Question 1

Voucher checks are ordinary checks with an additional portion that gives a description of the payment.

Accepted Answer

Voucher checks have a detachable portion that provides a description of the payment for record-keeping purposes, making them different from regular checks.

Question 2

A statement of account should show a listing of unpaid amounts from only one invoice.

Accepted Answer

A statement of account should show a listing of unpaid amounts from multiple invoices, not just one.

Question 3

A company's sales for the reporting period were $300,000 and its net income after tax was $54,000. What is the profit margin?&#10;A) 20 percent&#10;B) 18 percent&#10;C) 16 percent&#10;D) 22 percent

Accepted Answer

The profit margin can be calculated as:
Profit Margin = Net Income / Sales
Profit Margin = $54,000 / $300,000
Profit Margin = 0.18 or 18%
Therefore, the answer is B) 18 percent.

Question 4

If terms on an invoice are 2/10, net 30, a 2 percent discount can be taken from the invoice amount if the invoice is paid within ten days of the invoice date.

Accepted Answer

The statement is correct. It means if the invoice is paid within ten days, the customer can deduct 2 percent from the total invoice amount. Otherwise, the full payment is due within 30 days.

Question 5

The owner's equity is the owner's share of the worth of a company.

Accepted Answer

Owner's equity represents the residual interest in the assets of a company after liabilities are deducted. This residual interest belongs to the owners of the company, and therefore, owner's equity is the owner's share of the worth of the company.

Question 6

Electronic funds transfer (EFT) typically cannot be used to pay vendor invoices.

Accepted Answer

EFT can be used to pay vendor invoices by transferring funds from the buyer's bank account to the vendor's bank account electronically.

Question 7

Budget reports compare the money spent in each category to the budgeted amount.

Accepted Answer

Budget reports are used to compare the actual amount spent in each category to the budgeted amount in order to assess whether expenses are on track or not.

Question 8

Reviewing expenses from the previous year is not helpful when preparing a budget.

Accepted Answer

Reviewing expenses from the previous year can provide valuable insights into where money was spent and can help inform decisions about where to allocate funds in the upcoming budget year.

Question 9

A projected income statement&#10;A) lists the revenues and expenses the company expects for the reporting period&#10;B) shows a net loss if revenues are greater than expenses&#10;C) shows a net profit if expenses are greater than revenues&#10;D) all the above

Accepted Answer

A projected income statement lists the revenues and expenses the company expects for the reporting period. It does not determine whether there will be a net profit or loss.

Question 10

Company managers typically do not want to have more cash than is currently needed in an account that pays no interest.

Accepted Answer

This is because holding excessive cash leads to opportunity costs, as that cash could have been invested elsewhere to earn a return. Therefore, company managers prefer to maintain an optimal cash balance that meets their short-term needs without holding excess cash.

Question 11

A report that shows the results of operations for a company for a period of time is&#10;A) an income statement&#10;B) a budget&#10;C) a balance sheet&#10;D) a cash flow statement

Accepted Answer

The answer of A report that shows the results of...

Question 12

When formatting a financial report, use a single line (bottom border) underneath the last figure above a total to indicate addition or subtraction.

Accepted Answer

The answer of When formatting a financial report, use a...

Question 13

A purchase requisition shows the items requested and an approval to make the purchase.

Accepted Answer

The answer of A purchase requisition shows the items requested...

Question 14

Accounts payable are the short-term debts the company owes to others.

Accepted Answer

The answer of Accounts payable are the short-term debts the...

Question 15

Vouchers typically are filed in alphabetical order by the company name.

Accepted Answer

The answer of Vouchers typically are filed in alphabetical order...

Question 16

An income statement shows the assets and liabilities for a company.

Accepted Answer

The answer of An income statement shows the assets and...

Question 17

A balance sheet is a document that shows incoming and outgoing cash for a given period.

Accepted Answer

The answer of A balance sheet is a document that...

Question 18

Typically, mass production allows companies to lower costs by making large numbers of products that are exactly the same.

Accepted Answer

The answer of Typically, mass production allows companies to lower...

Question 19

A detailed plan or estimate of expected income and expenses for a period of time is a&#10;A) balance sheet&#10;B) budget&#10;C) cash flow statement&#10;D) none of the above

Accepted Answer

The answer of A detailed plan or estimate of expected...

Question 20

When preparing data for a budget&#10;A) do not be concerned about deadlines for submitting data&#10;B) review expenses from the past year&#10;C) consider any special needs for the coming year&#10;D) both B and C

Accepted Answer

The answer of When preparing data for a budget&#10;A) do...

