C213 Accounting for Decision Makers || with Error-free Answers.
What does accounting focus on?
A. The impact a business's activities have on its relationships with customers.
B. The impact a business's activities have on the environment.
C. The impact a business's activities have on its public image.
D. The impact a business's activities have on its overall financial performance. correct answers
D. The impact a business's activities have on its overall financial performance.
Which report summarizes cash collections and cash expenditures from operating, investing, and
financing activities over a period of time?
A. Cash receipts and disbursements sheet
B. Cash flow schedule
C. Summary of cash receipts
D. Statement of cash flows correct answers D. Statement of cash flows
Which users would have a primary concern with an organization's ability to provide health
benefits?
A. Competitors
B. Employees
C. Vendors
D. Suppliers correct answers B. Employees
Which benefit does a corporation gain by following Generally Accepted Accounting Principles
(GAAP)?
,A. A decrease in its income tax obligations
B. A decrease in the amount of net income it reports
C. An increase in its comparability to other companies
D. An increase in the amount of assets it reports correct answers C. An increase in its
comparability to other companies
Which body regulates a certified public accounting firm's audit practices when the firm is
auditing a large publicly traded company?
A. The Public Company Accounting Oversight Board (PCAOB)
B. The Financial Accounting Standards Board (FASB)
C. Another certified public accounting (CPA) firm
D. The Internal Revenue Service (IRS) correct answers A. The Public Company Accounting
Oversight Board (PCAOB)
What has had the most significant impact on accounting practices?
A. Certification requirements
B. New product innovations
C. Information technology
D. Mobile computing correct answers C. Information technology
What two items of information are revealed on the balance sheet?
A. Ownership
B. Debt
C. Expenses
, D. Revenues
E. Costs correct answers A. Ownership
B. Debt
Which term is defined as the residual interest in the net assets of a company?
A. Operating income
B. Liabilities
C. Revenues
D. Owners' equity correct answers D. Owners' equity
A corporation has total liabilities of $300 million, total owners' equity of $100 million, and
current assets of $50 million.What is the value of the firm's long-term assets?
A. $250 million
B. $350 million
C. $400 million
D. $550 million correct answers B. $350 million
Which situation should result in revenue recognition on the income statement for the year ending
12/31/14 if the firm is using accrual-basis accounting?
A. In 2014, a company enters into a contract whereby it agrees to provide services to a customer
next year (2015).
B. In 2014, a company collects cash from a customer for services it will provide next year
(2015).
C. In 2014, a company provides services to a customer for which cash will be collected in the
next year (2015)
What does accounting focus on?
A. The impact a business's activities have on its relationships with customers.
B. The impact a business's activities have on the environment.
C. The impact a business's activities have on its public image.
D. The impact a business's activities have on its overall financial performance. correct answers
D. The impact a business's activities have on its overall financial performance.
Which report summarizes cash collections and cash expenditures from operating, investing, and
financing activities over a period of time?
A. Cash receipts and disbursements sheet
B. Cash flow schedule
C. Summary of cash receipts
D. Statement of cash flows correct answers D. Statement of cash flows
Which users would have a primary concern with an organization's ability to provide health
benefits?
A. Competitors
B. Employees
C. Vendors
D. Suppliers correct answers B. Employees
Which benefit does a corporation gain by following Generally Accepted Accounting Principles
(GAAP)?
,A. A decrease in its income tax obligations
B. A decrease in the amount of net income it reports
C. An increase in its comparability to other companies
D. An increase in the amount of assets it reports correct answers C. An increase in its
comparability to other companies
Which body regulates a certified public accounting firm's audit practices when the firm is
auditing a large publicly traded company?
A. The Public Company Accounting Oversight Board (PCAOB)
B. The Financial Accounting Standards Board (FASB)
C. Another certified public accounting (CPA) firm
D. The Internal Revenue Service (IRS) correct answers A. The Public Company Accounting
Oversight Board (PCAOB)
What has had the most significant impact on accounting practices?
A. Certification requirements
B. New product innovations
C. Information technology
D. Mobile computing correct answers C. Information technology
What two items of information are revealed on the balance sheet?
A. Ownership
B. Debt
C. Expenses
, D. Revenues
E. Costs correct answers A. Ownership
B. Debt
Which term is defined as the residual interest in the net assets of a company?
A. Operating income
B. Liabilities
C. Revenues
D. Owners' equity correct answers D. Owners' equity
A corporation has total liabilities of $300 million, total owners' equity of $100 million, and
current assets of $50 million.What is the value of the firm's long-term assets?
A. $250 million
B. $350 million
C. $400 million
D. $550 million correct answers B. $350 million
Which situation should result in revenue recognition on the income statement for the year ending
12/31/14 if the firm is using accrual-basis accounting?
A. In 2014, a company enters into a contract whereby it agrees to provide services to a customer
next year (2015).
B. In 2014, a company collects cash from a customer for services it will provide next year
(2015).
C. In 2014, a company provides services to a customer for which cash will be collected in the
next year (2015)
