Question 1

A firm's MIS data bank should include all past and current data that may be useful in managing the firm.

Accepted Answer

A) True 
 B)False

Question 2

Assets = liabilities + owners' equity is the equation for information reported on the

Accepted Answer

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

Question 3

Dave Murray's Pontiac dealership has an inventory turnover of 5. What does this figure mean?

Accepted Answer

A)   The average value of Dave's inventory is five times his sales.
B)   For every $1 Dave spends on inventory, he reaps $5 in sales.
C)   Dave's beginning inventory is five times his ending inventory.
D)   Dave's average inventory is five times greater than his cost of goods sold.
E)   Dave sells and replaces his merchandise five times each year.F) C) and E)
G) B) and E)

Question 4

Often, the ones who are hurt when corporations "cook" the books are the firm's employees, investors, lenders, and suppliers.

Accepted Answer

A) True 
 B)False

Question 5

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

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' equityF) None of the above
G) B) and C)

Question 7

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

Question 8

The cash that Coca-Cola receives from providing customers with Coke and other soft drinks and juices would appear in the ____ section of the statement of cash flows.

Accepted Answer

A)   financing
B)   business
C)   receiving
D)   operating
E)   investingF) A) and E)
G) A) and B)

Question 9

Lutex Corporation began its accounting period with a merchandise inventory (beginning inventory)  that cost $10,000. During the period, it purchased for resale merchandise with a retail value of $100,000. With purchase discounts, it paid only $80,000 for this merchandise. Thus, during this period, Lutex had ____ in goods available for sale.

Accepted Answer

A)   $180,000
B)   $70,000
C)   $80,000
D)   $90,000
E)   $190,000F) A) and D)
G) A) and C)

Question 10

Briefly describe each of the four parts of a typical business report.

Accepted Answer

A typical business report is generally s...

Question 11

The transformation of data into a form useful for a specific purpose is called

Accepted Answer

A)   MIS.
B)   data processing.
C)   transactions.
D)   information processing.
E)   implementation.F) C) and D)
G) A) and B)

Question 12

Randy is shopping for an all-in-one printer/copier/scanner/fax machine. He decides to purchase a certain model because it has the highest price, so Randy assumes it must have the highest quality. Randy has applied a(n)  ____ in making his decision.

Accepted Answer

A)   data structure
B)   reference price
C)   database
D)   information rule
E)   qualitative analysisF) B) and C)
G) A) and E)

Question 13

During the year Comer, Inc., had $200,000 in goods available for sale. At the end of the accounting period it had an ending inventory of $40,000. The cost of goods sold by Comer was therefore

Accepted Answer

A)   $200,000.
B)   $160,000.
C)   $40,000.
D)   $20,000.
E)   $10,000.F) A) and E)
G) A) and B)

Question 14

The cost of goods sold equals beginning inventory plus net purchases minus ending inventory.

Accepted Answer

A) True 
 B)False

Question 15

Dividing current assets by current liabilities gives the current ratio.

Accepted Answer

A) True 
 B)False

Question 16

Jane Cook started a small manufacturing firm two years ago. Now, after two years, she decides it is time to hire an accountant to work in the office and process all her financial data. This accountant will be a

Accepted Answer

A)   certified auditor.
B)   certified bookkeeper.
C)   managerial bookkeeping clerk.
D)   private accountant.
E)   public accountant.F) A) and B)
G) A) and E)

Question 17

For a corporation, the owners' equity amount is the total value of stock minus the retained earnings that have accumulated to date.

Accepted Answer

A) True 
 B)False

Question 18

All of the following are sections of the income statement for a business except

Accepted Answer

A)   cost of goods sold.
B)   liabilities.
C)   revenues.
D)   operating expenses.
E)   net income or loss.F) C) and D)
G) All of the above

Question 19

Walmart takes its net sales and subtracts the cost of goods sold during the previous period. The result is Walmart's

Accepted Answer

A)   gross sales.
B)   net income.
C)   gross profit.
D)   net margin.
E)   net purchases.F) B) and D)
G) D) and E)

Question 20

A reduction in price that is offered to customers who accept slightly damaged or soiled merchandise is referred to as

Accepted Answer

A)   a sales discount.
B)   cost of goods sold.
C)   a sales allowance.
D)   an operating expense.
E)   a sales return.F) C) and E)
G) C) and D)

Exam 17: Using Management and Accounting Information

The cash that Coca-Cola receives from providing customers with Coke and other soft drinks and juices would appear in the ____ section of the statement of cash flows.

