Question 1

MATCHING
Complete the following using the terms listed.
-The claims of a firm's creditors are 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)generally accepted accounting principles (GAAP)
N)Financial Accounting Standards Board (FASB)
O)profitability ratios
P)International Accounting Standards Committee (IASC)
Q)Leverage ratios
r
management accountant

Accepted Answer

The claims of a firm's creditors are its liabilities.

Answer: M
 GAAP refers to the standard accounting principles and practices used in the United States.

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

Answer: H
 The income statement is a financial statement that reports a company's revenues and expenses over a specific period of time.

Answer: P
 The International Accounting Standards Committee (IASC) was the predecessor to the International Accounting Standards Board (IASB), which sets the International Financial Reporting Standards (IFRS).

Answer: Q
 Leverage ratios assess a company's level of indebtedness and its ability to meet its financial obligations.

Answer: R
 A management accountant is responsible for analyzing financial data and providing strategic guidance to a company's leadership.

Question 2

MATCHING
Complete the following using the terms listed.
-_____ measure 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)generally accepted accounting principles (GAAP)
N)Financial Accounting Standards Board (FASB)
O)profitability ratios
P)International Accounting Standards Committee (IASC)
Q)Leverage ratios
r
management accountant

Accepted Answer

Leverage ratios measure the extent to which a firm relies on debt financing.

Question 3

MATCHING
Complete the following using the terms listed.
-A financial record of a company's revenues, expenses, and profits over a specific 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)generally accepted accounting principles (GAAP)
N)Financial Accounting Standards Board (FASB)
O)profitability ratios
P)International Accounting Standards Committee (IASC)
Q)Leverage ratios
r
management accountant

Accepted Answer

The financial record of a company's revenues, expenses, and profits over a specific period of time is called the income statement.

Question 4

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)generally accepted accounting principles (GAAP)
N)Financial Accounting Standards Board (FASB)
O)profitability ratios
P)International Accounting Standards Committee (IASC)
Q)Leverage ratios
r
management accountant

Accepted Answer

Open book management allows employees to view sensitive financial information and better understand how their work contributes to the company's success.

Question 5

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)generally accepted accounting principles (GAAP)
N)Financial Accounting Standards Board (FASB)
O)profitability ratios
P)International Accounting Standards Committee (IASC)
Q)Leverage ratios
r
management accountant

Accepted Answer

Generally accepted accounting principles (GAAP) encompass the conventions, rules, and procedures for determining acceptable accounting practices at a particular time, and financial statements are prepared according to GAAP.

Question 6

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)generally accepted accounting principles (GAAP)
N)Financial Accounting Standards Board (FASB)
O)profitability ratios
P)International Accounting Standards Committee (IASC)
Q)Leverage ratios
r
management accountant

Accepted Answer

The answer of MATCHING
Complete the following using the terms listed.
-An...

Question 7

MATCHING
Complete the following using the terms listed.
-The _____ 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)generally accepted accounting principles (GAAP)
N)Financial Accounting Standards Board (FASB)
O)profitability ratios
P)International Accounting Standards Committee (IASC)
Q)Leverage ratios
r
management accountant

Accepted Answer

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

Question 8

MATCHING
Complete the following using the terms listed.
-A(n) _____ is a planning and controlling tool that reflects a 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)generally accepted accounting principles (GAAP)
N)Financial Accounting Standards Board (FASB)
O)profitability ratios
P)International Accounting Standards Committee (IASC)
Q)Leverage ratios
r
management accountant

Accepted Answer

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

Question 9

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)generally accepted accounting principles (GAAP)
N)Financial Accounting Standards Board (FASB)
O)profitability ratios
P)International Accounting Standards Committee (IASC)
Q)Leverage ratios
R)management accountant

Accepted Answer

A management accountant is employed by a business other than a public accounting firm to provide financial analysis and support to management for decision making.

Question 10

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)generally accepted accounting principles (GAAP)
N)Financial Accounting Standards Board (FASB)
O)profitability ratios
P)International Accounting Standards Committee (IASC)
Q)Leverage ratios
r
management accountant

Accepted Answer

The balance sheet is the statement of a firm's financial position on a particular date.

Answer: C, D, E
 Assets, liabilities, and owners' equity are the three main components of the balance sheet.

Answer: F
 The accounting equation represents the relationship between a company's assets, liabilities, and owners' equity.

Answer: H
 The income statement shows a company's revenue, expenses, and net income or loss over a period of time.