Question 21

A sales invoice&#10;A) is usually created at the time a company ships the products or performs services for a customer.&#10;B) can be sent with the products&#10;C) is usually due immediately&#10;D) Both A and B

Accepted Answer

The answer of A sales invoice&#10;A) is usually created at...

Question 22

A purchase order shows&#10;A) the goods that were actually received by the company&#10;B) items ordered and to what address they should be shipped&#10;C) the items requested and an approval to make the purchase&#10;D) what is owed for the purchases

Accepted Answer

The answer of A purchase order shows&#10;A) the goods that...

Question 23

Match between columns&#10;                        Premises: Permission to pay later for goods or services&#10;Permission to pay later for goods or services&#10;Permission to pay later for goods or services&#10;Permission to pay later for goods or services&#10;Permission to pay later for goods or services&#10;Permission to pay later for goods or services&#10;Permission to pay later for goods or services&#10;Permission to pay later for goods or services&#10;Permission to pay later for goods or services&#10;Permission to pay later for goods or services&#10;Permission to pay later for goods or services&#10;Permission to pay later for goods or services&#10;Permission to pay later for goods or services&#10;Permission to pay later for goods or services&#10;Money and goods or property owned&#10;Money and goods or property owned&#10;Money and goods or property owned&#10;Money and goods or property owned&#10;Money and goods or property owned&#10;Money and goods or property owned&#10;Money and goods or property owned&#10;Money and goods or property owned&#10;Money and goods or property owned&#10;Money and goods or property owned&#10;Money and goods or property owned&#10;Money and goods or property owned&#10;Money and goods or property owned&#10;Money and goods or property owned&#10;A document that shows items to be bought and to what address they should be shipped&#10;A document that shows items to be bought and to what address they should be shipped&#10;A document that shows items to be bought and to what address they should be shipped&#10;A document that shows items to be bought and to what address they should be shipped&#10;A document that shows items to be bought and to what address they should be shipped&#10;A document that shows items to be bought and to what address they should be shipped&#10;A document that shows items to be bought and to what address they should be shipped&#10;A document that shows items to be bought and to what address they should be shipped&#10;A document that shows items to be bought and to what address they should be shipped&#10;A document that shows items to be bought and to what address they should be shipped&#10;A document that shows items to be bought and to what address they should be shipped&#10;A document that shows items to be bought and to what address they should be shipped&#10;A document that shows items to be bought and to what address they should be shipped&#10;A document that shows items to be bought and to what address they should be shipped&#10;Financial cost, fee, or charge&#10;Financial cost, fee, or charge&#10;Financial cost, fee, or charge&#10;Financial cost, fee, or charge&#10;Financial cost, fee, or charge&#10;Financial cost, fee, or charge&#10;Financial cost, fee, or charge&#10;Financial cost, fee, or charge&#10;Financial cost, fee, or charge&#10;Financial cost, fee, or charge&#10;Financial cost, fee, or charge&#10;Financial cost, fee, or charge&#10;Financial cost, fee, or charge&#10;Financial cost, fee, or charge&#10;A document that shows the vendor name, payment information, and an approval to make the payment&#10;A document that shows the vendor name, payment information, and an approval to make the payment&#10;A document that shows the vendor name, payment information, and an approval to make the payment&#10;A document that shows the vendor name, payment information, and an approval to make the payment&#10;A document that shows the vendor name, payment information, and an approval to make the payment&#10;A document that shows the vendor name, payment information, and an approval to make the payment&#10;A document that shows the vendor name, payment information, and an approval to make the payment&#10;A document that shows the vendor name, payment information, and an approval to make the payment&#10;A document that shows the vendor name, payment information, and an approval to make the payment&#10;A document that shows the vendor name, payment information, and an approval to make the payment&#10;A document that shows the vendor name, payment information, and an approval to make the payment&#10;A document that shows the vendor name, payment information, and an approval to make the payment&#10;A document that shows the vendor name, payment information, and an approval to make the payment&#10;A document that shows the vendor name, payment information, and an approval to make the payment&#10;A document that shows charges for goods or services provided to a customer&#10;A document that shows charges for goods or services provided to a customer&#10;A document that shows charges for goods or services provided to a customer&#10;A document that shows charges for goods or services provided to a customer&#10;A document that shows charges for goods or services provided to a customer&#10;A document that shows charges for goods or services provided to a customer&#10;A document that shows charges for goods or services provided to a customer&#10;A document that shows charges for goods or services provided to a customer&#10;A document that shows charges for goods or services provided to a customer&#10;A document that shows charges for goods or services provided to a customer&#10;A document that shows charges for goods or services provided to a customer&#10;A document that shows charges for goods or services provided to a customer&#10;A document that shows charges for goods or services provided to a customer&#10;A document that shows charges for goods or services provided to a customer&#10;A document that shows the financial condition of a company as of a specific date&#10;A document that shows the financial condition