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 Accounting principles used by different accountants may vary. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: Accounting relies on generally accepted accounting principles as standards to ensure financial statements are relevant, reliable, consistent, and comparable.
Date: September 3rd, 2020
QUESTION The accounting process begins with assessing the firm’s financial condition using ratio analysis. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: The last phase of the accounting process is to assess the firm’s financial condition using ratio analysis. The accounting process begins by collecting the results of bookkeeping—that is, […]
Date: September 3rd, 2020
QUESTION American accounting standards are becoming the basis for a global set of standards. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: The SEC now allows some large American companies to use the international accounting standards, established by the International Accounting Standards Board. The purpose of this and other moves […]
Date: September 3rd, 2020
QUESTION In double-entry bookkeeping, each entry is recorded as twice as much the original amount. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: With double-entry bookkeeping, the same entry is recorded twice but as both a credit and a debit. The total of all debits must equal the total of […]
Date: September 3rd, 2020
QUESTION While public accountants work inside one firm, private accountants work for any number of firms. What will be an ideal response? ANSWER Answer: FALSE Explanation: Private accountants work inside one firm, and public accountants work for any number of firms.
Date: September 3rd, 2020
QUESTION Which of the following is the LEAST intrusive opt-in message for a direct marketing e-mail? A) “You have received this e-mail because you expressed interest in purchasing our products. You will receive further promotional notifications from Riverdale only if you click on the link below.” B) “Riverdale reserves the right to contact you with […]
Date: September 3rd, 2020
QUESTION It is unethical for a company to be open with its employees about its financial status. What will be an ideal response? ANSWER Answer: FALSE Explanation: There is nothing illegal or unethical about a company being open with its employees about its financial status—its projections, costs, expenses, and even salaries. In fact, many […]
Date: September 3rd, 2020
