Question 1

The statement of cash flows for a business offers information on all of the following except

Accepted Answer

A) available cash to pay a company's bills. 
B) expenses during a particular accounting period. 
C) available cash to pay dividends to stockholders. 
D) decisions about the evaluation of a company's future investments. 
E) a company's financing needs. 
A) available cash to pay a company's bills. 
B) expenses during a particular accounting period. 
C) available cash to pay dividends to stockholders. 
D) decisions about the evaluation of a company's future investments. 
E) a company's financing needs.

Question 2

​Jose is reviewing the operating expenses for his business. He notices that operating expenses are categorized as ___ expenses related to his business' marketing activities or ___ expenses incurred in managing the business.

Accepted Answer

A) ​selling; general 
B) ​large; small 
C) ​current; long term 
D) ​ 
A) ​selling; general 
B) ​large; small 
C) ​current; long term 
D) ​

Question 3

Intel decides to issue new stock in order to build a new facility and expand its operations. The receipt of cash from this stock issue would appear in the ____ section of the statement of cash flows.

Accepted Answer

A) operating 
B) business 
C) equity 
D) investing 
E) financing 
A) operating 
B) business 
C) equity 
D) investing 
E) financing

Question 4

The cost of goods sold divided by the average inventory equals the

Accepted Answer

A) gross profit on operations. 
B) beginning inventory value. 
C) merchandise inventory. 
D) ending inventory value. 
E) inventory turnover. 
A) gross profit on operations. 
B) beginning inventory value. 
C) merchandise inventory. 
D) ending inventory value. 
E) inventory turnover.

Question 5

The debts of a business are called its liabilities.

Accepted Answer

A) True 
 B)False

Question 6

A(n) ____ is a summary of a firm's revenues and expenses during a specified accounting period, such as a year.

Accepted Answer

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

Question 7

The statement of cash flows illustrates the effects on cash of the operating, investing, and financing activities of a company for an accounting period.

Accepted Answer

A) True 
 B)False

Question 8

A low inventory turnover can be improved by ordering merchandise in smaller quantities at more frequent intervals.

Accepted Answer

A) True 
 B)False

Question 9

The resources owned by David's Spa and Salon 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

Which of the following statements about the Sarbanes-Oxley Act is incorrect?

Accepted Answer

A) The act was passed in 1996. 
B) Because the act is complex, compliance is more expensive and time consuming for corporate management. 
C) Because of the act, the SEC was required to establish a federal oversight board. 
D) Because of the act, a corporation's chief executive and financial officers must certify financial reports. 
E) The act strengthened the penalty for destroying financial documents related to an audit. 
A) The act was passed in 1996. 
B) Because the act is complex, compliance is more expensive and time consuming for corporate management. 
C) Because of the act, the SEC was required to establish a federal oversight board. 
D) Because of the act, a corporation's chief executive and financial officers must certify financial reports. 
E) The act strengthened the penalty for destroying financial documents related to an audit.

Question 11

What ratio is used to measure a firm's ability to pay its current liabilities and what does this ratio tell a manager? How can a low ratio be improved?

Accepted Answer

A firm's current ratio can be used to ev

Question 12

Each month, Bath & Body Works pays employees wages, telephone bills, and salaries to accountants. These are all considered

Accepted Answer

A) cost of goods sold. 
B) gross profit. 
C) sales allowances. 
D) operating expenses. 
E) current assets. 
A) cost of goods sold. 
B) gross profit. 
C) sales allowances. 
D) operating expenses. 
E) current assets.

Question 13

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 14

What are the differences between managerial accounting and financial accounting? From a career standpoint, which type do you prefer and why?

Accepted Answer

Answers will vary. Managerial accounting

Question 15

The financial statement that provides information about a firm's operating, investing, and financing activities during an accounting period is the

Accepted Answer

A) balance sheet. 
B) income statement. 
C) cash flows statement. 
D) retained earnings statement. 
E) financial analysis statement. 
A) balance sheet. 
B) income statement. 
C) cash flows statement. 
D) retained earnings statement. 
E) financial analysis statement.

Question 16

Which of the following statements is false?

Accepted Answer

A) It is possible to compare one firm's accounting data with another firm's accounting data as long as both firms used generally accepted accounting procedures. 
B) Many managers compare the financial results from one accounting period with the results from previous accounting periods. 
C) Most corporations include in their annual reports comparisons of important elements of their financial statements for recent years. 
D) The format and information contained in one firm's financial statements are most likely to differ drastically from the format and information contained in another firm's financial statements. 
E) Many firms compare their financial results with industry averages. 
A) It is possible to compare one firm's accounting data with another firm's accounting data as long as both firms used generally accepted accounting procedures. 
B) Many managers compare the financial results from one accounting period with the results from previous accounting periods. 
C) Most corporations include in their annual reports comparisons of important elements of their financial statements for recent years. 
D) The format and information contained in one firm's financial statements are most likely to differ drastically from the format and information contained in another firm's financial statements. 
E) Many firms compare their financial results with industry averages.

