C213 WGU OA Prep
The ability a company has to pay its debts in the short run is its
Liquidity
Which of the following is a measure of the liquid position of a corporation?
Debt ratio
3 multiple choice options
Which of the following ratios is used to measure a firm's leverage?
Debt Ratio
3 multiple choice options
Which of the following ratios is used to measure the profit earned on each dollar
invested in a firm?
Return on Equity
2 multiple choice options
The emphasis in financial accounting is on which of the following external user
groups?
Investors and creditors
2 multiple choice options
The primary internal group that uses accounting information is
Management
2 multiple choice options
Internal reports are generally used by
,Management
3 multiple choice options
Which of the following is NOT an external user of financial information?
Management
3 multiple choice options
Which of the following is NOT true of the Financial Accounting Standards Board
(FASB)?
It is a government agency
Generally accepted accounting principles are
Developed by accounting rule makers
2 multiple choice options
The initials GAAP stand for
Generally Accepted Accounting Principles
2 multiple choice options
The current standard-setting board for accounting in the private sector is the
Financial Accounting Standards Board (FASB)
2 multiple choice options
The organization that develops worldwide accounting standards is the
International Accounting Standards Board (IASB)
2 multiple choice options
The initials CPA stand for
Certified Public Accountant
,2 multiple choice options
Which of the following is NOT a service typically provided by large public
accounting firms?
Making management decisions
3 multiple choice options
Standards established by the International Accounting Standards Board are
referred to as
International Financial Reporting Standards
3 multiple choice options
Which of the following is the government agency that stipulates the rules and
regulations that govern the collection of taxes in the United States?
Internal Revenue Service
3 multiple choice options
Which of the following is NOT a reason for the integration of worldwide
accounting standards?
the theoretical necessity of a common set of accounting standards
3 multiple choice options
The International Accounting Standards Board (IASB) is charged with developing
worldwide accounting practices?
True
1 multiple choice option
, 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.
False
1 multiple choice option
Increased federal oversight of the audit process resulted from the passage of the
following act of Congress -
Sarbanes-Oxley Act
3 multiple choice options
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.
True
1 multiple choice option
Which of the following is NOT one of the three primary financial statements?
The Statement of Retained Earnings
3 multiple choice options
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.
True
1 multiple choice option
Which of the following accounts is considered to be the most liquid?
Cash
The ability a company has to pay its debts in the short run is its
Liquidity
Which of the following is a measure of the liquid position of a corporation?
Debt ratio
3 multiple choice options
Which of the following ratios is used to measure a firm's leverage?
Debt Ratio
3 multiple choice options
Which of the following ratios is used to measure the profit earned on each dollar
invested in a firm?
Return on Equity
2 multiple choice options
The emphasis in financial accounting is on which of the following external user
groups?
Investors and creditors
2 multiple choice options
The primary internal group that uses accounting information is
Management
2 multiple choice options
Internal reports are generally used by
,Management
3 multiple choice options
Which of the following is NOT an external user of financial information?
Management
3 multiple choice options
Which of the following is NOT true of the Financial Accounting Standards Board
(FASB)?
It is a government agency
Generally accepted accounting principles are
Developed by accounting rule makers
2 multiple choice options
The initials GAAP stand for
Generally Accepted Accounting Principles
2 multiple choice options
The current standard-setting board for accounting in the private sector is the
Financial Accounting Standards Board (FASB)
2 multiple choice options
The organization that develops worldwide accounting standards is the
International Accounting Standards Board (IASB)
2 multiple choice options
The initials CPA stand for
Certified Public Accountant
,2 multiple choice options
Which of the following is NOT a service typically provided by large public
accounting firms?
Making management decisions
3 multiple choice options
Standards established by the International Accounting Standards Board are
referred to as
International Financial Reporting Standards
3 multiple choice options
Which of the following is the government agency that stipulates the rules and
regulations that govern the collection of taxes in the United States?
Internal Revenue Service
3 multiple choice options
Which of the following is NOT a reason for the integration of worldwide
accounting standards?
the theoretical necessity of a common set of accounting standards
3 multiple choice options
The International Accounting Standards Board (IASB) is charged with developing
worldwide accounting practices?
True
1 multiple choice option
, 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.
False
1 multiple choice option
Increased federal oversight of the audit process resulted from the passage of the
following act of Congress -
Sarbanes-Oxley Act
3 multiple choice options
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.
True
1 multiple choice option
Which of the following is NOT one of the three primary financial statements?
The Statement of Retained Earnings
3 multiple choice options
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.
True
1 multiple choice option
Which of the following accounts is considered to be the most liquid?
Cash
