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 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 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.
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 […]
