Question 1

Trademarks and goodwill are both

Accepted Answer

A)   current assets.
B)   liabilities.
C)   sources of revenue.
D)   intangible assets.
E)   fixed assets.F) A) and B)
G) A) and E)

Question 2

If total liabilities were subtracted from total assets,the residual value would be

Accepted Answer

A)   revenues.
B)   owners' equity.
C)   net income.
D)   working capital.
E)   expenses.F) C) and E)
G) A) and E)

Question 3

Clyde is self-employed and has been for many years.His business receives financial information from his clients,analyzes it and makes useful reports from it.He prepares financial statements for his clients in accordance with generally accepted accounting principles so they comply with the law,but also so they can be understood and relied on by government agencies,lenders,stockholders,employees,suppliers and others who may need to access their financial information.What function is Clyde performing for his clients?

Accepted Answer

A)   Financial advising
B)   Auditing
C)   Tax preparation
D)   AccountingE) C) and D)
F) All of the above

Question 4

According to the accounting equation,cash,inventory,equipment,and real estate are classified as owners' equity.

Accepted Answer

A) True 
 B)False  False

Question 5

All American National Company earned $240,000 last year.The board of directors decided to pay out one-half of the firm's earnings to the stockholders.Before the board's decision,the firm's retained earnings were $740,000.Which of the following statements is true?

Accepted Answer

A)   Each shareholder will receive more than he or she received last year.
B)   The firm's retained earnings are too high.
C)   The value of the firm's retained earnings is now $860,000.
D)   The value of the firm's retained earnings is now $620,000.
E)   The firm should be more profitable.F) B) and D)
G) A) and E)

Question 6

Because of the Sarbanes-Oxley Act,accountants must maintain financial documents and audit work for

Accepted Answer

A)   six months.
B)   one year.
C)   three years.
D)   five years.
E)   ten years.F) B) and C)
G) B) and E)

Question 7

If the assets of Marco's Pet Store are $107,000 and the owners' equity is $75,000,which of the following is a correct 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) A) and D)
G) D) and E) E

Question 8

What is the correct order for the balance sheet?

Accepted Answer

A)   Assets,owners' equity,liabilities
B)   Owners' equity,financial position,assets
C)   Liabilities,owners' equity,assets
D)   Assets,liabilities,owners' equity
E)   Owners' equity,assets,liabilitiesF) C) and E)
G) A) and B)

Question 9

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 10

Which of the following statements about the Sarbanes-Oxley Act is incorrect?

Accepted Answer

A)   The act was passed in 1996.
B)   Because the act is complex,compliance is more expensive and time consuming for corporate management.
C)   Because of the act,the SEC was required to establish a federal oversight board.
D)   Because of the act,a corporation's chief executive and financial officers must certify financial reports.
E)   The act strengthened the penalty for destroying financial documents related to an audit.F) A) and D)
G) A) and C)

Question 11

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 B)
G) B) and C)

Question 12

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 D)
G) A) and D)

Question 13

​____ and ____ are the normal income statement designations for profit and loss for a business.

Accepted Answer

A)   ​Cash surplus;cash deficit
B)   ​Income overage;income deficit
C)   ​Surplus;deficit
D)   ​Gain;lossE) A) and D)
F) A) and C)

Question 14

​The number of times a company sells and replaces its merchandise inventory in one year is known as

Accepted Answer

A)   ​inventory turnover.
B)   ​net purchases.
C)   ​FIFO inventory.
D)   ​LIFO inventory.E) C) and D)
F) A) and B)

Question 15

Janet owns and operates her own bakery and coffee shop.Janet has no accounting training and has only three employees.How does she most likely handle the necessary accounting for her business?

Accepted Answer

A)   She does it herself because it takes little training or knowledge.
B)   She hires a private accountant to work for her and take care of the accounting functions.
C)   She has one of her part-time chefs do the accounting when he has time.
D)   She pays a public accountant to do the accounting for her business.
E)   She does nothing at all,because accounting is not necessary for businesses.F) C) and D)
G) All of the above

Question 16

Which of the following statements is true?

