Test Bank – Advanced Accounting, All
Chapters Covered With Complete
Solutions Highly Graded A+Guarantee
Already Passed!!
1. The tools for studying industry economics does not include:
a.
Value chain analysis
b.
Classification using Porter's five forces
c.
Classification of cash flows
d.
Economic attributes framework - ANSWER-C
On a common size basis, which of the following assets is normally largest for an electric
utility?
a. Accounts receivable
b. Inventory
c. Property, Plant and Equipment
d. Cash and Marketable Securities - ANSWER-C
7. When assessing buyer power using Porter's five forces, which of the following is not
consistent with low buyer power?
a.
Brand loyalty
b.
Control of distribution channel
c.
Large number of suppliers
d.
Low price - ANSWER-C
10. An example of an intangible asset is:
a.
A patent
b.
Land
c.
Investment in another company
d.
Raw material inventory - ANSWER-A
,13. The accrual basis of accounting recognizes:
a.
Revenue when cash is received from customers
b.
Expenses when paid
c.
Revenue when all or a substantial portion is performed
d.
Revenue when contracts are signed - ANSWER-C
16. A value chain for an industry sets forth:
a.
The layers of management the needed to be successful
b.
Sequence of activities involved in the creation, manufacture, and distribution of its
products.
c.
Sequence of activities involved in a firm's research and development activities.
d.
Whether the industry is horizontally or vertically integrated. - ANSWER-A
25. Which of the following activities is an operating activity?
a.
Collections of accounts receivable.
b.
Investing in equity securities of other companies.
c.
Payment of dividends.
d.
Issuing common stock - ANSWER-A
31. Which forces typically represent vertical competition in a value chain?
a.
Potential entry and substitutes.
b.
Buyer power and rivalry among existing firms
c.
Supplier power and potential entry.
d.
Buyer power and supplier power - ANSWER-A
Which two organizations are working together to harmonize financial reporting
worldwide?
a.
FASB and IASB
,b.
GAAP and FASB
c.
SEC and FASB
d.
EU and SEC - ANSWER-A
28. When a firm attempting to create unique products or services for particular market
niches, in order to achieve relatively high profit margins, this is best known as:
a.
A quality strategy
b.
A low-cost leadership strategy
c.
A vertical integration strategy
d.
A product differentiation strategy - ANSWER-A
22. Current assets are defined as:
a.
Cash and cash equivalents.
b.
All assets expected to be quickly used by the firm.
c.
Cash and other assets that the firm expects to sell or consume during the normal
operating cycle of a business, usually one year.
d.
Cash and other assets that the firm expects maintain for a period including the normal
operating cycle of a business, usually one year. - ANSWER-A
37. Opinions on the effectiveness of the internal control system and the fairness of the
amounts reported in the financial statements are known as:
a.
Management Discussion and Analysis.
b.
Assurance Opinions.
c.
Notes to the Financial Statements
d.
Management Assessments. - ANSWER-A
40. Which financial statement would you look at to determine whether a company will be
able to pay for the goods when payment is due in 30 days?
a.
Statement of cash flows.
b.
, Statement of stockholders' equity.
c.
Income statement.
d.
Balance sheet. - ANSWER-A
43. The two categories of shareholders' equity usually found on the balance sheet of a
corporation are:
a.
Contributed capital and property, plant, and equipment.
b.
Retained earnings and notes payable.
c.
Common stock and retained earnings.
d.
Contributed capital and equity securities. - ANSWER-C
46. On the statement of cash flows, depreciation would be classified as?
a.
A financing activity.
b.
An operating activity.
c.
An investing activity.
d.
A noncash activity. - ANSWER-B
49. All of the following are principal provisions of the Sarbanes-Oxley Act of 2002
except:
a.
At least one member of the audit committee of the board of directors must be a
"financial expert."
b.
The lead audit or coordinating partner and the reviewing partner of the public
accounting firm must rotate, or change, every five years.
c.
The firm's chief executive officer and the chief financial officer must issue a statement
along with the audit report stating that the financial statements and notes fairly present
the operations and financial position of the firm.
d.
The FASB has oversight and enforcement authority over the SEC. - ANSWER-D
1. The tools of effective financial statement analysis are useful for assessing whether to
extend ____________________ to a firm, either for a short-term or for a long-term. -
ANSWER-Credit/Loan
Chapters Covered With Complete
Solutions Highly Graded A+Guarantee
Already Passed!!
