Question 1

MATCHING
Complete the following using the terms listed.
-A(n)_____ is anything of value owned or leased by a business.
A)certified public accountant
B)International Financial Reporting Standards
C)Asset
D)Liability
E)owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Foreign Corruption Practices Act
J)accrual accounting
K)open book management
L)budget
M)GAAP
N)FASB
O)profitability ratio
P)International Accounting Standards Committee (IASC)
Q)leverage ratio
R)management accountant

Accepted Answer

An asset is anything of value owned or leased by a business. The other terms listed do not fit this definition.

Question 2

MATCHING
Complete the following using the terms listed.
-The _____ was established to promote worldwide consistency in financial reporting practices.
A)certified public accountant
B)International Financial Reporting Standards
C)Asset
D)Liability
E)owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Foreign Corruption Practices Act
J)accrual accounting
K)open book management
L)budget
M)GAAP
N)FASB
O)profitability ratio
P)International Accounting Standards Committee (IASC)
Q)leverage ratio
R)management accountant

Accepted Answer

P

Question 3

MATCHING
Complete the following using the terms listed.
-The accounting method that records revenues and expenses when they occur is called _____.
A)certified public accountant
B)International Financial Reporting Standards
C)Asset
D)Liability
E)owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Foreign Corruption Practices Act
J)accrual accounting
K)open book management
L)budget
M)GAAP
N)FASB
O)profitability ratio
P)International Accounting Standards Committee (IASC)
Q)leverage ratio
R)management accountant

Accepted Answer

Accrual accounting records revenues and expenses when they occur, regardless of when payment is received or made.

Question 4

MATCHING
Complete the following using the terms listed.
-_____ is primarily responsible for evaluating,setting,or modifying the generally accepted accounting principles.
A)certified public accountant
B)International Financial Reporting Standards
C)Asset
D)Liability
E)owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Foreign Corruption Practices Act
J)accrual accounting
K)open book management
L)budget
M)GAAP
N)FASB
O)profitability ratio
P)International Accounting Standards Committee (IASC)
Q)leverage ratio
R)management accountant

Accepted Answer

FASB (Financial Accounting Standards Board) is primarily responsible for evaluating, setting, or modifying the generally accepted accounting principles (GAAP).

Answer: M
 GAAP (Generally Accepted Accounting Principles) are a set of guidelines for financial accounting in the United States, established by the FASB.

Answer: B
 International Financial Reporting Standards (IFRS) are a set of global accounting standards set by the International Accounting Standards Board (IASB).

Answer: G
 The balance sheet is a financial statement that reports a company's assets, liabilities, and owners' equity at a specific point in time.

Answer: H
 The income statement is a financial statement that shows a company's revenues and expenses over a period of time, resulting in a net income or loss.

Answer: R
 Management accountants are responsible for preparing and analyzing financial information for internal use by a company's management team.

Answer: A
 Certified public accountants (CPAs) are individuals who have met education, experience, and exam requirements to practice public accounting.

Answer: K
 Open book management is a management philosophy where employees are given access to financial information and are encouraged to understand the company's financial performance.

Answer: P
 The International Accounting Standards Committee (IASC) was a non-profit organization that aimed to develop and promote a single set of global accounting standards before being replaced by the IASB.

Answer: J
 Accrual accounting is a method of accounting where revenue and expenses are recognized when they are earned or incurred, regardless of when payment is received or made.

Answer: C
 Assets are economic resources owned or controlled by a company, expected to provide future benefit.

Answer: D
 Liabilities are obligations of a company to transfer economic resources as a result of past transactions.

Answer: E
 Owners' equity is the residual interest in the assets of an entity after deducting liabilities.

Answer: L
 A budget is a financial plan that forecasts a company's expected income and expenses over a specific period of time.

Answer: O
 Profitability ratios are financial ratios that measure a company's ability to generate profits in relation to its sales, assets, or equity.

