OLS 274 Exam Chapters 14-17 Questions and Answers Already Passed
Assume a company buys a machine worth $1 million and pays for it by borrowing the funds
from a bank. The firm's assets will rise by $1 million and its liabilities will decrease by $1 million.
- Answers False
In most firms the controller is the chief accounting manager. - Answers True
Who is recognized worldwide as the body with sole responsibility and authority to issue
pronouncements on international accounting standards? - Answers IASC
Milwaukee Fabrication has $80 million in assets and $50 million in owners' equity. How much
does the firm have in liabilities? - Answers $30 million
________ activities provide the necessary funds to start a business and to expand it after it
begins operations. - Answers Financing
Increasing leverage decreases management's flexibility in future financing decisions. - Answers
True
In the secondary market, firms and governments issue securities and sell them initially to the
public. - Answers False
Deposit insurance shifts most of the financial risk of bank failures from depositors to ________. -
Answers the federal government
When a company offers stock for sale to the general public for the first time, it is called an initial
public offering. - Answers True
Aaron is sitting at his computer preparing a new sales brochure. The brochure combines high-
quality type, graphics, and photographs. What type of software is Aaron likely using to create
the brochure? - Answers desktop publishing program
Major current assets include all of the following EXCEPT ________. - Answers stockholders'
equity
Grid computing is a cost-effective solution for smaller-sized companies. - Answers True
Miles is an accountant and works for a firm that provides tax planning and preparation services
to other businesses. Miles is a management accountant. - Answers False
Which of the following represents the accounting equation? - Answers Assets = Liabilities +
Owners' Equity
Jeff wants to purchase a lower-risk bond. Therefore, he should buy a government bond. -
Answers True
Assume a company buys a machine worth $1 million and pays for it by borrowing the funds
from a bank. The firm's assets will rise by $1 million and its liabilities will decrease by $1 million.
- Answers False
In most firms the controller is the chief accounting manager. - Answers True
Who is recognized worldwide as the body with sole responsibility and authority to issue
pronouncements on international accounting standards? - Answers IASC
Milwaukee Fabrication has $80 million in assets and $50 million in owners' equity. How much
does the firm have in liabilities? - Answers $30 million
________ activities provide the necessary funds to start a business and to expand it after it
begins operations. - Answers Financing
Increasing leverage decreases management's flexibility in future financing decisions. - Answers
True
In the secondary market, firms and governments issue securities and sell them initially to the
public. - Answers False
Deposit insurance shifts most of the financial risk of bank failures from depositors to ________. -
Answers the federal government
When a company offers stock for sale to the general public for the first time, it is called an initial
public offering. - Answers True
Aaron is sitting at his computer preparing a new sales brochure. The brochure combines high-
quality type, graphics, and photographs. What type of software is Aaron likely using to create
the brochure? - Answers desktop publishing program
Major current assets include all of the following EXCEPT ________. - Answers stockholders'
equity
Grid computing is a cost-effective solution for smaller-sized companies. - Answers True
Miles is an accountant and works for a firm that provides tax planning and preparation services
to other businesses. Miles is a management accountant. - Answers False
Which of the following represents the accounting equation? - Answers Assets = Liabilities +
Owners' Equity
Jeff wants to purchase a lower-risk bond. Therefore, he should buy a government bond. -
Answers True
