Actual Exam Review Q&A with
Quiz_________________?
____ is increased and ____ is decreased when cash is collected from customers who had
previously purchased a product or service on account. -
Answer✅
Cash, Accounts Receivable
Quiz_________________?
______ is/are not considered to be an expense of doing business. -
Answer✅
Cash dividends
Quiz_________________?
A borrower benefits from providing financial information regarding income and expenses in
the form of a lower interest rate on the loan because of reduced uncertainty for the lender
with regard to repayment. -
Answer✅
True
1
, Quiz_________________?
A company has a credit policy of net 10 and is considering changing it to net 30 to be more
in line with industry standards. What is a benefit to changing the credit policy? -
Answer✅
Attracting more customers
Quiz_________________?
A company's asset mix is determined by -
Answer✅
Dividing each asset item on the balance sheet by total assets
Quiz_________________?
A company's asset mix is strongly influence by -
Answer✅
The company's industry
Quiz_________________?
A loss from the sale of a building would be reported on an indirect method statement of
cash flows as -
Answer✅
An addition to net income
Quiz_________________?
2
, A major source of cash from operating activities is -
Answer✅
Receipts from sale of goods
Quiz_________________?
A measure of a company's performance that includes all items that are expected to continue
into the future is - -
Answer✅
Income from Continuing Operations
Quiz_________________?
A measure of a company's performance that is intended to summarize in one number the
overall economic performance of a company in a given period is - -
Answer✅
Net Income
Quiz_________________?
A more accurate allocation of manufacturing overhead and product costing can take place
when costs are assigned on the basis of: -
Answer✅
Cost drivers
Quiz_________________?
A useful tool in financial statement analysis is the common-size financial statement. What
does this tool enable the financial analyst to do? -
Answer✅
3
, Compare the mix of revenue, and expenses, and determine efficient use of resources within
a company over time or between companies within a given industry without respect to
relative size.
Quiz_________________?
A wholesale bakery would normally recognize revenue when -
Answer✅
goods are delivered to the customer.
Quiz_________________?
According to Sarbanes-Oxley, which one of the following services is an accounting firm
permitted to provide to its audit client? -
Answer✅
Opinions about the reliability of internal controls
Quiz_________________?
According to Sarbanes-Oxley, who are auditors required to report to and be retained by? -
Answer✅
Audit committee
Quiz_________________?
Activity-based costing deals with the allocation of: -
Answer✅
Manufacturing overhead costs
4
Quiz_________________?
____ is increased and ____ is decreased when cash is collected from customers who had
previously purchased a product or service on account. -
Answer✅
Cash, Accounts Receivable
Quiz_________________?
______ is/are not considered to be an expense of doing business. -
Answer✅
Cash dividends
Quiz_________________?
A borrower benefits from providing financial information regarding income and expenses in
the form of a lower interest rate on the loan because of reduced uncertainty for the lender
with regard to repayment. -
Answer✅
True
1
, Quiz_________________?
A company has a credit policy of net 10 and is considering changing it to net 30 to be more
in line with industry standards. What is a benefit to changing the credit policy? -
Answer✅
Attracting more customers
Quiz_________________?
A company's asset mix is determined by -
Answer✅
Dividing each asset item on the balance sheet by total assets
Quiz_________________?
A company's asset mix is strongly influence by -
Answer✅
The company's industry
Quiz_________________?
A loss from the sale of a building would be reported on an indirect method statement of
cash flows as -
Answer✅
An addition to net income
Quiz_________________?
2
, A major source of cash from operating activities is -
Answer✅
Receipts from sale of goods
Quiz_________________?
A measure of a company's performance that includes all items that are expected to continue
into the future is - -
Answer✅
Income from Continuing Operations
Quiz_________________?
A measure of a company's performance that is intended to summarize in one number the
overall economic performance of a company in a given period is - -
Answer✅
Net Income
Quiz_________________?
A more accurate allocation of manufacturing overhead and product costing can take place
when costs are assigned on the basis of: -
Answer✅
Cost drivers
Quiz_________________?
A useful tool in financial statement analysis is the common-size financial statement. What
does this tool enable the financial analyst to do? -
Answer✅
3
, Compare the mix of revenue, and expenses, and determine efficient use of resources within
a company over time or between companies within a given industry without respect to
relative size.
Quiz_________________?
A wholesale bakery would normally recognize revenue when -
Answer✅
goods are delivered to the customer.
Quiz_________________?
According to Sarbanes-Oxley, which one of the following services is an accounting firm
permitted to provide to its audit client? -
Answer✅
Opinions about the reliability of internal controls
Quiz_________________?
According to Sarbanes-Oxley, who are auditors required to report to and be retained by? -
Answer✅
Audit committee
Quiz_________________?
Activity-based costing deals with the allocation of: -
Answer✅
Manufacturing overhead costs
4
