QUESTION A balance sheet shows the profit and loss for a particular time period. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: A balance sheet shows the firm’s assets and liabilities. An income statement shows the net profit and loss for a particular time period.
Date: September 3rd, 2020
QUESTION An important task for a nonprofit accountant is to provide financial transparency. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: The most important tasks for nonprofit accountants are not only to determine if the organization is staying within its budget but also to provide financial transparency—that is, give contributors […]
Date: September 3rd, 2020
QUESTION Current assets are chiefly important because of their net worth. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: The essential characteristic of current assets is their liquidity: their ability to be converted into cash within one year.
Date: September 3rd, 2020
QUESTION Government accounting standards are set by Congress. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: Government accounting standards are set by the Governmental Accounting Standards Board.
Date: September 3rd, 2020
QUESTION Fixed assets are expected to be used for a long period of time. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Fixed assets are those that are expected to be used for several years.
Date: September 3rd, 2020
QUESTION External auditors perform independent audits. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: External auditors are public accountants who audit or review clients’ financial information to see whether it was prepared under generally accepted accounting principles. Such audits are called independent audits because they are done by firms that […]
Date: September 3rd, 2020
QUESTION Current assets are defined as items that can be converted into cash within one year. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Current assets include not only cash itself, but also marketable securities, accounts receivable, and merchandise inventory—all items that can be converted into cash within one year.
Date: September 3rd, 2020
QUESTION Which of the following, if true, strengthens the CEO’s argument for brand extension? A) Apple has been successful in brand extensions. B) Grips could launch the new products under an entirely new brand name. C) Grips had to recall its products twice in the recent past due to quality concerns. D) Top management at […]
Date: September 3rd, 2020
QUESTION Which of the following, if true, most seriously weaken the CEO’s argument for brand extension? A) Companies need to find new ways to increase revenues if they intend to stay in business. B) Grips started off as a bicycle retailer before finding its niche as a tire manufacturer. C) Most of Grips’ current customers […]
Date: September 3rd, 2020
QUESTION Which of the following, if true, most seriously weakens the VP’s argument? A) Customers often find it difficult to choose from the multiple products currently offered by Grips. B) Grips has a strong reputation with hardcore cycling enthusiasts but is relatively unknown to most consumers. C) Grips has recently faced negative publicity and plans […]
Date: September 3rd, 2020
