Question 1

Describe the mechanics of a cash flow statement.

Accepted Answer

The answer of Describe the mechanics of a cash flow...

Question 2

A comprehensive budget is also referred to as the:

Accepted Answer

A)  master budget. 
B)  sales budget. 
C)  purchases budget. 
D)  universal budget.

Question 3

Identify the managerial accounting technique which looks at the fixed and variable costs of a business to arrive at a number of unit sales to maximize gains.

Accepted Answer

A)  Cost-volume-profit analysis 
B)  Marginal revenue costs analysis 
C)  Break even analysis 
D)  Cash flow analysis

Question 4

Identify,define,and briefly explain the three types of accounting.

Accepted Answer

The answer of Identify,define,and briefly explain the three types of...

Question 5

The ______ is also called the Statement of Financial Position.

Accepted Answer

A)  cash flow statement 
B)  income statement 
C)  balance sheet 
D)  statement of retained earnings

Question 6

_____ analysis is based on the concept that a dollar to be received right now has more utility than does a dollar to be received at some time in the future.

Accepted Answer

A)  Liquidity 
B)  Net present value 
C)  Financial strength 
D)  Budget

Question 7

The primary purpose of managerial accounting is to ________.

Accepted Answer

A)  help managers perform the control function 
B)  aid in staffing decisions 
C)  make manager's lives easier 
D)  support good decision making

Question 8

Which of the following is true of theories based on the bounded rationality models?

Accepted Answer

A)  It assumes that people are inefficient processors of information. 
B)  It assumes that people use complete information and incomplete analyses to make decisions. 
C)  It assumes that people have unlimited abilities to obtain and process information. 
D)  It assumes that the human mind is fundamentally irrational.

Question 9

Differentiate between income statement and balance sheet.

Accepted Answer

The answer of Differentiate between income statement and balance sheet....

Question 10

Which of the following statements is not true of computerized accounting systems?

Accepted Answer

A)  The market for computerized accounting programs for small businesses is in a state of turmoil. 
B)  All systems have a cost attached with the cheapest system being about $10 per month. 
C)  Out of 75 different computerized accounting programs,4 programs account for the majority of small business use. 
D)  All of the systems will produce financial reports that meet legal requirements for content and format.

Question 11

Statement of cash flows is also referred to as the statement of financial position.

Accepted Answer

A) True 
 B)False

Question 12

The quantity of items sold times the price expected to be paid for each product is the calculation used for the:

Accepted Answer

A)  overhead budget. 
B)  sales budget. 
C)  purchases budget. 
D)  cost of goods sold budget.

Question 13

Which among the following is an example of a variable cost?

Accepted Answer

A)  Lighting 
B)  Security 
C)  Shipping 
D)  Cleaning

Question 14

Financial accounting is primarily intended for:

Accepted Answer

A)  bankers,investors,and regulators. 
B)  calculating and reporting taxes. 
C)  predicting the results of management decisions. 
D)  avoiding penalties for noncompliance.

Question 15

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.

Question 16

_____ refers to the ability of a business to survive adverse financial events.

Accepted Answer

A)  Liquidity 
B)  Financial flexibility 
C)  Financial strength 
D)  Profitability

Question 17

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 18

Which of the following statements lists revenues and expenses and shows the amount of profit a business makes for a specified period of time?

Accepted Answer

A)  Balance sheet 
B)  Statement of retained earnings 
C)  Income statement 
D)  Cash flow statement

Question 19

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

Accepted Answer

The answer of What are some of the common management...

Question 20

The "business entity" concept of accounting indicates that:

Accepted Answer

A)  a successful business will stay in business. 
B)  assets = liabilities + owners' equity. 
C)  a business has an existence that is separate from its owner. 
D)  accounting information must be useful to the owners and managers of businesses.

Exam 12: Small Business Accounting: Projecting and Evaluating Performance

Describe the mechanics of a cash flow statement.

A comprehensive budget is also referred to as the:

Identify the managerial accounting technique which looks at the fixed and variable costs of a business to arrive at a number of unit sales to maximize gains.

Identify,define,and briefly explain the three types of accounting.

The ______ is also called the Statement of Financial Position.

_____ analysis is based on the concept that a dollar to be received right now has more utility than does a dollar to be received at some time in the future.

The primary purpose of managerial accounting is to ________.

Which of the following is true of theories based on the bounded rationality models?

Differentiate between income statement and balance sheet.

Which of the following statements is not true of computerized accounting systems?

Statement of cash flows is also referred to as the statement of financial position.

The quantity of items sold times the price expected to be paid for each product is the calculation used for the:

Which among the following is an example of a variable cost?

Financial accounting is primarily intended for:

Which of the following statements is true about fixed costs?

_____ refers to the ability of a business to survive adverse financial events.

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

Which of the following statements lists revenues and expenses and shows the amount of profit a business makes for a specified period of time?

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

The "business entity" concept of accounting indicates that: