Question 1

Which type of manager would be most concerned with information about the products offered by competitors?

Accepted Answer

A)  Financial 
B)  Marketing 
C)  Operations 
D)  Administrative 
E)  Human resources 
A)  Financial 
B)  Marketing 
C)  Operations 
D)  Administrative 
E)  Human resources

Question 2

Maddie is the CEO of Stevenson,Ross,and Warner (SRW) ,a regional accounting firm.SRW offers services in most areas of accounting,including auditing and consulting services.The firm must follow the GAAP rules,just like any other accounting firm.If there are information gaps that are not addressed and resolved by the firm,SRW could be considered a violator of the Sarbanes-Oxley Act.Maddie understands what must be done and wants every employee of the firm to understand that they have to follow all the rules and regulations.Like any other industry,accounting is a competitive industry and employees of accounting firms must be productive,progressive,and well trained.
-Refer to Stevenson,Ross,and Warner.What does GAAP stand for?

Accepted Answer

A)  Generally accepted accounting principles 
B)  Generally accepted auditing principles 
C)  Generalized accounting and auditing principles 
D)  Generic accounting alternative practices 
E)  General administrative accounting practices 
A)  Generally accepted accounting principles 
B)  Generally accepted auditing principles 
C)  Generalized accounting and auditing principles 
D)  Generic accounting alternative practices 
E)  General administrative accounting practices

Question 3

APSCO Lighting,Inc.,had a gross profit of $234,000 for the last twelve-month period.Operating expenses were $185,000.What was APSCO's net income before taxes?

Accepted Answer

A)  $490,000 
B)  $234,000 
C)  $185,000 
D)  $49,000 
E)  $41,000 
A)  $490,000 
B)  $234,000 
C)  $185,000 
D)  $49,000 
E)  $41,000

Question 4

Alexa's First Job ​Alexa has just earned her undergraduate degree in accounting and has successfully completed the CPA exam.She recently interviewed with a relatively small and new company and was offered a job.The offer sounded very promising;the job had opportunities to grow with the company and provided diverse challenges.Alexa accepted the job. Once Alexa started working,she realized that the owners and employees did not have a general understanding of accounting.She had to teach them the steps in an accounting cycle so they would be able to understand how she was going to create reports.When she talked about the statement of financial position,they had no idea what she was talking about.She was the qualified individual responsible for accounting.No one else working with her had much knowledge.They did not even know the different financial ratios that someone could use to understand the financial standing of a company.Alexa knows it will be a challenge to keep everyone on the same page when it comes to numbers and reports.
-Refer to Alexa's First Job.To help the owners understand how effectively the firm is transforming sales into profits,Alexa should address which of the following ratios?

Accepted Answer

A)  Return on sales 
B)  Earnings per share 
C)  Acid-test ratio 
D)  Return of owners' equity 
E)  Inventory turnover 
A)  Return on sales 
B)  Earnings per share 
C)  Acid-test ratio 
D)  Return of owners' equity 
E)  Inventory turnover

Question 5

Why are current assets listed before fixed assets on the balance sheet?

Accepted Answer

Current assets are assets that are cash

Question 6

The ease with which an asset can be converted into cash is referred to as its

Accepted Answer

A)  liquidity. 
B)  profitability. 
C)  solvency. 
D)  convertibility. 
E)  capitalization capacity. 
A)  liquidity. 
B)  profitability. 
C)  solvency. 
D)  convertibility. 
E)  capitalization capacity.

Question 7

The standard form of the accounting equation is assets equal liabilities minus owners' equity.

Accepted Answer

A) True 
 B)False

Question 8

A private accountant is an accountant whose services may be hired on a fee basis by individuals or business firms.

Accepted Answer

A) True 
 B)False

Question 9

Martin's Spa and Salon's assets total $148,000.The total amount of debt that it owes to others is $87,000.Which of the following is correct?

