Question 1

What is the term for valuable things owned by the firm?

Accepted Answer

A) owners' equities 
B) retained earnings 
C) liabilities 
D) assets 
A) owners' equities 
B) retained earnings 
C) liabilities 
D) assets

Question 2

An auditor issuing what type of opinion shows that he has uncovered serious and widespread problems with the preparation of a firm's financial statements?

Accepted Answer

A) adverse opinion 
B) unqualified opinion 
C) qualified opinion 
D) untenured opinion 
A) adverse opinion 
B) unqualified opinion 
C) qualified opinion 
D) untenured opinion

Question 3

Rosalyn owns stock in Munnymacher Inc.and just received her annual report from this company.If she wants to see the total value of Munnymacher's assets,she should look at the company's balance sheet.

Accepted Answer

A) True 
 B)False

Question 4

How are the accounting tasks once performed by bookkeepers now significantly different?

Accepted Answer

A) Societal changes affect what shareholders and other stakeholders want from a firm. Bookkeepers used to advise government on tax changes. 
B) Escalating fraud has resulted from bookkeepers' unethical acts. Bookkeepers' responsibility for estimating the time spent on doing taxes is now done by formula. 
C) Computers now perform routine tasks that were formerly performed by bookkeepers. 
D) Government requirements of more detailed recording of corporate write-offs have substantially changed recording requirements. 
A) Societal changes affect what shareholders and other stakeholders want from a firm. Bookkeepers used to advise government on tax changes. 
B) Escalating fraud has resulted from bookkeepers' unethical acts. Bookkeepers' responsibility for estimating the time spent on doing taxes is now done by formula. 
C) Computers now perform routine tasks that were formerly performed by bookkeepers. 
D) Government requirements of more detailed recording of corporate write-offs have substantially changed recording requirements.

Question 5

Forensic accountants combine their knowledge of accounting with investigative skills.

Accepted Answer

A) True 
 B)False

Question 6

Profit is the difference between which of the following?

Accepted Answer

A) retained earnings and cost of goods sold 
B) revenue and expenses 
C) assets and liabilities 
D) notes payable and accounts payable 
A) retained earnings and cost of goods sold 
B) revenue and expenses 
C) assets and liabilities 
D) notes payable and accounts payable

Question 7

Which of the following are the two broad sources of financing for a firm?

Accepted Answer

A) owners and non-owners 
B) income and profit 
C) retained earnings and assets 
D) cash and credit 
A) owners and non-owners 
B) income and profit 
C) retained earnings and assets 
D) cash and credit

Question 8

What is the income statement equation?

Accepted Answer

A) Owners' Equity - Assets = Liabilities 
B) Revenue - Expenses = Net Income 
C) Assets = Liabilities + Owners' Equity 
D) Net Income - Expenses = Revenue 
A) Owners' Equity - Assets = Liabilities 
B) Revenue - Expenses = Net Income 
C) Assets = Liabilities + Owners' Equity 
D) Net Income - Expenses = Revenue

Question 9

As represented on the balance sheet,a firm has which of the following two sources of funds?

Accepted Answer

A) assets and earnings 
B) assets and liabilities 
C) liabilities and the owners' equity 
D) assets and owners' equity 
A) assets and earnings 
B) assets and liabilities 
C) liabilities and the owners' equity 
D) assets and owners' equity

Question 10

Which of the following describes what managers,shareholders,employees,and creditors are?

Accepted Answer

A) people designated by the board of directors to review company documents 
B) all users of accounting information to assess a company's finances 
C) auditors of the health and well-being of a company 
D) all employees of a corporation 
A) people designated by the board of directors to review company documents 
B) all users of accounting information to assess a company's finances 
C) auditors of the health and well-being of a company 
D) all employees of a corporation

Question 11

Internal auditors are private accountants responsible for verifying their company's internal accounting procedures.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is true about a firm's current liabilities?

Accepted Answer

A) They must equal its current assets. 
B) They do not have to be repaid on any specific date. Instead, repayment can be deferred as long as the firm is willing and able to make the required interest payments. 
C) They are what it owes to its shareholders. 
D) They are due in less than a year. 
A) They must equal its current assets. 
B) They do not have to be repaid on any specific date. Instead, repayment can be deferred as long as the firm is willing and able to make the required interest payments. 
C) They are what it owes to its shareholders. 
D) They are due in less than a year.

