BUS #2 Chapter 8

48問 • 1年前

問題一覧

The direct labor method of costing is a technique to assign product costs based on links between the daily tasks of a company that drive costs and the production of specific products.

False

The chief financial officer of NoveauNoir Production Company requests his accountant, Felipe, to prepare a customized report of the cost overruns at the company's production facility in Los Angeles. In this scenario, Felipe is a managerial accountant.

True

A firm's operating budget represents the firm's overall plan of action for a specified time period.

False

The deduction of a firm's expenses from its revenue is shown in the income statement of the firm.

True

Common stock is a key owners' equity account for corporations.

True

Balance sheets usually classify assets into at least two major categories: current assets and property, plant, and equipment assets.

True

Intangible assets are assets that have no physical existence—you can't see or touch them—but they still have value.

True

A static budget is based on a single assumed level of sales and is an excellent tool for planning.

True

The members of the Financial Accounting Standards Board (FASB) can be reappointed to serve two additional terms after the completion of their first term.

False

In top-down budgeting, top management prepares the budget with the involvement of the middle and supervisory managers.

False

In order for CPA firms to perform audits with integrity, they must be tied to the firms they audit.

False

Inventory is an example of a current asset.

True

The Securities and Exchange Commission (SEC) bans publicly traded corporations from making comparative financial statements.

False

The net income of a company is calculated by subtracting expenses from revenue.

True

Contingent expenses are costs that a firm incurs in the regular functioning of its business.

False

In the accounting equation, assets are equal to liabilities minus the owners' equity.

False

The members of the Financial Accounting Standards Board (FASB) are appointed by the Securities and Exchange Commission.

False

Expenses such as insurance and advertising that have been cleared before they are due are known as prepaid expenses.

True

Alexis decides to check with his accountant as to how much money his company owes to the raw materials supplier. To determine this, Alexis should ask the accountant to provide him with the company's balance sheet.

True

The difference between a firm's revenue and its cost of goods sold is its accounts receivable.

False

In the context of franchises, the term accounts receivable refers to money owed to a parent company by franchisees who bought its goods on credit.

True

John and Elizabeth evaluate three telecommunication companies to determine the best company to invest in. A horizontal analysis will enable them to make comparisons of financial statements of the three companies over the past several years and help in the determination of the increase in their profits.

True

The income statement is also known as the statement of financial position.

False

Public accountants provide services such as tax preparation, external auditing, or management consulting to clients on a fee basis.

True

The Financial Accounting Standards Board (FASB) comprises of thirteen members elected by the Financial Accounting Foundation.

False

In the context of budgeting, a flexible budget:

is designed to show the appropriate budgeted level of costs for each different level of sales.

Lorraine works for an accounting firm that performs external audits, provides consulting services, and does the tax preparation for other businesses and individuals. Given this information, Lorraine is most likely a _____.

public accountant

Marcus is a venture capitalist who invests in start-ups and small businesses. He is interested in investing in an online start-up company that has been in business for a year. Before making a decision, Marcus does some research on the value of the company's assets and liabilities. In this scenario, Marcus is most likely analyzing the company's:

balance sheet.

David, a financial accountant at a multinational company, is asked to study the comparative financial statements of a prospective partner firm. He uses comparative income statements to determine the changes in the assets and liabilities of the firm and whether the net income of the firm has increased or decreased over the past five years. In this scenario, David is most likely using _____.

horizontal analysis

To give the company's stockholders, creditors, and other external stakeholders an accurate idea of the company's overall performance, Rowensport Corporation, a multinational company, releases statements that contain details of the company's profits and losses over the past five years. In this scenario, the company is most likely involved in _____.

financial accounting

The management of a sugar manufacturing company sets aside a sum of $50,000 in its budget for the purchase of new machinery that would double the production. In the given scenario, the management is in the process of planning the _____ of the company.

operating budget

Congress passed the _____ that banned business relationships that might create conflicts of interest between certified public accounting (CPA) firms and the companies they audit.

Sarbanes-Oxley Act of 2002

In the context of budget preparation, the master budget of a firm organizes the _____ into a unified whole.

financial budget and the operating budget

Angela is part of the senior management of Fifian Inc., an event management company. She and with other members of the senior management plans the annual budget of the company. Angela, however, is not required to take inputs from or involve the middle and supervisory managers of the company in this planning process. In the given scenario, Fifian Inc. most likely uses _____.

top-down budgeting

Jenny, an external auditor from a public accounting firm, verified the financial statements of a real estate company. At the end of her review, Jenny did not find any discrepancies in the figures presented by the company or the accounting methods of the company. In this scenario, the independent auditor's report most likely offered a(n) _____.

unqualified opinion

Sigborne Corp., a food and beverage company, commences its budgeting process by requesting the middle managers of the company to collect data from their respective departments and submit a consolidated report stating the needs of their departments. Harold, the manager of the packaging department, overstates the needs of his department. In this scenario, Harold is guilty of _____.

budgetary slack

The Securities and Exchange Commission hires Tim to procure and analyze data on the state's tax revenues and expenditures to ensure that they are recorded and reported in accordance with regulations and requirements. In this case, Tim is most likely a(n) _____.

government accountant

Grubbies, a popular fast-food restaurant, spends $75,000 on redesigning its interiors and modifying its ambience. In this scenario, the expenses that the restaurant incurs from refurbishing its appearance exemplify cash flows from:

investing activities.