Accepted Answer

A)  David's owners' equity is $87,000. 
B)  The owners' equity in David's is $61,000. 
C)  David's liabilities are $148,000. 
D)  The firm's liabilities are $61,000. 
E)  The firm has more owners' equity than liabilities. 
A)  David's owners' equity is $87,000. 
B)  The owners' equity in David's is $61,000. 
C)  David's liabilities are $148,000. 
D)  The firm's liabilities are $61,000. 
E)  The firm has more owners' equity than liabilities.

Question 10

A public corporation must change its lead auditing firm

Accepted Answer

A)  every year. 
B)  every two years. 
C)  every five years. 
D)  every ten years. 
E)  whenever it wants to. 
A)  every year. 
B)  every two years. 
C)  every five years. 
D)  every ten years. 
E)  whenever it wants to.

Question 11

If the liabilities of a business are $85,000 and the owners' equity is $110,000,which of the following is a correct statement?

Accepted Answer

A)  Assets equal $25,000. 
B)  Assets equal $195,000. 
C)  Assets equal $110,000. 
D)  Assets equal $85,000. 
E)  It is impossible to determine the value of the assets. 
A)  Assets equal $25,000. 
B)  Assets equal $195,000. 
C)  Assets equal $110,000. 
D)  Assets equal $85,000. 
E)  It is impossible to determine the value of the assets.

Question 12

When Vicky 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 13

Cecilia's business has more expenses than it has revenues this year;therefore,her business has a

Accepted Answer

A)  net loss. 
B)  net increase. 
C)  net income. 
D)  net cash flow. 
A)  net loss. 
B)  net increase. 
C)  net income. 
D)  net cash flow.

Which type of manager would be most concerned with information about the products offered by competitors?

APSCO Lighting,Inc.,had a gross profit of $234,000 for the last twelve-month period.Operating expenses were $185,000.What was APSCO's net income before taxes?

Why are current assets listed before fixed assets on the balance sheet?

The ease with which an asset can be converted into cash is referred to as its

The standard form of the accounting equation is assets equal liabilities minus owners' equity.

A private accountant is an accountant whose services may be hired on a fee basis by individuals or business firms.

Martin's Spa and Salon's assets total $148,000.The total amount of debt that it owes to others is $87,000.Which of the following is correct?

A public corporation must change its lead auditing firm

If the liabilities of a business are $85,000 and the owners' equity is $110,000,which of the following is a correct statement?

When Vicky Tran prepared a personal income statement,the remainder or residual value is called

Cecilia's business has more expenses than it has revenues this year;therefore,her business has a

Exploring the World of Business and Economics

Ethics and Social Responsibility in Business

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

Building Customer Relationships Through Effective Marketing

Creating and Pricing Products That Satisfy Customers

Distributing and Promoting Products

Exploring Social Media and E-Business

Mastering Financial Management

Understanding Personal Finances and Investments

Enhancing Union-Management Relations

Risk Management and Insurance

Business Law regulation and Taxation

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Exam 15: Using Management and Accounting Information

Which type of manager would be most concerned with information about the products offered by competitors?

APSCO Lighting,Inc.,had a gross profit of $234,000 for the last twelve-month period.Operating expenses were $185,000.What was APSCO's net income before taxes?

Why are current assets listed before fixed assets on the balance sheet?

The ease with which an asset can be converted into cash is referred to as its

The standard form of the accounting equation is assets equal liabilities minus owners' equity.

A private accountant is an accountant whose services may be hired on a fee basis by individuals or business firms.

Martin's Spa and Salon's assets total $148,000.The total amount of debt that it owes to others is $87,000.Which of the following is correct?

A public corporation must change its lead auditing firm

If the liabilities of a business are $85,000 and the owners' equity is $110,000,which of the following is a correct statement?

When Vicky Tran prepared a personal income statement,the remainder or residual value is called

Cecilia's business has more expenses than it has revenues this year;therefore,her business has a

Exploring the World of Business and Economics

Ethics and Social Responsibility in Business

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

Building Customer Relationships Through Effective Marketing

Creating and Pricing Products That Satisfy Customers

Distributing and Promoting Products

Exploring Social Media and E-Business

Mastering Financial Management

Understanding Personal Finances and Investments

Enhancing Union-Management Relations

Risk Management and Insurance

Business Law regulation and Taxation

Filters