WGU C213 - Accounting for MBAs - Review Questions

WGU C213 - Accounting for MBA's - Review Questions Leave the first rating Students also studied Terms in this set (220) Social SciencesBusinessBusiness management Save STAT 330 - Chapter 9 33 terms dylmann15Preview NCLEX 127 terms ssutherland11Preview Vocab Quiz 1 15 terms kaylabayazitoglu Preview u.s stat 50 terms niki 1.1 Which of the following is NOT a key component of the definition of accounting?Qualitative 1.1 Which of the following is NOT a function of accounting Executing sales transactions for organizations 1.1 Which of the following is the most correct definition of accounting?A system for providing quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions.

1.1 Businesses use accounting systems toAnalyze transactions Handle routine bookkeeping tasks Evaluate the performance and health of the business **All of these are correct 1.1 Which of the following is NOT typically true of accounting information?The information relates to future time periods.

1.2 Which of the following is NOT one of the three primary financial statements?Statement of retained earnings 1.2 Which of the following financial statements reports a company's resources, obligations, and owner's equity?Balance sheet 1.2 Which of the following financial statements reports the excess of a company's revenues over its expenses?Income statement 1.2 Which of the following financial statements reports the amount of cash collected and paid out by a company?Statement of cash flows

1.3 The emphasis in financial accounting is on which of the following external user groups?Investors and creditors 1.3 The primary internal group that uses accounting information is Management 1.3 Internal reports are generally used byManagement 1.3 Which of the following is NOT an external user of financial information Management 1.4 Which of the following is NOT true of the Financial Accounting Standards Board (FASB)?It is a government agency 1.4 Generally accepted accounting principles are Developed by accounting rule makers 1.4 The initials GAAP stand forGenerally Accepted Accounting Principles 1.4 The current standard-setting board for accounting in the private sector is the Financial Accounting Standards Board (FASB) 1.5 Which of the following organizations has specific legal authority to establish accounting standards for publicly held companies?Securities and Exchange Commission (SEC) 1.5 The organization that develops worldwide accounting standards is the International Accounting Standards Board (IASB) 1.5 The initials CPA stand forCertified Public Accountant 1.5 Which of the following is NOT a service typically provided by large public accounting firms?Making management decisions 1.5 Which of the following is the government agency that stipulates the rules and regulations that govern the collection of taxes in the United States?Internal Revenue Service 1.6 Which of the following is NOT a reason for the integration of worldwide accounting standards?the theoretical necessity of a common set of accounting standards 1.6 The International Accounting Standards Board (IASB) is charged with developing worldwide accounting practices True 1.6 With the current state of information technology, investors outside a company are now allowed access to a company's internal database of financial information and do their own customized analysis of a firm's performance.False While the technology may be available, companies are still not allowing outsiders access to their internal accounting records.

1.6 Increased federal oversight of the audit process resulted from the passage of the following act of Congress - Sarbanes-Oxley Act 2.1 A borrower benefits from providing financial information regarding income and expenses in the form of a lower interest rate on the loan because of reduced uncertainty for the lender with regard to repayment True 2.1 Which of the following is NOT one of the three primary financial statements?The Statement of Retained Earnings 2.1 One reason for a company's preparing and providing financial statements is to reduce uncertainty for an investor regarding the firm's future financial performance.true 2.2 Which of the following types of accounts are NOT found on the balance sheet?Revenues 2.2 Markanich Company purchased land for $90,000 in 2010.In 2013, the land is valued at $115,000.The land would appear on the company's books in 2013 at

$90,000

2.2 Which of the following would be considered a long- term liability?Mortgage payable 2.2 Which of the following accounts is considered to be the most liquid?Cash 2.2 The basic accounting equation isAssets = Liabilities + Owners' Equity 2.3 Which of the following would be included on an income statement?Rent expense 2.3 Resource increases from the sale of goods or services are called Revenues 2.3 Revenues causeAn increase in net assets 2.3 Expenses generally causeA decrease in net assets 2.3 Expense and revenue accounts appear on the Income statement 2.4 A major source of cash from operating activities is Receipts from sale of goods 2.4 Which of the following is a primary use of cash? Operating expenses

2.4 Which of the following classifications refers to those activities associated with buying and selling long-term assets?Investing 2.4 During the month, Meridian Company had the

following cash transactions:

Cash collected from customers

$ 12,500

Cash received from a loan 8,000 Cash paid for wages payable

(5,750)

Cash paid for the purchase of a building

(15,000)

Cash received for the issuance of new shares of stock 2,600 Cash received from sale of land 6,400 Cash paid for rent

(2,500)

Cash paid for dividends

(1,500)

Given the above information, compute cash flow from operating activities.

$4,250

Operating activities: $12,500 - $5,750 - $2,500 = $4,250