Question 1

The most liquid asset is

Accepted Answer

A) sales. 
B) accounts receivable. 
C) marketable securities. 
D) cash. 
E) capital. 
A) sales. 
B) accounts receivable. 
C) marketable securities. 
D) cash. 
E) capital.

Question 2

Regina owns and operates her own bakery and coffee shop. Regina has no accounting training and has only three employees. How does she most likely handle the necessary accounting for her business?

Accepted Answer

A) She does it herself because it takes little training or knowledge. 
B) She hires a private accountant to work for her and take care of the accounting functions. 
C) She has one of her part-time chefs do the accounting when he has time. 
D) She pays a public accountant to do the accounting for her business. 
E) She does nothing at all, because accounting is not necessary for businesses. 
A) She does it herself because it takes little training or knowledge. 
B) She hires a private accountant to work for her and take care of the accounting functions. 
C) She has one of her part-time chefs do the accounting when he has time. 
D) She pays a public accountant to do the accounting for her business. 
E) She does nothing at all, because accounting is not necessary for businesses.

Question 3

Current assets are assets that can be converted quickly into cash or that will be used in two years or less.

Accepted Answer

A) True 
 B)False

Question 4

During the year Comer, Inc., had $200,000 in goods available for sale. At the end of the accounting period it had an ending inventory of $40,000. This reveals that it had sold all but ____ worth of the available goods.

Accepted Answer

A) $200,000 
B) $160,000 
C) $40,000 
D) $20,000 
E) $10,000 
A) $200,000 
B) $160,000 
C) $40,000 
D) $20,000 
E) $10,000

Question 5

As the accountant for Ideal Manufacturing Company, you determine the following totals in your balance sheet: total assets-$124,000; current liabilities-$41,000; long-term liabilities-$13,000. What is the total owners' equity for this company?

Accepted Answer

A) $178,000 
B) $165,000 
C) $137,000 
D) $70,000 
E) $0 
A) $178,000 
B) $165,000 
C) $137,000 
D) $70,000 
E) $0

Question 6

Jessica has worked for one week but her employer only pays its employees every two weeks. The amount of money her company owes her is classified as

Accepted Answer

A) accounts notable. 
B) accounts receivable. 
C) notes payable. 
D) prepaid wages. 
E) salaries payable. 
A) accounts notable. 
B) accounts receivable. 
C) notes payable. 
D) prepaid wages. 
E) salaries payable.

Question 7

In what ways does the Sarbanes-Oxley Act improve the validity of the information provided by a firm's accounting system?

Accepted Answer

Key components of the act include:
The S

Question 8

The debts of a business that will be paid in one year or less are called its

Accepted Answer

A) current liabilities. 
B) expenses. 
C) prepaid expenses. 
D) current assets. 
E) long-term liabilities. 
A) current liabilities. 
B) expenses. 
C) prepaid expenses. 
D) current assets. 
E) long-term liabilities.

Question 9

Beginning inventory plus net purchases minus ending inventory equals

Accepted Answer

A) cost of goods sold. 
B) gross profit on sales. 
C) total revenue. 
D) the balance of merchandise inventory. 
E) net income before sales. 
A) cost of goods sold. 
B) gross profit on sales. 
C) total revenue. 
D) the balance of merchandise inventory. 
E) net income before sales.

Question 10

Which of the following presents assets in the correct balance sheet order?

Accepted Answer

A) Cash, land, accounts receivable, equipment 
B) Marketable securities, equipment, prepaid insurance, inventory 
C) Cash, inventory, equipment 
D) Accounts receivable, buildings, inventory, land 
E) Buildings, prepaid expenses, inventory, equipment 
A) Cash, land, accounts receivable, equipment 
B) Marketable securities, equipment, prepaid insurance, inventory 
C) Cash, inventory, equipment 
D) Accounts receivable, buildings, inventory, land 
E) Buildings, prepaid expenses, inventory, equipment

Question 11

Ridgley, Cooper, and Ross (RCR)
Katie is the CEO of Ridgley, Cooper, and Ross (RCR), a regional accounting firm. RCR 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, RCR could be considered a violator of the Sarbanes-Oxley Act. Katie 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 Ridgley, Cooper, and Ross. Which of the following represents a key component of the Sarbanes-Oxley Act relating to consulting services?

