INTRO TO BUSINESS ACCOUNTING - D774
QUESTIONS WITH VERIFIED ACCURATE ANSWERS
What is the role of the securities and exchange commission (sec) in influencing
accounting standards? - answers - it enforces financial reporting rules established by
the fasb
A financial professional wants to offer auditing and tax prep services to the public. To do
so, they must pass a certification exam and meet state licensing requirements. Which
title does this individual need to obtain? - answers - cpa
A company is implementing new fraud prevention measures and ensuring compliance
with financial reporting regulations. Who is responsible for overseeing and maintaining
these internal controls? - answers - management
During which historical period did accounting significantly increase in importance to
society, surpassing its earlier roles in basic recordkeeping and taxation? - answers - the
industrial revolution
What was the effect of the sarbanes-oxley act of 2002 on corporate responsibility
related to financial controls and reporting? - answers - it increased corporate
responsibility
Which tyle of unethical behavior does using a corporate credit card for personal
expenses represent? - answers - fraud
Which characteristic describes the purpose of financial accounting? - answers - it
provides historical financial data in standardized reports for external stakeholders
A company is assessing its monthly labor costs to optimize workforce efficiency. Which
feature of managerial accounting reports makes them useful for this purpose? - answers
- they are tailored to meet the specific needs of internal decision-makers
Which statement best describes managerial accounting reports? - answers - they are
prepared to meet the internal decision-making needs of management
A company incurs expenses for the product it manufactures and includes the expense
in a specific category on the income statement. Which category does this expense
belong to? - answers - cost of goods sold
Wild parsley grill is reviewing the income statement it has received from its accountants,
and it shows the amount of net income earned for the period. How should the business
, interpret net income based on the information provided? - answers - revenues are great
than expenses.
A company uses accrual accounting to develop the financial statements to give to a
potential investor. Which limitation does accrual accounting introduce? - answers - it
may not reflect actual cash flow for the period.
How does a favorable volume variance impact revenue and cost of goods sold on an
income statement? - answers - it increases revenue and cost of goods sold.
A retailer classifies wages for store employees differently than wages for office staff.
Which category includes wages for store employees? - answers - costs of goods sold
A company wants to assess how well it manages its cash inflows and outflows over a
specific period. Management is particularly interested in understanding how operating
activities contribute to the company's liquidity. Which financial statement should the
company analyze to track the actual movement of cash rather than just reported profits?
- answers - statement of cash flows
An antiques dealer heads to the local flea market and finds four items to sell in their
antique shop. How would the dealer report the cost of the flea market finds on the
balance sheet? - answers - assets
A company's comparative income statement displays net income for the past five years.
Which financial trend can be identified using this statement? - answers - the changes in
profitability over time.
A company reports $250,000 in revenue and $50,000 in net income. Why is net income
lower than revenue? - answers - expenses reduce the total amount earned.
A company reports net income on its income statement, but the actual cash available is
much lower. Why does this occur despite positive net income? - answers - the non-cash
expenses and accrual accounting impact cash flow.
A company earns $100,000 in revenue but only reports $85,000 in receipts. What
causes this discrepancy between revenue and receipts. - answers - the company has
some customers who have not yet paid for their purchases.
What is the limitation of the balance sheet? - answers - it does not include future
performance
A company issues new shares of stock to raise additional funds. Which equity category
increase as a result? - answers - paid-in-capital
A bakery stores flour, sugar, and other raw materials for production. Why are these
considered assets before they are used? - answers - they have future economic value
QUESTIONS WITH VERIFIED ACCURATE ANSWERS
What is the role of the securities and exchange commission (sec) in influencing
accounting standards? - answers - it enforces financial reporting rules established by
the fasb
A financial professional wants to offer auditing and tax prep services to the public. To do
so, they must pass a certification exam and meet state licensing requirements. Which
title does this individual need to obtain? - answers - cpa
A company is implementing new fraud prevention measures and ensuring compliance
with financial reporting regulations. Who is responsible for overseeing and maintaining
these internal controls? - answers - management
During which historical period did accounting significantly increase in importance to
society, surpassing its earlier roles in basic recordkeeping and taxation? - answers - the
industrial revolution
What was the effect of the sarbanes-oxley act of 2002 on corporate responsibility
related to financial controls and reporting? - answers - it increased corporate
responsibility
Which tyle of unethical behavior does using a corporate credit card for personal
expenses represent? - answers - fraud
Which characteristic describes the purpose of financial accounting? - answers - it
provides historical financial data in standardized reports for external stakeholders
A company is assessing its monthly labor costs to optimize workforce efficiency. Which
feature of managerial accounting reports makes them useful for this purpose? - answers
- they are tailored to meet the specific needs of internal decision-makers
Which statement best describes managerial accounting reports? - answers - they are
prepared to meet the internal decision-making needs of management
A company incurs expenses for the product it manufactures and includes the expense
in a specific category on the income statement. Which category does this expense
belong to? - answers - cost of goods sold
Wild parsley grill is reviewing the income statement it has received from its accountants,
and it shows the amount of net income earned for the period. How should the business
, interpret net income based on the information provided? - answers - revenues are great
than expenses.
A company uses accrual accounting to develop the financial statements to give to a
potential investor. Which limitation does accrual accounting introduce? - answers - it
may not reflect actual cash flow for the period.
How does a favorable volume variance impact revenue and cost of goods sold on an
income statement? - answers - it increases revenue and cost of goods sold.
A retailer classifies wages for store employees differently than wages for office staff.
Which category includes wages for store employees? - answers - costs of goods sold
A company wants to assess how well it manages its cash inflows and outflows over a
specific period. Management is particularly interested in understanding how operating
activities contribute to the company's liquidity. Which financial statement should the
company analyze to track the actual movement of cash rather than just reported profits?
- answers - statement of cash flows
An antiques dealer heads to the local flea market and finds four items to sell in their
antique shop. How would the dealer report the cost of the flea market finds on the
balance sheet? - answers - assets
A company's comparative income statement displays net income for the past five years.
Which financial trend can be identified using this statement? - answers - the changes in
profitability over time.
A company reports $250,000 in revenue and $50,000 in net income. Why is net income
lower than revenue? - answers - expenses reduce the total amount earned.
A company reports net income on its income statement, but the actual cash available is
much lower. Why does this occur despite positive net income? - answers - the non-cash
expenses and accrual accounting impact cash flow.
A company earns $100,000 in revenue but only reports $85,000 in receipts. What
causes this discrepancy between revenue and receipts. - answers - the company has
some customers who have not yet paid for their purchases.
What is the limitation of the balance sheet? - answers - it does not include future
performance
A company issues new shares of stock to raise additional funds. Which equity category
increase as a result? - answers - paid-in-capital
A bakery stores flour, sugar, and other raw materials for production. Why are these
considered assets before they are used? - answers - they have future economic value
