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

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