Accepted Answer

A) A public corporation must change its lead consulting firm every five years. 
B) Accounting firms are prohibited from providing many types of consulting services to the companies they audit. 
C) Accounting firms who report violations of the Sarbanes-Oxley Act must be banned from consulting for five years. 
D) The SEC is required to establish a full-time five-member federal oversight board that will police the consulting industry. 
E) Consultants must maintain financial documents and audit work papers for fifteen years. 
A) A public corporation must change its lead consulting firm every five years. 
B) Accounting firms are prohibited from providing many types of consulting services to the companies they audit. 
C) Accounting firms who report violations of the Sarbanes-Oxley Act must be banned from consulting for five years. 
D) The SEC is required to establish a full-time five-member federal oversight board that will police the consulting industry. 
E) Consultants must maintain financial documents and audit work papers for fifteen years.

Question 12

Marilyn provides piano lessons to students in her home four days a week. The money she earns from providing these services would be called ____ on an income statement.

Accepted Answer

A) expenses 
B) cash 
C) revenues 
D) retained earnings 
E) equity 
A) expenses 
B) cash 
C) revenues 
D) retained earnings 
E) equity

Question 13

The information provided by managerial accounting is of most benefit to a firm's

Accepted Answer

A) investors. 
B) creditors. 
C) managers. 
D) lenders. 
E) bankers. 
A) investors. 
B) creditors. 
C) managers. 
D) lenders. 
E) bankers.

Question 14

Christine's First Job
Christine 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. Christine accepted the job.
Once Christine 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 knowledg
-Refer to Christine's First Job. To help the owners understand how effectively the firm is transforming sales into profits, Christine 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 15

Because information rules must be checked out before a decision can be made, they lengthen the time required to analyze choices.

Accepted Answer

A) True 
 B)False

Question 16

Ridgley, Cooper, and Ross (RCR)
Katie is the CEO of Ridgley, Cooper, and Ross (RCR), a regional accounting firm. RCR 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, RCR could be considered a violator of the Sarbanes-Oxley Act. Katie 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 Ridgley, Cooper, and Ross. In order to be successful in the accounting industry, RCR employees must

Accepted Answer

A) know all areas of accounting and marketing. 
B) have complete human resources training. 
C) be able to communicate in multiple languages. 
D) know how to do accounting the old fashioned way-using the manual, double-entry system. 
E) have a strong background in financial management. 
A) know all areas of accounting and marketing. 
B) have complete human resources training. 
C) be able to communicate in multiple languages. 
D) know how to do accounting the old fashioned way-using the manual, double-entry system. 
E) have a strong background in financial management.

Question 17

The earnings statement is another term for the

Accepted Answer

A) balance sheet. 
B) income statement. 
C) statement of financial position. 
D) owners' equity statement. 
E) capital statement. 
A) balance sheet. 
B) income statement. 
C) statement of financial position. 
D) owners' equity statement. 
E) capital statement.

Question 18

Resources that a firm owns are called

Accepted Answer

A) revenue. 
B) liabilities. 
C) owners' equity. 
D) assets. 
E) expenses. 
A) revenue. 
B) liabilities. 
C) owners' equity. 
D) assets. 
E) expenses.

Question 19

​The ___ is divided by the average inventory to obtain the inventory turnover. expenses

Accepted Answer

A) ​cost of goods sold 
B) ​revenues 
C) ​liabilities 
D) ​expenses 
A) ​cost of goods sold 
B) ​revenues 
C) ​liabilities 
D) ​expenses

Question 20

The purpose of ____ is to distribute timely and useful information from both internal and external sources to the decision makers who need it.

