QUESTION Which of the following, if true, supports the mother’s position? A) Julie has said that she wants to work for one of the Big Four accounting and professional services firms. B) The demand for government accountants is expected to grow in the near future. C) Two other recent grads in Julie’s class chose to […]
Date: September 3rd, 2020
QUESTION Santos has a high level of current liabilities compared to its cash on hand. One company executive predicts that this means that Santos will not have a good acid-test ratio. Which of the following points out a flaw in his argument? A) Current liabilities are not relevant to the acid-test ratio. B) The company […]
Date: September 3rd, 2020
QUESTION Which of the following, if true, supports the position that Julie should consider a specialty field in accounting? A) Julie wants to eventually pursue an MBA degree. B) Colleges have different policies on whether specialty accounting courses are required. C) Julie is interested in financial crimes. D) Julie is interested in helping a nonprofit […]
Date: September 3rd, 2020
QUESTION Which of the following, if true, supports the father’s position? A) Julie has said she wants to work for one of the Big Four accounting and professional services firms. B) The demand for external auditors is expected to grow in the near future. C) Many accountants flooded the job market when the Arthur Andersen […]
Date: September 3rd, 2020
QUESTION Which of the following, if true, does NOT strengthen the case that Aardvark needs to hire a full-time financial manager? A) The company needs its cash flow to be continuously monitored. B) The company needs to determine how to market its products so as to reach the largest number of customers. C) The company […]
Date: September 3rd, 2020
QUESTION Which of the following, if true, strengthens the case that Streeter & Sons is profitable? A) The company’s sales revenue is low relative to its cost of goods sold. B) The company’s cost of goods sold is low relative to its sales revenue. C) The company has had the same number of customers for […]
Date: September 3rd, 2020
QUESTION Which of the following questions about the current state of Streeter & Sons would a balance sheet NOT be able to help answer? A) Is it a good time for the business to grow? B) Can the company survive a season of low revenues? C) Does the company have too many employees? D) Can […]
Date: September 3rd, 2020
QUESTION What is the significance of the SEC’s move toward accommodating International Financial Reporting Standards? What will be an ideal response? ANSWER Answer: By moving toward this international accounting standard, the SEC is moving the United States and, in fact, the world toward one set of international standards, which will make it easier for […]
Date: September 3rd, 2020
QUESTION Why is double-entry bookkeeping important? What will be an ideal response? ANSWER Answer: With double-entry bookkeeping, each transaction is recorded as both a credit and a debit, making it less likely that there will be errors because both accounts must be reconciled with each other. Explanation: With double-entry bookkeeping, each transaction is recorded […]
Date: September 3rd, 2020
QUESTION Why do you think management by data will, ultimately, be a good thing for all corporations? What will be an ideal response? ANSWER Answer: Just as competition is good for a free market economy, so too is the new trend of management by data. As companies try to keep ahead of their rivals […]
Date: September 3rd, 2020