Question 17

​____ and ____ are the normal income statement designations for profit and loss for a business.

Accepted Answer

A) ​Cash surplus; cash deficit 
B) ​Income overage; income deficit 
C) ​Surplus; deficit 
D) ​Gain; loss 
A) ​Cash surplus; cash deficit 
B) ​Income overage; income deficit 
C) ​Surplus; deficit 
D) ​Gain; loss

Question 18

The process of spreading the cost of a fixed asset over the asset's useful life is called

Accepted Answer

A) expensing. 
B) depreciation. 
C) apportioning. 
D) crediting. 
E) distributing. 
A) expensing. 
B) depreciation. 
C) apportioning. 
D) crediting. 
E) distributing.

Question 19

All of the following are acceptable ways of stating the accounting equation except

Accepted Answer

A) owners' equity = assets − liabilities. 
B) assets = liabilities + owners' equity. 
C) owners' equity − liabilities = assets. 
D) assets − liabilities = owners' equity. 
E) assets = shareholders' equity + liabilities. 
A) owners' equity = assets − liabilities. 
B) assets = liabilities + owners' equity. 
C) owners' equity − liabilities = assets. 
D) assets − liabilities = owners' equity. 
E) assets = shareholders' equity + liabilities.

Question 20

The purpose of an audit is to ensure that financial statements have been prepared according to

Accepted Answer

A) the particular company's standards. 
B) the industry's standards. 
C) generally accepted accounting principles. 
D) international accounting standards. 
E) the standards of certified public accountants. 
A) the particular company's standards. 
B) the industry's standards. 
C) generally accepted accounting principles. 
D) international accounting standards. 
E) the standards of certified public accountants.

The statement of cash flows for a business offers information on all of the following except

Jose is reviewing the operating expenses for his business. He notices that operating expenses are categorized as _ expenses related to his business' marketing activities or _ expenses incurred in managing the business.

Intel decides to issue new stock in order to build a new facility and expand its operations. The receipt of cash from this stock issue would appear in the ____ section of the statement of cash flows.

The cost of goods sold divided by the average inventory equals the

The debts of a business are called its liabilities.

A(n) ____ is a summary of a firm's revenues and expenses during a specified accounting period, such as a year.

The statement of cash flows illustrates the effects on cash of the operating, investing, and financing activities of a company for an accounting period.

A low inventory turnover can be improved by ordering merchandise in smaller quantities at more frequent intervals.

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

Which of the following statements about the Sarbanes-Oxley Act is incorrect?

What ratio is used to measure a firm's ability to pay its current liabilities and what does this ratio tell a manager? How can a low ratio be improved?

Each month, Bath & Body Works pays employees wages, telephone bills, and salaries to accountants. These are all considered

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?

What are the differences between managerial accounting and financial accounting? From a career standpoint, which type do you prefer and why?

The financial statement that provides information about a firm's operating, investing, and financing activities during an accounting period is the

Which of the following statements is false?

and are the normal income statement designations for profit and loss for a business.

The process of spreading the cost of a fixed asset over the asset's useful life is called

All of the following are acceptable ways of stating the accounting equation except

The purpose of an audit is to ensure that financial statements have been prepared according to

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

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Exam 15: Using Management Information Systems and Accounting Information

The statement of cash flows for a business offers information on all of the following except

​Jose is reviewing the operating expenses for his business. He notices that operating expenses are categorized as ___ expenses related to his business' marketing activities or ___ expenses incurred in managing the business.

Intel decides to issue new stock in order to build a new facility and expand its operations. The receipt of cash from this stock issue would appear in the ____ section of the statement of cash flows.

The cost of goods sold divided by the average inventory equals the

The debts of a business are called its liabilities.

A(n) ____ is a summary of a firm's revenues and expenses during a specified accounting period, such as a year.

The statement of cash flows illustrates the effects on cash of the operating, investing, and financing activities of a company for an accounting period.

A low inventory turnover can be improved by ordering merchandise in smaller quantities at more frequent intervals.

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

Which of the following statements about the Sarbanes-Oxley Act is incorrect?

What ratio is used to measure a firm's ability to pay its current liabilities and what does this ratio tell a manager? How can a low ratio be improved?

Each month, Bath & Body Works pays employees wages, telephone bills, and salaries to accountants. These are all considered

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?

What are the differences between managerial accounting and financial accounting? From a career standpoint, which type do you prefer and why?

The financial statement that provides information about a firm's operating, investing, and financing activities during an accounting period is the

Which of the following statements is false?

​____ and ____ are the normal income statement designations for profit and loss for a business.

The process of spreading the cost of a fixed asset over the asset's useful life is called

All of the following are acceptable ways of stating the accounting equation except

The purpose of an audit is to ensure that financial statements have been prepared according to

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

Jose is reviewing the operating expenses for his business. He notices that operating expenses are categorized as _ expenses related to his business' marketing activities or _ expenses incurred in managing the business.

and are the normal income statement designations for profit and loss for a business.