Answer: M, N
 Generally accepted accounting principles (GAAP) are the set of standards and guidelines for financial reporting in the United States, established by the Financial Accounting Standards Board (FASB).

Answer: A, R
 A certified public accountant is a professional who is licensed to provide accounting services to the public, while a management accountant is a professional who works within a company to provide financial analysis and planning.

Answer: B, P
 The International Financial Reporting Standards (IFRS) are a set of accounting standards developed by the International Accounting Standards Committee (IASC).

Question 11

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)generally accepted accounting principles (GAAP)
N)Financial Accounting Standards Board (FASB)
O)profitability ratios
P)International Accounting Standards Committee (IASC)
Q)Leverage ratios
r
management accountant

Accepted Answer

The answer of MATCHING
Complete the following using the terms listed.
-The...

Question 12

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)generally accepted accounting principles (GAAP)
N)Financial Accounting Standards Board (FASB)
O)profitability ratios
P)International Accounting Standards Committee (IASC)
Q)Leverage ratios
r
management accountant

Accepted Answer

Accrual accounting records revenues and expenses when they occur, rather than when cash is received or paid out.

Question 13

Explain the differences between public accountants and management accountants.

Accepted Answer

The answer of Explain the differences between public accountants and...

Question 14

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)generally accepted accounting principles (GAAP)
N)Financial Accounting Standards Board (FASB)
O)profitability ratios
P)International Accounting Standards Committee (IASC)
Q)Leverage ratios
r
management accountant

Accepted Answer

This question is asking for the definition of owners' equity, which 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. Therefore, the correct answer is E - Owners' equity.

Question 15

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)generally accepted accounting principles (GAAP)
N)Financial Accounting Standards Board (FASB)
O)profitability ratios
P)International Accounting Standards Committee (IASC)
Q)Leverage ratios
r
management accountant

Accepted Answer

The term "certified public accountant" fits the description given in the sentence, as it refers to someone who has met state requirements and passed rigorous accounting exams.

Answer: G
 The term "balance sheet" is the financial statement that shows a company's assets, liabilities, and owners' equity.

Answer: H
 The term "income statement" is a financial statement that shows a company's revenues, expenses, and net income.

Answer: M
 The term "generally accepted accounting principles (GAAP)" refers to the standard guidelines and principles that companies use to prepare and present their financial statements.

Answer: N
 The Financial Accounting Standards Board (FASB) is the organization responsible for setting accounting standards in the United States.

Answer: r
 The term "management accountant" refers to a professional who works within a company to help with financial planning, budgeting, and decision-making.

Question 16

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)generally accepted accounting principles (GAAP)
N)Financial Accounting Standards Board (FASB)
O)profitability ratios
P)International Accounting Standards Committee (IASC)
Q)Leverage ratios
r
management accountant

Accepted Answer

An asset is anything of value owned or leased by a business. Other choices listed are concepts or entities related to accounting, but do not directly answer the question.

Question 17

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)generally accepted accounting principles (GAAP)
N)Financial Accounting Standards Board (FASB)
O)profitability ratios
P)International Accounting Standards Committee (IASC)
Q)Leverage ratios
r
management accountant

Accepted Answer

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

Question 18

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

Accepted Answer

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

Question 19

MATCHING
Complete the following using the terms listed.
-The _____ is a federal law that prohibits U.S. citizens and companies from bribing foreign officials 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)generally accepted accounting principles (GAAP)
N)Financial Accounting Standards Board (FASB)
O)profitability ratios
P)International Accounting Standards Committee (IASC)
Q)Leverage ratios
r
management accountant

Accepted Answer

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

(Note: None of the other listed terms are related to this concept.)

Question 20

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)generally accepted accounting principles (GAAP)
N)Financial Accounting Standards Board (FASB)
O)profitability ratios
P)International Accounting Standards Committee (IASC)
Q)Leverage ratios
r
management accountant

Accepted Answer

International Financial Reporting Standards (IFRS) are the regulations and interpretations adopted by the International Accounting Standards Board (IASB), which is responsible for setting global accounting standards.

Quiz 15: Understanding Accounting and Financial Statements

MATCHING Complete the following using the terms listed. -The claims of a firm's creditors are a(n) _____.

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

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

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.

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.

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 primarily responsible for evaluating, setting, or modifying the generally accepted accounting principles.

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

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

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. -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 _____.

Explain the differences between public accountants and management accountants.

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) _____ 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(n) _____ is anything of value owned or leased by a business.

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

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

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

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