CORRECT ANSWERS|LATEST !!!!2026|GRADED
The ability a company has to pay its debts in the short run is its - ANSWER Liquidity
Which of the following is a measure of the liquid position of a corporation? -
ANSWER Debt ratio
Which of the following ratios is used to measure a firm's leverage? - ANSWER Debt
Ratio
Which of the following ratios is used to measure the profit earned on each dollar invested in
a firm? - ANSWER Return on Equity
The emphasis in financial accounting is on which of the following external user groups? -
ANSWER Investors and creditors
The primary internal group that uses accounting information is -
ANSWER Management
Internal reports are generally used by - ANSWER Management
Which of the following is NOT an external user of financial information? -
ANSWER Management
1
,Which of the following is NOT true of the Financial Accounting Standards Board (FASB)? -
ANSWER It is a government agency
Generally accepted accounting principles are - ANSWER Developed by accounting
rule makers
The initials GAAP stand for - ANSWER Generally Accepted Accounting Principles
The current standard-setting board for accounting in the private sector is the -
ANSWER Financial Accounting Standards Board (FASB)
The organization that develops worldwide accounting standards is the -
ANSWER International Accounting Standards Board (IASB)
The initials CPA stand for - ANSWER Certified Public Accountant
Which of the following is NOT a service typically provided by large public accounting firms? -
ANSWER Making management decisions
Standards established by the International Accounting Standards Board are referred to as -
ANSWER International Financial Reporting Standards
Which of the following is the government agency that stipulates the rules and regulations
that govern the collection of taxes in the United States? - ANSWER Internal Revenue
Service
Which of the following is NOT a reason for the integration of worldwide accounting
standards? - ANSWER the theoretical necessity of a common set of accounting
standards
2
, The International Accounting Standards Board (IASB) is charged with developing worldwide
accounting practices? - ANSWER True
With the current state of information technology, investors outside a company are now
allowed access to a company's internal database of financial information and do their own
customized analysis of a firm's performance. - ANSWER False
Increased federal oversight of the audit process resulted from the passage of the following
act of Congress - - ANSWER Sarbanes-Oxley Act
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
Which of the following is NOT one of the three primary financial statements? -
ANSWER The Statement of Retained Earnings
One reason for a company's preparing and providing financial statements is to reduce
uncertainty for an investor regarding the firm's future financial performance. -
ANSWER True
Which of the following accounts is considered to be the most liquid? -
ANSWER Cash
Which of the following types of accounts are NOT found on the balance sheet? -
ANSWER Revenues
The financial statement that reports resources owned, the obligations to transfer resources
to other organizations, and the claims by the entity's owners is known as the -
ANSWER Balance sheet
3
The ability a company has to pay its debts in the short run is its - ANSWER Liquidity
Which of the following is a measure of the liquid position of a corporation? -
ANSWER Debt ratio
Which of the following ratios is used to measure a firm's leverage? - ANSWER Debt
Ratio
Which of the following ratios is used to measure the profit earned on each dollar invested in
a firm? - ANSWER Return on Equity
The emphasis in financial accounting is on which of the following external user groups? -
ANSWER Investors and creditors
The primary internal group that uses accounting information is -
ANSWER Management
Internal reports are generally used by - ANSWER Management
Which of the following is NOT an external user of financial information? -
ANSWER Management
1
,Which of the following is NOT true of the Financial Accounting Standards Board (FASB)? -
ANSWER It is a government agency
Generally accepted accounting principles are - ANSWER Developed by accounting
rule makers
The initials GAAP stand for - ANSWER Generally Accepted Accounting Principles
The current standard-setting board for accounting in the private sector is the -
ANSWER Financial Accounting Standards Board (FASB)
The organization that develops worldwide accounting standards is the -
ANSWER International Accounting Standards Board (IASB)
The initials CPA stand for - ANSWER Certified Public Accountant
Which of the following is NOT a service typically provided by large public accounting firms? -
ANSWER Making management decisions
Standards established by the International Accounting Standards Board are referred to as -
ANSWER International Financial Reporting Standards
Which of the following is the government agency that stipulates the rules and regulations
that govern the collection of taxes in the United States? - ANSWER Internal Revenue
Service
Which of the following is NOT a reason for the integration of worldwide accounting
standards? - ANSWER the theoretical necessity of a common set of accounting
standards
2
, The International Accounting Standards Board (IASB) is charged with developing worldwide
accounting practices? - ANSWER True
With the current state of information technology, investors outside a company are now
allowed access to a company's internal database of financial information and do their own
customized analysis of a firm's performance. - ANSWER False
Increased federal oversight of the audit process resulted from the passage of the following
act of Congress - - ANSWER Sarbanes-Oxley Act
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
Which of the following is NOT one of the three primary financial statements? -
ANSWER The Statement of Retained Earnings
One reason for a company's preparing and providing financial statements is to reduce
uncertainty for an investor regarding the firm's future financial performance. -
ANSWER True
Which of the following accounts is considered to be the most liquid? -
ANSWER Cash
Which of the following types of accounts are NOT found on the balance sheet? -
ANSWER Revenues
The financial statement that reports resources owned, the obligations to transfer resources
to other organizations, and the claims by the entity's owners is known as the -
ANSWER Balance sheet
3
