Filters
Question type

Accounting provides financial information that can be useful to owners, creditors, suppliers, employees, and competitors of an organization.

A) True
B) False

Correct Answer

verifed

verified

Carole Grand and Bonnie Lamore run a shuttle service from Western Illinois to the busy Chicago O'Hare airport. Last month, they recorded the following: Carole Grand and Bonnie Lamore run a shuttle service from Western Illinois to the busy Chicago O'Hare airport. Last month, they recorded the following:   If 25% of their net income is paid to the government in taxes, what is their net income after taxes? A)  $1410.00 B)  $1160.00 C)  $682.00 D)  $870.00 If 25% of their net income is paid to the government in taxes, what is their net income after taxes?


A) $1410.00
B) $1160.00
C) $682.00
D) $870.00

E) All of the above
F) A) and B)

Correct Answer

verifed

verified

As a certified public accountant, you would be working in the area of managerial accounting.

A) True
B) False

Correct Answer

verifed

verified

Accounting information is not relevant for nonprofit organizations.

A) True
B) False

Correct Answer

verifed

verified

Citywide Insurance Corporation's internal accountants can prepare an audit for the company.

A) True
B) False

Correct Answer

verifed

verified

Accounting software for small businesses has become so sophisticated that most small business owners will never need to consult with an actual accountant or understand accounting information themselves.

A) True
B) False

Correct Answer

verifed

verified

Accounting software has proven to be especially helpful for small-business owners.

A) True
B) False

Correct Answer

verifed

verified

Johnson Products is a small manufacturing firm specializing in custom-order tool and die work. A computerized accounting system would help Johnson Products by:


A) making key accounting and financial decisions.
B) helping management identify cash flow and other financial difficulties more quickly.
C) eliminating the need to prepare financial statements and other reports.
D) eliminating the need to perform the three middle steps of the accounting cycle.

E) B) and C)
F) A) and D)

Correct Answer

verifed

verified

Double-entry bookkeeping can help identify a recording error made by a bookkeeper.

A) True
B) False

Correct Answer

verifed

verified

Liquidity ratios are of particular importance to stockholders, but have little relevance for creditors.

A) True
B) False

Correct Answer

verifed

verified

Thoroughly describe each of six parts of the accounting cycle.

Correct Answer

verifed

verified

Part 1 requires the bookkeeper or accoun...

View Answer

Taylor Casual, a chain of retail clothing stores, wants to assure investors and other outsiders that its financial statements are accurate. One way to do so would be to hire a public accounting firm to:


A) produce an internal audit.
B) take overall stock of its accounting functions.
C) provide a "generally accepted practices" endorsement.
D) perform an independent audit.

E) B) and C)
F) B) and D)

Correct Answer

verifed

verified

Scott Drilling Contractors recently issued a corporate bond on which it expects to pay interest for the next twenty years. Scott would record this as a __________ on its balance sheet.


A) declining balance asset
B) retained earning
C) long-term liability
D) long-term expense

E) C) and D)
F) None of the above

Correct Answer

verifed

verified

FIFO is a method of computing net cash flows by subtracting financial inflows from financial outflows.

A) True
B) False

Correct Answer

verifed

verified

A statement of cash flows summarizes a company's cash receipts and cash payments over a period of time.

A) True
B) False

Correct Answer

verifed

verified

Debts owed by a business are called ___________.


A) revenues.
B) liabilities.
C) equities.
D) assets.

E) All of the above
F) C) and D)

Correct Answer

verifed

verified

As a first step in the accounting cycle, _________ involves the recording of business transactions.


A) marketing
B) bookkeeping
C) auditing
D) economics

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

Activity ratios measure the effectiveness of the firm's management in using its various resources to achieve profits.

A) True
B) False

Correct Answer

verifed

verified

Juliet has found that her small business needs a better way to maintain accounting records and analyze business opportunities. Currently, she uses a manual accounting system. These days, any off-the-shelf accounting package available should do an excellent job of meeting her firm's accounting needs.

A) True
B) False

Correct Answer

verifed

verified

One important source of financing for most small businesses is the owner's savings. If the owner contributes money to the business from his/her personal savings, it will be recorded in the owners' equity account on the balance sheet.

A) True
B) False

Correct Answer

verifed

verified

Showing 141 - 160 of 366

Related Exams

Show Answer