THE ACCOUNTING INFORMATION SYSTEM
Factors that shape an accounting information system include the
a. nature of the business.
b. size of the firm.
c. volume of data to be handled.
d. all of these.
Maintaining a s
CASH AND RECEIVABLES
Which of the following is considered cash?
a. Certificates of deposit (CDs)
b. Money market checking accounts
c. Money market savings certificates
d. Postdated checks
Which of the foll
CURRENT LIABILITIES AND CONTINGENCIES
a. any accounts having credit balances after closing entries are made.
b. deferred credits that are recognized and measured in conformity with generally
VALUATION OF INVENTORIES:
A COST-BASIS APPROACH
Which of the following inventories carried by a manufacturer is similar to the merchandise
inventory of a retailer?
a. Raw materials.
c. Finished g
Important Accounting Terms
Accounting: Measuring, interpreting, and communicating information for the purposes of
making informed decisions
Public Accountants: provide accounting services for a fee to outside firms
1. Board of DirectorsA group of people elected by the shareholders of a company to oversee
the management of the company and protect the interests of the shareholders
2. Chief Executive OfficerThe man
Selected MIS Terms
1. Acceptance testing process that provides the final certification that the system is ready to
be used in a production setting
2. Backbone part of a network handling the major traffic and prov
Wherever, Whenever, Whatever
As they were going along the road, someone said to him, I will follow you wherever you
go. 58 And Jesus said to him, Foxes have holes, and birds of the air have nests, but the Son of
Man has nowhere to lay his
Quiz Chapter 4
Instructions: Select the most correct answer. Show your work where appropriate.
1. Information in the income statement helps users to
evaluate the past performance of the enterprise.
provide a basis for predic
FINANCIAL ACCOUNTING AND
General-purpose financial statements are the product of
a. financial accounting.
b. managerial accounting.
c. both financial and managerial accounting.
d. neither financ
BALANCE SHEET AND STATEMENT OF CASH FLOWS
Which of the following is a limitation of the balance sheet?
a. Many items that are of financial value are omitted.
b. Judgments and estimates are used.
c. Current fair valu
CONCEPTUAL FRAMEWORK UNDERLYING
A soundly developed conceptual framework of concepts and objectives should
a. increase financial statement users' understanding of and confidence in financial
ACCOUNTING AND THE TIME VALUE OF MONEY
Which of the following transactions would require the use of the present value of an
annuity due concept in order to calculate the present value of the asset obtained or liabil
ACQUISITION AND DISPOSITION OF
PROPERTY, PLANT, AND EQUIPMENT
Plant assets may properly include
a. deposits on machinery not yet received.
b. idle equipment awaiting sale.
c. land held for possible use as a future
Which of the following does not describe intangible assets?
a. They lack physical existence.
b. They are financial instruments.
c. They provide long-term benefits.
d. They are classified as long-t
DEPRECIATION, IMPAIRMENTS, AND DEPLETION
Which of the following principles best describes the conceptual rationale for the methods
of matching depreciation expense with revenues?
a. Associating cause and effect
An example of an item which is not a liability is
a. dividends payable in stock.
b. advances from customers on contracts.
c. accrued estimated warranty costs.
d. the portion of long-term debt
Selected Economic Terms
1. Economics: the study of scarcity
2. Microeconomics: the study of the decisions of individuals, households, and businesses in specific
3. Macroeconomics: the study of the overall functio
Module 4 Terms
1. Diversity marketing tailoring the marketing mix appropriately for each of the diverse groups
active in the market
2. Brand awareness the extent to which a brand is recognized by potential custome
Module 3 Terms
1. Annuity- A regular and periodic payment made for a specified period of time
2. Broker- An individual who is paid a commission for executing transactions on behalf of a client
3. Budget- A detailed sc