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 What is the most common use that the federal government makes of a firm’s accounting information? A) to evaluate the company’s financial health and credit rating B) to see whether the firm is profitable C) to ensure that appropriate tax revenues are collected D) to plan and guide the firm E) to monitor how […]
QUESTION What is the term given to the recording of a firm’s financial transactions? A) accounting B) bookkeeping C) auditing D) balancing E) forecasting ANSWER Answer: B Explanation: B) Bookkeeping is basically the recording of a firm’s financial transactions.
QUESTION Return on owners’ equity is also called profit margin. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: Return on owners’ equity is also called return on investment (ROI). Return on sales is also called profit margin.
