Question 1

Match each of the following terms with related explanations
-Managerial accounting

Accepted Answer

A)  Corporations with stock traded on public exchanges 
B)  The common form of business ownership used by lawyers and CPAs 
C)  Lenders of resources 
D)  Designed primarily for decision makers outside of the company 
E)  Elected by the shareholders to oversee management 
F) Owners of a corporation 
G) Securities and Exchange Commission 
H) Designed primarily for decision makers within the company 
A)  Corporations with stock traded on public exchanges 
B)  The common form of business ownership used by lawyers and CPAs 
C)  Lenders of resources 
D)  Designed primarily for decision makers outside of the company 
E)  Elected by the shareholders to oversee management 
F) Owners of a corporation 
G) Securities and Exchange Commission 
H) Designed primarily for decision makers within the company H

Question 2

Match the following decision makers with the most likely decisions they seek to answer from accounting information. Use each answer only once.
-Marketing teams

Accepted Answer

A)  Launch a new product or not? 
B)  Purchase/sell goods from/to the company? 
C)  Develop a new company strategy? 
D)  Lend to the company or not? 
E)  Manage operations? F. Buy or sell stock of the company? 
A)  Launch a new product or not? 
B)  Purchase/sell goods from/to the company? 
C)  Develop a new company strategy? 
D)  Lend to the company or not? 
E)  Manage operations? F. Buy or sell stock of the company? A

Question 3

Which of the following statements is true regarding generally accepted accounting principles (GAAP)?

Accepted Answer

A)  GAAP is a set of laws 
B)  GAAP is subject to change as conditions warrant 
C)  Under GAAP, if two companies engage in the same transactions, they must choose the same accounting methods 
D)  U.S. GAAP is the same as GAAP in other countries 
A)  GAAP is a set of laws 
B)  GAAP is subject to change as conditions warrant 
C)  Under GAAP, if two companies engage in the same transactions, they must choose the same accounting methods 
D)  U.S. GAAP is the same as GAAP in other countries B

Question 4

Which one of the following is not a key linkage among the four primary financial statements?

Accepted Answer

A)  The expenses in the income statement link to the total liability balance. 
B)  The statement of cash flows links to ending cash in the balance sheet. 
C)  The income statement links to the ending retained earnings in the statement of stockholders' equity. 
D)  The statement of stockholders' equity links to ending equity in the balance sheet. 
A)  The expenses in the income statement link to the total liability balance. 
B)  The statement of cash flows links to ending cash in the balance sheet. 
C)  The income statement links to the ending retained earnings in the statement of stockholders' equity. 
D)  The statement of stockholders' equity links to ending equity in the balance sheet.

Question 5

Match each of the following terms with related explanations
-Creditors

Accepted Answer

A)  Corporations with stock traded on public exchanges 
B)  The common form of business ownership used by lawyers and CPAs 
C)  Lenders of resources 
D)  Designed primarily for decision makers outside of the company 
E)  Elected by the shareholders to oversee management F. Owners of a corporation G. Securities and Exchange Commission H. Designed primarily for decision makers within the company 
A)  Corporations with stock traded on public exchanges 
B)  The common form of business ownership used by lawyers and CPAs 
C)  Lenders of resources 
D)  Designed primarily for decision makers outside of the company 
E)  Elected by the shareholders to oversee management F. Owners of a corporation G. Securities and Exchange Commission H. Designed primarily for decision makers within the company

Question 6

Which of the following is not part of the standard heading of each financial statement?

Accepted Answer

A)  The company name 
B)  The statement title 
C)  The date or time period of the statement 
D)  The company's industry 
A)  The company name 
B)  The statement title 
C)  The date or time period of the statement 
D)  The company's industry

Question 7

Which statement is true about IFRS?

Accepted Answer

A)  It has legal authority to impose accounting standards world-wide 
B)  It is working to reduce diversity in financial reporting practices across the world 
C)  It has replaced GAAP financial accounting standards 
D)  It is under the control of the SEC 
A)  It has legal authority to impose accounting standards world-wide 
B)  It is working to reduce diversity in financial reporting practices across the world 
C)  It has replaced GAAP financial accounting standards 
D)  It is under the control of the SEC

Question 8

Foreign companies using international accounting standards must reconcile their financial statements to American rules if they wish to sell securities in the U.S.

