Question 1

The value of a firm's stock plus any retained earnings that have accumulated to date is referred to as _____.

Accepted Answer

A)   current assets
B)   long-term liabilities
C)   fixed assets
D)   owners' equity
E)   revenueF) C) and E)
G) B) and E)

Question 2

The financial ratio obtained by dividing net income after taxes by the number of shares of common stock outstanding is the _____.

Accepted Answer

A)   working capital
B)   return on owners' equity
C)   current ratio
D)   earnings per share
E)   return on sales ratioF) A) and C)
G) A) and B)

Question 3

List the five steps in a typical accounting cycle.Then explain why each step is important.

Accepted Answer

The five steps in a typical accounting c...

Question 4

An accountant can calculate a return on sales ratio to determine how well the firm is using the money invested by the owners.

Accepted Answer

A) True 
 B)False

Question 5

Ernst & Young, KPMG, and PricewaterhouseCoopers are all

Accepted Answer

A)   private accounting firms.
B)   financial intermediaries.
C)   government accounting agencies.
D)   management consultants.
E)   public accounting firms.F) D) and E)
G) None of the above

Question 6

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 7

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

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.F) C) and E)
G) A) and E)

Question 8

An important measure of a firm's ability to pay its current liabilities quickly is the _____.

Accepted Answer

A)   return on sales ratio
B)   acid-test ratio
C)   calculation of cost of goods sold
D)   earnings per share
E)   debt-to-equity ratioF) B) and E)
G) A) and B)

Question 9

The statement of financial position presents the business firm's assets, liabilities, and owners' equity accounts at the end of an accounting period, such as on December 31, whereas the income statement summarizes operations during a specified accounting period.

Accepted Answer

A) True 
 B)False

Question 10

Accounting is the process of systematically determining how much money a company owes the Internal Revenue Service.

Accepted Answer

A) True 
 B)False

Question 11

The information for a journal entry is written in the general or specialized journal; then a source document for the transaction is prepared.

Accepted Answer

A) True 
 B)False

Question 12

The cash at the end of the year reported on the statement of cash flows is the same as the

Accepted Answer

A)   cash amount reported on the firm's balance sheet.
B)   cash amount reported on the firm's income statement.
C)   net income reported on the firm's income statement.
D)   owners' equity amount reported on the firm's balance sheet.
E)   total amount of assets reported on the firm's balance sheet.F) A) and B)
G) A) and E)

Question 13

Current assets are assets that will be used in two years or less.

Accepted Answer

A) True 
 B)False

Question 14

Owners' equity is the dollar value that remains after the total liabilities of a business are subtracted from its total assets.

Accepted Answer

A) True 
 B)False

Question 15

An audit is

Accepted Answer

A)   performed by the firm's private bookkeepers.
B)   not necessary if the firm used generally accepted bookkeeping procedures.
C)   required by many bankers and lenders who are trying to validate a firm's accounting statements.
D)   a waste of the firm's resources.
E)   a guarantee that a firm hasn't "cooked" the books.F) A) and C)
G) C) and D)

Question 16

Bonds payable are examples of _____.

Accepted Answer

A)   current liabilities
B)   owners' equity
C)   fixed assets
D)   expenses
E)   long-term liabilitiesF) A) and B)
G) C) and D)

Question 17

A type of exam that emphasizes not only accounting but also decision-making and critical-thinking skills is the _____.

Accepted Answer

A)   certified management accounting exam
B)   certified critical thinking exam
C)   decision-support management exam
D)   certified financial planner exam
E)   critical-thinking examF) A) and C)
G) All of the above

Question 18

Describe the employment trends for accountants, auditors, and managers in the accounting profession between now and the year 2016.Then describe what skills employees must have in order to be successful in the accounting profession.

Accepted Answer

The employment trends for accountants, a...

Question 19

Dr.Ted Walker runs a chiropractic clinic.He typically bills his customers for services he performs and gives them about 30 days to make the payments.These amounts of money that his customers owe are called _____.

Accepted Answer

A)   allowances for doubtful accounts
B)   prepaid expenses
C)   unearned revenue
D)   intangible assets
E)   accounts receivableF) D) and E)
G) All of the above

Question 20

Brian has to collect and organize his company's receipts, invoices, and sales slips that show the business's daily transactions.These are all considered ____ in accounting.

Accepted Answer

A)   postings
B)   source documents
C)   general ledgers
D)   specialized ledgers
E)   trial balancesF) All of the above
G) C) and D)

Exam 15: Using Accounting Information

Accounting is the process of systematically determining how much money a company owes the Internal Revenue Service.

Correct AnswerverifiedShow Answer

An important measure of a firm's ability to pay its current liabilities quickly is the _____.

Correct AnswerverifiedShow Answer

Dr.Ted Walker runs a chiropractic clinic.He typically bills his customers for services he performs and gives them about 30 days to make the payments.These amounts of money that his customers owe are called _____.

Correct AnswerverifiedShow Answer

The cash at the end of the year reported on the statement of cash flows is the same as the

Correct AnswerverifiedShow Answer

An accountant can calculate a return on sales ratio to determine how well the firm is using the money invested by the owners.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Describe the employment trends for accountants, auditors, and managers in the accounting profession between now and the year 2016.Then describe what skills employees must have in order to be successful in the accounting profession.

Correct AnswerAnswered by ExamLex AIThe employment trends for accountants, a...View AnswerShow Answer

The financial ratio obtained by dividing net income after taxes by the number of shares of common stock outstanding is the _____.

Correct AnswerverifiedShow Answer

List the five steps in a typical accounting cycle.Then explain why each step is important.

Correct AnswerAnswered by ExamLex AIThe five steps in a typical accounting c...View AnswerShow Answer

Ernst & Young, KPMG, and PricewaterhouseCoopers are all

Correct AnswerverifiedShow Answer

An audit is

Correct AnswerverifiedShow Answer

Current assets are assets that will be used in two years or less.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The information for a journal entry is written in the general or specialized journal; then a source document for the transaction is prepared.

Correct AnswerverifiedShow Answer

Owners' equity is the dollar value that remains after the total liabilities of a business are subtracted from its total assets.

Correct AnswerverifiedShow Answer

The statement of financial position presents the business firm's assets, liabilities, and owners' equity accounts at the end of an accounting period, such as on December 31, whereas the income statement summarizes operations during a specified accounting period.

Correct AnswerverifiedShow Answer

The value of a firm's stock plus any retained earnings that have accumulated to date is referred to as _____.

Correct AnswerverifiedShow Answer

Brian has to collect and organize his company's receipts, invoices, and sales slips that show the business's daily transactions.These are all considered ____ in accounting.

Correct AnswerverifiedShow Answer

A type of exam that emphasizes not only accounting but also decision-making and critical-thinking skills is the _____.

Correct AnswerverifiedShow Answer

Bonds payable are examples of _____.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
The employment trends for accountants, a...
View Answer

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
The five steps in a typical accounting c...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified