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QUESTION 1 The knowledge of financial accounting can assist people with decisions such as whether to extend credit to a business. True False 0.2 points Saved QUESTION 2 Employees of a company would not have a reason to use the information provided by financial accounting. True False 0.2 points Saved

QUESTION 3 Financial accounting should be used for assessing the financial health of large organizations only. True False 0.2 points Saved

QUESTION 4 Financial accounting can be helpful for a job candidate who is assessing the financial future of a potential employer. True False 0.2 points Saved QUESTION 5 Lenders might use the information produced by financial accounting when making loan decisions. True False 0.2 points Saved

QUESTION 6 Credit analysts prefer not to use information provided by financial accounting, as it is not accurate. True False 0.2 points Saved

QUESTION 7 Financial accounting is helpful to investment advisors. True False 0.2 points Saved

QUESTION 8 Financial accounting is more useful than managerial accounting. True False 0.2 points Saved

QUESTION 9 The decision to buy or rent equipment is an example of a decision aided by managerial accounting. True False 0.2 points Saved

QUESTION 10 Which of the following statements is true of financial accounting? A. It is used by external parties to make investment decisions. B. It is used to make lease or purchase decisions. C. Managerial accounting is another name for financial accounting, D. It is primarily used to make internal decisions of a business. E. The effectiveness of advertising can be judged using financial accounting. 0.2 points Saved QUESTION 11 The charge for using money over time, often associated with long-term loans, is known as: A. interest. B. principal. C. distribution charge. D. cash dividend. E. preferred dividend. 0.2 points Saved QUESTION 12 Which of the following is a common feature of financial and managerial accounting? A. Both have same objectives B. Both are prepared according to U.S. GAAP C. Both are reported at year end in the annual report D. Both are analyzed by external users while making investment decisions E. Both are used by the management in making decisions 0.2 points Saved

QUESTION 13 Dividends are required to be paid to stockholders on an annual basis. True False 0.2 points Saved

QUESTION 14 An individual who owns one or more shares of stock in a corporation is an owner of that corporation. True False 0.2 points Saved

QUESTION 15 Corporations do not exist as separate legal entities apart from their owners. True False 0.2 points Save Answer

QUESTION 16 It is very difficult to buy or sell ownership shares of a corporation in a stock exchange. True False 0.2 points Saved

QUESTION 17 Stock markets match up investors who wish to buy shares with those who wish to sell them. True False 0.2 points Saved

QUESTION 18 Legal process by which owners of an organization apply to a state government to have it identified as an entity legally separate from its owners is called: A. stocking. B. filling. C. attributing. D. registration. E. incorporation. 0.2 points Saved

QUESTION 19 An advantage of ownership in a sole proprietorship over ownership in a corporation is: A. tax benefits. B. having a board of directors. C. the ability to raise capital through issuance of stock. D. separation of owner and business as legal entities. E. limited liability for debts. 0.2 points Saved

QUESTION 20 Who hires the management of a corporation? A. Stockholders B. Board of directors C. Creditors D. Government E. SEC 0.2 points Saved QUESTION 21 Inventory refers to the: A. excess amount paid for an asset over its fair value. B. intangible assets of a business. C. merchandise bought or manufactured for the purpose of selling. D. amount of net income reinvested by company for future operations. E. revenue generated from investment. 0.2 points Saved QUESTION 22 Investors use financial information to predict whether a: A. company will recruit more employees. B. company's stock price will increase C. company has invested in buildings. D. company will pay salaries. E. company's bond price will increase. 0.2 points Saved

QUESTION 23 Financial accounting can be compared to a portrait. True False 0.2 points Saved

QUESTION 24 Financial statements provide the form and structure for the conveyance of financial information that will create a likeness of the reporting organization. True False 0.2 points Saved

QUESTION 25 The information reported in financial statements must be exact for an investor to make any decision. True False 0.2 points Saved

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Reid Wolff
Reid WolffLv2
28 Sep 2019

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Related questions

NEED ASAP PLEASE

Question 1

Which one of the following is not an externaluser of accounting information?

Customers

Investors

Regulatory agencies

All of these are external users

3 points

Question 2

The first step in solving an ethical dilemma is to

identify and analyze the principal elements in thesituation.

identify the alternatives.

recognize an ethical situation and the ethical issuesinvolved.

weigh the impact of each alternative on variousstakeholders.

3 points

Question 3

Generally accepted accounting principles are

income tax regulations of the Internal Revenue Service.

standards that indicate how to report economic events.

theories that are based on physical laws of the universe.

principles that have been proven correct by academicresearchers.

3 points

Question 4

Which of the following events is not a businesstransaction?