Accepted Answer

A) True 
 B)False

Question 9

Match each item with the financial statement in which each item would most likely appear:
-Cash from investing activities

Accepted Answer

A)  Income Statement 
B)  Balance Sheet 
C)  Statement of Cash Flow 
A)  Income Statement 
B)  Balance Sheet 
C)  Statement of Cash Flow

Question 10

Financial statements rely on countless estimates by accountants, including the useful life of building and equipment, the dollar amounts that will be collected from customers who purchase on credit, the prediction of future costs related to warranty claims or future pension obligations. Prepare a short argument to explain why estimates are an acceptable and important ingredient in the preparation of financial statements.

Accepted Answer

Certain financial figures or costs canno

Question 11

Use the following information to answer questions below
Data from the financial statements of The Grocer Company and FoodValu, Inc., two national grocery chains are presented below:
  
-To the nearest hundredth, what is the 2016 debt-to-equity ratio for The Grocer Company?

Accepted Answer

A)  2.41 
B)  4.92 
C)  1.77 
D)  44.16 
A)  2.41 
B)  4.92 
C)  1.77 
D)  44.16

Question 12

Match the following decision makers with the most likely decisions they seek to answer from accounting information. Use each answer only once.
-Investors and analysts

Accepted Answer

A)  Launch a new product or not? 
B)  Purchase/sell goods from/to the company? 
C)  Develop a new company strategy? 
D)  Lend to the company or not? 
E)  Manage operations? 
F)Buy or sell stock of the company? 
A)  Launch a new product or not? 
B)  Purchase/sell goods from/to the company? 
C)  Develop a new company strategy? 
D)  Lend to the company or not? 
E)  Manage operations? 
F)Buy or sell stock of the company?

Question 13

Describe the four basic business activities conducted by a company in the production and sale of its products and services.

Accepted Answer

The four activities include planning, fi

Question 14

Prepare a statement of cash flows for Doggie, Inc. for 2016 given its information below (amounts in millions):

Accepted Answer

Operating cash flows + Investi

Question 15

On which statement are assets, liabilities and equity reported?

Accepted Answer

A)  Balance sheet 
B)  Income statement 
C)  Statement of stockholders' equity 
D)  Statement of cash flows 
A)  Balance sheet 
B)  Income statement 
C)  Statement of stockholders' equity 
D)  Statement of cash flows

Question 16

Match the following decision makers with the most likely decisions they seek to answer from accounting information. Use each answer only once.
-Suppliers and customers

Accepted Answer

A)  Launch a new product or not? 
B)  Purchase/sell goods from/to the company? 
C)  Develop a new company strategy? 
D)  Lend to the company or not? 
E)  Manage operations? F. Buy or sell stock of the company? 
A)  Launch a new product or not? 
B)  Purchase/sell goods from/to the company? 
C)  Develop a new company strategy? 
D)  Lend to the company or not? 
E)  Manage operations? F. Buy or sell stock of the company?

Question 17

Compute the missing financial amounts (a) and (b):

Accepted Answer

(a) Liabilities = Assets - Equ

Question 18

Match the following decision makers with the most likely decisions they seek to answer from accounting information. Use each answer only once.
-Productions and operations

Accepted Answer

A)  Launch a new product or not? 
B)  Purchase/sell goods from/to the company? 
C)  Develop a new company strategy? 
D)  Lend to the company or not? 
E)  Manage operations? F. Buy or sell stock of the company? 
A)  Launch a new product or not? 
B)  Purchase/sell goods from/to the company? 
C)  Develop a new company strategy? 
D)  Lend to the company or not? 
E)  Manage operations? F. Buy or sell stock of the company?

Question 19

The following is selected financial information of Gleeson Group, Inc. for the year ended December 31, 2016.
   Prepare an income statement, balance sheet and statement of cash flows for Gleeson Group, Inc. at December 31, 2016.

Accepted Answer

The answer of The following is selected financial information of...

