ACCT 701 ALL QUIZES & ASSESSMENTS_Use of managerial accounting data

(T / F) Retained earnings represent undistributed net income.
Select one:
True



False



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Correct. Net income minus dividends yields retained earnings.
The correct answer is 'True'.

Question 2

Correct

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(T / F) The three forms of business organizations are single proprietorship, partnership, and trust.
Select one:
True

False




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Correct. Corporation, not trust, is the third form.
The correct answer is 'False'.

Question 3

Correct

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(T / F) Accounting rules in the United States are known as International Financial Reporting Standards
(IFRS).
Select one:
True

False




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Correct.

The correct answer is 'False'.

Question 4

,Incorrect

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(T / F) The income statement shows the profitability of the company and is dated as of a particular date,
such as December 31, 2014.
Select one:
True



False



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The correct answer is 'False'.

Question 5

Correct

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(T / F) The three types of business activity are service, merchandising, and manufacturing.
Select one:
True



False



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Correct. The accounting for all three of these is covered in this text.
The correct answer is 'True'.

Question 6

Correct

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(T / F) A single proprietorship (aka sole proprietorship) is an unincorporated business owned by an
individual and often managed by that individual.
Select one:
True



False



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Correct.
The correct answer is 'True'.

,Question 7

Correct

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(T / F) In a company the person in charge of the accounting activity is called the controller or chief
financial officer.
Select one:
True



False



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Correct.
The correct answer is 'True'.

Question 8

Correct

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(T / F) The balance sheet contains the same major headings as appear in the accounting equation.
Select one:
True



False



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Correct. Both show assets, liabilities, and stockholders’ equity.
The correct answer is 'True'.

Question 9

Correct

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(T / F) The equity ratio shows the proportion of the company's assets that is financed through investments
by the owners.
Select one:
True



False



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, Correct.
The correct answer is 'True'.

Question 10

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(T / F) The equity ratio is the stockholders’ equity divided by total liabilities.
Select one:
True

False




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Correct. The equity ratio is the stockholders’ equity divided by total equities (or total assets).
The correct answer is 'False'


Who uses accounting information?
Select one:
a. Corporate executives.

b. Investors.

c. The internal revenue service.

d. All of the listed.



e. Corporate creditors.

f. None of the listed.

g. Corporate treasury operations.



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The correct answer is: All of the listed.

Question 2

Question text

A corporation is:
Select one:
a. Only incorporated by the IRS.

b. An unincorporated business owned by two or more persons.

c. A government agency.