PRE-ASSESSMENT: ACCOUNTING FOR DECISION MAKERS PVAC
Attempt #2 Status: Passed
1.
What does accounting focus on?
Which report summarizes cash
... [Show More] collections and cash expenditures from operating, investing, and financing activities over a period of time?
YOUR ANSWER CORRECT ANSWER
Cash receipts and disbursements sheet
Cash flow schedule
Summary of cash receipts
Statement of cash flows
3.
Which users would have a primary concern with an organization’s ability to provide healthcare benefits?
Which benefit does a corporation gain by following Generally Accepted Accounting Principles (GAAP)?
YOUR CORRECT
ANSWER ANSWER
Which body regulates a certified public accounting firm’s audit practices when the firm is auditing a large publicly traded company?
YOUR ANSWER CORRECT ANSWER
The Public Company Accounting Oversight Board (PCAOB)
The Financial Accounting Standards Board (FASB)
Another certified public accounting (CPA) firm
The Internal Revenue Service (IRS)
6.
What has had the most significant impact on accounting practices?
Choose 2 answers
Which term is defined as the residual interest in the net assets of a company?
YOUR CORRECT
ANSWER ANSWER
A corporation has total liabilities of $300 million, total owners’ equity of $100 million, and current assets of $50 million.
What is the value of the firm's long-term assets?
Which situation should result in revenue recognition on the income statement for the year ending 12/31/14 if the firm is using accrualbasis accounting?
Which category on the statement of cash flows summarizes cash receipts and payments to owners and creditors of the company?
Where would an investor find a summary of a company’s significant accounting policies?
YOUR ANSWER CORRECT ANSWER
In the balance sheet
In the income statement
In the statement of cash flows
In the notes to financial statements
13.
Which assurance does an external audit report provide for its readers?
Answer options may be used more than once or not at all.
YOUR ANSWER CORRECT ANSWER
Reliable Information that can be verified Information that can be verified
Relevant Information having to do with the matter at hand Information having to do with the matter at hand
Material Information that is important enough to make a difference Information that is important enough to make a difference
Conservatism Information related to recognizing losses as they occur Information related to recognizing losses as they occur
15.
Order the steps in the decision cycle from first (1) to last (5).
Select your answers from the pull-down list.
YOUR ANSWER CORRECT ANSWER
1 Prepare financial statements Prepare financial statements
2 Analyze financial statements Analyze financial statements
3 Gather information Gather information
YOUR ANSWER CORRECT ANSWER
4 Make decision Make decision
5 Implement decision Implement decision
16.
Partial financial information for a company is as follows:
Current assets $36,543
Total assets $58,719
Current liabilities $24,824
Total liabilities $48,561
Stockholders' equity $10,158
Sales $46,997
Net Income $ 3,761
Market value of shares$41,316
What is the price-earnings (PE) ratio for this company?
What is consistent with a continual decline in gross profit if the firm's cost of goods sold remains the same?
19.
Which two cash flow adequacy ratios represent a cash cow?
Choose 2 answers
Which form of debt should be reported in the long-term liability category?
In January of year 1, a company began doing business as a corporation in order to sell technology-related accessories and services. During its first month of operations, the following events occurred:
January 1
The corporation received $1,000,000 in cash in exchange for stock issued to stockholders.
January 3
The corporation borrowed $250,000 from bank. The loan is a four-year loan with an interest rate of 12 percent, payable each year on January 1 beginning in year 2.
January 5
The corporation purchased equipment to be used in the business for $200,000 cash.
January 8
The corporation purchased inventory costing $200,000 by paying $120,000 in cash. The remainder was put on credit accounts with suppliers.
January 15
The corporation hired five employees. Each employee will be paid $1,000 at the end of each month. [Show Less]