Question 1

The first step in preparing a master budget is to prepare a _____ budget.

Accepted Answer

A)  production 
B)  direct materials 
C)  sales 
D)  direct labor 
A)  production 
B)  direct materials 
C)  sales 
D)  direct labor

Question 2

Formal summaries of the content of an accounting system's records of transactions are called financial instruments.

Accepted Answer

A) True 
 B)False

Question 3

One reason why accounting is important to a small business is that it shows how much your business is worth.

Accepted Answer

A) True 
 B)False

Question 4

The primary reason to acquire and use a computerized accounting system in your business is to ensure the accuracy of your accounting information.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements is true regarding the balance sheet?

Accepted Answer

A)  It is rarely useful to the owners and managers of businesses. 
B)  It contains an exhaustive list of a business's assets and liabilities. 
C)  It always contains exact amounts. 
D)  it's values are considered as historical values. 
A)  It is rarely useful to the owners and managers of businesses. 
B)  It contains an exhaustive list of a business's assets and liabilities. 
C)  It always contains exact amounts. 
D)  it's values are considered as historical values.

Question 6

Which of the following statements is true about fixed costs?

Accepted Answer

A)  They can be assigned to a specific item sold or manufactured. 
B)  They are unaffected by changes in output. 
C)  They increase as the number of units produced increases. 
D)  They include expendables. 
A)  They can be assigned to a specific item sold or manufactured. 
B)  They are unaffected by changes in output. 
C)  They increase as the number of units produced increases. 
D)  They include expendables.

Question 7

Sharon handles a home-made gifts business which has gained popularity in her town.After Sharon moved into a big city,however,her marketing efforts could barely help her get just enough revenue to meet her costs.This means Sharon's business is at:

Accepted Answer

A)  economy of scale. 
B)  monopoly. 
C)  break-even point. 
D)  bankruptcy. 
A)  economy of scale. 
B)  monopoly. 
C)  break-even point. 
D)  bankruptcy.

Question 8

Financial flexibility of a business is a matter of judgment,whereas financial strength is an objective assessment.

Accepted Answer

A) True 
 B)False

Question 9

An accounting method that is specifically intended to be used for planning,directing,and controlling a business is called:

Accepted Answer

A)  tax accounting. 
B)  managerial accounting. 
C)  benchmarking. 
D)  forensic accounting. 
A)  tax accounting. 
B)  managerial accounting. 
C)  benchmarking. 
D)  forensic accounting.

Question 10

Which of the following is a correct representation of typical accounting functions?

Accepted Answer

A)  Credit card sales function helps to ensure that payroll and employment taxes are kept current. 
B)  Accurate and timely accounts receivable records are essential for making decisions concerning the extension of credit. 
C)  Leasehold records help to ease the problems of keeping necessary insurance coverage current and in force. 
D)  Insurance register helps to track the amount of discount and charge backs taken by your credit card provider. 
A)  Credit card sales function helps to ensure that payroll and employment taxes are kept current. 
B)  Accurate and timely accounts receivable records are essential for making decisions concerning the extension of credit. 
C)  Leasehold records help to ease the problems of keeping necessary insurance coverage current and in force. 
D)  Insurance register helps to track the amount of discount and charge backs taken by your credit card provider.

Question 11

Which of the following is true of the differential revenues and expenses method?

Accepted Answer

A)  It is used to increase the magnitude and complexity of the information that must be considered in making an appropriate investment decision. 
B)  It is estimated by only using cash flows. 
C)  It is based on the concept that a dollar to be received right now has more value than does a dollar to be received at some time in the future. 
D)  It comprises of estimating the changes in revenues and expenses from current operating results that will occur if an alternative is chosen. 
A)  It is used to increase the magnitude and complexity of the information that must be considered in making an appropriate investment decision. 
B)  It is estimated by only using cash flows. 
C)  It is based on the concept that a dollar to be received right now has more value than does a dollar to be received at some time in the future. 
D)  It comprises of estimating the changes in revenues and expenses from current operating results that will occur if an alternative is chosen.

Question 12

Describe the mechanics of a cash flow statement.

Accepted Answer

Cash flow statements can be either direc

Question 13

Which of the following accounting functions ensures that the employment taxes are kept current?

Accepted Answer

A)  Leasehold records 
B)  Investments records 
C)  Payroll records 
D)  Accounts receivable records 
A)  Leasehold records 
B)  Investments records 
C)  Payroll records 
D)  Accounts receivable records

Question 14

Briefly explain cost-volume-profit (CVP)analysis.

Accepted Answer

The most common application of manageria

Question 15

By limiting the information about financial concerns,the complexity of managerial accounting has been increased.

Accepted Answer

A) True 
 B)False

Question 16

Briefly discuss the different types of budgets that make up the master budget.

Accepted Answer

The first step in preparing a master bud

Question 17

Formal summaries of the content of an accounting system's records of transactions are called _____.

Accepted Answer

A)  financial securities 
B)  financial instruments 
C)  financial statements 
D)  financial derivatives 
A)  financial securities 
B)  financial instruments 
C)  financial statements 
D)  financial derivatives

Question 18

_____ is the most used item on the income statement.

Accepted Answer

A)  Net income 
B)  Cost of sale 
C)  Revenue 
D)  Operating income 
A)  Net income 
B)  Cost of sale 
C)  Revenue 
D)  Operating income

Question 19

Aaron,a businessman,has a method of keeping track of accounts receivable by sorting them into groups of those that are 30,60,90,and over 90 days past due.Which of the following actions will the collection agency which buys the delinquent account from Aaron do?

