MIE 201 Exam 5 2026 Questions and
Answers
Organizations evaluate their operations through the recording, measurement, and
interpretation of financial information. This process is known as _______.
Multiple choice question.
processing
finance
bookkeeping
accounting - Correct answer-accounting
Select from the following those items that characterize a certified public
accountant. (Select all that apply)
Multiple select question.
May file tax returns
Is certified through the federal government
Reason:
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,A CPA is certified by the states.
May provide opinions regarding the accuracy of financial statements
Must be self-employed to avoid conflicts of interest
Reason:
CPAs may either be self-employed or work for another firm.
May complete audits of corporate financial records - Correct answer-May file tax
returns
May provide opinions regarding the accuracy of financial statements
May complete audits of corporate financial records
What is the main distinguishing factor between accountants and bookkeepers?
Multiple choice question.
Accountants analyze and interpret financial information and bookkeepers do not.
Bookkeepers record financial information and accountants do not.
Accounting is more mechanical and narrow in focus compared to bookkeeping.
Bookkeepers require additional training beyond a college accounting degree and
accountants do not. - Correct answer-Accountants analyze and interpret financial
information and bookkeepers do not.
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,The internal use of accounting statements by managers in planning and directing
the organization's activities is referred to as ______.
Multiple choice question.
plan accounting
managerial accounting
bookkeeping
cost accounting - Correct answer-managerial accounting
_____ is an intangible asset that reflects an organization's positive reputation.
Multiple choice question.
Goodwill
Equity
A dividend
Cash - Correct answer-goodwill
True or false: In order to keep the accounting equation in balance, each business
transaction must be recorded in two separate accounts. - Correct answer-true
What are the four steps in the accounting cycle?
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, Multiple select question.
prepare financial statements
analyze corporate debt
examine source documents
post transactions
record transactions
assess company value - Correct answer-prepare financial statements
examine source documents
post transactions
record transactions
True or false: All financial statements follow the exact same format under
government regulations. - Correct answer-false
Which two terms are synonymous with "income statement"?
Multiple select question.
Trial balance
Statement of cash flows
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
Answers
Organizations evaluate their operations through the recording, measurement, and
interpretation of financial information. This process is known as _______.
Multiple choice question.
processing
finance
bookkeeping
accounting - Correct answer-accounting
Select from the following those items that characterize a certified public
accountant. (Select all that apply)
Multiple select question.
May file tax returns
Is certified through the federal government
Reason:
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,A CPA is certified by the states.
May provide opinions regarding the accuracy of financial statements
Must be self-employed to avoid conflicts of interest
Reason:
CPAs may either be self-employed or work for another firm.
May complete audits of corporate financial records - Correct answer-May file tax
returns
May provide opinions regarding the accuracy of financial statements
May complete audits of corporate financial records
What is the main distinguishing factor between accountants and bookkeepers?
Multiple choice question.
Accountants analyze and interpret financial information and bookkeepers do not.
Bookkeepers record financial information and accountants do not.
Accounting is more mechanical and narrow in focus compared to bookkeeping.
Bookkeepers require additional training beyond a college accounting degree and
accountants do not. - Correct answer-Accountants analyze and interpret financial
information and bookkeepers do not.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,The internal use of accounting statements by managers in planning and directing
the organization's activities is referred to as ______.
Multiple choice question.
plan accounting
managerial accounting
bookkeeping
cost accounting - Correct answer-managerial accounting
_____ is an intangible asset that reflects an organization's positive reputation.
Multiple choice question.
Goodwill
Equity
A dividend
Cash - Correct answer-goodwill
True or false: In order to keep the accounting equation in balance, each business
transaction must be recorded in two separate accounts. - Correct answer-true
What are the four steps in the accounting cycle?
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, Multiple select question.
prepare financial statements
analyze corporate debt
examine source documents
post transactions
record transactions
assess company value - Correct answer-prepare financial statements
examine source documents
post transactions
record transactions
True or false: All financial statements follow the exact same format under
government regulations. - Correct answer-false
Which two terms are synonymous with "income statement"?
Multiple select question.
Trial balance
Statement of cash flows
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
