Question 1

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

Question 2

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 3

The Cheese Shoppe's liabilities total $59,000 and its owners' equity is $124,000. Which of the following is true?

Accepted Answer

A)   The total assets equal $65,000.
B)   The firm's assets are $124,000.
C)   The current liabilities are less than the current assets.
D)   The total assets equal $183,000.
E)   The firm's sales are $183,000.F) A) and C)
G) C) and D)

Question 4

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.F) A) and B)
G) B) and D)

Question 5

If the liabilities of a business are $85,000 and the owners' equity is $110,000, which of the following is a true statement?

Accepted Answer

A)   Assets equal $25,000.
B)   Assets equal $195,000.
C)   Assets equal $110,000.
D)   Assets equal $85,000.
E)   It is impossible to determine the value of the assets.F) C) and D)
G) B) and D)

Question 6

The specific types of information that managers need depends on their area of management and on their level within the firm.

Accepted Answer

A) True 
 B)False

Question 7

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 systemF) A) and E)
G) A) and B)

Question 8

The mortgage on Prudential Insurance's local facility will be paid off over the next 30 years. The majority of this mortgage would be classified on Prudential's balance sheet as a(n)

Accepted Answer

A)   current asset.
B)   current liability.
C)   long-term asset.
D)   long-term liability.
E)   account payable.F) None of the above
G) D) and E)

Question 9

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)   revenue.F) B) and D)
G) All of the above

Question 10

Which section of the statement of cash flows would show Wendy's payments for food ingredients and wages paid to employees?

Accepted Answer

A)   Cash flows from operating activities
B)   Cash flows from financing activities
C)   Business cash flows
D)   Non-business-related cash flows
E)   Cash flows from investing activitiesF) A) and E)
G) B) and C)

Question 11

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

Accepted Answer

Managerial accounting and financial acco...

Question 12

All of the following are classified as fixed assets except

Accepted Answer

A)   factory equipment.
B)   a company car.
C)   computers held for resale.
D)   property.
E)   buildings.F) B) and E)
G) C) and E)

Question 13

A diagram that represents several items of information in a manner that makes comparison easier is called a visual display.

Accepted Answer

A) True 
 B)False

Question 14

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. What does GAAP stand for?

Accepted Answer

A)   Generally accepted accounting principles
B)   Generally accepted auditing principles
C)   Generalized accounting and auditing principles
D)   Generic accounting alternative practices
E)   General administrative accounting practicesF) A) and D)
G) A) and E)

Question 15

Energizer offers its customers a reduction in price if they pay for their shipments of batteries within ten days of receiving them. This is a(n)

Accepted Answer

A)   sales allowance.
B)   trade discount.
C)   sales return.
D)   sales discount.
E)   inventory reduction.F) C) and E)
G) B) and C)

Question 16

On its company computer system, Gymboree has numerical and verbal descriptions about its suppliers and their prices, which as a whole is called ____. Managers can access and use this to make decisions about suppliers.

Accepted Answer

A)   information
B)   a database
C)   an MIS
D)   a DSS
E)   dataF) A) and D)
G) C) and D)

Question 17

A recent PricewaterhouseCoopers survey revealed that outsiders, primarily customers and intermediaries, are much more likely to be responsible for fraud committed against U.S. businesses.

Accepted Answer

A) True 
 B)False

Question 18

How would it be easier to determine if a firm made or lost money last year―by looking at the balance sheet or by looking at the income statement? Support your answer by explaining in general terms what accounts a balance sheet lists and what accounts an income statement lists.

Accepted Answer

It would be easier to determine if a fir...

Question 19

Another name for the statement of financial position is the

Accepted Answer

A)   income statement.
B)   statement of owners' equity.
C)   earnings statement.
D)   statement of changes.
E)   balance sheet.F) A) and B)
G) A) and C)

Question 20

What are the three activities according to which a statement of cash flows is organized?

Accepted Answer

A)   Operating, selling, and investing
B)   Financing, buying, selling
C)   Investing, financing, and expensing
D)   Processing, operating, receiving
E)   Operating, investing, financingF) A) and B)
G) None of the above

Exam 17: Using Management and Accounting Information

How would it be easier to determine if a firm made or lost money last year―by looking at the balance sheet or by looking at the income statement? Support your answer by explaining in general terms what accounts a balance sheet lists and what accounts an income statement lists.

