Question 1

Match each of the following terms with the most appropriate definition.
-Resources a company owns or controls that are expected to yield future benefit.

Accepted Answer

Assets are resources owned or controlled by a company, expected to bring future economic benefits.

Question 2

Match the following terms with the appropriate definition.
-Accounting specialists that have met educational and experience requirements,passed an examination and exhibit ethical characteristics to achieve a professional certification.

Accepted Answer

Certified Public Accountant (CPA) is the term that matches the definition provided. CPAs have met educational and experience requirements, passed an examination, and exhibit ethical characteristics to achieve professional certification.

Question 3

Match the following terms with the appropriate definition.
-Beliefs that distinguish right from wrong,considered accepted standards of good and bad behavior.

Accepted Answer

Ethics refers to the set of moral principles or values that define what is right and wrong for a person or group, including in professional settings such as accounting.

Question 4

The following is a list of selected users of accounting information. Match the appropriate user to the following decisions they make with accounting information.
-Know what,when,and how much to purchase.

Accepted Answer

Purchasing managers use accounting information to make informed decisions about what, when, and how much to purchase to ensure that the company maintains efficient operations and cost management.

Question 5

Match the following terms with the appropriate definition.
-Time period assumption

Accepted Answer

The time period assumption is the accounting principle that presumes the life of a company can be divided into periods for reporting purposes.

Question 6

Match each of the following terms with the most appropriate definition.
-Expresses the relation of assets,liabilities and equity in a company,comparing the resources the company owns to the sources of funds to acquire the resources.

Accepted Answer

The accounting equation expresses the relationship between a company's assets, liabilities, and equity, showing how the resources owned by the company are financed, either through debt (liabilities) or through equity.

Question 7

Match each of the following terms with the most appropriate definition.
-Reflects outflows of resources such as cash and other assets to stockholders.

Accepted Answer

Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, it is able to pay a proportion of the profit as a dividend to shareholders. This represents an outflow of resources such as cash from the corporation to the shareholders.

Question 8

The following is a list of selected users of accounting information. Match the appropriate user to the following decisions they make with accounting information.
-Assess whether a company has paid all required taxes and complied with securities rules.

Accepted Answer

Regulators use accounting information to ensure that a company has complied with laws and regulations, including tax obligations and securities rules. They assess the financial reports to ensure transparency and legal compliance.

Question 9

Match each of the following terms with the most appropriate definition.
-Creditor's claims on a company's assets.

Accepted Answer

Liabilities represent the creditor's claims on a company's assets. This means the obligations or debts that the company owes to outside parties.

Question 10

The following is a list of selected users of accounting information. Match the appropriate user to the following decisions they make with accounting information.
-Assess whether an organization is likely to repay its loans with interest.

Accepted Answer

Lenders use accounting information to assess the creditworthiness of an organization, including its ability to repay loans with interest. This helps them make informed decisions about whether to provide financing.

Question 11

Match each of the following terms with the most appropriate definition.
-The uncertainty about the return to be earned.

Accepted Answer

Risk is defined as the uncertainty about the return to be earned, reflecting the variability of returns associated with a given asset or investment.

Question 12

Match each of the following terms with the most appropriate definition.
-Evidence of inflows of resources such as cash and other assets from stockholders.

Accepted Answer

Common stock represents equity in a company and is evidence of inflows of resources such as cash and other assets from stockholders. It indicates ownership interest in a corporation.

Question 13

Match the following terms with the appropriate definition.
-The area of accounting aimed at serving external users by providing them with general-purpose financial statements.

Accepted Answer

Financial accounting is focused on the preparation and provision of financial statements for external users, such as investors, creditors, and regulatory agencies, to assist them in making informed decisions.

Question 14

The following is a list of selected users of accounting information. Match the appropriate user to the following decisions they make with accounting information.
-Decide whether to buy,hold,or sell a company's stock.

Accepted Answer

Shareholders use accounting information to make decisions about buying, holding, or selling a company's stock as they are directly interested in the performance and future prospects of the company.