Accepted Answer

A)  Collect the entire amount owed and return it to Aaron. 
B)  Sell it back to Aaron after collecting the entire amount owed. 
C)  Collect the entire amount owed and keep all the money it obtains. 
D)  Take mild actions and collect a token amount. 
A)  Collect the entire amount owed and return it to Aaron. 
B)  Sell it back to Aaron after collecting the entire amount owed. 
C)  Collect the entire amount owed and keep all the money it obtains. 
D)  Take mild actions and collect a token amount.

Question 20

What are some of the common management decisions that can be aided by the use of accounting information and procedures? Explain.

Accepted Answer

Managers have five primary functions in

The first step in preparing a master budget is to prepare a _____ budget.

Formal summaries of the content of an accounting system's records of transactions are called financial instruments.

One reason why accounting is important to a small business is that it shows how much your business is worth.

The primary reason to acquire and use a computerized accounting system in your business is to ensure the accuracy of your accounting information.

Which of the following statements is true regarding the balance sheet?

Which of the following statements is true about fixed costs?

Sharon handles a home-made gifts business which has gained popularity in her town.After Sharon moved into a big city,however,her marketing efforts could barely help her get just enough revenue to meet her costs.This means Sharon's business is at:

Financial flexibility of a business is a matter of judgment,whereas financial strength is an objective assessment.

An accounting method that is specifically intended to be used for planning,directing,and controlling a business is called:

Which of the following is a correct representation of typical accounting functions?

Which of the following is true of the differential revenues and expenses method?

Describe the mechanics of a cash flow statement.

Which of the following accounting functions ensures that the employment taxes are kept current?

Briefly explain cost-volume-profit (CVP)analysis.

By limiting the information about financial concerns,the complexity of managerial accounting has been increased.

Briefly discuss the different types of budgets that make up the master budget.

Formal summaries of the content of an accounting system's records of transactions are called _____.

_____ is the most used item on the income statement.

Aaron,a businessman,has a method of keeping track of accounts receivable by sorting them into groups of those that are 30,60,90,and over 90 days past due.Which of the following actions will the collection agency which buys the delinquent account from Aaron do?

What are some of the common management decisions that can be aided by the use of accounting information and procedures? Explain.

Small Business: Its Opportunities and Rewards

Small Business Entrepreneurs: Characteristics and Competencies

Small Business Environment: Managing External Relations

Small Business Ideas: Creativity, Opportunity, and Feasibility

Small Business Entry: Paths to Part-Time Entrepreneurship

Small Business Entry: Paths to Full-Time Entrepreneurship

Small Business Strategies: Imitation With a Twist

Business Plans: Seeing Audiences and Your Business Clearly

Small Business Marketing: Product and Pricing Strategies

Small Business Promotion: Capturing the Eyes of Your Market

Small Business Distribution and Location

Marketing Plans: Saying How Youll Get Salespart Four: Cash, Accounting, and Finance in the Small Business

Cash: Lifeblood of the Business

Small Business Finance: Using Equity, Debt, and Gifts

Assets: Inventory and Operations Management

Small Business Protection: Risk Management and Insurance

Legal Issues: Recognizing Your Small Business Needs

Human Resource Management: Small Business Considerations

Achieving Success in the Small Business

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Exam 13: Small Business Accounting: Projecting and Evaluating Performance

The first step in preparing a master budget is to prepare a _____ budget.

Formal summaries of the content of an accounting system's records of transactions are called financial instruments.

One reason why accounting is important to a small business is that it shows how much your business is worth.

The primary reason to acquire and use a computerized accounting system in your business is to ensure the accuracy of your accounting information.

Which of the following statements is true regarding the balance sheet?

Which of the following statements is true about fixed costs?

Sharon handles a home-made gifts business which has gained popularity in her town.After Sharon moved into a big city,however,her marketing efforts could barely help her get just enough revenue to meet her costs.This means Sharon's business is at:

Financial flexibility of a business is a matter of judgment,whereas financial strength is an objective assessment.

An accounting method that is specifically intended to be used for planning,directing,and controlling a business is called:

Which of the following is a correct representation of typical accounting functions?

Which of the following is true of the differential revenues and expenses method?

Describe the mechanics of a cash flow statement.

Which of the following accounting functions ensures that the employment taxes are kept current?

Briefly explain cost-volume-profit (CVP)analysis.

By limiting the information about financial concerns,the complexity of managerial accounting has been increased.

Briefly discuss the different types of budgets that make up the master budget.

Formal summaries of the content of an accounting system's records of transactions are called _____.

_____ is the most used item on the income statement.

Aaron,a businessman,has a method of keeping track of accounts receivable by sorting them into groups of those that are 30,60,90,and over 90 days past due.Which of the following actions will the collection agency which buys the delinquent account from Aaron do?

What are some of the common management decisions that can be aided by the use of accounting information and procedures? Explain.

Small Business: Its Opportunities and Rewards

Small Business Entrepreneurs: Characteristics and Competencies

Small Business Environment: Managing External Relations

Small Business Ideas: Creativity, Opportunity, and Feasibility

Small Business Entry: Paths to Part-Time Entrepreneurship

Small Business Entry: Paths to Full-Time Entrepreneurship

Small Business Strategies: Imitation With a Twist

Business Plans: Seeing Audiences and Your Business Clearly

Small Business Marketing: Product and Pricing Strategies

Small Business Promotion: Capturing the Eyes of Your Market

Small Business Distribution and Location

Marketing Plans: Saying How Youll Get Salespart Four: Cash, Accounting, and Finance in the Small Business

Cash: Lifeblood of the Business

Small Business Finance: Using Equity, Debt, and Gifts

Assets: Inventory and Operations Management

Small Business Protection: Risk Management and Insurance

Legal Issues: Recognizing Your Small Business Needs

Human Resource Management: Small Business Considerations

Achieving Success in the Small Business

Filters