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 If Bennett is a private certified management accountant, which of the following statements is TRUE about him? A) He needs only a degree in accounting to do his job. B) He does the same work as a public accountant. C) He only works for for-profit organizations. D) He works for only one business. E) […]
QUESTION Bradley is a CPA in Chicago. He offers many important services to his clients. Which of the following is LEAST likely to be among the services Bradley offers? A) independent audits B) tax accounting C) management advisory services D) forensic accounting E) accounting system design ANSWER Answer: D Explanation: D) The principal services […]
QUESTION Howard is a public accountant working for a local nonprofit. How is he likely being paid for his accounting services? A) a fee basis B) as a hired employee C) a salaried basis D) a standard industry rate E) only during income tax season ANSWER Answer: A Explanation: A) Unlike private accountants, who […]
