Question 1

The financial statement detailing a firm's assets, liabilities, and owners' equity is the
income statement.
statement of cash flows.
balance sheet.
manufacturing statement.
statement of retained earnings.

Accepted Answer

The answer of The financial statement detailing a firm's assets,...

Question 2

What purpose does the balance sheet serve?
It shows the stock price of the firm during the last year and how much fluctuation there have been in the stock price.
It shows short- and long-term liquidity ratios, profitability ratios, and activity ratios.
It shows a firm's financial condition on a particular date in terms of its assets, liabilities, and owners' equity.
It shows investors how much profit the firm made during the last year.
It shows a firm's sources and uses of cash.

Accepted Answer

The answer of What purpose does the balance sheet serve?
It...

Question 3

Rent for the period to come is included in which account on the balance sheet?
Inventory
Cost of goods sold
Merchandise inventory
Accounts payable
Prepaid expenses

Accepted Answer

The answer of Rent for the period to come is...

Question 4

What is the accounting term that describes an amount paid for an existing business above the value of its other assets?
A patent
A copyright
Goodwill
A franchise fee
Reputation

Accepted Answer

The answer of What is the accounting term that describes...

Question 5

What are the three types of assets that will typically be found on a balance sheet?
Local, national, and international
Positive, negative, and neutral
Land, buildings, and equipment
Current, fixed, and intangible
Short-term, long-term, and medium-term

Accepted Answer

The answer of What are the three types of assets...

Question 6

Stephen is looking at a financial statement that shows detailed information about the accounting equation factors. He is looking at the company's
T-accounts.
income statement.
balance sheet.
double entry accounting system.
profit and loss statement.

Accepted Answer

The answer of Stephen is looking at a financial statement...

Question 7

________ are amounts due from customers who have purchased goods on credit.
Accounts owed
Accounts receivable
Accounts forwarded
Accounts payable
Account balances

Accepted Answer

The answer of ________ are amounts due from customers who...

Question 8

If you wanted to see how much Mega Computer owed your company, where would be the best place to look?
Income statement
Balance sheet
Cash flow statement
Budget
Net income statement

Accepted Answer

The answer of If you wanted to see how much...

Question 9

Due to a downturn in the local economy, Bob is concerned about converting his assets to cash quickly. In accounting terms, he is apprehensive about
current assets.
liquidity.
turnover.
net income.
marketable securities.

Accepted Answer

The answer of Due to a downturn in the local...

Question 10

A current asset is
an expense, such as rent, that is paid before the upcoming period in which it is due.
a nonphysical asset, such as a patent or trademark, that has economic value in the form of expected benefit.
an amount due from a customer who has purchased goods on credit.
an asset with long-term use or value, such as land, buildings, and equipment.
an asset that can or will be converted to cash within the following year.

Accepted Answer

The answer of A current asset is
an expense, such as...

Question 11

________ is an asset that represents the cost of merchandise which was made or bought for sale to customers and that is still on hand.
Accounts payable
Prepaid expenses
Cost of goods sold
Merchandise inventory
Accounts receivable

Accepted Answer

The answer of ________ is an asset that represents the...

Question 12

________ are non-physical assets, such as a patent or trademark, that have economic value in the form of expected benefits.
Intangible assets
Fixed assets
Prepaid assets
Current assets
Long-term assets

Accepted Answer

The answer of ________ are non-physical assets, such as a...

Question 13

________ are purchased as short-term investments and are only slightly less liquid than cash.
Prepaid expenses
Patents
Accounts receivable
Marketable securities
Futures

Accepted Answer

The answer of ________ are purchased as short-term investments and...

Question 14

If the following facts were known, which one would strengthen the argument that a company would be able to meet its current financial obligations?
The level of accounts payable is high.
Liabilities exceed assets.
The company currently has a negative cash flow.
The company needs to increase the number of customers it serves.
Assets exceed liabilities.

Accepted Answer

The answer of If the following facts were known, which...

