Question 1

When Josh sold his Internet auction site to eBay, he received $2,000,000 more than the total value of his assets as listed on his balance sheet. How will eBay classify this $2,000,000?

Accepted Answer

A)   Goodwill
B)   Reputation
C)   Equipment
D)   Research and development
E)   Retained earningsF) B) and D)
G) B) and E)

Question 2

According to the Sarbanes-Oxley Act, the FTC is required to establish a full- time, five-member federal oversight board that will police the accounting industry.

Accepted Answer

A) True 
 B)False

Question 3

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) B) and E)
G) A) and D)

Question 4

Ebony Jones is hired by Ruby Tuesday to help with budgeting, determining the costs of the firm's meal services, and recording transactions and creating financial statements. Ebony is a

Accepted Answer

A)   private accountant.
B)   budget manager.
C)   public accountant.
D)   clerk
E)   public auditor.F) A) and E)
G) B) and E)

Question 5

The statement of cash flows illustrates the effects on cash of the operating, investing, and financing activities of a company for an accounting period.

Accepted Answer

A) True 
 B)False

Question 6

Beginning inventory plus net purchases minus ending inventory equals

Accepted Answer

A)   cost of goods sold.
B)   gross profit on sales.
C)   total revenue.
D)   the balance of merchandise inventory.
E)   net income before sales.F) A) and C)
G) A) and B)

Question 7

Managers and other groups interested in a firm's financial records must be able to "trust the numbers." Unfortunately, a large number of accounting scandals have caused people to doubt the numbers. Why do you think corporate executives "cook" their company's books?

Accepted Answer

Corporate executives may "cook" their co...

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

In what ways does the Sarbanes-Oxley Act improve the validity of the information provided by a firm's accounting system?

Accepted Answer

The Sarbanes-Oxley Act improves the vali...

Question 10

Knowledge management is a firm's procedures for using computer software to solve business problems.

Accepted Answer

A) True 
 B)False

Question 11

The process of systematically collecting, analyzing, and reporting financial information is called

Accepted Answer

A)   accounting.
B)   bookkeeping.
C)   auditing.
D)   journalizing.
E)   revenues.F) A) and D)
G) B) and D)

Question 12

An audit is

Accepted Answer

A)   performed by the firm's private bookkeepers.
B)   not necessary if the firm used generally accepted bookkeeping procedures.
C)   required by many bankers and lenders who are trying to validate a firm's accounting statements.
D)   a waste of the firm's resources.
E)   a guarantee that a firm hasn't "cooked" the books.F) C) and D)
G) None of the above

Question 13

Which type of manager would be most concerned with information about the products offered by competitors?

Accepted Answer

A)   Financial
B)   Marketing
C)   Operations
D)   Administrative
E)   Human resourcesF) B) and D)
G) None of the above

Question 14

As the accountant for Marston Retail Stores, you must calculate the current ratio for the firm's last accounting period. The firm's current assets were $120,000, its fixed assets were $240,000, its current liabilities were $80,000, and its long-term liabilities were $60,000. Given these facts, what is the firm's current ratio?

Accepted Answer

A)   1
B)   1.5
C)   2
D)   3
E)   4F) C) and D)
G) A) and B)

Question 15

Intel decides to issue new stock in order to build a new facility and expand its operations. The receipt of cash from this stock issue would appear in the ____ section of the statement of cash flows.

Accepted Answer

A)   operating
B)   business
C)   equity
D)   investing
E)   financingF) C) and E)
G) C) and D)

Question 16

Audited financial statements guarantee that a firm has not "cooked" the books.

Accepted Answer

A) True 
 B)False

Question 17

Debts that will be repaid in one year or less are known as current liabilities.

Accepted Answer

A) True 
 B)False

Question 18

Ernst & Young, KPMG, and PricewaterhouseCoopers are all

Accepted Answer

A)   private accounting firms.
B)   financial intermediaries.
C)   government accounting agencies.
D)   management consultants.
E)   public accounting firms.F) A) and B)
G) B) and C)

Question 19

The Dress Barn offered its customers a reduction in price on some clothing items that were slightly faded from being in the window at the front of the store. This reduction is called a

Accepted Answer

A)   cost of goods sold.
B)   sales allowance.
C)   sales return.
D)   sales discount.
E)   sales bargain.F) B) and D)
G) A) and C)

Question 20

KYZ Radio pays salaries, rent, insurance, and utilities each month. These are all

Accepted Answer

A)   current assets.
B)   operating expenses.
C)   cost of merchandise sold.
D)   fixed liabilities.
E)   None of these answers is correct.F) A) and E)
G) C) and D)

Exam 17: Using Management and Accounting Information

Correct Answer
verified

Intel decides to issue new stock in order to build a new facility and expand its operations. The receipt of cash from this stock issue would appear in the ____ section of the statement of cash flows.

