FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 17: Understanding Accounting and Financial Information

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 101

True/False

Review LaterAdd Note

Review Later

In large companies,certified internal auditors are usually responsible for preparing tax returns and developing tax strategies for businesses. Internal auditors perform audits for organizations and also look into operational efficiencies and effectiveness.Tax returns are prepared by tax accountants.

A) True
B) False

Correct Answer

verified

Show Answer

Question 102

True/False

Review LaterAdd Note

Review Later

The key financial statements are the balance sheet,the income statement,and the statement of cash flows.

A) True
B) False

Correct Answer

verified

Show Answer

Question 103

Multiple Choice

Review LaterAdd Note

In the Legal Briefcase box discussion about accounting fraud,it was concluded that:

Olivia is a public accountant.She prepares monthly financial statements for her client,Chick's Auto Body Shop.Presently,though,she must summarize the data in the accounting ledgers to determine if the figures are correct and balanced.Olivia will prepare a statement of cash flows in order to complete this step of the cycle.

April works in the accounting department at Henson's Tire & Auto.She is concerned that the company has been placing too many orders for office supplies and wants to look at all of the transactions involving the purchase of office supplies for the past several months.April can find such information by looking at the supplies account in the:

The Financial Accounting Standards Board only sets standards for accountants in the private sector;however,government accountants have no universally accepted procedures that they must follow.

The ______________ shows how the capital is structured in the business,including the value of assets and the amount the firm owes at a specific point in time.

McCartney Consulting Group is a management-consulting firm that provides its expertise to businesses that employ its services.Since it does not hold an inventory of goods or produce any goods itself:

If the goal of a business is to pay lower taxes on its income during an inflationary period,it is likely to use the FIFO inventory costing method.

Jeremy operates his own small business,but he doesn't want to be bothered with accounting information.He tells his friends,"All I need accounting for is to prepare my income tax return for my business.I'll hire someone to do that for me." Jeremy's attitude would be disastrous if he managed a large firm,but is a reasonable view for a small business owner.

Allison Robards is the owner of Backstreet Books,a small eclectic style bookstore in a bustling college town.Allison prides herself in selecting hard to find books and magazines that her clientele enjoy.Recently,Allison is experiencing a cash flow shortage,and she is concerned that she may be purchasing too many copies of each title.Having recently completed a business class,you suggest to Allison that she calculate the ______________ ratio for her store,and then compare it to other stores in her industry.

Harrison Manufacturing owns land worth $600,000 and has $130,000 worth of cash in its bank account.In the asset section of the balance sheet,Harrison lists its land holdings prior to listing its cash since it is a higher value.

An) _________ is a yearly published statement of the financial condition,progress and expectations of an organization.

A firm's financial statements represent a health report regarding the condition of the firm.

Liquidity refers to how quickly liabilities must be paid.

The Barkley Company balance sheet shows the following items: Accounts payable totaling $50,000;salaries payable totaling $65,000,and notes payable totaling $100,000.These are liabilities,or money that the firm owes others.

Carlisle Communications is preparing its statement of cash flows.Among other things,this statement will show:

Inputs to the accounting system include sales documents.

Bark Three Times Pet Store established a line of credit with its local banker and used borrowed)$85,000 against it to purchase its first year's inventory.Since it is required to repay the money before the end of its fiscal year,the company's accountant lists this liability with the current liabilities on the balance sheet.

The fact that Minnie wants to determine the "bottom line" for Double Entry Doors means that she is particularly interested in preparing her firm's: