QUESTION Assets may include unsold merchandise a company has on hand. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Assets include cash on hand, accounts receivable, marketable securities, and merchandise inventory.
Date: September 3rd, 2020
QUESTION The U. S. government’s fiscal year begins on July 1 and ends on June 30. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: The U.S. government’s fiscal year begins on October 1 and ends on September 30.
Date: September 3rd, 2020
QUESTION An income statement must factor in the cost of goods sold. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: In an income statement, cost of goods sold must be subtracted from sales in order to obtain net profit.
Date: September 3rd, 2020
QUESTION Certified management accountants are accountants who have met certain requirements of education and experience. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: Certified management accountants are accountants who have passed a two-day examination, held by the Institute of Management Accountants, that tests their knowledge of managerial accounting and business.
Date: September 3rd, 2020
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 Which of the following questions would have been most important for Black & Decker to ask before it decided to produce the thermal leak detector? A) What is the most effective way to package the product to protect it and communicate its value? B) How can retailers be persuaded to devote enough shelf space […]
Date: September 3rd, 2020
QUESTION Which of following, if true, strengthens the VP’s argument? A) Grips customers are not very brand loyal and tend to choose Grips based on price alone. B) Customers are demanding more variety in the present product category. C) The company’s previous efforts at line extension resulted in the cannibalization of sales of its existing […]
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
