QUESTION Why is it important that there are GAO accountants? What will be an ideal response? ANSWER Answer: GAO accountants serve to “police” our government spending. They find many ways to save billions of dollars collected from taxpayers and also work to stop mismanagement, fraud, and waste within all levels of government spending. Explanation: […]
QUESTION What is the difference between tax accounting and managerial advisory services? What will be an ideal response? ANSWER Answer: In tax accounting, the CPA concentrates on preparing tax returns and doing tax planning; however, when he or she provides management advisory services, specialized accounting services are provided to help business managers resolve various […]
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 […]
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 […]
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 […]
QUESTION What is an example of a liability? What will be an ideal response? ANSWER Answer: Outside vendors that have provided labor but not yet been paid represent a debt to the firm and, therefore, a liability. Explanation: A liability is a debt owed by a firm to an outside individual or organization. Outside […]
QUESTION If fixed assets are assets that are held for a long time, and a certain company has had goodwill for all of its years in business, then should its goodwill be considered a fixed asset? What will be an ideal response? ANSWER Answer: Fixed assets are TANGIBLE assets that are held onto for […]
QUESTION Which of the following is NOT a type of asset? A) current B) fixed C) intangible D) owners’ equity E) goodwill ANSWER Answer: D Explanation: D) Assets are of three types: current, fixed, and intangible (goodwill). Owners’ equity is NOT a type of asset; it is, rather, the value of a firm if […]
QUESTION Which of the following could NOT be a marketable security? A) stocks B) bonds C) money market certificates D) notes payable E) government securities ANSWER Answer: D Explanation: D) Marketable securities are stocks, bonds, government securities, and money market certificates, which can be easily converted to cash. Notes payable is money owed on […]
QUESTION What is the name given to what is owed to a firm from customers who have purchased goods or services on credit? A) accumulated depreciation B) intangible asset allocation C) merchandise inventory D) accounts receivable E) fixed asset reward ANSWER Answer: D Explanation: D) Accounts receivable is that which is owed to a […]