Issuance of stock in exchange for cash.

Hired employees.

Incurred utility expenses for the month.

Earned revenue for services provided.

3 points

Question 5

When assets are distributed to the owners of a corporation,these distributions are termed

depletions.

consumptions.

dividends.

a credit line.

3 points

Question 6

If total liabilities increased by $8,000, then

assets must have decreased by $8,000.

stockholders' equity must have increased by $8,000.

assets must have increased by $8,000, or stockholders' equitymust have decreased by $8,000.

assets and stockholders' equity each increased by $4,000.

3 points

Question 7

If total liabilities increased by $30,000 and stockholders'equity increased by $20,000 during a period of time, then totalassets must change by what amount and direction during that sameperiod?

$50,000 decrease

$10,000 decrease

$10,000 increase

$50,000 increase

3 points

Question 8

Misra Company compiled the following financial information as ofDecember 31:

Revenues

$ 340,000

Retained Earnings, Beginning

$ 60,000

Equipment

$ 80,000

Expenses

$ 250,000

Cash

$ 90,000

Dividends

$ 20,000

Supplies

$ 10,000

Accounts payable

$ 40,000

Accounts receivable

$ 70,000

Common Stock

$ 80,000

Misra's assets on December 31 are

$180,000.

$250,000.

$360,000.

$ 490,000.

3 points

Question 9

Mofro's Computer Repair Shop started the year with total assetsof $300,000 and total liabilities of $200,000. During the year, thebusiness recorded $500,000 in computer repair revenues, $300,000 inexpenses, and Mofro paid dividends of $50,000. Stockholders' equityat the end of the year was

$200,000.

$100,000.

$250,000.

$300,000.

3 points

Question 10

A balance sheet shows

assets, liabilities, and stockholders' equity.

expenses, dividends, and stockholders' equity.

revenues, expenses, and dividends.

revenues, liabilities, and stockholders' equity.

3 points

Question 11

At September 1, Foli Co. reported retained earnings of $136,000.During the month, Foli generated revenues of $20,000, incurredexpenses of $12,000, purchased equipment for $5,000 and paiddividends of $2,000. What is the amount of retained earnings atSeptember 30?

$136,000

$142,000

$8,000

$137,000

3 points

Question 12

Grayton Industries purchased supplies for $1,000. The Companypaid $500 in cash and agreed to pay the balance in 30 days. Thejournal entry to record this transaction would include a debit toan asset account for $1,000, a credit to a liability account for$500. Which of the following would be the correct way to completethe recording of the transaction?

Credit an asset account for $500.

Credit the Retained Earnings account for $500.

Credit another liability account for $500.

Debit the Retained Earnings account for $500.

3 points

Question 13

Radio Moscow Industries purchased supplies for $1,000. They paid$400 in cash and agreed to pay the balance in 30 days. The journalentry to record this transaction would include a debit to an assetaccount for $1,000, a credit to a liability account for $600. Whichof the following would be the correct way to complete the recordingof the transaction?

Credit an asset account for $400.

Credit another liability account for $400.

Credit the retained earnings account for $400.

Debit the retained earnings account for $400.

3 points

Question 14

A credit to a liability account

must be accompanied by a debit to an asset account.

indicates an increase in the amount owed to creditors.

is an error.

indicates a decrease in the amount owed to creditors.

3 points

Question 15

In recording business transactions, evidence that an accountingtransaction has taken place is obtained from

business documents.

the Internal Revenue Service.

the public relations department.

the SEC.

3 points

Question 16

On June 1, Leno Inc. buys a copier machine for her business andfinances this purchase with cash and a note. When journalizing thistransaction, the company's accountant will

make a simple entry.

use two journal entries.

make a compound entry.

list the credit entries first, which is proper form for thistype of transaction.

3 points

Question 17

A three column form of account is so named because it hascolumns for

debit, credit, and balance.

debit, credit, and date.

debit, credit, and account name.

debit, credit, and reference.

3 points

Question 18

The first step in designing a computerized accounting system isthe creation of the

general ledger.

general journal.

trial balance.

chart of accounts.

3 points

Question 19

Chik Chik Company showed the following balances at the end ofits first year:

Cash

$ 6,000

Prepaid insurance

$ 9,400

Accounts receivable

$ 7,000

Accounts payable

$ 5,600

Notes payable

$ 8,400

Common stock

$ 2,800

Dividends

$ 1,400

Revenues

$ 44,000

Expenses

$ 35,000

What did Chik Chik Company show as total credits on its trialbalance?

$51,400

$60,800

$62,200

$70,200

3 points

Question 20

Which of the following time periods would notbe referred to as an interim period?

