WILEY PLUS MIDTERM EXAM
CHAPTERS 1-6(FINICAL ACCOUNTING)
QUESTIONS AND ANSWERS WITH
VERIFIED SOLUTIONS (GRADED A+)
Which of the following is not a required element in the annual report of a
public company?
(a) Cash flow statement
(b) Footnotes to the financial reports
(c) Management’s analysis and overview
(d) All of the above are required
✔ Answer: (d) All of the above are required
Sharing financial data with employees can:
(a) Cause them to slack off
(b) Help them make more informed decisions
(c) Lead to requests for extra time off
(d) Lower team morale
✔ Answer: (b) Help them make more informed decisions
A commercial real estate agent might look at:
(a) Cash flow of a property
(b) Potential future earnings
(c) Reserve funds for property upgrades
(d) All of the above
✔ Answer: (d) All of the above
Some argue that companies should:
(a) Focus solely on shareholder profits
(b) Be accountable to those affected by their actions
(c) Be judged on both financial and social impact
, (d) Do all of the above
✔ Answer: (d) Do all of the above
If a top executive instructs a staff member to commit deliberate accounting
fraud, the employee should:
(a) Obey, but keep notes in case of legal trouble
(b) Follow orders and stay quiet
(c) Quit the job immediately
(d) Refuse and report it to legal counsel if possible
✔ Answer: (d) Refuse and report it to legal counsel if possible
Mandatory reporting on corporate social responsibility could:
(a) Instantly boost company profits
(b) Drive companies to relocate abroad
(c) Increase awareness of societal responsibilities
(d) Make consumers spend more
✔ Answer: (c) Increase awareness of societal responsibilities
The full disclosure principle in accounting means:
(a) Reports must cover all relevant events and details
(b) Reports are valid only if signed off by an auditor
(c) Only dollar-measurable items should be included
(d) Assets should always be shown at original cost
✔ Answer: (a) Reports must cover all relevant events and details
Why might a business build up extra inventory?
(a) Anticipating supply disruptions like strikes
(b) Expecting price hikes in raw materials
(c) Preparing for increased customer demand
(d) All of the above
✔ Answer: (d) All of the above
CHAPTERS 1-6(FINICAL ACCOUNTING)
QUESTIONS AND ANSWERS WITH
VERIFIED SOLUTIONS (GRADED A+)
Which of the following is not a required element in the annual report of a
public company?
(a) Cash flow statement
(b) Footnotes to the financial reports
(c) Management’s analysis and overview
(d) All of the above are required
✔ Answer: (d) All of the above are required
Sharing financial data with employees can:
(a) Cause them to slack off
(b) Help them make more informed decisions
(c) Lead to requests for extra time off
(d) Lower team morale
✔ Answer: (b) Help them make more informed decisions
A commercial real estate agent might look at:
(a) Cash flow of a property
(b) Potential future earnings
(c) Reserve funds for property upgrades
(d) All of the above
✔ Answer: (d) All of the above
Some argue that companies should:
(a) Focus solely on shareholder profits
(b) Be accountable to those affected by their actions
(c) Be judged on both financial and social impact
, (d) Do all of the above
✔ Answer: (d) Do all of the above
If a top executive instructs a staff member to commit deliberate accounting
fraud, the employee should:
(a) Obey, but keep notes in case of legal trouble
(b) Follow orders and stay quiet
(c) Quit the job immediately
(d) Refuse and report it to legal counsel if possible
✔ Answer: (d) Refuse and report it to legal counsel if possible
Mandatory reporting on corporate social responsibility could:
(a) Instantly boost company profits
(b) Drive companies to relocate abroad
(c) Increase awareness of societal responsibilities
(d) Make consumers spend more
✔ Answer: (c) Increase awareness of societal responsibilities
The full disclosure principle in accounting means:
(a) Reports must cover all relevant events and details
(b) Reports are valid only if signed off by an auditor
(c) Only dollar-measurable items should be included
(d) Assets should always be shown at original cost
✔ Answer: (a) Reports must cover all relevant events and details
Why might a business build up extra inventory?
(a) Anticipating supply disruptions like strikes
(b) Expecting price hikes in raw materials
(c) Preparing for increased customer demand
(d) All of the above
✔ Answer: (d) All of the above
