C213 WGU OA Prep
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1. The ability a company has to pay its debts in Liquidity
the short run is its
2. Which of the following is a measure of the Debt ratio
liquid position of a corporation?
3. Which of the following ratios is used to mea- Debt Ratio
sure a firm's leverage?
4. Which of the following ratios is used to mea- Return on Equity
sure the profit earned on each dollar invested
in a firm?
5. The emphasis in financial accounting is on Investors and creditors
which of the following external user groups?
6. The primary internal group that uses ac- Management
counting information is
7. Internal reports are generally used by Management
8. Which of the following is NOT an external Management
user of financial information?
9. Which of the following is NOT true of the Fi- It is a government agency
nancial Accounting Standards Board (FASB)?
10. Generally accepted accounting principles are Developed by accounting rule makers
11. The initials GAAP stand for Generally Accepted Accounting Princi-
ples
12. The current standard-setting board for ac- Financial Accounting Standards Board
counting in the private sector is the (FASB)
, C213 WGU OA Prep
Study online at https://quizlet.com/_dbx49v
13. The organization that develops worldwide ac- International Accounting Standards
counting standards is the Board (IASB)
14. The initials CPA stand for Certified Public Accountant
15. Which of the following is NOT a service typ- Making management decisions
ically provided by large public accounting
firms?
16. Standards established by the International International Financial Reporting Stan-
Accounting Standards Board are referred to dards
as
17. Which of the following is the government Internal Revenue Service
agency that stipulates the rules and regula-
tions that govern the collection of taxes in the
United States?
18. Which of the following is NOT a reason for the the theoretical necessity of a common
integration of worldwide accounting stan- set of accounting standards
dards?
19. The International Accounting Standards True
Board (IASB) is charged with developing
worldwide accounting practices?
20. With the current state of information tech- False
nology, investors outside a company are now
allowed access to a company's internal data-
base of financial information and do their
own customized analysis of a firm's perfor-
mance.
21. Sarbanes-Oxley Act
, C213 WGU OA Prep
Study online at https://quizlet.com/_dbx49v
Increased federal oversight of the audit
process resulted from the passage of the fol-
lowing act of Congress -
22. A borrower benefits from providing financial True
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.
23. Which of the following is NOT one of the three The Statement of Retained Earnings
primary financial statements?
24. One reason for a company's preparing and True
providing financial statements is to reduce
uncertainty for an investor regarding the
firm's future financial performance.
25. Which of the following accounts is considered Cash
to be the most liquid?
26. Which of the following types of accounts are Revenues
NOT found on the balance sheet?
27. The financial statement that reports re- Balance sheet
sources owned, the obligations to transfer
resources to other organizations, and the
claims by the entity's owners is known as the
28. The idea that the activities of the entity are Separate entity concept
to be separated from those of the individual
owner is the
29. The basic accounting equation is Assets = Liabilities + Owners' Equity
Study online at https://quizlet.com/_dbx49v
1. The ability a company has to pay its debts in Liquidity
the short run is its
2. Which of the following is a measure of the Debt ratio
liquid position of a corporation?
3. Which of the following ratios is used to mea- Debt Ratio
sure a firm's leverage?
4. Which of the following ratios is used to mea- Return on Equity
sure the profit earned on each dollar invested
in a firm?
5. The emphasis in financial accounting is on Investors and creditors
which of the following external user groups?
6. The primary internal group that uses ac- Management
counting information is
7. Internal reports are generally used by Management
8. Which of the following is NOT an external Management
user of financial information?
9. Which of the following is NOT true of the Fi- It is a government agency
nancial Accounting Standards Board (FASB)?
10. Generally accepted accounting principles are Developed by accounting rule makers
11. The initials GAAP stand for Generally Accepted Accounting Princi-
ples
12. The current standard-setting board for ac- Financial Accounting Standards Board
counting in the private sector is the (FASB)
, C213 WGU OA Prep
Study online at https://quizlet.com/_dbx49v
13. The organization that develops worldwide ac- International Accounting Standards
counting standards is the Board (IASB)
14. The initials CPA stand for Certified Public Accountant
15. Which of the following is NOT a service typ- Making management decisions
ically provided by large public accounting
firms?
16. Standards established by the International International Financial Reporting Stan-
Accounting Standards Board are referred to dards
as
17. Which of the following is the government Internal Revenue Service
agency that stipulates the rules and regula-
tions that govern the collection of taxes in the
United States?
18. Which of the following is NOT a reason for the the theoretical necessity of a common
integration of worldwide accounting stan- set of accounting standards
dards?
19. The International Accounting Standards True
Board (IASB) is charged with developing
worldwide accounting practices?
20. With the current state of information tech- False
nology, investors outside a company are now
allowed access to a company's internal data-
base of financial information and do their
own customized analysis of a firm's perfor-
mance.
21. Sarbanes-Oxley Act
, C213 WGU OA Prep
Study online at https://quizlet.com/_dbx49v
Increased federal oversight of the audit
process resulted from the passage of the fol-
lowing act of Congress -
22. A borrower benefits from providing financial True
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.
23. Which of the following is NOT one of the three The Statement of Retained Earnings
primary financial statements?
24. One reason for a company's preparing and True
providing financial statements is to reduce
uncertainty for an investor regarding the
firm's future financial performance.
25. Which of the following accounts is considered Cash
to be the most liquid?
26. Which of the following types of accounts are Revenues
NOT found on the balance sheet?
27. The financial statement that reports re- Balance sheet
sources owned, the obligations to transfer
resources to other organizations, and the
claims by the entity's owners is known as the
28. The idea that the activities of the entity are Separate entity concept
to be separated from those of the individual
owner is the
29. The basic accounting equation is Assets = Liabilities + Owners' Equity