Answer: Q
 Leverage ratios are financial ratios that measure a company's ability to meet its financial obligations by comparing its debt and equity.

Question 5

MATCHING
Complete the following using the terms listed.
-A claim against a firm's assets by a creditor is a(n)_____.
A)certified public accountant
B)International Financial Reporting Standards
C)Asset
D)Liability
E)owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Foreign Corruption Practices Act
J)accrual accounting
K)open book management
L)budget
M)GAAP
N)FASB
O)profitability ratio
P)International Accounting Standards Committee (IASC)
Q)leverage ratio
R)management accountant

Accepted Answer

A claim against a firm's assets by a creditor is a liability.

Question 6

MATCHING
Complete the following using the terms listed.
-The basic relationship that states assets equal liabilities plus owners' equity is called the _____.
A)certified public accountant
B)International Financial Reporting Standards
C)Asset
D)Liability
E)owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Foreign Corruption Practices Act
J)accrual accounting
K)open book management
L)budget
M)GAAP
N)FASB
O)profitability ratio
P)International Accounting Standards Committee (IASC)
Q)leverage ratio
R)management accountant

Accepted Answer

The accounting equation is the basic relationship that states assets equal liabilities plus owners' equity.

Question 7

MATCHING
Complete the following using the terms listed.
-Financial statements are prepared according to _____,whose principles encompass the conventions,rules,and procedures for determining acceptable accounting practices at a particular time.
A)certified public accountant
B)International Financial Reporting Standards
C)Asset
D)Liability
E)owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Foreign Corruption Practices Act
J)accrual accounting
K)open book management
L)budget
M)GAAP
N)FASB
O)profitability ratio
P)International Accounting Standards Committee (IASC)
Q)leverage ratio
R)management accountant

Accepted Answer

GAAP (Generally Accepted Accounting Principles) is the set of rules, conventions, and procedures that dictate acceptable accounting practices in a particular jurisdiction.

Question 8

What is accounting? Provide examples of tasks that accountants perform.

Accepted Answer

The answer of What is accounting? Provide examples of tasks...

Question 9

MATCHING
Complete the following using the terms listed.
-The _____ is a statement of a firm's financial position on a particular date.
A)certified public accountant
B)International Financial Reporting Standards
C)Asset
D)Liability
E)owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Foreign Corruption Practices Act
J)accrual accounting
K)open book management
L)budget
M)GAAP
N)FASB
O)profitability ratio
P)International Accounting Standards Committee (IASC)
Q)leverage ratio
R)management accountant

Accepted Answer

The balance sheet is a statement of a firm's financial position on a particular date, showing its assets, liabilities, and owners' equity. Choices A, B, C, D, E, F, H, I, J, K, L, M, N, O, P, Q, and R do not fit the definition of a balance sheet.

Question 10

MATCHING
Complete the following using the terms listed.
-An organization's overall financial performance is measured by its _____,which evaluates the ability to generate revenues in excess of operating costs and other expenses.
A)certified public accountant
B)International Financial Reporting Standards
C)Asset
D)Liability
E)owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Foreign Corruption Practices Act
J)accrual accounting
K)open book management
L)budget
M)GAAP
N)FASB
O)profitability ratio
P)International Accounting Standards Committee (IASC)
Q)leverage ratio
R)management accountant

Accepted Answer

Profitability ratio evaluates an organization's overall financial performance by measuring its ability to generate revenues in excess of operating costs and other expenses.

Question 11

MATCHING
Complete the following using the terms listed.
-The _____ is the federal law that prohibits U.S.citizens and companies from bribing foreign officials in order to win or continue business.
A)certified public accountant
B)International Financial Reporting Standards
C)Asset
D)Liability
E)owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Foreign Corruption Practices Act
J)accrual accounting
K)open book management
L)budget
M)GAAP
N)FASB
O)profitability ratio
P)International Accounting Standards Committee (IASC)
Q)leverage ratio
R)management accountant

Accepted Answer

The Foreign Corruption Practices Act is the federal law that prohibits U.S. citizens and companies from bribing foreign officials in order to win or continue business.

