Review Test Submission: Test 2 User Mrs. Debbielin E Offenberg Course BMRT-11000-590-201780: INTRODUCTION TO BUSINESS Test Test 2 Started 10/5/17 7:40 PM Submitted 10/5/17 9:07 PM Due Date 10/15/17 11:59 PM Status Completed Attempt Score 47 out of 50 points Time Elapsed 1 hour, 27 minutes out of 1 hour and 53 minutes Results Displayed All Answers, Submitted Answers, Correct Answers Question 1 1 out of 1 points Although accounting has several specific uses, the overall purpose of accounting can be summarized as: Selected Answer: to provide financial information that is useful to decision makers. Answers: to provide financial information that is useful to decision makers. to meet the legal requirements of the Financial Accounting Standards Board (FASB). to allow the government to track business activity levels. to compute the profit or loss and declared dividend of a business firm. Question 2 1 out of 1 points A loan backed by collateral represents a(n): Selected Answer: secured loan. Answers: bond trust. debenture bond. pledging factor. secured loan.
Question 3 1 out of 1 points A just-in-time inventory system allows a firm to: Selected Answer: reduce their investment in inventory. Answers: extend credit to new customers. provide sufficient inventory for most contingencies. reduce their investment in inventory. reduce capital expenditures. Question 4 1 out of 1 points Firms establish a ________ so that sufficient funds are available to repay bondholders on the maturity date. Selected Answer: sinking fund Answers: mutual fund sinking fund retirement account encumbered account Question 5 1 out of 1 points The accounting profession follows generally accepted accounting principles as defined by ___________________. Selected Answer: the FASB (Financial Accounting Standards Board). Answers: GAAP. the PCAOB (Public Company Accounting Oversight Board).
the FASB (Financial Accounting Standards Board). the Sarbanes-Oxley Act. Question 6 1 out of 1 points The three important financial statements prepared by accountants are: Selected Answer: balance sheet, income statement, and statement of cash flows. Answers: ledger, journal, and trial balance. cash budget, capital budget, and master budget. revenue summary, expense summary, and consolidation statement. balance sheet, income statement, and statement of cash flows. Question 7 1 out of 1 points Dividends are paid out of a corporation's: Selected Answer: profit, after taxes. Answers: profit, before taxes. profit, after taxes. sales revenue. capital contributed by bondholders. Question 8 1 out of 1 points The finance manager at AllSports Communication has asked his assistant, Ben, to prepare the ________ budget. Ben will gather as much information as possible by utilizing the firm's other budgets and any documents that summarize proposed financial activities.
- Summer '19
- Finance, Accountant