1. The tools for studying industry economics does not include:
a.
Value chain analysis
b.
Classification using Porter's five forces
c.
Classification of cash flows
d.
Economic attributes framework - ANSWER-C
On a common size basis, which of the following assets is normally largest for an electric
utility?
a. Accounts receivable
b. Inventory
c. Property, Plant and Equipment
d. Cash and Marketable Securities - ANSWER-C
7. When assessing buyer power using Porter's five forces, which of the following is not
consistent with low buyer power?
a.
Brand loyalty
b.
Control of distribution channel
c.
Large number of suppliers
d.
Low price - ANSWER-C
10. An example of an intangible asset is:
a.
A patent
b.
Land
c.
Investment in another company
d.
Raw material inventory - ANSWER-A
,13. The accrual basis of accounting recognizes:
a.
Revenue when cash is received from customers
b.
Expenses when paid
c.
Revenue when all or a substantial portion is performed
d.
Revenue when contracts are signed - ANSWER-C
16. A value chain for an industry sets forth:
a.
The layers of management the needed to be successful
b.
Sequence of activities involved in the creation, manufacture, and distribution of its
products.
c.
Sequence of activities involved in a firm's research and development activities.
d.
Whether the industry is horizontally or vertically integrated. - ANSWER-A
25. Which of the following activities is an operating activity?
a.
Collections of accounts receivable.
b.
Investing in equity securities of other companies.
c.
Payment of dividends.
d.
Issuing common stock - ANSWER-A
31. Which forces typically represent vertical competition in a value chain?
a.
Potential entry and substitutes.
b.
Buyer power and rivalry among existing firms
c.
Supplier power and potential entry.
d.
Buyer power and supplier power - ANSWER-A
Which two organizations are working together to harmonize financial reporting
worldwide?
a.
FASB and IASB
,b.
GAAP and FASB
c.
SEC and FASB
d.
EU and SEC - ANSWER-A
28. When a firm attempting to create unique products or services for particular market
niches, in order to achieve relatively high profit margins, this is best known as:
a.
A quality strategy
b.
A low-cost leadership strategy
c.
A vertical integration strategy
d.
A product differentiation strategy - ANSWER-A
22. Current assets are defined as:
a.
Cash and cash equivalents.
b.
All assets expected to be quickly used by the firm.
c.
Cash and other assets that the firm expects to sell or consume during the normal
operating cycle of a business, usually one year.
d.
Cash and other assets that the firm expects maintain for a period including the normal
operating cycle of a business, usually one year. - ANSWER-A
37. Opinions on the effectiveness of the internal control system and the fairness of the
amounts reported in the financial statements are known as:
a.
Management Discussion and Analysis.
b.
Assurance Opinions.
c.
Notes to the Financial Statements
d.
Management Assessments. - ANSWER-A
40. Which financial statement would you look at to determine whether a company will be
able to pay for the goods when payment is due in 30 days?
a.
Statement of cash flows.
b.
, Statement of stockholders' equity.
c.
Income statement.
d.
Balance sheet. - ANSWER-A
43. The two categories of shareholders' equity usually found on the balance sheet of a
corporation are:
a.
Contributed capital and property, plant, and equipment.
b.
Retained earnings and notes payable.
c.
Common stock and retained earnings.
d.
Contributed capital and equity securities. - ANSWER-C
46. On the statement of cash flows, depreciation would be classified as?
a.
A financing activity.
b.
An operating activity.
c.
An investing activity.
d.
A noncash activity. - ANSWER-B
49. All of the following are principal provisions of the Sarbanes-Oxley Act of 2002
except:
a.
At least one member of the audit committee of the board of directors must be a
"financial expert."
b.
The lead audit or coordinating partner and the reviewing partner of the public
accounting firm must rotate, or change, every five years.
c.
The firm's chief executive officer and the chief financial officer must issue a statement
along with the audit report stating that the financial statements and notes fairly present
the operations and financial position of the firm.
d.
The FASB has oversight and enforcement authority over the SEC. - ANSWER-D
1. The tools of effective financial statement analysis are useful for assessing whether to
extend ____________________ to a firm, either for a short-term or for a long-term. -
ANSWER-Credit/Loan