Monthly

Quarterly

Semi-annually

Annually

Question 1

Identify the item below that is not one of the four different types of data processing activities.

deleting

reading

creating

using

Question 2

All of the following are advantages of an ERP system except

ERPs permit manufacturing plants to receive new orders in real time.

in an ERP, data input is captured or keyed once.

it takes considerable experience and training to use an ERP system effectively.

ERPs permit management to gain greater visibility into every area of the enterprise.

Question 3

Sam Jones has been the controller of Downtown Tires for 25 years. Ownership of the firm recently changed hands and the new owners are conducting an audit of the financial records. The audit has been unable to reproduce financial reports that were prepared by Sam. While there is no evidence of wrongdoing, the auditors are concerned that the discrepancies might contribute to poor decisions. Which of the following characteristics of useful information is absent in the situation described above?

relevant

reliable

complete

timely

understandable

verifiable

accessible

Question 4

An ERP system might facilitate the purchase of direct materials by all of the following except

preparing a purchase order when inventory falls to reorder point.

routing a purchase order to a purchasing agent for approval.

communicating a purchase order to a supplier.

selecting the best supplier by comparing bids.

Question 5

Antia Carmie is the largest collector and retailer of Japanese fans in the St. Louis area. Antia uses computer technology to provide superior customer service. The store's database system was designed to make detailed information about each Japanese fan easily accessible to her customers. Accordingly, the fan price and condition are provided for each fan, along with many pictures of each fan. In Antia's database, the price of the Japanese fans is a(n)

entity.

attribute.

field.

record.

Question 6

Which of the following is not considered a source document?

A copy of the company's shipping document.

A copy of the company's ledger.

A copy of the company's sales journal.

A copy of the company's financial statements.

Question 7

In an ERP system, the module used to record data about transactions in the disbursement cycle is called

financial.

order to cash.

customer relationship management.

purchase to pay.

Question 8

Baggins Incorporated identifies new product development and product improvement as the top corporate goals. An employee developed an innovation that will correct a shortcoming in one of the company's products. Although Baggins current Return on Investment (ROI) is 12%, the product innovation is expected to generate ROI of only 10%. As a result, awarding bonuses to employees based on ROI resulted in

goal conflict.

information overload.

decreased value of information.

goal congruence.

Question 9

________ are examples of activities that constitute inbound logistics.

Activities that transform inputs into final products or services

Activities that provide post-sale support to customers

Activities that consist of receiving, storing, and distributing the materials used as inputs by the organization to create goods and/or services it sells

Activities that help customers to buy the organization's products or services

Question 10

In which transaction cycle would information for inventory purchases be most likely to pass between internal and external accounting information systems?

the revenue cycle

the expenditure cycle

the human resources / payroll cycle

the financing cycle

Question 11

The collection of customer payment is part of which transaction cycle?

the human resources cycle

the production cycle

the revenue cycle

the expenditure cycle

Question 12

Which of the following is an example of source data automation?

POS (point-of-sale) scanners in retail stores

a bill of lading

a subsidiary ledger

a utility bill

Question 13

All of the following are guidelines for developing a good coding system except

be as sophisticated as possible to promote usage.

be consistent with its intended use.

be flexible to allow for growth.

be consistent with the company's organization structure.

Question 14

What is a key decision that needs to be made with regards to borrowing money from lenders?

the location

pro forma income statement

how much capital to acquire

job descriptions

Question 15

Identify the false statement below.

A service company does not have an inventory system.

Retail stores do not have a production cycle.

Financial institutions have installment-loan cycles.

Every organization should implement every transaction cycle module.

Question 16

The chart of accounts of a fast-food restaurant would probably include

a list of customers.

a list of financial statement accounts.

a list of vendors.

a list of employees.

Question 17

Which statement below regarding the AIS is false?

Traditionally, most AIS have been designed so that both financial and operational data are stored in a manner that facilitates their integration in reports.

The AIS must be able to provide managers with detailed and operational information about the organization's performance.

Both traditional financial measures and operational data are required for proper and complete evaluation of performance.

The AIS was often just one of the information systems used by an organization to collect and process financial and nonfinancial data.

Question 18

In Petaluma, California, electric power is provided to consumers by Pacific Power. Each month Pacific Power mails bills to 186,000 households and then processes payments as they are received. What is the best way for this business to ensure that payment data entry is efficient and accurate?

well-designed paper forms

turnaround documents

source data automation

sequentially numbered bills

Question 19

Data must be converted into information to be considered useful and meaningful for decision making. There are seven characteristics that make information both useful and meaningful. If the same information can be reproduced by two independent and knowledgeable people, it is representative of the characteristic of

verifiability.

truthful.

relevance.

reliability.

