Business

What is the name given to a record book or computer program containing

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 […]

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Date: September 3rd, 2020

Why is the format for recording each journal entry known as double-ent

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 […]

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Date: September 3rd, 2020

Which of the following is TRUE of the Financial Accounting Standards B

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, […]

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Date: September 3rd, 2020

Which of the following is one of the organizations in which the author

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 […]

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Date: September 3rd, 2020

What is the name given to the specialized record book or computer prog

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 […]

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Date: September 3rd, 2020

Which of the following is NOT one of the reports or financial statemen

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, […]

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Date: September 3rd, 2020

As an accountant for a large nonprofit organization, Carter knows that

QUESTION As an accountant for a large nonprofit organization, Carter knows that one of his chief responsibilities is to provide financial transparency. What is meant by financial transparency? A) giving stakeholders an accurate picture of what is happening to their money B) determining whether an organization is staying within its budget C) evaluating a client’s […]

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Date: September 3rd, 2020

The inventory turnover ratio can be used to measure a company’s effici

QUESTION The inventory turnover ratio can be used to measure a company’s efficiency. Indicate whether the statement is true or false.   ANSWER Answer: TRUE Explanation: The inventory turnover ratio consists of costs of goods sold in one year divided by the average value of the inventory. If this figure is high, it indicates that […]

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Date: September 3rd, 2020