ADVANCED ATI ACCOUNTING QUESTIONS AND ANSWER

ADVANCED ATI ACCOUNTING QUESTIONS AND ANSWER Preparing a budget for a business is considered A. Financial acct. B. Managerial acct. - CORRECT ANSWER -Managerial Accounting is the information system that A. Measures business activities B. Communicates the results to decision makers C. Process info into reports D. All of the above - CORRECT ANSWER -All of the above Which of the following is not an external user of a business's financial information A. Taxing authorities B. Customers C. Employees D. Investors - CORRECT ANSWER -Employees Which statement best describes the accounting equation? A. The change in retained earnings equals net income less dividends. B. Equality of revenue and expense transactions over time. C. Financing activities equal investing and operating activities. D. Resources of the company equal creditors' and owners' claims to those resources. - CORRECT ANSWER -Resources of the company equals creditors and owners claims to those resources Owners' claims to the company's resources are referred to as: A. Liabilities. B. Assets. C. Stockholders' equity. D. Net liabilities. - CORRECT ANSWER -Stockholder's Equity If total assets of a company equal $25,000 and total stockholders' equity equals $10,000, then total liabilities equal $15,000. A. True B. False - CORRECT ANSWER -True Amounts owed to suppliers for supplies purchased on account are defined as a(n): A. Revenue. B. Asset. C. Liability. D. Expense. - CORRECT ANSWER -Liability