Question 20

Antia Carmie is the largest collector and retailer of Japanese fans in the St. Louis area. Antia uses computer technology to provide superior customer service. The store's database system was designed to make detailed information about each Japanese fan easily accessible to her customers. Accordingly, the fan price and condition are provided for each fan, along with many pictures of each fan. In Antia's database, the data about each Japanese fan represents a(n)

entity.

attribute.

field.

record.

Periodic inventory system. Each of the following four horizontal lines represents data taken from a separate multiple-step income statement. Insert the missing amounts in the space (empty box) provided. Indicate any net loss by placing brackets around the amount.

Hint: Not all parts of the income statement are shown, so be careful with your arithmetic.

Beginning Inventory

Purchases

Cost of Goods Available for Sale

Ending Inventory

Cost of Goods Sold

a.

$180,000

$325,000

$80,000

Sales (Revenue)

Cost of Goods Sold

Gross Profit

Operating Expenses

Net Income

b.

$240,000

$145,000

$32,000

Revenue (Sales)

Cost of Goods Available for Sale

Ending Inventory

Cost of Goods Sold

Gross Profit

Operating Expenses

Net Income

c.

$515,000

$240,000

$145,000

$225,000

$145,000

. For each question below, circle the best answer from the choices given. (

1 : Under the periodic inventory system the purchases of merchandise are recorded at their selling prices.
a. True b. False

2 : Inventory shrinkage does not include the loss of merchandise through shoplifting.
a. True b. False

3 : Only under the periodic inventory system is a physical count of the inventory necessary.
a. True b. False

4 : It is not possible to have more inventory at the end of a period then at the beginning of a period.
a. True b. False

5) True and false. Indicate whether each of the following is True (T) or False (F). (5 POINTS)

T F 1. US Treasury bills that mature within 120 days are cash equivalents.

T F 2. Financial assets describe not just cash, but all assets that are easily and directly convertible into known amounts of cash.

T F 3. Good cash mgmt. dictates that any cash and checks received each day should be deposited the same day.

T F 4. The income statement approach to estimating Bad debts Expense emphasizes the aging of accounts receivable and the adjustment of the Allowance for Doubtful Accounts account to the level of the estimated uncollectible amount.

T F 5. When I use the allowance method for accounts receivable, I will recognize a Bad Debt Expense at the same time the account is taken off the Accounts Receivable Subsidiary Ledger.

. For each question below, circle the best answer from the choices given.

1. Which of the following items would cause the ending balance on the bank statement to be larger than the ending balance of cash shown in the accounting records (checkbook)?

A) Bank service charges.

B) Deposits in transit.

C) Outstanding checks.

D) NSF check from one of the depositor's customers.

2. When a bank reconciliation has been satisfactorily completed, the only related entries to be made in the company’s records are:

A) To correct errors made by the bank in recording the dollar amounts of cash transactions during the period.

B) To reconcile items explaining the difference between the balance per books and the balance per bank stmt.

C) To record outstanding checks and bank service charges.

D) To record items explaining the difference between the balance per accounting records and the adj. cash bal.

3. The Allowance for Doubtful Accounts represents:

A) Cash set aside to make up for bad debt losses.

B) The amount of uncollectible accounts written off to date.

C) The difference between total credit sales and collections on credit sales.

D) The difference between the face value of A/R and the net realizable value of A/R.

4. In preparing a bank reconciliation, a service charge shown on the bank statement should be:

A) Added to the balance per the bank statement.

B) Deducted from the balance per the bank statement.

C) Added to the balance per the depositor's records.

D) Deducted from the balance per the depositor's records.

5. During preparation of a bank reconciliation, outstanding checks should be:

A) Added to the balance per the bank statement.

B) Deducted from the balance per the bank statement.

C) Added to the balance per the depositor's records.

D) Deducted from the balance per the depositor's records.

Bank reconciliation. Indicate what effect each situation will have on the bank reconciliation process (Match the situation with the bank reconciliation process below by placing the number of the process next to the situation). Note that there are more situations than processes, so some processes may be used more than once, but not all processes have to be used. Only one process is required for each situation. Hint: Determine if Cash is increasing or decreasing

Process

Deduct from bank balance 2. Add to bank balance

3. Deduct from checkbook balance 4. Add to checkbook balance

Situation

_______ Bank received $2,750 from one of your customers (Terms: Cash in advance)

_______ Bank collection (wire) fee was $15

_______ Check number 111 was outstanding for $55

_______ A $400 check was written, but recorded on the books as $40

_______ Interest received from your bank for the month was $16.55

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