Question 20

Match each item with the financial statement in which each item would most likely appear:
-Contributed capital

Accepted Answer

A)  Income Statement 
B)  Balance Sheet 
C)  Statement of Cash Flow 
A)  Income Statement 
B)  Balance Sheet 
C)  Statement of Cash Flow

Match each of the following terms with related explanations -Managerial accounting

Match the following decision makers with the most likely decisions they seek to answer from accounting information. Use each answer only once. -Marketing teams

Which of the following statements is true regarding generally accepted accounting principles (GAAP)?

Which one of the following is not a key linkage among the four primary financial statements?

Match each of the following terms with related explanations -Creditors

Which of the following is not part of the standard heading of each financial statement?

Which statement is true about IFRS?

Foreign companies using international accounting standards must reconcile their financial statements to American rules if they wish to sell securities in the U.S.

Match each item with the financial statement in which each item would most likely appear: -Cash from investing activities

Use the following information to answer questions below Data from the financial statements of The Grocer Company and FoodValu, Inc., two national grocery chains are presented below: -To the nearest hundredth, what is the 2016 debt-to-equity ratio for The Grocer Company?

Match the following decision makers with the most likely decisions they seek to answer from accounting information. Use each answer only once. -Investors and analysts

Describe the four basic business activities conducted by a company in the production and sale of its products and services.

Prepare a statement of cash flows for Doggie, Inc. for 2016 given its information below (amounts in millions):

On which statement are assets, liabilities and equity reported?

Match the following decision makers with the most likely decisions they seek to answer from accounting information. Use each answer only once. -Suppliers and customers

Compute the missing financial amounts (a) and (b):

Match the following decision makers with the most likely decisions they seek to answer from accounting information. Use each answer only once. -Productions and operations

The following is selected financial information of Gleeson Group, Inc. for the year ended December 31, 2016. Prepare an income statement, balance sheet and statement of cash flows for Gleeson Group, Inc. at December 31, 2016.

Match each item with the financial statement in which each item would most likely appear: -Contributed capital

Constructing Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Reporting and Analyzing Revenues and Receivables

Reporting and Analyzing Inventory

Reporting and Analyzing Long-Term Operating Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Leases, Pensions, and Income Taxes

Reporting and Analyzing Stockholders Equity

Reporting and Analyzing Financial Investments

Appendix : Compound Interest and the Time-Value of Money

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Exam 1: Introducing Financial Accounting

Match each of the following terms with related explanations -Managerial accounting

Match the following decision makers with the most likely decisions they seek to answer from accounting information. Use each answer only once. -Marketing teams

Which of the following statements is true regarding generally accepted accounting principles (GAAP)?

Which one of the following is not a key linkage among the four primary financial statements?

Match each of the following terms with related explanations -Creditors

Which of the following is not part of the standard heading of each financial statement?

Which statement is true about IFRS?

Foreign companies using international accounting standards must reconcile their financial statements to American rules if they wish to sell securities in the U.S.

Match each item with the financial statement in which each item would most likely appear: -Cash from investing activities

Use the following information to answer questions below Data from the financial statements of The Grocer Company and FoodValu, Inc., two national grocery chains are presented below: -To the nearest hundredth, what is the 2016 debt-to-equity ratio for The Grocer Company?

Match the following decision makers with the most likely decisions they seek to answer from accounting information. Use each answer only once. -Investors and analysts

Describe the four basic business activities conducted by a company in the production and sale of its products and services.

Prepare a statement of cash flows for Doggie, Inc. for 2016 given its information below (amounts in millions):

On which statement are assets, liabilities and equity reported?

Match the following decision makers with the most likely decisions they seek to answer from accounting information. Use each answer only once. -Suppliers and customers

Compute the missing financial amounts (a) and (b):

Match the following decision makers with the most likely decisions they seek to answer from accounting information. Use each answer only once. -Productions and operations

The following is selected financial information of Gleeson Group, Inc. for the year ended December 31, 2016. Prepare an income statement, balance sheet and statement of cash flows for Gleeson Group, Inc. at December 31, 2016.

Match each item with the financial statement in which each item would most likely appear: -Contributed capital

Constructing Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Reporting and Analyzing Revenues and Receivables

Reporting and Analyzing Inventory

Reporting and Analyzing Long-Term Operating Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Leases, Pensions, and Income Taxes

Reporting and Analyzing Stockholders Equity

Reporting and Analyzing Financial Investments

Appendix : Compound Interest and the Time-Value of Money

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