Question 15

Match the following terms with the appropriate definition.
-The area of accounting that serves the decision-making needs of internal users.

Accepted Answer

Managerial accounting is specifically designed to meet the needs of internal users of an organization, such as managers and employees, by providing them with the necessary information to make informed business decisions.

Question 16

Match each of the following terms with the most appropriate definition.
-Decreases in equity from costs of providing products or services to customers.

Accepted Answer

Expenses are decreases in equity resulting from the costs of providing products or services to customers.

Question 17

Match the following terms with the appropriate definition.
-Generally accepted accounting principles

Accepted Answer

E)The concepts and rules that govern financial accounting. - This is the definition of Generally Accepted Accounting Principles (GAAP), which are the standard framework of guidelines for financial accounting.

Question 18

The following is a list of selected users of accounting information. Match the appropriate user to the following decisions they make with accounting information.
-Judge the soundness of a customer before making sales on credit.

Accepted Answer

Suppliers use accounting information to assess the financial health of a customer before extending credit, ensuring the customer is capable of meeting payment obligations.

Question 19

Match the following terms with the appropriate definition.
-A model that asserts the factors that must exist for a person to commit fraud.

Accepted Answer

The Fraud Triangle is a model that outlines the three factors that must be present for an individual to commit fraud: opportunity, motivation (or pressure), and rationalization.

Question 20

Match each of the following terms with the most appropriate definition.
-A financial ratio stated as income divided by assets invested.

Accepted Answer

Return on assets (ROA) is a financial ratio that measures the profitability of a business in relation to its total assets. It is calculated by dividing the net income by the total assets, showing how efficiently a company is using its assets to generate profits.

Quiz 1: Accounting in Business

Match each of the following terms with the most appropriate definition. -Resources a company owns or controls that are expected to yield future benefit.

Match the following terms with the appropriate definition. -Accounting specialists that have met educational and experience requirements,passed an examination and exhibit ethical characteristics to achieve a professional certification.

Match the following terms with the appropriate definition. -Beliefs that distinguish right from wrong,considered accepted standards of good and bad behavior.

The following is a list of selected users of accounting information. Match the appropriate user to the following decisions they make with accounting information. -Know what,when,and how much to purchase.

Match the following terms with the appropriate definition. -Time period assumption

Match each of the following terms with the most appropriate definition. -Expresses the relation of assets,liabilities and equity in a company,comparing the resources the company owns to the sources of funds to acquire the resources.

Match each of the following terms with the most appropriate definition. -Reflects outflows of resources such as cash and other assets to stockholders.

The following is a list of selected users of accounting information. Match the appropriate user to the following decisions they make with accounting information. -Assess whether a company has paid all required taxes and complied with securities rules.

Match each of the following terms with the most appropriate definition. -Creditor's claims on a company's assets.

The following is a list of selected users of accounting information. Match the appropriate user to the following decisions they make with accounting information. -Assess whether an organization is likely to repay its loans with interest.

Match each of the following terms with the most appropriate definition. -The uncertainty about the return to be earned.

Match each of the following terms with the most appropriate definition. -Evidence of inflows of resources such as cash and other assets from stockholders.

Match the following terms with the appropriate definition. -The area of accounting aimed at serving external users by providing them with general-purpose financial statements.

The following is a list of selected users of accounting information. Match the appropriate user to the following decisions they make with accounting information. -Decide whether to buy,hold,or sell a company's stock.

Match the following terms with the appropriate definition. -The area of accounting that serves the decision-making needs of internal users.

Match each of the following terms with the most appropriate definition. -Decreases in equity from costs of providing products or services to customers.

Match the following terms with the appropriate definition. -Generally accepted accounting principles

The following is a list of selected users of accounting information. Match the appropriate user to the following decisions they make with accounting information. -Judge the soundness of a customer before making sales on credit.

Match the following terms with the appropriate definition. -A model that asserts the factors that must exist for a person to commit fraud.

Match each of the following terms with the most appropriate definition. -A financial ratio stated as income divided by assets invested.