ACCOUNTING FOR DECISION MAKERS C213
QUIZZES WITH ACTUAL RIGHT ANSWERS.
The impact a business's activities have on its overall financial performance ANSWER : -What does
accounting focus on?
Statement of cash flows ANSWER : -Which report summarizes cash collections and cash expenditures
from operating, investing, and financing activities over a period of time?
Employees ANSWER : -Which users would have a primary concern with an organization's ability to
provide healthcare benefits?
An increase in its compatibility to other companies ANSWER : -Which benefit does a corporation gain
by following Generally Accepted Accounting Principles (GAPP)?
The Public Company Accounting Oversight Board (PACOB) ANSWER : -Which body regulates a certified
public accounting firm's audit practices when the firm is auditing a large publicly traded company?
Information technology ANSWER : -What has had the most significant impact on Accounting practices?
Ownership and Debt ANSWER : -What two items of information are revealed on the balance sheet?
Owners equity ANSWER : -Which term is defined as the residual in the net assets of a company?
In 2014, a company provides services to a customer for which cash will be collected the next year
(2015). ANSWER : -Which situation should result in revenue recognition on the income statement for
the year ending 12/31/14 if the firm is using accrual accounting?
Cash from financing activities ANSWER : -Which category on the statement of cash flows summarizes
cash receipts and payments to owners and creditors of the company?
,In the notes to financial statements ANSWER : -Where would an investor find a summary of a
company's significant accounting policies?
The company's financial statements fairly reflect its financial position ANSWER : -Which assurance
does an external audit report provide for its readers?
Reliable ANSWER : -Information that can be verified
Relevant ANSWER : -Information having to do with the matter at hand
Material ANSWER : -Information that is important enough to make a difference
Conservatism ANSWER : -Information related to recognizing losses as they occur
Continual decrease in sales ANSWER : -What is consistent with a continual decline in gross profit if the
firm's cost of goods sold remains the same?
Notes payable expected to be paid in 18 months ANSWER : -Which form of debt should be reported in
the long-term liability category?
Operating expenses &
Ordinary gains and losses ANSWER : -Which values affect the measurement of net income?
Gross profit &
Income from operations ANSWER : -Which items' subtotals are included in a multi-step income
statement?
Cash from investing activities ANSWER : -What is a common category in a statement of cash flows?
, Cash from financing activities ANSWER : -Which cash flow category would include "cash received from
investors"?
Cash payments for purchase of plant assets ANSWER : -Which item is an investing activity?
Increase in cash from investing activities ANSWER : -What impact does the sale of equipment have on
the statement of cash flows?
The indirect method is more popular among large U.S. companies ANSWER : -What is known about the
direct and indirect methods of preparing statements of cash flow?
The inventory department counts and inspects items as received and forwards the receiving record to
accounts payable. ANSWER : -Which internal control is intended to ensure that a company does not
mistakenly pay a supplier for an invoice that includes more items than were actually received?
Pressure to meet internal sales goals &
Preparing to qualify for a bank loan ANSWER : -What are common reasons for managers to manipulate
reported earnings?
Firms must not provide certain non-audit services to audit clients, such as management functions or
legal services. &
Firms must report to and be retained by the audit committee rather than the CFO or other company
management. ANSWER : -Which requirements must accounting firms that audit public companies
meet under the Sarbanes-Oxley Act?
They search for and investigate fraud.
&
They review financial records and internal controls. ANSWER : -Which actions do internal auditors
perform to assist in maintaining the integrity of financial statements?
QUIZZES WITH ACTUAL RIGHT ANSWERS.
The impact a business's activities have on its overall financial performance ANSWER : -What does
accounting focus on?
Statement of cash flows ANSWER : -Which report summarizes cash collections and cash expenditures
from operating, investing, and financing activities over a period of time?
Employees ANSWER : -Which users would have a primary concern with an organization's ability to
provide healthcare benefits?
An increase in its compatibility to other companies ANSWER : -Which benefit does a corporation gain
by following Generally Accepted Accounting Principles (GAPP)?
The Public Company Accounting Oversight Board (PACOB) ANSWER : -Which body regulates a certified
public accounting firm's audit practices when the firm is auditing a large publicly traded company?
Information technology ANSWER : -What has had the most significant impact on Accounting practices?
Ownership and Debt ANSWER : -What two items of information are revealed on the balance sheet?
Owners equity ANSWER : -Which term is defined as the residual in the net assets of a company?
In 2014, a company provides services to a customer for which cash will be collected the next year
(2015). ANSWER : -Which situation should result in revenue recognition on the income statement for
the year ending 12/31/14 if the firm is using accrual accounting?
Cash from financing activities ANSWER : -Which category on the statement of cash flows summarizes
cash receipts and payments to owners and creditors of the company?
,In the notes to financial statements ANSWER : -Where would an investor find a summary of a
company's significant accounting policies?
The company's financial statements fairly reflect its financial position ANSWER : -Which assurance
does an external audit report provide for its readers?
Reliable ANSWER : -Information that can be verified
Relevant ANSWER : -Information having to do with the matter at hand
Material ANSWER : -Information that is important enough to make a difference
Conservatism ANSWER : -Information related to recognizing losses as they occur
Continual decrease in sales ANSWER : -What is consistent with a continual decline in gross profit if the
firm's cost of goods sold remains the same?
Notes payable expected to be paid in 18 months ANSWER : -Which form of debt should be reported in
the long-term liability category?
Operating expenses &
Ordinary gains and losses ANSWER : -Which values affect the measurement of net income?
Gross profit &
Income from operations ANSWER : -Which items' subtotals are included in a multi-step income
statement?
Cash from investing activities ANSWER : -What is a common category in a statement of cash flows?
, Cash from financing activities ANSWER : -Which cash flow category would include "cash received from
investors"?
Cash payments for purchase of plant assets ANSWER : -Which item is an investing activity?
Increase in cash from investing activities ANSWER : -What impact does the sale of equipment have on
the statement of cash flows?
The indirect method is more popular among large U.S. companies ANSWER : -What is known about the
direct and indirect methods of preparing statements of cash flow?
The inventory department counts and inspects items as received and forwards the receiving record to
accounts payable. ANSWER : -Which internal control is intended to ensure that a company does not
mistakenly pay a supplier for an invoice that includes more items than were actually received?
Pressure to meet internal sales goals &
Preparing to qualify for a bank loan ANSWER : -What are common reasons for managers to manipulate
reported earnings?
Firms must not provide certain non-audit services to audit clients, such as management functions or
legal services. &
Firms must report to and be retained by the audit committee rather than the CFO or other company
management. ANSWER : -Which requirements must accounting firms that audit public companies
meet under the Sarbanes-Oxley Act?
They search for and investigate fraud.
&
They review financial records and internal controls. ANSWER : -Which actions do internal auditors
perform to assist in maintaining the integrity of financial statements?