Question 15

Which of the following is an intangible asset?
An inventory level of 1000 copies of a book
The copyright for a textbook
A printing press used in the publication of a book
A $1000 Canada Savings Bond
The building in which a book was printed

Accepted Answer

The answer of Which of the following is an intangible...

Question 16

Peter, an accountant, enters every transaction in the journal to reflect its impact on assets and its impact on liabilities and owners' equity. He is using
a double entry accounting system.
a balance sheet.
a financial ratio.
breakeven analysis.
a financial statement.

Accepted Answer

The answer of Peter, an accountant, enters every transaction in...

Question 17

Which term is used to identify how quickly assets can be converted into cash?
Acid test ratio
Activity
Accounts receivable
Current ratio
Liquidity

Accepted Answer

The answer of Which term is used to identify how...

Question 18

An account receivable represents
an asset with long-term use or value, such as land, buildings, and equipment.
an amount due from a customer who has purchased goods on credit.
an expense, such as rent, that is paid before the upcoming period in which it is due.
a nonphysical asset, such as a patent or trademark, that has economic value in the form of expected benefit.
an asset that can or will be converted to cash within the following year.

Accepted Answer

The answer of An account receivable represents
an asset with long-term...

Question 19

A balance sheet would not be able to help a manager answer which question?
Is it a good time to try to grow the business?
Can the company survive if a period of low revenues happens?
Does the company have an excessive number of employees?
Is the company able to take on more debt?
What is the total value of all of the company's assets?

Accepted Answer

The answer of A balance sheet would not be able...

Question 20

Which of the following ensures that the accounting equation is always kept in balance?
Credits
Debits
Double-entry accounting
Balance sheet
T-accounts

Accepted Answer

The answer of Which of the following ensures that the...

Quiz 11: Understanding Accounting

The financial statement detailing a firm's assets, liabilities, and owners' equity is the income statement. statement of cash flows. balance sheet. manufacturing statement. statement of retained earnings.

Rent for the period to come is included in which account on the balance sheet? Inventory Cost of goods sold Merchandise inventory Accounts payable Prepaid expenses

What is the accounting term that describes an amount paid for an existing business above the value of its other assets? A patent A copyright Goodwill A franchise fee Reputation

What are the three types of assets that will typically be found on a balance sheet? Local, national, and international Positive, negative, and neutral Land, buildings, and equipment Current, fixed, and intangible Short-term, long-term, and medium-term

Stephen is looking at a financial statement that shows detailed information about the accounting equation factors. He is looking at the company's T-accounts. income statement. balance sheet. double entry accounting system. profit and loss statement.

________ are amounts due from customers who have purchased goods on credit. Accounts owed Accounts receivable Accounts forwarded Accounts payable Account balances

If you wanted to see how much Mega Computer owed your company, where would be the best place to look? Income statement Balance sheet Cash flow statement Budget Net income statement

Due to a downturn in the local economy, Bob is concerned about converting his assets to cash quickly. In accounting terms, he is apprehensive about current assets. liquidity. turnover. net income. marketable securities.

________ is an asset that represents the cost of merchandise which was made or bought for sale to customers and that is still on hand. Accounts payable Prepaid expenses Cost of goods sold Merchandise inventory Accounts receivable

________ are non-physical assets, such as a patent or trademark, that have economic value in the form of expected benefits. Intangible assets Fixed assets Prepaid assets Current assets Long-term assets

________ are purchased as short-term investments and are only slightly less liquid than cash. Prepaid expenses Patents Accounts receivable Marketable securities Futures

Which of the following is an intangible asset? An inventory level of 1000 copies of a book The copyright for a textbook A printing press used in the publication of a book A $1000 Canada Savings Bond The building in which a book was printed

Peter, an accountant, enters every transaction in the journal to reflect its impact on assets and its impact on liabilities and owners' equity. He is using a double entry accounting system. a balance sheet. a financial ratio. breakeven analysis. a financial statement.

Which term is used to identify how quickly assets can be converted into cash? Acid test ratio Activity Accounts receivable Current ratio Liquidity

Which of the following ensures that the accounting equation is always kept in balance? Credits Debits Double-entry accounting Balance sheet T-accounts