ANSWERS|LATEST !!!!2026|GRADED A+| (EXAM
What does accounting focus on?
- The impact a business's activities have on its relationships with customers
- The impact a business's activities have on the environment.
- The impact a business's activities have on its public image.
- The impact a business's activities have on its overall financial performance. -
ANSWER The impact a business's activities on its overall financial performance.
Which report summarizes cash collections and cash expenditures from operating, investing,
and financing activities over a period of time?
- Cash receipts and disbursements sheet
- Cash flow schedule
- Summary of cash receipts
- Statement of cash flows - ANSWER Statement of cash flows
Which users would have a primary concern with an organization's ability to provide
healthcare benefits?
- Competitors
- Employees
- Vendors
- Suppliers - ANSWER Employees
Which benefit does a corporation gain by following Generally Accepted Accounting
Principles (GAAP)?
1
,- A decrease in its income tax obligations
- A decrease in the amount of net income it reports
- An increase in its comparability to other companies
- An increase in the amount of assets it reports - 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?
- The Public Company Accounting Oversight Board (PCAOB)
- The Financial Accounting Standards Board (FASB)
- Another certified public accounting firm (CPA)
- The Internal Revenue Service (IRS) - ANSWER The Public Company Accounting
Oversight Board (PCAOB)
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 Ownership and Debt
Which term is defined as the residual interest in the net assets of a company? -
ANSWER Owners' equity
A corporation has a total liabilities of $300 million, total owners' equity of $100 million, and
current assets of $50 million. What is the value of the firm's long-term assets? -
ANSWER $350 Million. Combine the liabilities with assets.
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
2
, 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 financial statements
Which assurance does an external audit report provide for its readers?
- The company will be a good credit risk
- The company will generate net income.
- The company's financial statements fairly reflect its financial position.
- The company will generate positive cash flows - ANSWER The company's financial
statements fairly reflect its financial position
Order the steps in the decision cycle from first to last: Gather information, prepare financial
statements, analyze financial statements, make decision, and implement decision. -
ANSWER Prepare financial statements, analyze financial statements, gather
information, make decision, and implement decision
Partial financial information for a company is as follows:
Current assets $36,543
Total assets $58,719
Current liabilities $24,824
Total liabilities $48,561
Stockholders' equity $10,158 Sales$46,997
Net Income $3,761
Market value of shares $41,316
3
What does accounting focus on?
- The impact a business's activities have on its relationships with customers
- The impact a business's activities have on the environment.
- The impact a business's activities have on its public image.
- The impact a business's activities have on its overall financial performance. -
ANSWER The impact a business's activities on its overall financial performance.
Which report summarizes cash collections and cash expenditures from operating, investing,
and financing activities over a period of time?
- Cash receipts and disbursements sheet
- Cash flow schedule
- Summary of cash receipts
- Statement of cash flows - ANSWER Statement of cash flows
Which users would have a primary concern with an organization's ability to provide
healthcare benefits?
- Competitors
- Employees
- Vendors
- Suppliers - ANSWER Employees
Which benefit does a corporation gain by following Generally Accepted Accounting
Principles (GAAP)?
1
,- A decrease in its income tax obligations
- A decrease in the amount of net income it reports
- An increase in its comparability to other companies
- An increase in the amount of assets it reports - 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?
- The Public Company Accounting Oversight Board (PCAOB)
- The Financial Accounting Standards Board (FASB)
- Another certified public accounting firm (CPA)
- The Internal Revenue Service (IRS) - ANSWER The Public Company Accounting
Oversight Board (PCAOB)
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 Ownership and Debt
Which term is defined as the residual interest in the net assets of a company? -
ANSWER Owners' equity
A corporation has a total liabilities of $300 million, total owners' equity of $100 million, and
current assets of $50 million. What is the value of the firm's long-term assets? -
ANSWER $350 Million. Combine the liabilities with assets.
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
2
, 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 financial statements
Which assurance does an external audit report provide for its readers?
- The company will be a good credit risk
- The company will generate net income.
- The company's financial statements fairly reflect its financial position.
- The company will generate positive cash flows - ANSWER The company's financial
statements fairly reflect its financial position
Order the steps in the decision cycle from first to last: Gather information, prepare financial
statements, analyze financial statements, make decision, and implement decision. -
ANSWER Prepare financial statements, analyze financial statements, gather
information, make decision, and implement decision
Partial financial information for a company is as follows:
Current assets $36,543
Total assets $58,719
Current liabilities $24,824
Total liabilities $48,561
Stockholders' equity $10,158 Sales$46,997
Net Income $3,761
Market value of shares $41,316
3
