Deck 8: Managing Human Resources and Labor Relations

Question 1

Because not for profit organizations do not make profits,they do not require accountants/

Answer 1

False

Question 2

A certified public accountant is a accountant who passes a series of examinations established by the American Institute of Certified Public Accountants (AICPA)and does accounting work for no one particular firm.

Answer 2

True

Question 3

Public accountants can be hired to help businesses with payroll,taxes and other projects but they do not need to be employees of the company.

Answer 3

True

Question 4

A trial balance is a summary of all the financial data in the account ledgers to check whether the figures are correct and balanced.

Question 5

Managerial accounting generates information for use outside the organization.

Question 6

A journal is a specialized accounting book or computer program in which information from accounting records is recorded into specific categories.

Question 7

Annual reports are yearly statements of the financial condition,progress and expectations of an organization.

Question 8

Financial accounting is used to provide information and analysis to managers within the organization to assist them in decision making.

Question 9

The sole purpose of accounting is to allow managers to make better decisions.

Question 10

Accounting is the recording,classifying,summarizing and interpreting of financial events and transactions,in order to provide management and other stakeholders the information they need to make good decisions.

Question 11

A ledger is a record book in accounting where the transactions are kept for each day,week or month.

Question 12

Double-entry bookkeeping is the concept of writing (or typing)every transaction in two places.

Question 13

If a manager wants to know how much money has been spent on supplies for the year she would most likely go to the ledger.

Question 14

The first step in the accounting cycle is to analyze and categorize documents.

Question 15

One of the concerns of managerial accounting is to design strategies to minimize taxes.

Question 16

Only managers use accounting information.

Question 17

GAAP stands for generally accepted accounting principles.

Question 18

The job of reviewing and evaluating the records used to prepare a company's financial statements is referred to as financial evaluation.

Question 19

A certified management accountant is a professional accountant who has met certain educational and experience requirements,passed a qualifying exam in the field and been certified by the Institute of Certified Management Accountants.

Question 20

Public accountants work for a single firm,government agency or nonprofit organization.

Question 21

Liquidity refers to how fast an asset can be converted into a liability.

Question 22

Missy is a managerial accountant for ABC Corp.She found that the transactions of the firm balanced by doing a trial balance.

Question 23

Leverage ratios measure the degree to which a firm relies on borrowed funds in its operations.

Question 24

A copyright is an example of a current asset.

Question 25

The balance sheet reports the firm's financial condition over a specific period of time.

Question 26

The income statement is also called the profit and loss statement.

Question 27

A financial statement is a summary of all the transactions that have occurred over a particular time period.

Question 28

A balance sheet is a type of financial statement.

Question 29

A car loan is an asset.

Question 30

The accounting cycle has six steps.

Question 31

Norm is a bookkeeper and Dave is the managerial accountant for a firm.Before Norm can do his work,Dave must do his.

Question 32

Credit card debt is a liability.

Question 33

The steps in the accounting cycle can be done in any order so long as all of them are accomplished in a short time.

Question 34

The accounting equation is Assets = Liabilities + Owner's Equity.

Question 35

The current ratio is current assets divided by current liabilities.

Question 36

Ratio analysis is the assessment of a firm's financial condition and performance through calculations and interpretation of financial ratios developed from the firm's financial statements.

Question 37

Assets are things of value owned by a firm.

Question 38

The statement of cash flows provides a summary of money coming into and going out of the firm and tracks a company's cash receipts and cash payments.

Question 39

Financial statements are a result of the ongoing work of bookkeepers and managerial accountants and their recording of daily transactions.

Question 40

The balance sheet includes sales,expenses and gross profits.

Question 41

Government accounting standards are set by the Government Accounting Standards Board.

Question 42

Financial ratios provide key insights into how a firm compares to other firms in its industry in the important areas of liquidity,debt,profitability and businesses activity.

Question 43

If a firm has a debt to owner's equity ratio greater than 100%,it means that it owes more than the owners have invested in it.

Question 44

A(n)___________ is a summary of all the financial data in the account ledgers.It is used to check whether the figures are correct and balanced.

Question 45

A(n)____________ is the financial statement that reports a firm's financial condition at a specific time.

