quiz 7-with answers

quiz 7-with answers - Chapter 17 1 The reports and...

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Chapter 17 1. The reports and financial statements prepared by accountants: A) are much more useful for profit-seeking businesses than they are for not-for- profit organizations. B) are mainly used to help the firm complete its tax forms. C) provide information that can be used by decision-makers both inside and outside the organization. D) have lost much of their relevance as firms have moved into a more global environment. C 2. Taylor Casual, a chain of retail clothing stores, wants to assure investors and other outsiders that its financial statements are accurate. One way to do so would be to hire a public accounting firm to: A) produce an internal audit. B) take over all of its accounting functions. C) provide a “generally accepted practices” endorsement. D) perform an independent audit. D 3. Which financial statement represents what the company owns and owes as of a specific date? A) income statement B) balance sheet C) statement of cash flows D) trial balance B 4. You are the loan officer of the ABC Bank. A local firm has approached you requesting a sizable loan. What group of financial ratios would indicate the degree to which this company already is financed by borrowed funds? A) liquidity ratios B) leverage ratios C) activity ratios D) profitability ratios B Chapter 18 5. Akiko is a financial manager. Her job is likely to include which of the following activities? A) preparing a cash flow analysis B) preparing financial statements C) preparing a balance sheet D) preparing a marketing budget A 6. A financial manager makes recommendations to top executives regarding strategies for improving the financial strength of a firm.
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T/F True 7. Which of the following budgets highlights a firm's spending plans for the purchase of major assets? A) capital budget B) operating budget C) cash budget D) surplus budget A 8. Cleveland Wholesale Company wants to improve cash flow from accounts receivable collections. Which of the following strategies would be most likely to help
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quiz 7-with answers - Chapter 17 1 The reports and...

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