Question 1

Elsa owns a business and is reviewing her company's current financial statements.As a user of accounting information,Elsa is most interested in using this information to

Accepted Answer

Elsa, as a business owner, would use her company's financial statements primarily to plan and control activities, ensuring that the business is operating efficiently and making adjustments as necessary for future success.

Question 2

Professionals who are responsible for gathering,recording,reporting,and interpreting the financial information of an organization are known as

Accepted Answer

Accountants are the professionals responsible for the financial documentation and interpretation within an organization, which includes tasks such as gathering, recording, reporting, and analyzing financial information.

Question 3

Lambert manages the sales force for his company.He is engaged in the _____ activity.

Accepted Answer

Managing the sales force is considered an operating activity because it involves the day-to-day operations of the company.

Question 4

A ______ provides accounting services to individuals or companies for a fee.

Accepted Answer

Public accountants provide accounting services, including auditing, tax preparation, and consulting, to individuals and businesses for a fee.

Question 5

Which activities provide the necessary funds to start a business and to expand it after it begins operations?

Accepted Answer

Financing activities are crucial for raising the necessary funds to start a business and to support its expansion after it begins operations. This includes obtaining capital through loans, selling equity, or other financial instruments.

Question 6

Benicio is a loan officer for a bank and is reviewing the financial statements of a prospective borrower.As a user of accounting information,Benicio is most interested in using this information

Accepted Answer

Benicio, as a loan officer, would primarily be interested in evaluating the financial soundness of potential clients to determine their creditworthiness and ability to repay loans.

Question 7

An accountant employed by a business other than a public accounting firm is called a ______,who typically collects and records financial transactions and prepares financial statements used by the company's managers in decision making.

Accepted Answer

Management accountants, also known as corporate or private accountants, collect and record financial transactions and prepare financial statements used by a company's managers for decision making. They work within a business rather than for a public accounting firm.

Question 8

All of the following are assets EXCEPT

Accepted Answer

Assets are resources owned by a business that have economic value and can be converted into cash. Inventory, cash, and patents are all examples of assets because they represent value that the business can use or convert into cash. Bank loans, however, are liabilities, not assets, because they represent money that the business owes to another entity.

Question 9

Angelina works for a mid-sized manufacturing company.Her responsibility is to examine the company's financial practices to ensure that records include accurate data and that the company's operations are in compliance with federal,state,and local laws and regulations.Angelina is a(n)

Accepted Answer

Angelina's role involves examining the company's financial practices for accuracy and compliance with laws and regulations, which is the job of an internal auditor. Internal auditors assess various aspects of an organization to ensure accuracy, compliance, and efficiency in operations.

Question 10

Salman performs professional services similar to those of a management accountant while working for the city of Portland.Salman can best be described as a

Accepted Answer

Salman is best described as a government accountant because he performs professional services similar to those of a management accountant while working for a government entity, in this case, the city of Portland. Government accountants work within the public sector, managing and analyzing the financial information of government agencies or entities.

Question 11

Which of these activities focus on providing valuable assets to a business?

Accepted Answer

Investing focuses on providing valuable assets to a business by allocating resources into assets or projects expected to generate future returns or value.

Question 12

Which of these describes the process of measuring,interpreting,and communicating financial information to enable people inside and outside the company to make informed decisions?

Accepted Answer

Accounting is the process that involves measuring, interpreting, and communicating financial information to help individuals both inside and outside of a company make informed decisions.

Question 13

The natural progression of a business begins with

Accepted Answer

The natural progression of a business typically begins with financing, where the business seeks capital or funding to start operations, invest in assets, or cover initial expenses.

Question 14

Fernando is not an employee of the Edith Corporation,but he was hired as a management consultant to provide unbiased advice about Edith Corporation's financial condition.Fernando is a(n)

Accepted Answer

Fernando is acting as a public accountant because he is providing his professional services to the Edith Corporation on a consultancy basis, rather than being an employee of the company. Public accountants offer their expertise to various clients, including individuals, businesses, and government entities, without being internal staff members.

Question 15

Public accountants typically perform all of the following tasks for a business client EXCEPT

Accepted Answer

Public accountants offer a wide range of services including tax planning, reviewing financial statements, and management consulting, but developing a firm's marketing strategy is generally not within the scope of their services. Marketing strategy development is typically handled by marketing professionals or consultants who specialize in that area.

Question 16

Carmen works as a tax accountant at a mid-sized manufacturing company.Carmen would be considered a

Accepted Answer

Carmen is considered a management accountant because she works internally within a company (a mid-sized manufacturing company) handling its financial records and tax matters, rather than working for an external firm or the government.

Question 17

Astrid works for a travel agency.Her job involves preparing financial reports and interpreting those reports to provide information for decision making.Which title is appropriate for Astrid's job?

Accepted Answer

Astrid's job involves preparing and interpreting financial reports, which are key responsibilities of an accountant. Accountants analyze financial information, prepare financial reports, and provide insights for decision-making, aligning with the description of Astrid's job.

Question 18

Ramon has been hired to collect and record financial transactions and prepare financial statements for a Christian organization affiliated to a church,which makes him a

Accepted Answer

Ramon's role involves working for a Christian organization affiliated with a church, which is typically considered a not-for-profit entity. Therefore, his position as an accountant in this context is best described as a not-for-profit accountant.

Question 19

_______ at the federal level manage public funds,investigate white-collar crime,perform audits for government agencies,and stay up-to-date on emerging accounting and regulatory issues.

Accepted Answer

Government accountants are responsible for managing public funds, investigating white-collar crime, performing audits for government agencies, and staying informed on emerging accounting and regulatory issues.

Question 20

_____ activities focus on selling goods and services.

Accepted Answer

The answer of _____ activities focus on selling goods and...

Quiz 15: Understanding Accounting and Financial Statements