Question 12

MATCHING
Complete the following using the terms listed.
-_____ represents the owners' initial investment in the business plus profits that were not paid out to owners over time in the form of cash dividends.
A)certified public accountant
B)International Financial Reporting Standards
C)Asset
D)Liability
E)owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Foreign Corruption Practices Act
J)accrual accounting
K)open book management
L)budget
M)GAAP
N)FASB
O)profitability ratio
P)International Accounting Standards Committee (IASC)
Q)leverage ratio
R)management accountant

Accepted Answer

Owners' equity represents the owners' initial investment in the business plus profits that were not paid out to owners over time in the form of cash dividends.

Question 13

MATCHING
Complete the following using the terms listed.
-A(n)_____ is a planning and controlling tool that reflects the firm's expected sales revenues,operating expenses,and cash receipts and outlays.
A)certified public accountant
B)International Financial Reporting Standards
C)Asset
D)Liability
E)owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Foreign Corruption Practices Act
J)accrual accounting
K)open book management
L)budget
M)GAAP
N)FASB
O)profitability ratio
P)International Accounting Standards Committee (IASC)
Q)leverage ratio
R)management accountant

Accepted Answer

A budget is a planning and controlling tool that reflects the firm's expected sales revenues, operating expenses, and cash receipts and outlays.

Question 14

MATCHING
Complete the following using the terms listed.
-A(n)_____ demonstrates his or her accounting knowledge by meeting state requirements for education and experience,as well as successfully completing a number of rigorous tests in accounting theory and practice,auditing,law,and taxes.
A)certified public accountant
B)International Financial Reporting Standards
C)Asset
D)Liability
E)owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Foreign Corruption Practices Act
J)accrual accounting
K)open book management
L)budget
M)GAAP
N)FASB
O)profitability ratio
P)International Accounting Standards Committee (IASC)
Q)leverage ratio
R)management accountant

Accepted Answer

A certified public accountant (CPA) is an individual who has met the education, experience, and examination requirements of their state board of accountancy to become licensed in that state. CPAs are qualified to provide a wide range of accounting services, including auditing, tax preparation, and financial reporting.

Question 15

MATCHING
Complete the following using the terms listed.
-A financial record of a company's revenues,expenses,and profits over a period of time is called the _____.
A)certified public accountant
B)International Financial Reporting Standards
C)Asset
D)Liability
E)owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Foreign Corruption Practices Act
J)accrual accounting
K)open book management
L)budget
M)GAAP
N)FASB
O)profitability ratio
P)International Accounting Standards Committee (IASC)
Q)leverage ratio
R)management accountant

Accepted Answer

An income statement is a financial record of a company's revenues, expenses, and profits over a period of time.

Question 16

MATCHING
Complete the following using the terms listed.
-The _____ are regulations and interpretations adopted by the International Accounting Standards Board.
A)certified public accountant
B)International Financial Reporting Standards
C)Asset
D)Liability
E)owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Foreign Corruption Practices Act
J)accrual accounting
K)open book management
L)budget
M)GAAP
N)FASB
O)profitability ratio
P)International Accounting Standards Committee (IASC)
Q)leverage ratio
R)management accountant

Accepted Answer

International Financial Reporting Standards (IFRS) are the regulations and interpretations adopted by the International Accounting Standards Board (IASB).

Question 17

MATCHING
Complete the following using the terms listed.
-_____ measures the extent to which a firm relies on debt financing.
A)certified public accountant
B)International Financial Reporting Standards
C)Asset
D)Liability
E)owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Foreign Corruption Practices Act
J)accrual accounting
K)open book management
L)budget
M)GAAP
N)FASB
O)profitability ratio
P)International Accounting Standards Committee (IASC)
Q)leverage ratio
R)management accountant

Accepted Answer

Leverage ratio measures the extent to which a firm relies on debt financing.