Accepted Answer

A) a manager awareness program 
B) a management information system 
C) entrepreneurial information software 
D) a computer information program 
E) a desktop information system 
A) a manager awareness program 
B) a management information system 
C) entrepreneurial information software 
D) a computer information program 
E) a desktop information system

The most liquid asset is

Regina owns and operates her own bakery and coffee shop. Regina has no accounting training and has only three employees. How does she most likely handle the necessary accounting for her business?

Current assets are assets that can be converted quickly into cash or that will be used in two years or less.

During the year Comer, Inc., had $200,000 in goods available for sale. At the end of the accounting period it had an ending inventory of $40,000. This reveals that it had sold all but ____ worth of the available goods.

As the accountant for Ideal Manufacturing Company, you determine the following totals in your balance sheet: total assets-$124,000; current liabilities-$41,000; long-term liabilities-$13,000. What is the total owners' equity for this company?

Jessica has worked for one week but her employer only pays its employees every two weeks. The amount of money her company owes her is classified as

In what ways does the Sarbanes-Oxley Act improve the validity of the information provided by a firm's accounting system?

The debts of a business that will be paid in one year or less are called its

Beginning inventory plus net purchases minus ending inventory equals

Which of the following presents assets in the correct balance sheet order?

Marilyn provides piano lessons to students in her home four days a week. The money she earns from providing these services would be called ____ on an income statement.

The information provided by managerial accounting is of most benefit to a firm's

Because information rules must be checked out before a decision can be made, they lengthen the time required to analyze choices.

The earnings statement is another term for the

Resources that a firm owns are called

The ___ is divided by the average inventory to obtain the inventory turnover. expenses

The purpose of ____ is to distribute timely and useful information from both internal and external sources to the decision makers who need it.

Exploring the World of Business and Economics

Being Ethical and Socially Responsible

Exploring 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 and Teams

Building Customer Relationships Through Effective Marketing

Creating and Pricing Products That Satisfy Customers

Distributing and Promoting Products

Understanding Social Media and E-Business

Mastering Financial Management

Filters

Exam 15: Using Management Information Systems and Accounting Information

The most liquid asset is

Regina owns and operates her own bakery and coffee shop. Regina has no accounting training and has only three employees. How does she most likely handle the necessary accounting for her business?

Current assets are assets that can be converted quickly into cash or that will be used in two years or less.

During the year Comer, Inc., had $200,000 in goods available for sale. At the end of the accounting period it had an ending inventory of $40,000. This reveals that it had sold all but ____ worth of the available goods.

As the accountant for Ideal Manufacturing Company, you determine the following totals in your balance sheet: total assets-$124,000; current liabilities-$41,000; long-term liabilities-$13,000. What is the total owners' equity for this company?

Jessica has worked for one week but her employer only pays its employees every two weeks. The amount of money her company owes her is classified as

In what ways does the Sarbanes-Oxley Act improve the validity of the information provided by a firm's accounting system?

The debts of a business that will be paid in one year or less are called its

Beginning inventory plus net purchases minus ending inventory equals

Which of the following presents assets in the correct balance sheet order?

Marilyn provides piano lessons to students in her home four days a week. The money she earns from providing these services would be called ____ on an income statement.

The information provided by managerial accounting is of most benefit to a firm's

Because information rules must be checked out before a decision can be made, they lengthen the time required to analyze choices.

The earnings statement is another term for the

Resources that a firm owns are called

​The ___ is divided by the average inventory to obtain the inventory turnover. expenses

The purpose of ____ is to distribute timely and useful information from both internal and external sources to the decision makers who need it.

Exploring the World of Business and Economics

Being Ethical and Socially Responsible

Exploring 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 and Teams

Building Customer Relationships Through Effective Marketing

Creating and Pricing Products That Satisfy Customers

Distributing and Promoting Products

Understanding Social Media and E-Business

Mastering Financial Management

Filters

The ___ is divided by the average inventory to obtain the inventory turnover. expenses