QUESTION Which of the following is one of the organizations in which the authority for the GAAP rests? A) Securities and Exchange Commission B) Governmental Accounting Board of Standards C) Government Accountability Office D) Federal Accounting Board of Management E) Congress ANSWER Answer: A Explanation: A) The authority for the GAAP is with two […]
QUESTION Suppose the total of all debits is less than the total of all credits in a double-entry bookkeeping journal. What must be the explanation for this? A) An error has occurred. B) There has been a profit for the day. C) There has been a loss for the day. D) GAAP standards were not […]
QUESTION What is the name given to the specialized record book or computer program that contains summaries of all journal transactions by category? A) trial balance B) balance sheet C) ledger D) income statement E) statement of cash-flows ANSWER Answer: C Explanation: C) The ledger is the specialized record book or computer program that […]
QUESTION Which of the following is NOT one of the reports or financial statements the bookkeeper issues at the end of every accounting period? A) balance sheet B) income statement C) statement of cash flows D) income tax return E) profit-and-loss statement ANSWER Answer: D Explanation: D) Once the bookkeeper has the correct figures, […]
QUESTION At the end of every accounting period, the bookkeeper for Tina’s Toy Shack does a check for accuracy. What is this called? A) ledger report B) balance sheet check C) income statement review D) trial balance run E) financial statement overview ANSWER Answer: D Explanation: D) At the end of every accounting period, […]
QUESTION If Geraldine is an accountant for a not-for profit, which of the following is TRUE about her? A) She is mostly concerned with the organization’s efficiency. B) She prepares exactly the same types of reports as for-profit accountants. C) She’s employed only by large corporations. D) She cannot become a CPA. E) She cannot […]
QUESTION When are financial reports required of a company? A) on December 31 B) on June 30 C) at the end of the firm’s fiscal year D) at the end of each month E) weekly ANSWER Answer: C Explanation: C) Fiscal reports are required at the end of the firm’s fiscal year. This could […]
QUESTION Susan is a marketing manager at an electronics company. Which of the following is how Susan is most likely to make use of managerial accounting? A) to analyze the cost of production B) to determine the effect of promotional strategies C) to determine whether the company’s salaries are appropriate D) to see whether the […]
QUESTION Which of the following shows a firm’s assets and liabilities? A) the balance sheet B) the income statement C) the cash flow statement D) the profit-and-loss statement E) the operating expenses report ANSWER Answer: A Explanation: A) A balance sheet represents a firm’s financial condition by showing the balance of the firm’s assets […]
QUESTION Michaelson Micro Parts supplies specialized springs and other parts to Acme Widgets. As a supplier, how is Michaelson most likely to use Acme’s financial information? A) to determine Acme’s tax liability B) to reconcile it with its own financial information C) to determine whether to extend Acme credit D) to see whether Acme is […]