of a company as of a specific date&#10;A document that shows the financial condition of a company as of a specific date&#10;A document that shows the financial condition of a company as of a specific date&#10;A document that shows the financial condition of a company as of a specific date&#10;A document that shows the financial condition of a company as of a specific date&#10;A document that shows the financial condition of a company as of a specific date&#10;A document that shows the financial condition of a company as of a specific date&#10;A document that shows the financial condition of a company as of a specific date&#10;A document that shows the financial condition of a company as of a specific date&#10;A document that shows the financial condition of a company as of a specific date&#10;A document that shows the financial condition of a company as of a specific date&#10;A document that shows the financial condition of a company as of a specific date&#10;A document that shows the financial condition of a company as of a specific date&#10;Income, money or other gain received&#10;Income, money or other gain received&#10;Income, money or other gain received&#10;Income, money or other gain received&#10;Income, money or other gain received&#10;Income, money or other gain received&#10;Income, money or other gain received&#10;Income, money or other gain received&#10;Income, money or other gain received&#10;Income, money or other gain received&#10;Income, money or other gain received&#10;Income, money or other gain received&#10;Income, money or other gain received&#10;Income, money or other gain received&#10;A document that shows a reduction in the amount owed, such as for returned goods&#10;A document that shows a reduction in the amount owed, such as for returned goods&#10;A document that shows a reduction in the amount owed, such as for returned goods&#10;A document that shows a reduction in the amount owed, such as for returned goods&#10;A document that shows a reduction in the amount owed, such as for returned goods&#10;A document that shows a reduction in the amount owed, such as for returned goods&#10;A document that shows a reduction in the amount owed, such as for returned goods&#10;A document that shows a reduction in the amount owed, such as for returned goods&#10;A document that shows a reduction in the amount owed, such as for returned goods&#10;A document that shows a reduction in the amount owed, such as for returned goods&#10;A document that shows a reduction in the amount owed, such as for returned goods&#10;A document that shows a reduction in the amount owed, such as for returned goods&#10;A document that shows a reduction in the amount owed, such as for returned goods&#10;A document that shows a reduction in the amount owed, such as for returned goods&#10;Debt owed to others&#10;Debt owed to others&#10;Debt owed to others&#10;Debt owed to others&#10;Debt owed to others&#10;Debt owed to others&#10;Debt owed to others&#10;Debt owed to others&#10;Debt owed to others&#10;Debt owed to others&#10;Debt owed to others&#10;Debt owed to others&#10;Debt owed to others&#10;Debt owed to others&#10;Money used for paying small expenses&#10;Money used for paying small expenses&#10;Money used for paying small expenses&#10;Money used for paying small expenses&#10;Money used for paying small expenses&#10;Money used for paying small expenses&#10;Money used for paying small expenses&#10;Money used for paying small expenses&#10;Money used for paying small expenses&#10;Money used for paying small expenses&#10;Money used for paying small expenses&#10;Money used for paying small expenses&#10;Money used for paying small expenses&#10;Money used for paying small expenses&#10;A document that shows expected income and expenses for a period of time&#10;A document that shows expected income and expenses for a period of time&#10;A document that shows expected income and expenses for a period of time&#10;A document that shows expected income and expenses for a period of time&#10;A document that shows expected income and expenses for a period of time&#10;A document that shows expected income and expenses for a period of time&#10;A document that shows expected income and expenses for a period of time&#10;A document that shows expected income and expenses for a period of time&#10;A document that shows expected income and expenses for a period of time&#10;A document that shows expected income and expenses for a period of time&#10;A document that shows expected income and expenses for a period of time&#10;A document that shows expected income and expenses for a period of time&#10;A document that shows expected income and expenses for a period of time&#10;A document that shows expected income and expenses for a period of time&#10;Reduction in an amount paid or owed&#10;Reduction in an amount paid or owed&#10;Reduction in an amount paid or owed&#10;Reduction in an amount paid or owed&#10;Reduction in an amount paid or owed&#10;Reduction in an amount paid or owed&#10;Reduction in an amount paid or owed&#10;Reduction in an amount paid or owed&#10;Reduction in an amount paid or owed&#10;Reduction in an amount paid or owed&#10;Reduction in an amount paid or owed&#10;Reduction in an amount paid or owed&#10;Reduction in an amount paid or owed&#10;Reduction in an amount paid or owed&#10;Money earned on an investment or paid on money that is borrowed&#10;Money earned on an investment or paid on money that is borrowed&#10;Money earned on an investment or paid on money that is borrowed&#10;Money earned on an investment or paid on money that is borrowed&#10;Money earned on an investment or paid on money that is borrowed&#10;Money earned on an investment or paid on money that is borrowed&#10;Money earned on an investment or paid on money that is borrowed&#10;Money earned on an investment or paid on money that is borrowed&#10;Money earned on an investment or paid on money that is borrowed&#10;Money earned on an investment or paid on money that is borrowed&#10;Money earned on an investment or paid on money that is borrowed&#10;Money earned on an investment or paid on money that is borrowed&#10;Money earned on an investment or paid on money that is borrowed&#10;Money earned on an investment or paid on money that is borrowed