Question 13

Which of the following summarizes a firm's financial position at a specific point in time (e.g.,a specific quarter or year)?

Accepted Answer

A) statement of cash flows 
B) investment income statement 
C) balance sheet 
D) income statement 
A) statement of cash flows 
B) investment income statement 
C) balance sheet 
D) income statement

Question 14

List and describe the qualifications one needs to fill an accounting position.

Accepted Answer

Most accounting jobs today require at le

Question 15

What resulted from the corporate scandals in the late 1990s and early part of the 21st century?

Accepted Answer

A) a surge in the reputation of the accounting profession, because in many organizations it seemed only the accountants refused to go along with the fraudulent schemes 
B) a call for improved ethical training and standards in the accounting profession 
C) decisions by governments to replace external auditors with government auditors 
D) a resurgence of investor confidence 
A) a surge in the reputation of the accounting profession, because in many organizations it seemed only the accountants refused to go along with the fraudulent schemes 
B) a call for improved ethical training and standards in the accounting profession 
C) decisions by governments to replace external auditors with government auditors 
D) a resurgence of investor confidence

Question 16

The social movement to become more environmentally friendly or greener has resulted in TBL.What does the initialism TBL stand for?

Accepted Answer

A) true bottom line 
B) triple bottom line 
C) true best line 
D) triple better line 
A) true bottom line 
B) triple bottom line 
C) true best line 
D) triple better line

Question 17

Publicly traded firms with complex changes in their operations may report these changes in the notes section of their annual report.

Accepted Answer

A) True 
 B)False

Question 18

What process encompasses the routine procedures involved in recording financial transactions?

Accepted Answer

A) accounting 
B) costing 
C) bookkeeping 
D) auditing 
A) accounting 
B) costing 
C) bookkeeping 
D) auditing

Question 19

When analyzing a company's financial statements it is also important to look at which of the following?

Accepted Answer

A) independent auditor's report 
B) stock market analyst's report on the firm 
C) consultant's report 
D) newspaper reports 
A) independent auditor's report 
B) stock market analyst's report on the firm 
C) consultant's report 
D) newspaper reports

Question 20

Explain how horizontal analysis can provide management with insights into a firm's financial performance.

Accepted Answer

Horizontal analysis compares information

Exam 7: Accounting: Decision Making by the Numbers

What is the term for valuable things owned by the firm?

An auditor issuing what type of opinion shows that he has uncovered serious and widespread problems with the preparation of a firm's financial statements?

Rosalyn owns stock in Munnymacher Inc.and just received her annual report from this company.If she wants to see the total value of Munnymacher's assets,she should look at the company's balance sheet.

How are the accounting tasks once performed by bookkeepers now significantly different?

Forensic accountants combine their knowledge of accounting with investigative skills.

Profit is the difference between which of the following?

Which of the following are the two broad sources of financing for a firm?

What is the income statement equation?

As represented on the balance sheet,a firm has which of the following two sources of funds?

Which of the following describes what managers,shareholders,employees,and creditors are?

Internal auditors are private accountants responsible for verifying their company's internal accounting procedures.

Which of the following is true about a firm's current liabilities?

Which of the following summarizes a firm's financial position at a specific point in time (e.g.,a specific quarter or year)?

List and describe the qualifications one needs to fill an accounting position.

What resulted from the corporate scandals in the late 1990s and early part of the 21st century?

The social movement to become more environmentally friendly or greener has resulted in TBL.What does the initialism TBL stand for?

Publicly traded firms with complex changes in their operations may report these changes in the notes section of their annual report.

What process encompasses the routine procedures involved in recording financial transactions?

When analyzing a company's financial statements it is also important to look at which of the following?

Explain how horizontal analysis can provide management with insights into a firm's financial performance.

Business Now: Change Is the Only Constant

Business Communication: Creating and Delivering Messages That Matter

Business Ethics and Social Responsibility: Doing Well by Doing Good

Economics: the Framework for Business

Business Formation: Choosing the Form That Fits

Small Business and Entrepreneurship: Economic Rocket Fuel

Finance: Acquiring and Using Funds to Maximize Value

Securities Markets : Trading Financial Resources

Marketing: Building Profitable Customer Connections

Part 1: Product and Promotion: Creating and Communicating Value

Part 2: 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 Resource Management: Building a Top-Quality Workforce

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

Operations Management: Putting It All Together

The World Marketplace: Business Without Borders

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