C213 WGU OA Prep
The ability a company has to pay its debts in the short run is its
Liquidity
3 multiple choice options
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
3 multiple choice options
Which of the following types of accounts are NOT found on the balance sheet?
Revenues
3 multiple choice options
The financial statement that reports resources owned, the obligations to transfer
resources to other organizations, and the claims by the entity's owners is known
as the
The ability a company has to pay its debts in the short run is its
Liquidity
3 multiple choice options
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
3 multiple choice options
Which of the following types of accounts are NOT found on the balance sheet?
Revenues
3 multiple choice options
The financial statement that reports resources owned, the obligations to transfer
resources to other organizations, and the claims by the entity's owners is known
as the