Accepted Answer

The Answer of credit and discount and balance sheet and is...

Question 24

A receiving report shows&#10;A) the goods that were actually received by the company&#10;B) items ordered and to what address they should be shipped&#10;C) the items requested and an approval to make the purchase&#10;D) what is owed for the purchases

Accepted Answer

The answer of A receiving report shows&#10;A) the goods that...

Question 25

The terms on an invoice dated January 3 are 2/10, net 30. The invoice total is $2,000. What amount of discount can be taken if the invoice is paid on January 16?&#10;A) $40&#10;B) $60&#10;C) none&#10;D) $200

Accepted Answer

The answer of The terms on an invoice dated January...

Question 26

A cash flow statement shows $40,000 for total cash inflows and $25,500 for total cash outflows. What is the net cash flow?&#10;A) $65,500&#10;B) $20,000&#10;C) $14,500&#10;D) $45,500

Accepted Answer

The answer of A cash flow statement shows $40,000 for...

Question 27

A balance sheet shows&#10;A) the condition of a company as of a specific date&#10;B) the assets, liabilities, and owner's equity&#10;C) the assets and liabilities but not the owner's equity&#10;D) both A and B

Accepted Answer

The answer of A balance sheet shows&#10;A) the condition of...

Question 28

A statement of account&#10;A) lists paid invoices as of a certain date&#10;B) provides a routine reminder of the amounts owed&#10;C) can include amounts from several invoices&#10;D) both B and C

Accepted Answer

The answer of A statement of account&#10;A) lists paid invoices...

Question 29

A document that shows the goods that were actually delivered to the company is a&#10;A) receiving report&#10;B) purchase order&#10;C) invoice&#10;D) credit memo

Accepted Answer

The answer of A document that shows the goods that...

Question 30

Accounting software allows the user to&#10;A) update accounts&#10;B) create checks&#10;C) create financial statements&#10;D) all the above

Accepted Answer

The answer of Accounting software allows the user to&#10;A) update...

Question 31

A sales invoice typically includes&#10;A) the invoice date and invoice total&#10;B) quantities and prices of items purchased&#10;C) the payment terms&#10;D) all the above

Accepted Answer

The answer of A sales invoice typically includes&#10;A) the invoice...

Question 32

In which business model are many products made to meet specific customers' needs?&#10;A) mass production&#10;B) customized production&#10;C) mass customization&#10;D) none of the above

Accepted Answer

The answer of In which business model are many products...

Question 33

The terms on an invoice dated March 10 are 2/10, net 30. The invoice total is $3,000. What is the amount to be paid after taking any allowed discount if the invoice is paid on March 16?&#10;A) $2940&#10;B) $2960&#10;C) $3000&#10;D) none of the above

Accepted Answer

The answer of The terms on an invoice dated March...

Question 34

Petty cash&#10;A) is typically used to pay for small expenses at the office&#10;B) should always contain at least $5,000&#10;C) should not be replenished more than once per year&#10;D) both B and C

Accepted Answer

The answer of Petty cash&#10;A) is typically used to pay...

Question 35

A document that shows incoming and outgoing cash for a given period is a&#10;A) income statement&#10;B) cash flow statement&#10;C) balance sheet&#10;D) owner's equity statement

Accepted Answer

The answer of A document that shows incoming and outgoing...

Question 36

The short-term debts the company owes to others are called&#10;A) accounts receivable&#10;B) accounts payable&#10;C) assets&#10;D) debtors

Accepted Answer

The answer of The short-term debts the company owes to...

Deck 8: Financial Reports and Procedures