|QUESTIONS AND 100% CORRECT
ANSWERS|LATEST !!!!2026|GRADED A+| (EXAM
What does accounting focus on? - ANSWER The impact a business's activities have
on it's overall financial performance
Which report summarizes cash collections and cash expenditures from operating, investing,
and financing activities over a period of time? - ANSWER Statement of cash flows
Which users would have a primary concern with an organization's ability to provide
healthcare benefits? - ANSWER Employees
Which benefit does a corporation gain by following Generally Accepted Accounting
Principals (GAAP)? - ANSWER An increase in its comparability to other companies
Which body regulates a certified public accounting firm's audit practices when the firm is
auditing a large publicly traded company? - ANSWER The FASB
What has had the most significant impact on accounting practices? -
ANSWER Information Technology
What two items of information are revealed on the balance sheet? - ANSWER Debt,
Ownership
Which term is defined as the residual interest in the net assets of a company? -
ANSWER Owner's equity
1
, A corporation has total liabilities of $300 million, total owner's equity of $100 million, and
current assets of $50 million. What is the value of the firm's long-term assets? -
ANSWER $350 million
Which situation should result in revenue recognition on the income statement for the year
ending 12/31/14 if the firm is using accrual-basis accounting? - ANSWER In 2014, a
company provides services to a customer for which cash will be collected the next year
(2015)
Which category on the statement of cash flows summarizes cash receipts and payments to
owners and creditors of the company? - ANSWER Cash flows from financing
activities
Where would an investor find a summary of a company's significant accounting policies? -
ANSWER In the notes to the financial statements
What does it mean if a company has a debt ratio of 101.5%? - ANSWER The
company has 1.5% more total liabilities that total assets
Which assurances does an external audit report provide for its readers? -
ANSWER The company's financial statements fairly reflects its financial position
What is consistent with a continual decline in gross profit if the firm's cost of goods sold
remains the same? - ANSWER Continual decrease in sales
Which formula yields a cash time interest earned ratio of 11? - ANSWER Cash before
interest and taxes of $11,000/cash paid for interest of $1,000
Which form of debt should be reported in the long-term liability category? -
ANSWER Notes payable expected to be paid in 18 months
2
ANSWERS|LATEST !!!!2026|GRADED A+| (EXAM
What does accounting focus on? - ANSWER The impact a business's activities have
on it's overall financial performance
Which report summarizes cash collections and cash expenditures from operating, investing,
and financing activities over a period of time? - ANSWER Statement of cash flows
Which users would have a primary concern with an organization's ability to provide
healthcare benefits? - ANSWER Employees
Which benefit does a corporation gain by following Generally Accepted Accounting
Principals (GAAP)? - ANSWER An increase in its comparability to other companies
Which body regulates a certified public accounting firm's audit practices when the firm is
auditing a large publicly traded company? - ANSWER The FASB
What has had the most significant impact on accounting practices? -
ANSWER Information Technology
What two items of information are revealed on the balance sheet? - ANSWER Debt,
Ownership
Which term is defined as the residual interest in the net assets of a company? -
ANSWER Owner's equity
1
, A corporation has total liabilities of $300 million, total owner's equity of $100 million, and
current assets of $50 million. What is the value of the firm's long-term assets? -
ANSWER $350 million
Which situation should result in revenue recognition on the income statement for the year
ending 12/31/14 if the firm is using accrual-basis accounting? - ANSWER In 2014, a
company provides services to a customer for which cash will be collected the next year
(2015)
Which category on the statement of cash flows summarizes cash receipts and payments to
owners and creditors of the company? - ANSWER Cash flows from financing
activities
Where would an investor find a summary of a company's significant accounting policies? -
ANSWER In the notes to the financial statements
What does it mean if a company has a debt ratio of 101.5%? - ANSWER The
company has 1.5% more total liabilities that total assets
Which assurances does an external audit report provide for its readers? -
ANSWER The company's financial statements fairly reflects its financial position
What is consistent with a continual decline in gross profit if the firm's cost of goods sold
remains the same? - ANSWER Continual decrease in sales
Which formula yields a cash time interest earned ratio of 11? - ANSWER Cash before
interest and taxes of $11,000/cash paid for interest of $1,000
Which form of debt should be reported in the long-term liability category? -
ANSWER Notes payable expected to be paid in 18 months
2