Correct Answer
verified

Beginning inventory plus net purchases minus ending inventory equals

Correct Answer
verified

The statement of cash flows illustrates the effects on cash of the operating, investing, and financing activities of a company for an accounting period.

Correct Answer
verified

The Dress Barn offered its customers a reduction in price on some clothing items that were slightly faded from being in the window at the front of the store. This reduction is called a

Correct Answer
verified

In what ways does the Sarbanes-Oxley Act improve the validity of the information provided by a firm's accounting system?

Correct Answer
Answered by ExamLex AI
The Sarbanes-Oxley Act improves the vali...
View Answer

Managers and other groups interested in a firm's financial records must be able to "trust the numbers." Unfortunately, a large number of accounting scandals have caused people to doubt the numbers. Why do you think corporate executives "cook" their company's books?

Correct Answer
Answered by ExamLex AI
Corporate executives may "cook" their co...
View Answer

An audit is

Correct Answer
verified

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

Correct Answer
verified

Knowledge management is a firm's procedures for using computer software to solve business problems.

Correct Answer
verified

KYZ Radio pays salaries, rent, insurance, and utilities each month. These are all

Correct Answer
verified

Debts that will be repaid in one year or less are known as current liabilities.

Correct Answer
verified

When Josh sold his Internet auction site to eBay, he received $2,000,000 more than the total value of his assets as listed on his balance sheet. How will eBay classify this $2,000,000?

Correct Answer
verified

Ernst & Young, KPMG, and PricewaterhouseCoopers are all

Correct Answer
verified

Audited financial statements guarantee that a firm has not "cooked" the books.

Correct Answer
verified

The process of systematically collecting, analyzing, and reporting financial information is called

Correct Answer
verified

According to the Sarbanes-Oxley Act, the FTC is required to establish a full- time, five-member federal oversight board that will police the accounting industry.

Correct Answer
verified

Which type of manager would be most concerned with information about the products offered by competitors?

Correct Answer
verified

Ebony Jones is hired by Ruby Tuesday to help with budgeting, determining the costs of the firm's meal services, and recording transactions and creating financial statements. Ebony is a

Correct Answer
verified

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

Correct Answer
verified

Exam 17: Using Management and Accounting Information

Correct AnswerverifiedShow Answer

Intel decides to issue new stock in order to build a new facility and expand its operations. The receipt of cash from this stock issue would appear in the ____ section of the statement of cash flows.

Correct AnswerverifiedShow Answer

Beginning inventory plus net purchases minus ending inventory equals

Correct AnswerverifiedShow Answer

The statement of cash flows illustrates the effects on cash of the operating, investing, and financing activities of a company for an accounting period.

Correct AnswerverifiedShow Answer

The Dress Barn offered its customers a reduction in price on some clothing items that were slightly faded from being in the window at the front of the store. This reduction is called a

Correct AnswerverifiedShow Answer

In what ways does the Sarbanes-Oxley Act improve the validity of the information provided by a firm's accounting system?

Correct AnswerAnswered by ExamLex AIThe Sarbanes-Oxley Act improves the vali...View AnswerShow Answer

Managers and other groups interested in a firm's financial records must be able to "trust the numbers." Unfortunately, a large number of accounting scandals have caused people to doubt the numbers. Why do you think corporate executives "cook" their company's books?

Correct AnswerAnswered by ExamLex AICorporate executives may "cook" their co...View AnswerShow Answer

An audit is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Knowledge management is a firm's procedures for using computer software to solve business problems.

Correct AnswerverifiedShow Answer

KYZ Radio pays salaries, rent, insurance, and utilities each month. These are all

Correct AnswerverifiedShow Answer

Debts that will be repaid in one year or less are known as current liabilities.

Correct AnswerverifiedShow Answer

When Josh sold his Internet auction site to eBay, he received $2,000,000 more than the total value of his assets as listed on his balance sheet. How will eBay classify this $2,000,000?

Correct AnswerverifiedShow Answer

Ernst & Young, KPMG, and PricewaterhouseCoopers are all

Correct AnswerverifiedShow Answer

Audited financial statements guarantee that a firm has not "cooked" the books.

Correct AnswerverifiedShow Answer

The process of systematically collecting, analyzing, and reporting financial information is called

Correct AnswerverifiedShow Answer

According to the Sarbanes-Oxley Act, the FTC is required to establish a full- time, five-member federal oversight board that will police the accounting industry.

Correct AnswerverifiedShow Answer

Which type of manager would be most concerned with information about the products offered by competitors?

Correct AnswerverifiedShow Answer

Ebony Jones is hired by Ruby Tuesday to help with budgeting, determining the costs of the firm's meal services, and recording transactions and creating financial statements. Ebony is a

Correct AnswerverifiedShow Answer

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

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
The Sarbanes-Oxley Act improves the vali...
View Answer

Correct Answer
Answered by ExamLex AI
Corporate executives may "cook" their co...
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