Business 001 - Introduction to Business » Spring 2022 » Ch 14 OpenStax Homework

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Question #1
_____ deals with reporting to outsiders. _____ accounting deals with the internal operations of the firm.
A.   Auditing; Managerial accounting
B.   Financial accounting; Managerial accounting
C.   External accounting; Internal accounting
D.   Bookkeeping; Financial accounting
E.     
F.   Financial accounting; Auditing
Question #2
To ensure accuracy and consistency in the way financial information is reported, accountants follow rules known as:
A.   accounting rules and principles
B.   generally accepted accounting principles
C.   financial accounting standards
D.   comparable accounting standards
E.   principled accounting procedures
Question #3
The Financial Accounting Standards Board (FASB) is a:
A.   federal government agency that is responsible for establishing managerial accounting standards for NAFTA members
B.   federal government agency that is responsible for establishing financial accounting standards in the United States
C.   United Nations organization that is responsible for establishing financial accounting standards globally
D.   private organization that is responsible for establishing financial accounting standards in the United States
E.   federal government agency that mediates disputes between accountants and the companies they work for
Question #4
A(n) _____ is a yearly document that describes a firm's financial status and usually discusses a firm’s financial activities during the past year and its prospects for the future.
A.   firm summary
B.   trial balance
C.   earnings report
D.   financial analysis
E.   annual report
Question #5
Which of the following statements about the accounting profession is true?
A.   Most CPAs first work for public accounting firms and later become private accountants or financial managers.
B.   Managerial accountants become a certified management accountant when they meet the requirements of the professional certification program.
C.   Public accountants serve individuals and organizations on a fee basis.
D.   Private accountants are also called corporate accountants.
E.   All of these statement about the accounting profession are true.
Question #6
_____ are independent accountants who serve organizations and individuals on a fee basis.
A.   Financial strategists
B.   Private accountants
C.   Tax reviewers
D.   Public auditors
E.   Public accountants
Question #7
Accountants employed within organizations are called:
A.   public accountants
B.   private auditors
C.   private accountants
D.   public auditors
E.   tax consultants
Question #8
An accountant who has a bachelor's degree, passes a test prepared by the professional organization AICPA, and has a certain number of years of on-the-job training becomes a:
A.   professional accountant
B.   certified public accountant
C.   certified private accountant
D.   certified tax specialist
E.     
F.   financial analyst
Question #9
In the accounting field, CMA stands for:
A.   certified motivational accountant
B.   certified managerial accountant
C.   centralized managerial accountant
D.   certified monetary auditor
E.   consolidated monetary auditor
Question #10
_____ is the system used to record a firm's financial transactions in a routine and clerical process.
A.   Financial management
B.   Auditing
C.   Bookkeeping
D.   Record keeping
E.   Accounting
Question #11
Things of value owned by a firm are called its:
A.   tangibles
B.   liabilities
C.   intangibles
D.   assets
E.   owners' equity
Question #12
Which of the following is an example of a liability that might be owned by an antique mall?
A.   an expensive Chinese urn with a small crack
B.   promotional signs
C.   accounting and inventory software
D.   money owed to utility companies
E.   the sales prices paid by customers
Question #13
Which of the following is an example of an asset that might be owned by a minor league baseball team?
A.   the price made for advertising on local radio
B.   all of these
C.   reputation as a winning team
D.   salaries owed to its players
E.   the cost of getting tickets printed
Question #14
Which of the following is an example of an intangible asset for a manufacturer of padlocks?
A.   a warehouse for storing locks
B.   a machine for forming the locks out of sheet metal
C.   an office for company CEO
D.   money owed to them by a do-it-yourself superstore chain
E.   a patent on titanium lock mechanism
Question #15
Another term for owners' equity is:
A.   assets
B.   net worth
C.   liabilities
D.   gross worth
E.   gross sales
Question #16
Which of the following calculations is a formal expression of the accounting equation?
A.   assets liabilities = retained earnings
B.   assets = liabilities + owners' equity
C.   assets/liabilities = owners’ equity
D.   assets + liabilities = owners' equity
E.   assets - owners' equity = liabilities
Question #17
In accounting, every transaction must be recorded as two entries. This system is called:
A.   dual-notation bookkeeping
B.   double-entry bookkeeping
C.   accounting-cycle bookkeeping
D.   double-decker bookkeeping
E.   tandem record keeping
Question #18
Which of the following is NOT one of the six steps in the accounting cycle?
A.   preparing a trial balance
B.   recording business transactions in journal
C.   analyzing business transaction documents
D.   preparing the financial statements
E.   paying accounts payable

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