Question 1

The ending cash balance reported on the statement of cash flows is the same as the net sales amount reported on the firm's income statement.

Accepted Answer

A) True 
 B)False

Question 2

Without the audit function and GAAP, there would be very little oversight or supervision of corporate accounting practices.

Accepted Answer

A) True 
 B)False

Question 3

Information rules

Accepted Answer

A)   emerge when research confirms the same results each time a problem is studied.
B)   are of no use to most managers because situations are constantly changing.
C)   are often called the great confusers.
D)   cost too much to implement.
E)   are valid only when they can be used to aid the decision-making process over a large number of years.F) B) and E)
G) A) and E)

Question 4

When Nathan applied for a loan to expand his sailboat business, the bank required that his financial statements be carefully examined by a CPA. The bank is requiring Nathan to have his financial statements

Accepted Answer

A)   verified.
B)   audited.
C)   affirmed.
D)   certified.
E)   insured.F) B) and D)
G) C) and E)

Question 5

A private accountant is an accountant whose services may be hired on a fee basis by individuals or business firms.

Accepted Answer

A) True 
 B)False

Question 6

Information rules do all of the following except

Accepted Answer

A)   shorten the time spent analyzing choices.
B)   correctly guide marketing decision makers.
C)   help both managers and consumers make decisions.
D)   remain valid forever once they are established.
E)   emerge when research confirms the same results in repeated trials.F) A) and E)
G) All of the above

Question 7

The following quotation would most likely be found in the ____ of a business report: "This report evaluates the significant decrease in sales experienced in the previous quarter and incorporates the results of surveys and interviews with customers, management, and economists."

Accepted Answer

A)   body
B)   conclusion
C)   analysis
D)   recommendations
E)   introductionF) C) and E)
G) C) and D)

Question 8

All of the following would be examples of internal information sources except company

Accepted Answer

A)   records.
B)   managers.
C)   competitors.
D)   reports.
E)   meetings.F) All of the above
G) A) and B)

Question 9

Why would managers, lenders, and investors compare current financial statements with those prepared for past accounting periods?

Accepted Answer

Managers, lenders, and investors often c...

Question 10

Resources that a firm owns are called

Accepted Answer

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

Question 11

If the assets of Martin's Pet Store are $107,000 and the owners' equity is $75,000, which of the following is a true statement?

Accepted Answer

A)   The owners' investment equals $182,000.
B)   The current assets are worth $32,000.
C)   The new income for the period is $32,000.
D)   The long-term liabilities are $75,000.
E)   The liabilities are $32,000.F) None of the above
G) A) and E)

Question 12

Since business has been rapidly expanding, A Shot of Sugar Bakery decides to purchase a second industrial oven. The cash paid for this oven would be listed in the ____ section of the statement of cash flows.

Accepted Answer

A)   operating
B)   purchasing
C)   investing
D)   financing
E)   businessF) A) and D)
G) C) and D)

Question 13

Patents and copyrights confer value on a firm but do not exist physically. Thus, they are identified as

Accepted Answer

A)   current assets.
B)   prepaid expenses.
C)   fixed assets.
D)   intangible assets.
E)   owners' equity.F) A) and D)
G) B) and D)

Question 14

Define a balance sheet (also called a statement of financial position). What does it balance?

Accepted Answer

A balance sheet, also known as a stateme...

Question 15

Most data gathered for an MIS come from

Accepted Answer

A)   customers.
B)   bankers.
C)   external sources.
D)   internal sources.
E)   information obtained from data firms.F) A) and B)
G) A) and C) D

Question 16

Mary Nettles works for a marketing and advertising firm. She must choose one ad piece from a number of potential ad pieces. To ensure that she makes the right decision, she should

Accepted Answer

A)   put a brief description of each ad piece in a hat and draw one.
B)   ignore any feedback that she gets from coworkers and consumers and make the decision herself.
C)   gather information from coworkers and consumers on their reaction to the different ad pieces.
D)   let her supervisor choose the ad piece.
E)   discard all ad pieces and develop a new advertising campaign.F) D) and E)
G) B) and E)

Question 17

Today corporations are required to send their stockholders an annual report. Assume that you are a prospective investor trying to decide if you should invest in a specific corporation. What type of information is contained in an annual report that would help you decide if this is the right investment for you?

Accepted Answer

An annual report typically contains a va...

Question 18

A prepaid expense would be classified as

Accepted Answer

A)   an expense.
B)   an unearned revenue.
C)   a liability.
D)   an asset.
E)   cost of goods sold.F) A) and B)
G) A) and C) D

Question 19

Extreme Sports, a bicycle, ATV, and motorbike retailer, buys its inventory on credit. Before Extreme pays for this merchandise in 60 days, the money owed is classified on its balance sheet as a(n)

Accepted Answer

A)   current asset.
B)   intangible asset.
C)   account payable.
D)   long-term liability.
E)   account receivable.F) D) and E)
G) C) and E)

Question 20

Since furniture and store equipment for Rosalind's Boutique will be held or used for a period longer than one year, they are considered

Accepted Answer

A)   fixed assets.
B)   owners' equity.
C)   revenue.
D)   current assets.
E)   prepaid expenses.F) A) and E)
G) B) and C) A

Exam 17: Using Management and Accounting Information

The ending cash balance reported on the statement of cash flows is the same as the net sales amount reported on the firm's income statement.