Accepted Answer

A)   The more information a manager has,the more risk there is when making a decision.
B)   The more information a manager has,the less risk there is when making a decision.
C)   Risk improves decision making.
D)   Most managers make decisions without any information.
E)   When the amount of information is low,there is less risk.F) B) and D)
G) A) and D)

Question 17

Television sets that Walmart owns for selling to its customers are classified as

Accepted Answer

A)   equipment.
B)   machinery.
C)   receivables.
D)   merchandise inventory.
E)   prepaid merchandise.F) All of the above
G) A) and B)

Question 18

A low inventory turnover can be improved by ordering merchandise in smaller quantities at more frequent intervals.

Accepted Answer

A) True 
 B)False

Question 19

The ratio obtained by dividing net income after taxes by net sales is the

Accepted Answer

A)   return on sales ratio.
B)   acid-test ratio.
C)   return on equity ratio.
D)   earnings per share.
E)   working capital.F) All of the above
G) A) and E) A

Question 20

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 D)
G) B) and C)

Exam 15: Using Management and Accounting Information

Trademarks and goodwill are both

Correct Answer
verified

If total liabilities were subtracted from total assets,the residual value would be

Correct Answer
verified

Correct Answer
verified

According to the accounting equation,cash,inventory,equipment,and real estate are classified as owners' equity.

Correct Answer
verified
False

All American National Company earned $240,000 last year.The board of directors decided to pay out one-half of the firm's earnings to the stockholders.Before the board's decision,the firm's retained earnings were $740,000.Which of the following statements is true?

Correct Answer
verified

Because of the Sarbanes-Oxley Act,accountants must maintain financial documents and audit work for

Correct Answer
verified

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

Correct Answer
verified
E

What is the correct order for the balance sheet?

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

Which of the following statements about the Sarbanes-Oxley Act is incorrect?

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

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

Correct Answer
verified

and are the normal income statement designations for profit and loss for a business.

Correct Answer
verified

The number of times a company sells and replaces its merchandise inventory in one year is known as

Correct Answer
verified

Janet owns and operates her own bakery and coffee shop.Janet has no accounting training and has only three employees.How does she most likely handle the necessary accounting for her business?

Correct Answer
verified

Which of the following statements is true?

Correct Answer
verified

Television sets that Walmart owns for selling to its customers are classified as

Correct Answer
verified

A low inventory turnover can be improved by ordering merchandise in smaller quantities at more frequent intervals.

Correct Answer
verified

The ratio obtained by dividing net income after taxes by net sales is the

Correct Answer
verified
A

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

Correct Answer
verified

Exam 15: Using Management and Accounting Information

Trademarks and goodwill are both

Correct AnswerverifiedShow Answer

If total liabilities were subtracted from total assets,the residual value would be

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

According to the accounting equation,cash,inventory,equipment,and real estate are classified as owners' equity.

Correct AnswerverifiedFalse

All American National Company earned $240,000 last year.The board of directors decided to pay out one-half of the firm's earnings to the stockholders.Before the board's decision,the firm's retained earnings were $740,000.Which of the following statements is true?

Correct AnswerverifiedShow Answer

Because of the Sarbanes-Oxley Act,accountants must maintain financial documents and audit work for

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedE

What is the correct order for the balance sheet?

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

Which of the following statements about the Sarbanes-Oxley Act is incorrect?

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

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

Correct AnswerverifiedShow Answer

​____ and ____ are the normal income statement designations for profit and loss for a business.

Correct AnswerverifiedShow Answer

​The number of times a company sells and replaces its merchandise inventory in one year is known as

Correct AnswerverifiedShow Answer

Janet owns and operates her own bakery and coffee shop.Janet has no accounting training and has only three employees.How does she most likely handle the necessary accounting for her business?

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

Television sets that Walmart owns for selling to its customers are classified as

Correct AnswerverifiedShow Answer

A low inventory turnover can be improved by ordering merchandise in smaller quantities at more frequent intervals.

Correct AnswerverifiedShow Answer

The ratio obtained by dividing net income after taxes by net sales is the

Correct AnswerverifiedA

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

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
False

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
E

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

and are the normal income statement designations for profit and loss for a business.

Correct Answer
verified

The number of times a company sells and replaces its merchandise inventory in one year is known as

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A

Correct Answer
verified