Question 46

An independent _________ is an evaluation,an unbiased opinion,regarding the accuracy of a company's financial statements.

Question 47

________ is the recording,classifying,summarizing and interpreting of financial events and transactions,in order to provide management and other stakeholders the information they need to make good decision.

Question 48

_____________ accounting is used to provide information and analysis to managers within the organization to assist them in decision making.

Question 49

The Financial Accounting Standards Board defines the set of generally accepted accounting principles that accountants must follow.

Question 50

The accounting cycle begins with analyzing ________.

Question 51

____________ are economic resources (things of value)owned by a firm.

Question 52

The typical financial statements include the balance sheet,the income statement and the ________.

Question 53

Activity ratios measure how well a company converts its resources to profits.

Question 54

Melissa wants to be sure that all the accounts balance in the ledger.To understand if they balance she will have to take a(n)__________ balance.

Question 55

____________ accounting generates information for use outside the organization.

Question 56

The return on sales is a type of profitability ratio.

Question 57

___________ are what the business owes to others (debts).

Question 58

A high inventory turnover ratio could mean a retail company is trying to sell obsolete merchandise or has poor buying practices.

Question 59

If a firm lists current assets of $600,000 and current liabilities of $300,000,the firm has a current ratio of 0.5.

Question 60

A(n)_________ is a summary of all the transactions that have occurred over a particular period.

Question 61

The accounting cycle has __________ steps.

A) Four
B) Five
C) Six
D) eight

Question 62

____________ ratios measure the degree to which a firm relies on borrowed funds in its operations.

Question 63

Which of the following statements about accounting is correct?

A) Learning about accounting is only important if you plan to become a CPA.
B) Accounting can be considered an entirely new language.
C) Financial information is primarily based on information generated from IT.
D) All of the responses are correct

Question 64

A(n)______ is a yearly statement of the financial condition,progress and expectations of the organization.

A) Executive summary
B) Annual report
C) Financial ledger
D) Statement of cash flow

Question 65

_____________ is the amount of the business that belongs to the owners,minus any liabilities owed by the business.

Question 66

One purpose of accounting is to:

A) Report financial information to people outside the firm
B) Report HR legal obligations
C) Keep track of laws related to advertising
D) All of the responses are correct

Question 67

____________ is the value of what is received from goods sold,services rendered and other financial sources.

Question 68

Which of the following is a working area of accounting?

A) Auditing
B) Tax accounting
C) Managerial accounting
D) All of the responses are correct

Question 69

__________ analysis is the assessment of a firm's financial condition and performance through calculations and interpretation of financial ratios developed from the firm's financial statements.

Question 70

Which of the following statements about journals is true?

A) A journal is a specialized accounting book in which information is recorded into specific categories.
B) The journal is a log of transactions as they happen.
C) The journal provides information about different accounts.
D) All of the responses are correct

Question 71

The ____________ helps companies keep from running out of money.

Question 72

Operating _________ are the costs involved in operating a business such as rent,salaries,supplies,utilities,insurance and the like.

Question 73

The primary users of government accounting information are:

A) Citizens
B) Special interest groups
C) Creditors
D) All of the responses are correct

Question 74

___________ is the recording of business transactions.

A) Financial accounting
B) Bookkeeping
C) Managerial accounting
D) Finance

Question 75

Accountants within the organization often perform internal _______ to ensure that proper accounting procedures and financial reporting are being followed.

A) Ratios
B) Audits
C) Statements
D) Annual reports

Question 76

A brand name such as Coca-Cola or McDonald's is a(n)____________on the balance sheet.

Question 77

____________ refers to how fast an asset can be converted to cash in order to pay a company's short-term debts.

Question 78

___________ generates information for use outside the organization.

A) Finance
B) IT
C) Managerial accounting
D) Financial accounting

Question 79

Recording,classifying,summarizing,and interpreting of financial events and transactions to provide management and other stakeholders the information they need to make good decisions is called:

A) Data processing
B) Accounting
C) Economics
D) Information technology

Question 80

____________ is used to provide information and analysis to managers within the organization to assist them in decision making.

A) Finance
B) IT
C) Managerial accounting
D) Financial accounting