The role of the auditor is to satisfy users' demand for reliable information.
True
The concept of three-party accountability means that the auditor is expected to act in the interests of
the party paying the audit fee.
False
The three underlying condition
The primary role of accounting is to determine the amount of taxes a business will be required to pay
to taxingentities.
a.
True
b.
False
ANSWER:
False
The basic difference between manufacturing and merchandising companies is the completion level
of the
The auditee is the person or company _.
A.
who will use the audited information
B.
who performs an audit
C.
who pays the audit fee
D.
whose information is being audited
Professional judgment is a widely used concept in accounting and auditing. How is it d
The primary financial statements of a proprietorship are the income statement, statement of owner's
equity, and the balance sheet.
a.
True
b.
False
ANSWER:
False
An income statement is a summary of the revenues and expenses of a business as of a specific
Data must be converted into information to be considered useful and meaningful for decision
making. There are six characteristics that make information both useful and meaningful. If
information is free from error or bias and accurately represents the eve
An example of a forensic accounting assignment might be _.
A.
to ensure compliance with specific legislation
B.
to provide an opinion about the effectiveness of a government program
C.
to provide assurance about the fairness of prospective financial infor
.
.
.
.
.
.
.
D. Option
D
On January 1, 20X8, Transport On Corporation acquired 75 percent interest in Steamship
Company for $300,000. Steamship is a Norwegian company. The local currency is the
Norwegian kroner (NKr). The acquisition resulted in an exces
The following are examples of external users of accounting information except
a.
government entities
b.
customers
c.
creditors
d.
managers
ANSWER:
D
Which of the following is the bestdescription of accountings role in business?
a.
Accounting provides sto
.
Briefly explain the following terms associated with accounting for foreign entities:
a) Functional Currency
b) Translation
c) Remeasurement
Answer
a) Functional currency is the currency of the primary economic environment in which
the entity operates; n
Which of the following is notan asset?
a.
investments
b.
cash
c.
inventory
d.
owners equity
ANSWER:
D
The assets and liabilities of the company are $128,000 and $84,000, respectively. Owners equity
should equal
a. $212,000
b. $44,000
c. $128,000
d. $84,0
An example of a general-purpose financial statement would be a report about projected price
increases related totransportation costs.
a.
True
b.
False
ANSWER:
False
The Sarbanes-Oxley Act established standards for corporate responsibility and disclosure.
Explain the meaning of the business entity concept.
ANSWER:
The business entity concept limits the economic data in an accounting system todata related directly
to the activities of the business. In other words, the businessis viewed as an entity separat
Which of the following would notnormally operate as a service business?
a.
pet groomer
b.
grocer
c.
lawn care company
d.
styling salon
ANSWER:
B
Most businesses in the United States are
a.
proprietorships
b.
partnerships
c.
corporations
d.
cooperatives
A
A corporation is a business that is legally separate and distinct from its owners.
a.
True
b.
False
ANSWER:
True
The role of accounting is to provide many different users with financial information to make
economic decisions.
a.
True
b.
False
ANSWER:
True
Identify the piece of information below that is typically needed to acquire a building.
A) job descriptions
B) vendor performance
C) market coverage
D) capacity needs
Answer: D
Which of the following is nota certification for accountants?
a.
CIA
b.
CMA
c.
CISA
d.
IRS
ANSWER:
D
Which of the following is nota role of accounting in business?
a.
to provide reports to users about the economic activities and conditions of a business
Determine the missing amount X for each of the following:
Assets Liabilities
Owners Equity
(a)
$78,500
$37,600
(b)
X
$53,280
X
$145,000
(c)
$49,500
ANSWER:
X
$34,000
(a) $40,900 ($78,500 37,600)
(b) $198,280 ($53,280 + 145,000)
(c) $15,500 ($49,500 34,00
When the local currency of the foreign subsidiary is the functional currency, a foreign
subsidiary's income statement accounts would be converted to U.S. dollars by:
A. translation using historical exchange
rates.
B. remeasurement using current exchange r
The accountant for Scott Industries prepared the following list of account balances from the
companys records for
the year ended December 31:
Answer
Fees Earned
$165,000
Accounts Receivable
Equipment
Cash
$30,000
14,000 Selling Expenses
44,000
64,000 Fra
Financial reports are used by
a.
management
b.
creditors
c.
investors
d.
all are correct
ANSWER:
D
All of the following are general-purpose financial statements except
a.
balance sheet
b.
income statement
c.
statement of owners equity
d.
cash budget
ANSW
If net income for a proprietorship was $50,000, the owner withdrew $20,000 in cash and the owner
invested$10,000 in cash, the capital of the owner increased by $40,000.
a.
True
b.
False
ANSWER:
True
An account receivable is typically classified as revenu
The objectivity concept requires that
a.
business transactions be consistent with the objectives of the entity
b.
the Financial Accounting Standards Board be fair and unbiased in its deliberations over new
accounting standards
c.
accounting principles me
The assets listed below of a foreign subsidiary have been converted to U.S. dollars at
both current and historical exchange rates. Assuming that the local currency of the
foreign subsidiary is the functional currency, what total amount should appear for
t
The primary role of accounting is to determine the amount of taxes a business will be required to pay
to taxingentities.
a.
True
b.
False
ANSWER:
False
The basic difference between manufacturing and merchandising companies is the completion level
of the
Under the equity method,
a) net income increases the investment account while dividends decrease it. Because net
income was greater than the dividends declared, this results in a net increase in the
investment account. Under the cost method, the investmen
For accounting purposes, the business entity should be considered separate from its owners if the
entity is
a.
a corporation
b.
a proprietorship
c.
a partnership
d.
any of these
ANSWER:
D
The objectivity concept requires that
a.
business transactions be
The business entity concept means that
a.
the owner is part of the business entity
b.
an entity is organized according to state or federal statutes
c.
an entity is organized according to the rules set by the FASB
d.
the entity is an individual economic u
Which of the following best describes the main reason that independent auditors report on a
company's financial statements?
A.
Management fraud may exist within the company and it is likely that the independent auditors
will detect it.
B.
Users of financi
The owners rights to the assets rank ahead of the creditors' rights to the assets.
a.
True
b.
False
ANSWER:
False
If the liabilities owed by a business total $300,000 and owner's equity is equal to $300,000, then the
assets also total$300,000.
a.
True
b.
7 How should mixed costs be classified in CVP analysis? What approach is
used to effect the appropriate classification?
According to our class materials all mixed cost must be classified into their
fixed and variable and variable elements. The method that
Axia College Material
Appendix C
Budgets Matrix
Directions: Using the matrix, define each of the budgets listed and briefly describe its uses.
Budget
Sales budget
Production budget
Direct materials budget
Direct labor budget
Manufacturing overhead budget
Axia College Material
Appendix B
Cash Management Matrix
Directions: Using the matrix, list how each of the principles of internal control works, and give an example for each. Next, list how each of the
principles of cash management works, and give an exam
Cost, Volume, and Profit Formulas
By
Kamilah Crooms
Due February 28, 2010
Explain the components of cost-volume-profit analysis.
The components of cost volume-profit analysis consist of Level or volume of activity,
Unit Selling Price, Variable Cost per un
Current assets
When it comes to a company's classified balance sheets you will find current
assets sheet. Current assets is cash or cash equilivants that the company will
use. What you will find on a current asset sheet is Cash and equilvants, Short
term