Correct Answer
Answered by ExamLex AI
It would be easier to determine if a fir...
View Answer

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

Correct Answer
Answered by ExamLex AI
Managerial accounting and financial acco...
View Answer

If the liabilities of a business are $85,000 and the owners' equity is $110,000, which of the following is a true statement?

Correct Answer
verified

The specific types of information that managers need depends on their area of management and on their level within the firm.

Correct Answer
verified

A diagram that represents several items of information in a manner that makes comparison easier is called a visual display.

Correct Answer
verified

What are the three activities according to which a statement of cash flows is organized?

Correct Answer
verified

On its company computer system, Gymboree has numerical and verbal descriptions about its suppliers and their prices, which as a whole is called ____. Managers can access and use this to make decisions about suppliers.

Correct Answer
verified

Which section of the statement of cash flows would show Wendy's payments for food ingredients and wages paid to employees?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

The mortgage on Prudential Insurance's local facility will be paid off over the next 30 years. The majority of this mortgage would be classified on Prudential's balance sheet as a(n)

Correct Answer
verified

Another name for the statement of financial position is the

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Energizer offers its customers a reduction in price if they pay for their shipments of batteries within ten days of receiving them. This is a(n)

Correct Answer
verified

A recent PricewaterhouseCoopers survey revealed that outsiders, primarily customers and intermediaries, are much more likely to be responsible for fraud committed against U.S. businesses.

Correct Answer
verified

All of the following are classified as fixed assets except

Correct Answer
verified

The earnings statement is another term for the

Correct Answer
verified

The Cheese Shoppe's liabilities total $59,000 and its owners' equity is $124,000. Which of the following is true?

Correct Answer
verified

Exam 17: Using Management and Accounting Information

How would it be easier to determine if a firm made or lost money last year―by looking at the balance sheet or by looking at the income statement? Support your answer by explaining in general terms what accounts a balance sheet lists and what accounts an income statement lists.

Correct AnswerAnswered by ExamLex AIIt would be easier to determine if a fir...View AnswerShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerAnswered by ExamLex AIManagerial accounting and financial acco...View AnswerShow Answer

If the liabilities of a business are $85,000 and the owners' equity is $110,000, which of the following is a true statement?

Correct AnswerverifiedShow Answer

The specific types of information that managers need depends on their area of management and on their level within the firm.

Correct AnswerverifiedShow Answer

A diagram that represents several items of information in a manner that makes comparison easier is called a visual display.

Correct AnswerverifiedShow Answer

What are the three activities according to which a statement of cash flows is organized?

Correct AnswerverifiedShow Answer

On its company computer system, Gymboree has numerical and verbal descriptions about its suppliers and their prices, which as a whole is called ____. Managers can access and use this to make decisions about suppliers.

Correct AnswerverifiedShow Answer

Which section of the statement of cash flows would show Wendy's payments for food ingredients and wages paid to employees?

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

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

Correct AnswerverifiedShow Answer

The mortgage on Prudential Insurance's local facility will be paid off over the next 30 years. The majority of this mortgage would be classified on Prudential's balance sheet as a(n)

Correct AnswerverifiedShow Answer

Another name for the statement of financial position is 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

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

Correct AnswerverifiedShow Answer

Energizer offers its customers a reduction in price if they pay for their shipments of batteries within ten days of receiving them. This is a(n)

Correct AnswerverifiedShow Answer

A recent PricewaterhouseCoopers survey revealed that outsiders, primarily customers and intermediaries, are much more likely to be responsible for fraud committed against U.S. businesses.

Correct AnswerverifiedShow Answer

All of the following are classified as fixed assets except

Correct AnswerverifiedShow Answer

The earnings statement is another term for the

Correct AnswerverifiedShow Answer

The Cheese Shoppe's liabilities total $59,000 and its owners' equity is $124,000. Which of the following is true?

Correct AnswerverifiedShow Answer

Correct Answer
Answered by ExamLex AI
It would be easier to determine if a fir...
View Answer

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
Managerial accounting and financial acco...
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
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Correct Answer
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Correct Answer
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