Please answer all questions.
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1 | |
An individual hired as an independent professional to provide accounting services is a(n) |
| | A) | private accountant. |
| | B) | legal accountant. |
| | C) | public accountant. |
| | D) | noncertified accountant. |
| | E) | amateur accountant. |
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2 | |
Which of the following represent assets? |
| | A) | cash |
| | B) | inventory |
| | C) | land |
| | D) | equipment |
| | E) | all of the above |
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3 | |
Which of the following can help determine what a firm is worth, how much a firm made or lost, and how a firm compares to others in its industry? |
| | A) | psychoanalysis |
| | B) | summative analysis |
| | C) | specific analysis |
| | D) | general analysis |
| | E) | ratio analysis |
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4 | |
Return on assets and return on equity are examples of this type of ratio: |
| | A) | current. |
| | B) | profitability. |
| | C) | debt. |
| | D) | liquidity. |
| | E) | asset utilization. |
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5 | |
Information found on the company's income statement and balance sheet is extracted from these documents and examined more closely through the use of |
| | A) | psychoanalysis. |
| | B) | summative analysis. |
| | C) | ratio analysis. |
| | D) | specific analysis. |
| | E) | general analysis. |
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6 | |
Setting up accounts that maintain the accounting equation is called |
| | A) | financial accounting. |
| | B) | transactional accounting. |
| | C) | double-entry bookkeeping. |
| | D) | cost accounting. |
| | E) | managerial accounting. |
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7 | |
Which ratio can investors use to compare the performance of one company with another on an equal basis? |
| | A) | per share data |
| | B) | equal data |
| | C) | equal performance |
| | D) | performance data |
| | E) | equal performance data |
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8 | |
Accounting |
| | A) | reports only to those within the organization. |
| | B) | produces goods and services. |
| | C) | records, measures, and interprets financial data. |
| | D) | reports only to those outside of the organization. |
| | E) | develops promotional plans. |
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9 | |
Which of the following is not an account title used on the balance sheet to describe assets? |
| | A) | accounts receivable |
| | B) | cash |
| | C) | owner's equity |
| | D) | property |
| | E) | inventory |
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10 | |
An income statement shows |
| | A) | status at a particular point in time. |
| | B) | revenues, expenses, and net income over a period of time. |
| | C) | assets, liabilities, and equity. |
| | D) | how much income the CEO earned. |
| | E) | how much income each employee earned. |
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11 | |
The ratio that reflects a company's liquidity after the inventory has been deleted is called |
| | A) | quick. |
| | B) | slow. |
| | C) | future. |
| | D) | current. |
| | E) | past. |
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12 | |
The financial document that has been likened to a snapshot of how the company's finances are doing at that moment is called a(n) |
| | A) | budget. |
| | B) | profit-loss statement. |
| | C) | income statement. |
| | D) | annual report. |
| | E) | balance sheet. |
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13 | |
A company's assets that are long-term in nature are called |
| | A) | fixed assets. |
| | B) | prefixed assets. |
| | C) | current assets. |
| | D) | equity. |
| | E) | revenue assets. |
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14 | |
After gathering together and analyzing source documents and recording each financial transaction in a journal, a financial manager, bookkeeper, or accountant next |
| | A) | posts transactions in a general ledger. |
| | B) | prepares a trial balance. |
| | C) | balances the accounting equation. |
| | D) | posts transaction in a journal. |
| | E) | closes out the books. |
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15 | |
Earnings after taxes is synonymous with |
| | A) | assets. |
| | B) | gross income. |
| | C) | net income. |
| | D) | profit. |
| | E) | assets. |
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16 | |
Which of the following entities do not rely on information from an organization's financial statements? |
| | A) | stockholders |
| | B) | creditors |
| | C) | the Internal Revenue Service |
| | D) | competitors |
| | E) | lenders |
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17 | |
Liabilities is another term used for a company's |
| | A) | assets. |
| | B) | equity. |
| | C) | net profit. |
| | D) | debts. |
| | E) | revenue. |
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18 | |
Klein's Vacuum Cleaners started the accounting period with $5,000 worth of cleaners in inventory. During the accounting period, it purchased $2,500 more cleaners and sold $3,750 worth of cleaners. What is its cost of goods sold? |
| | A) | 7,500 |
| | B) | 1,250 |
| | C) | 2,500 |
| | D) | 3,750 |
| | E) | 5,000 |
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19 | |
CPA stands for |
| | A) | Credentialed Private Accountant. |
| | B) | Certified Private Accountant. |
| | C) | Certified Public Accountant. |
| | D) | Certified Professional Accountant. |
| | E) | Credentialed Public Accountant. |
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20 | |
Which of the following is equivalent to the accounting equation? |
| | A) | expenses - revenues + taxes = net income |
| | B) | sales - revenues = profit |
| | C) | net income = revenues - expenses |
| | D) | assets - liabilities = owners' equity |
| | E) | liabilities - assets = equity |
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2002 McGraw-Hill Higher Education