Accounting for Decision Makers - C213 Pre
Assessment LATEST VERSION QUESTIONS AND
ANSWERS] WITH STUDY GUIDE DETAILED AND
VERIFIED FOR GUARANTEED PASS- LATEST
UPDATE 2025 GRADED A
Businesses use accounting systems to - CORRECT ANSWER Analyze
transactions; Handle routine bookkeeping tasks; Evaluate performance and health of
the business.
What is not a function of accounting? - CORRECT ANSWER Executing sales
transactions for organizations
What is NOT one of the three primary financial statements? - CORRECT ANSWER
Statement of retained earnings
Generally accepted accounting principles are - CORRECT ANSWER Developed
by accounting rule makers
The initials GAAP stand for - CORRECT ANSWER Generally Accepted
Accounting Principles
The current standard-setting board for accounting in the private sector is the -
CORRECT ANSWER Financial Accounting Standards Board (FASB)
Which of the following organizations has specific legal authority to establish accounting
standards for publicly held companies? - CORRECT ANSWER Securities and
Exchange Commission (SEC)
Which is NOT a service typically provided by large public accounting firms? -
CORRECT ANSWER Making management decisions
The organization that develops worldwide accounting standards is the - CORRECT
ANSWER International Accounting Standards Board (IASB)
The initials CPA stand for - CORRECT ANSWER Certified Public Accountant
,Which of the following financial statements reports a company's resources, obligations,
and owner's equity? - CORRECT ANSWER Balance sheet
Which of the following financial statements reports the excess of a company's revenues
over its expenses? - CORRECT ANSWER Income statement
Which of the following financial statements reports the amount of cash collected and
paid out by a company? - CORRECT ANSWER Statement of cash flows
The emphasis in financial accounting is on which of the following external user groups?
- CORRECT ANSWER Investors and creditors
The primary internal group that uses accounting information is - CORRECT
ANSWER Management
Internal reports are generally used by - CORRECT ANSWER Management
Which of the following is NOT an external user of financial information? - CORRECT
ANSWER Management
Which of the following is NOT true of the Financial Accounting Standards Board
(FASB)? - CORRECT ANSWER It is a government agency
Generally accepted accounting principles are - CORRECT ANSWER Developed
by accounting rule makers
The initials GAAP stand for - CORRECT ANSWER Generally Accepted
Accounting Principles
The current standard-setting board for accounting in the private sector is the -
CORRECT ANSWER Financial Accounting Standards Board (FASB)
Which of the following organizations has specific legal authority to establish accounting
standards for publicly held companies? - CORRECT ANSWER Securities and
Exchange Commission (SEC)
Which of the following is NOT a service typically provided by large public accounting
firms? - CORRECT ANSWER Making management decisions
The organization that develops worldwide accounting standards is the - CORRECT
ANSWER International Accounting Standards Board (IASB)
,The initials CPA stand for - CORRECT ANSWER Certified Public Accountant
Standards established by the International Accounting Standards Board are referred to
as - CORRECT ANSWER International Financial Accounting Standards
Which of the following is NOT a reason for the integration of worldwide accounting
standards? - CORRECT ANSWER the theoretical necessity of a common set of
accounting standards
The International Accounting Standards Board (IASB) is charged with developing
worldwide accounting practices - CORRECT ANSWER True
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. - CORRECT ANSWER False
Increased federal oversight of the audit process resulted from the passage of the
following act of Congress - CORRECT ANSWER Sarbanes-Oxley Act
Steps in the decision cycle from first (1) to last (5) - CORRECT ANSWER Prepare
financial statements
Analyze financial statements
Gather information
Make decision
Implement decision
What is the price-earnings (PE) ratio for this company?
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 - CORRECT ANSWER 11.0
What does it mean if a company has a debt ratio of 101.5%? - CORRECT ANSWER
The company has 1.5% more total liabilities than total assets.
What is consistent with a continual decline in gross profit if the firm's cost of goods sold
remains the same? - CORRECT ANSWER Continual decrease in sales
, Which two cash flow adequacy ratios represent a cash cow? - CORRECT ANSWER
$6,991/$5,486 & $5,220/$1,875
What two items of information are revealed on the balance sheet? - CORRECT
ANSWER Ownership & Debt
Which term is defined as the residual interest in the net assets of a company? -
CORRECT ANSWER Owners' equity
A corporation has 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? -
CORRECT 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? - CORRECT
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? - CORRECT ANSWER Cash
flows from financing activities
Cash flows from financing activities - CORRECT ANSWER In the notes to financial
statements
Which assurance does an external audit report provide for its readers? - CORRECT
ANSWER The company's financial statements fairly reflect its financial position
Information that can be verified - CORRECT ANSWER Reliable
Information having to do with the matter at hand - CORRECT ANSWER Relevant
Information that is important enough to make a difference - CORRECT ANSWER
Material
Information related to recognizing losses as they occur - CORRECT ANSWER
Conservatism
Which form of debt should be reported in the long-term liability category - CORRECT
ANSWER Notes payable expected to be paid in 18 months
What will be the impact of the January 5 event on the company's balance sheet on that
date given the following:
Assessment LATEST VERSION QUESTIONS AND
ANSWERS] WITH STUDY GUIDE DETAILED AND
VERIFIED FOR GUARANTEED PASS- LATEST
UPDATE 2025 GRADED A
Businesses use accounting systems to - CORRECT ANSWER Analyze
transactions; Handle routine bookkeeping tasks; Evaluate performance and health of
the business.
What is not a function of accounting? - CORRECT ANSWER Executing sales
transactions for organizations
What is NOT one of the three primary financial statements? - CORRECT ANSWER
Statement of retained earnings
Generally accepted accounting principles are - CORRECT ANSWER Developed
by accounting rule makers
The initials GAAP stand for - CORRECT ANSWER Generally Accepted
Accounting Principles
The current standard-setting board for accounting in the private sector is the -
CORRECT ANSWER Financial Accounting Standards Board (FASB)
Which of the following organizations has specific legal authority to establish accounting
standards for publicly held companies? - CORRECT ANSWER Securities and
Exchange Commission (SEC)
Which is NOT a service typically provided by large public accounting firms? -
CORRECT ANSWER Making management decisions
The organization that develops worldwide accounting standards is the - CORRECT
ANSWER International Accounting Standards Board (IASB)
The initials CPA stand for - CORRECT ANSWER Certified Public Accountant
,Which of the following financial statements reports a company's resources, obligations,
and owner's equity? - CORRECT ANSWER Balance sheet
Which of the following financial statements reports the excess of a company's revenues
over its expenses? - CORRECT ANSWER Income statement
Which of the following financial statements reports the amount of cash collected and
paid out by a company? - CORRECT ANSWER Statement of cash flows
The emphasis in financial accounting is on which of the following external user groups?
- CORRECT ANSWER Investors and creditors
The primary internal group that uses accounting information is - CORRECT
ANSWER Management
Internal reports are generally used by - CORRECT ANSWER Management
Which of the following is NOT an external user of financial information? - CORRECT
ANSWER Management
Which of the following is NOT true of the Financial Accounting Standards Board
(FASB)? - CORRECT ANSWER It is a government agency
Generally accepted accounting principles are - CORRECT ANSWER Developed
by accounting rule makers
The initials GAAP stand for - CORRECT ANSWER Generally Accepted
Accounting Principles
The current standard-setting board for accounting in the private sector is the -
CORRECT ANSWER Financial Accounting Standards Board (FASB)
Which of the following organizations has specific legal authority to establish accounting
standards for publicly held companies? - CORRECT ANSWER Securities and
Exchange Commission (SEC)
Which of the following is NOT a service typically provided by large public accounting
firms? - CORRECT ANSWER Making management decisions
The organization that develops worldwide accounting standards is the - CORRECT
ANSWER International Accounting Standards Board (IASB)
,The initials CPA stand for - CORRECT ANSWER Certified Public Accountant
Standards established by the International Accounting Standards Board are referred to
as - CORRECT ANSWER International Financial Accounting Standards
Which of the following is NOT a reason for the integration of worldwide accounting
standards? - CORRECT ANSWER the theoretical necessity of a common set of
accounting standards
The International Accounting Standards Board (IASB) is charged with developing
worldwide accounting practices - CORRECT ANSWER True
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. - CORRECT ANSWER False
Increased federal oversight of the audit process resulted from the passage of the
following act of Congress - CORRECT ANSWER Sarbanes-Oxley Act
Steps in the decision cycle from first (1) to last (5) - CORRECT ANSWER Prepare
financial statements
Analyze financial statements
Gather information
Make decision
Implement decision
What is the price-earnings (PE) ratio for this company?
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 - CORRECT ANSWER 11.0
What does it mean if a company has a debt ratio of 101.5%? - CORRECT ANSWER
The company has 1.5% more total liabilities than total assets.
What is consistent with a continual decline in gross profit if the firm's cost of goods sold
remains the same? - CORRECT ANSWER Continual decrease in sales
, Which two cash flow adequacy ratios represent a cash cow? - CORRECT ANSWER
$6,991/$5,486 & $5,220/$1,875
What two items of information are revealed on the balance sheet? - CORRECT
ANSWER Ownership & Debt
Which term is defined as the residual interest in the net assets of a company? -
CORRECT ANSWER Owners' equity
A corporation has 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? -
CORRECT 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? - CORRECT
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? - CORRECT ANSWER Cash
flows from financing activities
Cash flows from financing activities - CORRECT ANSWER In the notes to financial
statements
Which assurance does an external audit report provide for its readers? - CORRECT
ANSWER The company's financial statements fairly reflect its financial position
Information that can be verified - CORRECT ANSWER Reliable
Information having to do with the matter at hand - CORRECT ANSWER Relevant
Information that is important enough to make a difference - CORRECT ANSWER
Material
Information related to recognizing losses as they occur - CORRECT ANSWER
Conservatism
Which form of debt should be reported in the long-term liability category - CORRECT
ANSWER Notes payable expected to be paid in 18 months
What will be the impact of the January 5 event on the company's balance sheet on that
date given the following:
