilities, and owners' equity.

Accepted Answer

A) balance sheet 
B) profit and loss statement 
C) statement of retained earnings 
D) statement of cash flows 
A) balance sheet 
B) profit and loss statement 
C) statement of retained earnings 
D) statement of cash flows

Question 5

Which of the following is a difference between financial accounting and managerial accounting?

Accepted Answer

A) Financial accounting is designed to meet the needs of company managers, whereas managerial accounting provides stockholders with information about the overall financial performance of a firm. 
B) Financial accounting provides accounting information exclusively to government agencies, whereas managerial accounting is designed to specially meet the needs of suppliers and creditors. 
C) Financial accounting provides stockholders with information about the overall financial performance of a firm, whereas managerial accounting is designed to meet the needs of company managers. 
D) Financial accounting provides company accounting information for public consumption, whereas managerial accounting provides stockholders with information about the overall financial performance of a firm. 
A) Financial accounting is designed to meet the needs of company managers, whereas managerial accounting provides stockholders with information about the overall financial performance of a firm. 
B) Financial accounting provides accounting information exclusively to government agencies, whereas managerial accounting is designed to specially meet the needs of suppliers and creditors. 
C) Financial accounting provides stockholders with information about the overall financial performance of a firm, whereas managerial accounting is designed to meet the needs of company managers. 
D) Financial accounting provides company accounting information for public consumption, whereas managerial accounting provides stockholders with information about the overall financial performance of a firm.

Question 6

In order to preserve independence and impartiality, Financial Accounting Standards Board (FASB)members are required to:

Accepted Answer

A) serve the board for the rest of their lives once they are appointed. 
B) sever all ties with any firms or institutions they served prior to joining the board. 
C) sign a non-disclosure agreement and hand over all information of their previous companies to the board. 
D) pass a rigorous two-day, four-part examination on major accounting concepts. 
A) serve the board for the rest of their lives once they are appointed. 
B) sever all ties with any firms or institutions they served prior to joining the board. 
C) sign a non-disclosure agreement and hand over all information of their previous companies to the board. 
D) pass a rigorous two-day, four-part examination on major accounting concepts.

Question 7

A flexible budget:

Accepted Answer

A) is based on a single assumed level of sales. 
B) differentiates the budgeted costs for each sales level. 
C) is the budget that is prepared before a static budget. 
D) cannot be used for evaluating real-world sales situations. 
A) is based on a single assumed level of sales. 
B) differentiates the budgeted costs for each sales level. 
C) is the budget that is prepared before a static budget. 
D) cannot be used for evaluating real-world sales situations.

Question 8

Government accountants primarily use accounting information to meet the reporting needs of federal and state agencies.

Accepted Answer

A) True 
 B)False

Question 9

Describe the role of the Financial Accounting Standards Board (FASB).

Accepted Answer

​The Financial Accounting Standards Boar

Question 10

A(n)_____ opinion is issued if an external auditor does not find any problems with the way a firm prepares and presents its financial statements.

Accepted Answer

A) quality 
B) unqualified 
C) adverse 
D) corrective 
A) quality 
B) unqualified 
C) adverse 
D) corrective

Question 11

Liabilities do not include bank loans and current payments owed to suppliers.

Accepted Answer

A) True 
 B)False

Question 12

Through the generally accepted accounting principles (GAAP), the Financial Accounting Standards Board (FASB)aims to ensure that financial statements are _____.

Accepted Answer

A) comprehensive, exhaustive, extensive, and independent 
B) relevant, reliable, consistent, and comparable 
C) cursory, intensive, unabridged, and superficial 
D) circumstantial, inferential, presumptive, and provisional 
A) comprehensive, exhaustive, extensive, and independent 
B) relevant, reliable, consistent, and comparable 
C) cursory, intensive, unabridged, and superficial 
D) circumstantial, inferential, presumptive, and provisional

Question 13

What is the accounting equation? Define each term in the equation.

Accepted Answer

​The accounting equation:Assets = Liabil

Question 14

The CFO of SpotLight Production Company requests his accountant Felipe to prepare a customized report of the cost overruns at the company's production facility in L.A.Felipe is a managerial accountant.

Accepted Answer

A) True 
 B)False

Question 15

Describe any three users of a firm's accounting information.

Accepted Answer

​Key users of accounting information inc

Question 16

Benjamin works for a private firm that has been contracted to examine the books of accounts of the Luigi Corporation. After checking the figures and examining the company's accounting methods, he is required to prepare a report on his findings. The work that Benjamin is tasked with is the characteristic of a(n)_____.

Accepted Answer

A) external auditor 
B) management accountant 
C) risk analyst 
D) internal auditor 
A) external auditor 
B) management accountant 
C) risk analyst 
D) internal auditor

Question 17

Which of the following statements is true of the Financial Accounting Standards Board (FASB)?

