QUESTION Kevin, a local accountant, recently was hired to make an assessment of Seaport Seafood Restaurant’s financial condition. What was most likely Kevin’s means for making this evaluation? A) trial balance B) double-entry bookkeeping C) ratio analysis D) journal entries E) forensic accounting ANSWER Answer: C Explanation: C) When an accountant makes an assessment […]
QUESTION Flora is interested in studying how to investigate suspected crimes within the field of finance. What type of accountant will she become? A) certified management accountant B) not-for-profit accountant C) tax accountant D) forensic accountant E) public accountant ANSWER Answer: D Explanation: D) Forensic accountants investigate suspected crimes within the field of finance […]
QUESTION Which of the following shows the net sales, cost of goods sold, and expenses? A) the balance sheet B) the income statement C) the cash flow statement D) the retained earnings report E) the owners’ equity statement ANSWER Answer: B Explanation: B) An income statement shows the net sales, cost of goods sold, […]
QUESTION How are private individuals most likely to benefit from the latest accounting software? A) to get investment advice B) to help them prepare their taxes C) to help them start their own business D) to audit private companies E) to help them find a job ANSWER Answer: B Explanation: B) Numerous tax-preparation software […]
QUESTION Why do accounting standards require consistency and comparability? A) so that companies can be as profitable as possible B) so that companies’ financial states can be measured meaningfully C) so that companies’ financial results are as reliable as possible D) so that foreign businesses can make sense of American business practices E) so that […]
QUESTION Which of the following is NOT among the standards of the generally accepted accounting principles? A) to ensure that financial statements are relevant B) to ensure that financial statements are reliable C) to ensure that financial statements are comparable D) to ensure that financial statements are affordable E) to ensure that financial statements are […]
QUESTION Shawna, a forensic accountant, has been hired by a large company to test the company’s financial statements. There are questions about the accuracy of records that were entered by bookkeepers. Which of the following steps of the accounting process will Shawna most likely focus on? A) putting transactions into a ledger B) putting journal […]
QUESTION What is the name given to a record book or computer program containing the daily record of a firm’s transactions? A) double-entry book B) accounting log C) financial report D) journal E) ledger ANSWER Answer: D Explanation: D) A journal is a record book or computer program containing the daily record of a […]
QUESTION Why is the format for recording each journal entry known as double-entry bookkeeping? A) because two accountants work together on the journal B) because the journal entries are reviewed twice daily C) because each transaction is recorded in two different accounts D) because photocopies are always taken of each journal page E) because firms […]
QUESTION Which of the following is TRUE of the Financial Accounting Standards Board (FASB)? A) It is a federal agency. B) It is regulated by the government. C) It delegates the primary responsibility for GAAP to the SEC. D) It is responsible for only two of the four generally accepted accounting principles. E) It establishes, […]