Question 18

MATCHING
Complete the following using the terms listed.
-Proponents of _____ allow employees to view sensitive financial information so that they better understand how their work contributes to the company's success.
A)certified public accountant
B)International Financial Reporting Standards
C)Asset
D)Liability
E)owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Foreign Corruption Practices Act
J)accrual accounting
K)open book management
L)budget
M)GAAP
N)FASB
O)profitability ratio
P)International Accounting Standards Committee (IASC)
Q)leverage ratio
R)management accountant

Accepted Answer

Open book management is the practice of allowing employees to view financial information, including sensitive data such as financial statements and budgets, in order to help them understand how their work contributes to the company's success.

Question 19

All organizations perform three basic business activities.List and describe these activities.

Accepted Answer

The answer of All organizations perform three basic business activities.List...

Question 20

MATCHING
Complete the following using the terms listed.
-A(n)_____ is employed by a business other than a public accounting firm.
A)certified public accountant
B)International Financial Reporting Standards
C)Asset
D)Liability
E)owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Foreign Corruption Practices Act
J)accrual accounting
K)open book management
L)budget
M)GAAP
N)FASB
O)profitability ratio
P)International Accounting Standards Committee (IASC)
Q)leverage ratio
R)management accountant

Accepted Answer

A management accountant is employed by a business other than a public accounting firm to provide financial information and analysis to managers within the organization.

Quiz 15: Understanding Accounting and Financial Statements

MATCHING Complete the following using the terms listed. -A(n) _____ is anything of value owned or leased by a business.

MATCHING Complete the following using the terms listed. -The _____ was established to promote worldwide consistency in financial reporting practices.

MATCHING Complete the following using the terms listed. -The accounting method that records revenues and expenses when they occur is called _____.

MATCHING Complete the following using the terms listed. -_____ is primarily responsible for evaluating,setting,or modifying the generally accepted accounting principles.

MATCHING Complete the following using the terms listed. -A claim against a firm's assets by a creditor is a(n) _____.

MATCHING Complete the following using the terms listed. -The basic relationship that states assets equal liabilities plus owners' equity is called the _____.

MATCHING Complete the following using the terms listed. -Financial statements are prepared according to _____,whose principles encompass the conventions,rules,and procedures for determining acceptable accounting practices at a particular time.

What is accounting? Provide examples of tasks that accountants perform.

MATCHING Complete the following using the terms listed. -The _____ is a statement of a firm's financial position on a particular date.

MATCHING Complete the following using the terms listed. -An organization's overall financial performance is measured by its _____,which evaluates the ability to generate revenues in excess of operating costs and other expenses.

MATCHING Complete the following using the terms listed. -The _____ is the federal law that prohibits U.S.citizens and companies from bribing foreign officials in order to win or continue business.

MATCHING Complete the following using the terms listed. -_____ represents the owners' initial investment in the business plus profits that were not paid out to owners over time in the form of cash dividends.

MATCHING Complete the following using the terms listed. -A(n) _____ is a planning and controlling tool that reflects the firm's expected sales revenues,operating expenses,and cash receipts and outlays.

MATCHING Complete the following using the terms listed. -A(n) _____ demonstrates his or her accounting knowledge by meeting state requirements for education and experience,as well as successfully completing a number of rigorous tests in accounting theory and practice,auditing,law,and taxes.

MATCHING Complete the following using the terms listed. -A financial record of a company's revenues,expenses,and profits over a period of time is called the _____.

MATCHING Complete the following using the terms listed. -The _____ are regulations and interpretations adopted by the International Accounting Standards Board.

MATCHING Complete the following using the terms listed. -_____ measures the extent to which a firm relies on debt financing.

MATCHING Complete the following using the terms listed. -Proponents of _____ allow employees to view sensitive financial information so that they better understand how their work contributes to the company's success.

All organizations perform three basic business activities.List and describe these activities.

MATCHING Complete the following using the terms listed. -A(n) _____ is employed by a business other than a public accounting firm.