Accepted Answer

A) Its authority comes from the Internal Revenue Service. 
B) It consists of five members appointed by the Federal Trade Commission (FT
C) . 
C) Its members can be reappointed to serve one additional term. 
D) Its members can retain ties with firms in which they were previously employed. 
A) Its authority comes from the Internal Revenue Service. 
B) It consists of five members appointed by the Federal Trade Commission (FT
C) . 
C) Its members can be reappointed to serve one additional term. 
D) Its members can retain ties with firms in which they were previously employed.

Question 18

The heavy reliance on accounting information by business stakeholders has led to it sometimes being called the:

Accepted Answer

A) language of business. 
B) cornerstone of business. 
C) lifeblood of business. 
D) standard of business. 
A) language of business. 
B) cornerstone of business. 
C) lifeblood of business. 
D) standard of business.

Question 19

Accounting systems are utilized by companies for several reasons, but they have little value when it comes to making economic decisions.

Accepted Answer

A) True 
 B)False

Question 20

To make a forecast of the finances, Susan needs the debt, cost, and profit statistics of all branches of the PTree Corporation. Based on the information that she needs, Susan is a _________.

Accepted Answer

A) consumer advocate 
B) financial manager 
C) government accountant 
D) financial creditor 
A) consumer advocate 
B) financial manager 
C) government accountant 
D) financial creditor

What are operating budgets, financial budgets, and master budget?

_____ is a management tool that explicitly shows how a firm will acquire and use the resources needed to achieve its goals over a specific time period.

Sebastian is an employee of Power Trans Inc.His duties include preparing reports and analyzing company accounting data.He also appraises financial performances, verifies the accuracy and validity of the company's internal records and accounting procedures. Sebastian's role is that of a _____.

The _____ reports the financial position of a firm by identifying and reporting the value of the firm's assets, liabilities, and owners' equity.

Which of the following is a difference between financial accounting and managerial accounting?

In order to preserve independence and impartiality, Financial Accounting Standards Board (FASB)members are required to:

A flexible budget:

Government accountants primarily use accounting information to meet the reporting needs of federal and state agencies.

Describe the role of the Financial Accounting Standards Board (FASB).

A(n)_____ opinion is issued if an external auditor does not find any problems with the way a firm prepares and presents its financial statements.

Liabilities do not include bank loans and current payments owed to suppliers.

Through the generally accepted accounting principles (GAAP), the Financial Accounting Standards Board (FASB)aims to ensure that financial statements are _____.

What is the accounting equation? Define each term in the equation.

The CFO of SpotLight Production Company requests his accountant Felipe to prepare a customized report of the cost overruns at the company's production facility in L.A.Felipe is a managerial accountant.

Describe any three users of a firm's accounting information.

Which of the following statements is true of the Financial Accounting Standards Board (FASB)?

The heavy reliance on accounting information by business stakeholders has led to it sometimes being called the:

Accounting systems are utilized by companies for several reasons, but they have little value when it comes to making economic decisions.

To make a forecast of the finances, Susan needs the debt, cost, and profit statistics of all branches of the PTree Corporation. Based on the information that she needs, Susan is a _________.

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

What are operating budgets, financial budgets, and master budget?

_____ is a management tool that explicitly shows how a firm will acquire and use the resources needed to achieve its goals over a specific time period.

Sebastian is an employee of Power Trans Inc.His duties include preparing reports and analyzing company accounting data.He also appraises financial performances, verifies the accuracy and validity of the company's internal records and accounting procedures. Sebastian's role is that of a _____.

The _____ reports the financial position of a firm by identifying and reporting the value of the firm's assets, liabilities, and owners' equity.

Which of the following is a difference between financial accounting and managerial accounting?

In order to preserve independence and impartiality, Financial Accounting Standards Board (FASB)members are required to:

A flexible budget:

Government accountants primarily use accounting information to meet the reporting needs of federal and state agencies.

Describe the role of the Financial Accounting Standards Board (FASB).

A(n)_____ opinion is issued if an external auditor does not find any problems with the way a firm prepares and presents its financial statements.

Liabilities do not include bank loans and current payments owed to suppliers.

Through the generally accepted accounting principles (GAAP), the Financial Accounting Standards Board (FASB)aims to ensure that financial statements are _____.

What is the accounting equation? Define each term in the equation.

The CFO of SpotLight Production Company requests his accountant Felipe to prepare a customized report of the cost overruns at the company's production facility in L.A.Felipe is a managerial accountant.

Describe any three users of a firm's accounting information.

Which of the following statements is true of the Financial Accounting Standards Board (FASB)?

The heavy reliance on accounting information by business stakeholders has led to it sometimes being called the:

Accounting systems are utilized by companies for several reasons, but they have little value when it comes to making economic decisions.

To make a forecast of the finances, Susan needs the debt, cost, and profit statistics of all branches of the PTree Corporation. Based on the information that she needs, Susan is a _________.

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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