Question 1

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 2

A high debt-to-equity ratio indicates that a firm is "highly leveraged."

Accepted Answer

A) True 
 B)False

Question 3

Horizontal analysis is an analysis of financial statements comparing account values reported over a period of years. This information is used to serve as a basis of comparison and to identify trends.

Accepted Answer

A) True 
 B)False

Question 4

Which type of analysis compares information contained in a firm's financial statements over a period of two or more years?

Accepted Answer

A)  vertical analysis 
B)  horizontal analysis 
C)  profitability analysis 
D)  ratio analysis 
A)  vertical analysis 
B)  horizontal analysis 
C)  profitability analysis 
D)  ratio analysis

Question 5

In evaluating companies across industries, what will financial managers often read as a means of interpreting the statements correctly?

Accepted Answer

A)  retained earnings statement 
B)  balance sheet 
C)  independent auditor's report 
D)  income statement 
A)  retained earnings statement 
B)  balance sheet 
C)  independent auditor's report 
D)  income statement

Question 6

According to the accounting equation, Assets - Expenses = Net Income.

Accepted Answer

A) True 
 B)False

Question 7

What do forensic accountants do? Provide an example of when one might be needed.

Accepted Answer

Forensic means applying scientific knowl

Question 8

What is the term for the claims owners have against the firm's assets?

Accepted Answer

A)  assets 
B)  owners' equity 
C)  liabilities 
D)  loans payable 
A)  assets 
B)  owners' equity 
C)  liabilities 
D)  loans payable

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

A high debt-to-equity ratio indicates that a firm is "highly leveraged."

Horizontal analysis is an analysis of financial statements comparing account values reported over a period of years. This information is used to serve as a basis of comparison and to identify trends.

Which type of analysis compares information contained in a firm's financial statements over a period of two or more years?

In evaluating companies across industries, what will financial managers often read as a means of interpreting the statements correctly?

According to the accounting equation, Assets - Expenses = Net Income.

What do forensic accountants do? Provide an example of when one might be needed.

What is the term for the claims owners have against the firm's assets?

Business Now: Change Is the Only Constant

Business Ethics and Social Responsibility: Doing Well by Doing Good

Economics: The Framework for Business

The World Market-Place: Business Without Borders

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 Resource Management: Building a Top-Quality Workforce

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

Operations Management: Putting It All Together

Business Communication: Creating and Delivering Messages That Matter

Labour Unions and Collective Bargaining

Business Law

Personal Finance

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Exam 7: Accounting: Decision Making by the Numbers

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

A high debt-to-equity ratio indicates that a firm is "highly leveraged."

Horizontal analysis is an analysis of financial statements comparing account values reported over a period of years. This information is used to serve as a basis of comparison and to identify trends.

Which type of analysis compares information contained in a firm's financial statements over a period of two or more years?

In evaluating companies across industries, what will financial managers often read as a means of interpreting the statements correctly?

According to the accounting equation, Assets - Expenses = Net Income.

What do forensic accountants do? Provide an example of when one might be needed.

What is the term for the claims owners have against the firm's assets?

Business Now: Change Is the Only Constant

Business Ethics and Social Responsibility: Doing Well by Doing Good

Economics: The Framework for Business

The World Market-Place: Business Without Borders

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 Resource Management: Building a Top-Quality Workforce

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

Operations Management: Putting It All Together

Business Communication: Creating and Delivering Messages That Matter

Labour Unions and Collective Bargaining

Business Law

Personal Finance

Filters