The total assets of a dairy products manufacturing company are calculated. However, a sum of $5 million from the value of the company's property, plant, and equipment assets is not taken into account as the machinery is bound to become unusable after a certain period of time. In the context of balance sheets, the amount of $5 million that is subtracted from the original value of the total assets is called _____.

accumulated depreciation

Colin, the manager of the production department in an apparel manufacturing company, is accused of budgetary slack by a senior manager in his company. Colin is accused of budgetary slack because he:

overstated the needs of his department in the budget.

Grydon Inc. has applied for a business loan in the United Bank. To best assess the loan case, the loan officer at the bank, Cerejo, decides to look at the company's net income. Cerejo will find this information in Grydon's _____.

profit and loss statement

In the context of financial statements of a company, cash flow statements commonly begin with _____.

net income

Fiona, an external auditor reviewing a telecommunications company's accounts, finds that the company's internal accountants have entered false data in the company records. Instead of stating the actual figures, which would reveal the poor performance of the company, the accountants have overstated the company's earnings. In this case, Fiona is most likely to offer a(n) _____ in the independent auditor's report.

adverse opinion

Pastello, a bakery in New Jersey, needs to sell all the goods in its inventory before they perish. The bakery owners, Mark and Julia, plan to use the cash received from selling the goods to open a new outlet of Pastello in a different locality. In this scenario, the goods stored in Pastello's inventory represent its _____.

current assets

In which of the following ways do public accountants differ from management accountants?

Public accountants conduct external audits, whereas management accountants analyze the financial statements of their own organization.

Andrew is performing an audit of the financial statements of a cosmetics company. While analyzing the financial statements, he identifies some minor concerns. However, he believes that on balance the company's statements are accurate and its accounting methods are consistent with the generally accepted accounting principles. In this scenario, the independent auditor's report will most likely offer a(n) _____.

qualified opinion

_____ indicate the cash a firm spends, or other assets it uses up, to carry out the business activities necessary to generate its revenue.

Expenses

In the context of balance sheets, accounts receivable is an example of _____.

current assets

BUS 101

BUS 101

Part 2

Part 2

part 3

part 3

BUS TEST #2 Chapter 17

ユーザ名非公開 · 45問 · 1年前

BUS TEST #2 Chapter 17

BUS #2 Chapter 13

BUS #2 Chapter 13

BUS #2 chapter 9

BUS #2 chapter 9

問題一覧

The direct labor method of costing is a technique to assign product costs based on links between the daily tasks of a company that drive costs and the production of specific products.

False

True

A firm's operating budget represents the firm's overall plan of action for a specified time period.

False

The deduction of a firm's expenses from its revenue is shown in the income statement of the firm.

True

Common stock is a key owners' equity account for corporations.

True

Balance sheets usually classify assets into at least two major categories: current assets and property, plant, and equipment assets.

True

Intangible assets are assets that have no physical existence—you can't see or touch them—but they still have value.

True

A static budget is based on a single assumed level of sales and is an excellent tool for planning.

True

The members of the Financial Accounting Standards Board (FASB) can be reappointed to serve two additional terms after the completion of their first term.

False

In top-down budgeting, top management prepares the budget with the involvement of the middle and supervisory managers.

False

In order for CPA firms to perform audits with integrity, they must be tied to the firms they audit.

False

Inventory is an example of a current asset.

True

The Securities and Exchange Commission (SEC) bans publicly traded corporations from making comparative financial statements.

False

The net income of a company is calculated by subtracting expenses from revenue.

True

Contingent expenses are costs that a firm incurs in the regular functioning of its business.

False

In the accounting equation, assets are equal to liabilities minus the owners' equity.

False

The members of the Financial Accounting Standards Board (FASB) are appointed by the Securities and Exchange Commission.

False

Expenses such as insurance and advertising that have been cleared before they are due are known as prepaid expenses.

True

The difference between a firm's revenue and its cost of goods sold is its accounts receivable.

False

In the context of franchises, the term accounts receivable refers to money owed to a parent company by franchisees who bought its goods on credit.

True

The income statement is also known as the statement of financial position.

False

Public accountants provide services such as tax preparation, external auditing, or management consulting to clients on a fee basis.

True

The Financial Accounting Standards Board (FASB) comprises of thirteen members elected by the Financial Accounting Foundation.

False

In the context of budgeting, a flexible budget:

is designed to show the appropriate budgeted level of costs for each different level of sales.

public accountant

balance sheet.

horizontal analysis

financial accounting

operating budget

Congress passed the _____ that banned business relationships that might create conflicts of interest between certified public accounting (CPA) firms and the companies they audit.

Sarbanes-Oxley Act of 2002

In the context of budget preparation, the master budget of a firm organizes the _____ into a unified whole.

financial budget and the operating budget

top-down budgeting

unqualified opinion

budgetary slack

government accountant

investing activities.

accumulated depreciation

Colin, the manager of the production department in an apparel manufacturing company, is accused of budgetary slack by a senior manager in his company. Colin is accused of budgetary slack because he:

overstated the needs of his department in the budget.

profit and loss statement

In the context of financial statements of a company, cash flow statements commonly begin with _____.

net income

adverse opinion

current assets

In which of the following ways do public accountants differ from management accountants?

Public accountants conduct external audits, whereas management accountants analyze the financial statements of their own organization.

qualified opinion

_____ indicate the cash a firm spends, or other assets it uses up, to carry out the business activities necessary to generate its revenue.

Expenses

In the context of balance sheets, accounts receivable is an example of _____.

current assets