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 A public accountant may work with an accounting firm. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Public accountants have the choice of either working as an individual practitioner or as a CPA with an accounting firm.
Date: September 3rd, 2020
QUESTION The advent of computers and accounting software has made the services of accountants unnecessary. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: Although computers and accounting have vastly speeded up and simplified accounting, accountants are still necessary and to some extent have been freed up to more productively focus […]
Date: September 3rd, 2020
QUESTION The purpose of double-entry bookkeeping is to act as a check on errors. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Double-entry bookkeeping acts as a check on errors because each transaction is recorded in two different accounts: both as a credit and a debit.
Date: September 3rd, 2020
QUESTION Which of the following is the most compelling reason for Nuvo to adopt consumer-generated advertising? A) More and more companies seem to be embracing consumer-generated advertising. B) Nuvo can collect new creative ideas about the brand and what it means to users. C) Consumers should have absolute creative freedom and control over advertising. D) […]
Date: September 3rd, 2020
QUESTION If Grips decided to launch a brand extension, which of the following products would be the best candidate for a new product under the Grips name? A) athletic clothing B) nutritional supplements C) skateboards D) vacuum cleaners E) breakfast cereal ANSWER Answer: C Explanation: C) Brand extension makes sense if the good qualities […]
Date: September 3rd, 2020
QUESTION Which of the following, if true, most seriously weakens the argument for consumer-generated advertising? A) Research indicates that less than 10 percent of consumers participate in such programs. B) Not all consumer-generated advertising efforts are highly successful. C) Consumers tend to project negative product experiences in such programs. D) The future growth of consumer-generated […]
Date: September 3rd, 2020
