Exam 15: Understanding Accounting and Financial Statements

Frank, chief financial officer for a company, wants to take a look at the summary of expenses, revenues, and profits of the firm for the most recent quarter. He can best find this information by consulting the _____.

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(Multiple Choice)

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Question 1

Correct Answer:

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Explain how exchange rates influence international accounting practices. Why was the International Accounting Standards Committee established?

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(Essay)

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Question 2

Correct Answer:

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An exchange rate is the ratio at which a country's currency can be exchanged for other currencies. Daily changes in exchange rates affect the accounting entries for sales and purchases of firms involved in international markets. These fluctuations create either losses or gains for particular companies. The International Accounting Standards Committee was established to provide worldwide consistency in financial reporting practices and comparability and uniformity of international accounting standards.

Which of the following is a noncash expense?

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(Multiple Choice)

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Question 3

Correct Answer:

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A company's overall operating budget is a composite of many individual budgets for separate units of the firm.

(True/False)

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Question 4

Public accountants typically perform all of the following tasks for a business client EXCEPT _____.

(Multiple Choice)

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Question 5

All of the following are liabilities EXCEPT _____.

(Multiple Choice)

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Question 6

A budget is essentially a long-term financial plan.

(True/False)

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Question 7

If a firm has an asset turnover ratio of 2.00, it means that it needs $2 in assets to generate a $1 in sales.

(True/False)

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Question 8

MATCHING Complete the following using the terms listed. -The basic relationship that states assets equal liabilities plus owners' equity is called the _____.

(Multiple Choice)

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Question 9

If a firm has a current ratio of 2.5, it means that for every $2.50 in _ it has $1.00 in _.

(Multiple Choice)

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Question 10

MATCHING Complete the following using the terms listed. -The _____ is a statement of a firm's financial position on a particular date.

(Multiple Choice)

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Question 11

The GAAP standard of relevance ensures that one firm's financial statements can be compared with those of similar businesses.

(True/False)

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Question 12

Using the following balance sheet information, find the firm's acid-test ratio.

(Multiple Choice)

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Question 13

When examining a statement of cash flows, investors obtain relevant information about a firm's cash receipts and payments for its operations, investments, and financing during an accounting period.

(True/False)

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Question 14

The current ratio is a leverage ratio.

(True/False)

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Question 15

MATCHING Complete the following using the terms listed. -The _____ is a federal law that prohibits U.S. citizens and companies from bribing foreign officials to win or continue business.

(Multiple Choice)

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Question 16

Walker is a loan officer for a bank and is reviewing the financial statements of a prospective borrower. As a user of accounting information, Walker is most interested in using this information _____.

(Multiple Choice)

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Question 17

_____ activities focus on providing valuable assets to a business.

(Multiple Choice)

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Question 18

Allen works as a supervisor at an automobile company. He is also the leader of the workers' union at the factory. Allen is most likely to use the accounting information of his company to:

(Multiple Choice)

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Question 19

The procedure used by accountants to convert data about transactions to financial statements is called _____.

(Multiple Choice)

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Question 20

Showing 1 - 20 of 136

Frank, chief financial officer for a company, wants to take a look at the summary of expenses, revenues, and profits of the firm for the most recent quarter. He can best find this information by consulting the _____.

Explain how exchange rates influence international accounting practices. Why was the International Accounting Standards Committee established?

Which of the following is a noncash expense?

A company's overall operating budget is a composite of many individual budgets for separate units of the firm.

Public accountants typically perform all of the following tasks for a business client EXCEPT _____.

All of the following are liabilities EXCEPT _____.

A budget is essentially a long-term financial plan.

If a firm has an asset turnover ratio of 2.00, it means that it needs $2 in assets to generate a $1 in sales.

MATCHING Complete the following using the terms listed. -The basic relationship that states assets equal liabilities plus owners' equity is called the _____.

If a firm has a current ratio of 2.5, it means that for every $2.50 in _ it has $1.00 in _.

MATCHING Complete the following using the terms listed. -The _____ is a statement of a firm's financial position on a particular date.

The GAAP standard of relevance ensures that one firm's financial statements can be compared with those of similar businesses.

Using the following balance sheet information, find the firm's acid-test ratio.

When examining a statement of cash flows, investors obtain relevant information about a firm's cash receipts and payments for its operations, investments, and financing during an accounting period.

The current ratio is a leverage ratio.

MATCHING Complete the following using the terms listed. -The _____ is a federal law that prohibits U.S. citizens and companies from bribing foreign officials to win or continue business.

Walker is a loan officer for a bank and is reviewing the financial statements of a prospective borrower. As a user of accounting information, Walker is most interested in using this information _____.

_____ activities focus on providing valuable assets to a business.

Allen works as a supervisor at an automobile company. He is also the leader of the workers' union at the factory. Allen is most likely to use the accounting information of his company to:

The procedure used by accountants to convert data about transactions to financial statements is called _____.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

Competing in World Markets

Forms of Business Ownership and Organization

Starting Your Own Business: the Entrepreneurship Alternative

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labor Relations

Top Performance Through Empowerment, Teamwork, and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

The Financial System

Financial Management

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Exam 15: Understanding Accounting and Financial Statements

Frank, chief financial officer for a company, wants to take a look at the summary of expenses, revenues, and profits of the firm for the most recent quarter. He can best find this information by consulting the _____.

Explain how exchange rates influence international accounting practices. Why was the International Accounting Standards Committee established?

Which of the following is a noncash expense?

A company's overall operating budget is a composite of many individual budgets for separate units of the firm.

Public accountants typically perform all of the following tasks for a business client EXCEPT _____.

All of the following are liabilities EXCEPT _____.

A budget is essentially a long-term financial plan.

If a firm has an asset turnover ratio of 2.00, it means that it needs $2 in assets to generate a $1 in sales.

MATCHING Complete the following using the terms listed. -The basic relationship that states assets equal liabilities plus owners' equity is called the _____.

If a firm has a current ratio of 2.5, it means that for every $2.50 in _____ it has $1.00 in _____.

MATCHING Complete the following using the terms listed. -The _____ is a statement of a firm's financial position on a particular date.

The GAAP standard of relevance ensures that one firm's financial statements can be compared with those of similar businesses.

Using the following balance sheet information, find the firm's acid-test ratio.

When examining a statement of cash flows, investors obtain relevant information about a firm's cash receipts and payments for its operations, investments, and financing during an accounting period.

The current ratio is a leverage ratio.

MATCHING Complete the following using the terms listed. -The _____ is a federal law that prohibits U.S. citizens and companies from bribing foreign officials to win or continue business.

Walker is a loan officer for a bank and is reviewing the financial statements of a prospective borrower. As a user of accounting information, Walker is most interested in using this information _____.

_____ activities focus on providing valuable assets to a business.

Allen works as a supervisor at an automobile company. He is also the leader of the workers' union at the factory. Allen is most likely to use the accounting information of his company to:

The procedure used by accountants to convert data about transactions to financial statements is called _____.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

Competing in World Markets

Forms of Business Ownership and Organization

Starting Your Own Business: the Entrepreneurship Alternative

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labor Relations

Top Performance Through Empowerment, Teamwork, and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

The Financial System

Financial Management

Filters

If a firm has a current ratio of 2.5, it means that for every $2.50 in _ it has $1.00 in _.