Correct Answer
verified

Without the audit function and GAAP, there would be very little oversight or supervision of corporate accounting practices.

Correct Answer
verified

Information rules

Correct Answer
verified

When Nathan applied for a loan to expand his sailboat business, the bank required that his financial statements be carefully examined by a CPA. The bank is requiring Nathan to have his financial statements

Correct Answer
verified

A private accountant is an accountant whose services may be hired on a fee basis by individuals or business firms.

Correct Answer
verified

Information rules do all of the following except

Correct Answer
verified

The following quotation would most likely be found in the ____ of a business report: "This report evaluates the significant decrease in sales experienced in the previous quarter and incorporates the results of surveys and interviews with customers, management, and economists."

Correct Answer
verified

All of the following would be examples of internal information sources except company

Correct Answer
verified

Why would managers, lenders, and investors compare current financial statements with those prepared for past accounting periods?

Correct Answer
Answered by ExamLex AI
Managers, lenders, and investors often c...
View Answer

Resources that a firm owns are called

Correct Answer
verified

If the assets of Martin's Pet Store are $107,000 and the owners' equity is $75,000, which of the following is a true statement?

Correct Answer
verified

Since business has been rapidly expanding, A Shot of Sugar Bakery decides to purchase a second industrial oven. The cash paid for this oven would be listed in the ____ section of the statement of cash flows.

Correct Answer
verified

Patents and copyrights confer value on a firm but do not exist physically. Thus, they are identified as

Correct Answer
verified

Define a balance sheet (also called a statement of financial position). What does it balance?

Correct Answer
Answered by ExamLex AI
A balance sheet, also known as a stateme...
View Answer

Most data gathered for an MIS come from

Correct Answer
verified
D

Mary Nettles works for a marketing and advertising firm. She must choose one ad piece from a number of potential ad pieces. To ensure that she makes the right decision, she should

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
An annual report typically contains a va...
View Answer

A prepaid expense would be classified as

Correct Answer
verified
D

Extreme Sports, a bicycle, ATV, and motorbike retailer, buys its inventory on credit. Before Extreme pays for this merchandise in 60 days, the money owed is classified on its balance sheet as a(n)

Correct Answer
verified

Since furniture and store equipment for Rosalind's Boutique will be held or used for a period longer than one year, they are considered

Correct Answer
verified
A

Exam 17: Using Management and Accounting Information

The ending cash balance reported on the statement of cash flows is the same as the net sales amount reported on the firm's income statement.

Correct AnswerverifiedShow Answer

Without the audit function and GAAP, there would be very little oversight or supervision of corporate accounting practices.

Correct AnswerverifiedShow Answer

Information rules

Correct AnswerverifiedShow Answer

When Nathan applied for a loan to expand his sailboat business, the bank required that his financial statements be carefully examined by a CPA. The bank is requiring Nathan to have his financial statements

Correct AnswerverifiedShow Answer

A private accountant is an accountant whose services may be hired on a fee basis by individuals or business firms.

Correct AnswerverifiedShow Answer

Information rules do all of the following except

Correct AnswerverifiedShow Answer

The following quotation would most likely be found in the ____ of a business report: "This report evaluates the significant decrease in sales experienced in the previous quarter and incorporates the results of surveys and interviews with customers, management, and economists."

Correct AnswerverifiedShow Answer

All of the following would be examples of internal information sources except company

Correct AnswerverifiedShow Answer

Why would managers, lenders, and investors compare current financial statements with those prepared for past accounting periods?

Correct AnswerAnswered by ExamLex AIManagers, lenders, and investors often c...View AnswerShow Answer

Resources that a firm owns are called

Correct AnswerverifiedShow Answer

If the assets of Martin's Pet Store are $107,000 and the owners' equity is $75,000, which of the following is a true statement?

Correct AnswerverifiedShow Answer

Since business has been rapidly expanding, A Shot of Sugar Bakery decides to purchase a second industrial oven. The cash paid for this oven would be listed in the ____ section of the statement of cash flows.

Correct AnswerverifiedShow Answer

Patents and copyrights confer value on a firm but do not exist physically. Thus, they are identified as

Correct AnswerverifiedShow Answer

Define a balance sheet (also called a statement of financial position). What does it balance?

Correct AnswerAnswered by ExamLex AIA balance sheet, also known as a stateme...View AnswerShow Answer

Most data gathered for an MIS come from

Correct AnswerverifiedD

Mary Nettles works for a marketing and advertising firm. She must choose one ad piece from a number of potential ad pieces. To ensure that she makes the right decision, she should

Correct AnswerverifiedShow Answer

Correct AnswerAnswered by ExamLex AIAn annual report typically contains a va...View AnswerShow Answer

A prepaid expense would be classified as

Correct AnswerverifiedD

Extreme Sports, a bicycle, ATV, and motorbike retailer, buys its inventory on credit. Before Extreme pays for this merchandise in 60 days, the money owed is classified on its balance sheet as a(n)

Correct AnswerverifiedShow Answer

Since furniture and store equipment for Rosalind's Boutique will be held or used for a period longer than one year, they are considered

Correct AnswerverifiedA

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
Answered by ExamLex AI
Managers, lenders, and investors often c...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
A balance sheet, also known as a stateme...
View Answer

Correct Answer
verified
D

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
An annual report typically contains a va...
View Answer

Correct Answer
verified
D

Correct Answer
verified

Correct Answer
verified
A