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 […]
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 Carlos is a managerial accountant for the Procade Paper Products firm. Which of the following would he NOT be responsible for? A) preparing budgets B) analyzing the costs of production and marketing C) determining whether departments are staying within their budgets D) supplying financial analyses to stockholders and creditors E) evaluating the impact of […]
QUESTION Which of the following is one of the two major categories of accounting? A) financial accounting B) market accounting C) personnel accounting D) government accounting E) regulatory accounting ANSWER Answer: A Explanation: A) Accounting is divided into two major categories: managerial accounting and financial accounting.
QUESTION Caroline is primarily concerned with preparing accounting information and analyses for people outside her organization. What type of accounting does she do? A) financial accounting B) managerial accounting C) regulatory accounting D) private accounting E) certified management accounting ANSWER Answer: A Explanation: A) Financial accounting is primarily concerned with preparing accounting information and […]