Correct Answer
verified

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

Correct Answer
verified

During the year Comer, Inc., had $200,000 in goods available for sale. At the end of the accounting period it had an ending inventory of $40,000. The cost of goods sold by Comer was therefore

Correct Answer
verified

Dividing current assets by current liabilities gives the current ratio.

Correct Answer
verified

Jane Cook started a small manufacturing firm two years ago. Now, after two years, she decides it is time to hire an accountant to work in the office and process all her financial data. This accountant will be a

Correct Answer
verified

Briefly describe each of the four parts of a typical business report.

Correct Answer
Answered by ExamLex AI
A typical business report is generally s...
View Answer

A reduction in price that is offered to customers who accept slightly damaged or soiled merchandise is referred to as

Correct Answer
verified

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

Correct Answer
verified

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 Answer
verified

A firm's MIS data bank should include all past and current data that may be useful in managing the firm.

Correct Answer
verified

Correct Answer
verified

The cost of goods sold equals beginning inventory plus net purchases minus ending inventory.

Correct Answer
verified

For a corporation, the owners' equity amount is the total value of stock minus the retained earnings that have accumulated to date.

Correct Answer
verified

The transformation of data into a form useful for a specific purpose is called

Correct Answer
verified

Often, the ones who are hurt when corporations "cook" the books are the firm's employees, investors, lenders, and suppliers.

Correct Answer
verified

Assets = liabilities + owners' equity is the equation for information reported on the

Correct Answer
verified

Dave Murray's Pontiac dealership has an inventory turnover of 5. What does this figure mean?

Correct Answer
verified

Walmart takes its net sales and subtracts the cost of goods sold during the previous period. The result is Walmart's

Correct Answer
verified

Randy is shopping for an all-in-one printer/copier/scanner/fax machine. He decides to purchase a certain model because it has the highest price, so Randy assumes it must have the highest quality. Randy has applied a(n) ____ in making his decision.

Correct Answer
verified

All of the following are sections of the income statement for a business except

Correct Answer
verified

Exam 17: Using Management and Accounting Information

The cash that Coca-Cola receives from providing customers with Coke and other soft drinks and juices would appear in the ____ section of the statement of cash flows.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

During the year Comer, Inc., had $200,000 in goods available for sale. At the end of the accounting period it had an ending inventory of $40,000. The cost of goods sold by Comer was therefore

Correct AnswerverifiedShow Answer

Dividing current assets by current liabilities gives the current ratio.

Correct AnswerverifiedShow Answer

Jane Cook started a small manufacturing firm two years ago. Now, after two years, she decides it is time to hire an accountant to work in the office and process all her financial data. This accountant will be a

Correct AnswerverifiedShow Answer

Briefly describe each of the four parts of a typical business report.

Correct AnswerAnswered by ExamLex AIA typical business report is generally s...View AnswerShow Answer

A reduction in price that is offered to customers who accept slightly damaged or soiled merchandise is referred to as

Correct AnswerverifiedShow Answer

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

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

A firm's MIS data bank should include all past and current data that may be useful in managing the firm.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The cost of goods sold equals beginning inventory plus net purchases minus ending inventory.

Correct AnswerverifiedShow Answer

For a corporation, the owners' equity amount is the total value of stock minus the retained earnings that have accumulated to date.

Correct AnswerverifiedShow Answer

The transformation of data into a form useful for a specific purpose is called

Correct AnswerverifiedShow Answer

Often, the ones who are hurt when corporations "cook" the books are the firm's employees, investors, lenders, and suppliers.

Correct AnswerverifiedShow Answer

Assets = liabilities + owners' equity is the equation for information reported on the

Correct AnswerverifiedShow Answer

Dave Murray's Pontiac dealership has an inventory turnover of 5. What does this figure mean?

Correct AnswerverifiedShow Answer

Walmart takes its net sales and subtracts the cost of goods sold during the previous period. The result is Walmart's

Correct AnswerverifiedShow Answer

Randy is shopping for an all-in-one printer/copier/scanner/fax machine. He decides to purchase a certain model because it has the highest price, so Randy assumes it must have the highest quality. Randy has applied a(n) ____ in making his decision.

Correct AnswerverifiedShow Answer

All of the following are sections of the income statement for a business except

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
A typical business report is generally s...
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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified