BUS 101 Mid Term UPDATED ACTUAL
Exam Questions and CORRECT Answers
CHAPTER 14 - CORRECT ANSWER -
What organization sets the principles and standards of financial accounting and reporting in the
private sector? - CORRECT ANSWER - Financial Accounting Standards Board
Thomas wants to become a certified public accountant (CPA), so he must be certified by the
________ in which he practices to provide accounting services. - CORRECT ANSWER -
state
Certification provides a public accountant with which of these rights? - CORRECT
ANSWER - express, officially, unbiased opinion about the accuracy of a firm's financial
statements
Which of the following legislative acts made accounting firms separate their consulting and
auditing businesses? - CORRECT ANSWER - the Sarbanes-Oxley Act
Joseph, Tiana, and Mei work on a team that does accounting that is fit for legal review. Together
they analyze financial documents for fraudulent entries or financial misconduct. Joseph, Tiana,
and Mei are practicing - CORRECT ANSWER - forensic accounting.
Alejandro is an internal auditor employed by Jameson & Crowe, a large technology corporation,
to prepare and analyze its financial statements. Based on this information, Alejandro is a(n) -
CORRECT ANSWER - private accountant.
In the context of accounting, CMA stands for - CORRECT ANSWER - certified
management accountant.
Natalie is a private accountant for a government agency and has some managerial responsibility.
After rigorous examination, she was certified by the Institute of Management Accountants.
, Natalie is most likely to be a(n) - CORRECT ANSWER - certified management
accountant.
Diedre works at Sally's Autobody Workshop. Her main job responsibility is to record the routine,
day-to-day business transactions of the firm. Based on this information, Diedre is a - CORRECT
ANSWER - bookkeeper.
Dexter is an accountant who works at Tech Plex. As part of his management responsibilities,
Dexter uses Tech Plex's accounting statements in planning and directing the organization's
activities. This is called - CORRECT ANSWER - managerial accounting.
In the context of managerial accounting, wages, material costs, and taxes are examples of -
CORRECT ANSWER - operating expenses.
The accounting team at Grey Apparel prepares a summary of the company's financial
information, products, and growth plans for Grey Apparel's owners and potential investors. This
document, which is produced once a year, is the - CORRECT ANSWER - annual report.
Potential investors study the financial statements in a company's annual report to - CORRECT
ANSWER - determine whether the returns from the firm compare favorably with other
similar companies.
Labor unions use financial statements of a company to - CORRECT ANSWER - Labor
unions use financial statements of a company to
Rissa reviews her flower company's assets and liabilities. She considers the total value of her
assets and subtracts the liabilities. Rissa calculates that the remainder would be $27,000. In this
case, the amount of $27,000 represents the - CORRECT ANSWER - owners' equity.
If the owners' equity in Sarah's Solar Panels is $100,000 and its liabilities are $50,000, the assets
of this company amount to - CORRECT ANSWER - $150,000.
Exam Questions and CORRECT Answers
CHAPTER 14 - CORRECT ANSWER -
What organization sets the principles and standards of financial accounting and reporting in the
private sector? - CORRECT ANSWER - Financial Accounting Standards Board
Thomas wants to become a certified public accountant (CPA), so he must be certified by the
________ in which he practices to provide accounting services. - CORRECT ANSWER -
state
Certification provides a public accountant with which of these rights? - CORRECT
ANSWER - express, officially, unbiased opinion about the accuracy of a firm's financial
statements
Which of the following legislative acts made accounting firms separate their consulting and
auditing businesses? - CORRECT ANSWER - the Sarbanes-Oxley Act
Joseph, Tiana, and Mei work on a team that does accounting that is fit for legal review. Together
they analyze financial documents for fraudulent entries or financial misconduct. Joseph, Tiana,
and Mei are practicing - CORRECT ANSWER - forensic accounting.
Alejandro is an internal auditor employed by Jameson & Crowe, a large technology corporation,
to prepare and analyze its financial statements. Based on this information, Alejandro is a(n) -
CORRECT ANSWER - private accountant.
In the context of accounting, CMA stands for - CORRECT ANSWER - certified
management accountant.
Natalie is a private accountant for a government agency and has some managerial responsibility.
After rigorous examination, she was certified by the Institute of Management Accountants.
, Natalie is most likely to be a(n) - CORRECT ANSWER - certified management
accountant.
Diedre works at Sally's Autobody Workshop. Her main job responsibility is to record the routine,
day-to-day business transactions of the firm. Based on this information, Diedre is a - CORRECT
ANSWER - bookkeeper.
Dexter is an accountant who works at Tech Plex. As part of his management responsibilities,
Dexter uses Tech Plex's accounting statements in planning and directing the organization's
activities. This is called - CORRECT ANSWER - managerial accounting.
In the context of managerial accounting, wages, material costs, and taxes are examples of -
CORRECT ANSWER - operating expenses.
The accounting team at Grey Apparel prepares a summary of the company's financial
information, products, and growth plans for Grey Apparel's owners and potential investors. This
document, which is produced once a year, is the - CORRECT ANSWER - annual report.
Potential investors study the financial statements in a company's annual report to - CORRECT
ANSWER - determine whether the returns from the firm compare favorably with other
similar companies.
Labor unions use financial statements of a company to - CORRECT ANSWER - Labor
unions use financial statements of a company to
Rissa reviews her flower company's assets and liabilities. She considers the total value of her
assets and subtracts the liabilities. Rissa calculates that the remainder would be $27,000. In this
case, the amount of $27,000 represents the - CORRECT ANSWER - owners' equity.
If the owners' equity in Sarah's Solar Panels is $100,000 and its liabilities are $50,000, the assets
of this company amount to - CORRECT ANSWER - $150,000.
