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.     
B.   Bookkeeping; Financial accounting
C.   External accounting; Internal accounting
D.   Financial accounting; Managerial accounting
E.   Financial accounting; Auditing
F.   Auditing; Managerial accounting
Question #2
To ensure accuracy and consistency in the way financial information is reported, accountants follow rules known as:
A.   generally accepted accounting principles
B.   accounting rules and principles
C.   comparable accounting standards
D.   financial accounting standards
E.   principled accounting procedures
Question #3
The Financial Accounting Standards Board (FASB) is a:
A.   federal government agency that mediates disputes between accountants and the companies they work for
B.   private organization that is responsible for establishing financial accounting standards in the United States
C.   federal government agency that is responsible for establishing financial accounting standards in the United States
D.   federal government agency that is responsible for establishing managerial accounting standards for NAFTA members
E.   United Nations organization that is responsible for establishing financial accounting standards globally
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.   financial analysis
B.   trial balance
C.   firm summary
D.   earnings report
E.   annual report
Question #5
Which of the following statements about the accounting profession is true?
A.   Public accountants serve individuals and organizations on a fee basis.
B.   All of these statement about the accounting profession are true.
C.   Managerial accountants become a certified management accountant when they meet the requirements of the professional certification program.
D.   Most CPAs first work for public accounting firms and later become private accountants or financial managers.
E.   Private accountants are also called corporate accountants.
Question #6
_____ are independent accountants who serve organizations and individuals on a fee basis.
A.   Public auditors
B.   Public accountants
C.   Financial strategists
D.   Tax reviewers
E.   Private accountants
Question #7
Accountants employed within organizations are called:
A.   public auditors
B.   public accountants
C.   private auditors
D.   tax consultants
E.   private accountants
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.   certified private accountant
B.     
C.   professional accountant
D.   financial analyst
E.   certified public accountant
F.   certified tax specialist
Question #9
In the accounting field, CMA stands for:
A.   consolidated monetary auditor
B.   certified monetary auditor
C.   centralized managerial accountant
D.   certified managerial accountant
E.   certified motivational accountant
Question #10
_____ is the system used to record a firm's financial transactions in a routine and clerical process.
A.   Record keeping
B.   Bookkeeping
C.   Financial management
D.   Accounting
E.   Auditing
Question #11
Things of value owned by a firm are called its:
A.   liabilities
B.   intangibles
C.   owners' equity
D.   tangibles
E.   assets
Question #12
Which of the following is an example of a liability that might be owned by an antique mall?
A.   accounting and inventory software
B.   an expensive Chinese urn with a small crack
C.   the sales prices paid by customers
D.   promotional signs
E.   money owed to utility companies
Question #13
Which of the following is an example of an asset that might be owned by a minor league baseball team?
A.   the cost of getting tickets printed
B.   the price made for advertising on local radio
C.   reputation as a winning team
D.   salaries owed to its players
E.   all of these
Question #14
Which of the following is an example of an intangible asset for a manufacturer of padlocks?
A.   a machine for forming the locks out of sheet metal
B.   a patent on titanium lock mechanism
C.   a warehouse for storing locks
D.   money owed to them by a do-it-yourself superstore chain
E.   an office for company CEO
Question #15
Another term for owners' equity is:
A.   gross sales
B.   net worth
C.   assets
D.   liabilities
E.   gross worth
Question #16
Which of the following calculations is a formal expression of the accounting equation?
A.   assets - owners' equity = liabilities
B.   assets liabilities = retained earnings
C.   assets = liabilities + owners' equity
D.   assets/liabilities = owners’ equity
E.   assets + liabilities = owners' equity
Question #17
In accounting, every transaction must be recorded as two entries. This system is called:
A.   dual-notation bookkeeping
B.   accounting-cycle bookkeeping
C.   double-decker bookkeeping
D.   tandem record keeping
E.   double-entry bookkeeping
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.   preparing the financial statements
D.   paying accounts payable
E.   analyzing business transaction documents

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