For financial information to be understandable, the users should not have adequate background of the financial statements, thefinancial information, and of course, financial accounting.Group of answer choicesTrueFalse Flag question: Question 24Question 241 ptsReceivables give the company a right to receive cashGroup of answer choicesTrueFalse

Question 1Tips5 ptsAccounting involves the _____ of the financial activities for firms.Group of answer choicesdelegatingsummarizingcreationempoweringplanning Flag question: Question 2Question 2Tips5 ptsAccounting provides a framework for looking at:Group of answer choicespast performancecurrent financial healthpossible future performancefinancial performances of different firmsall of the above Flag question: Question 3Question 3Tips5 ptsManagerial accounting provides all of the following financial information EXCEPT:Group of answer choicesproduction reportspayroll summariesincome statementsbudgetsmonthly sales records Flag question: Question 4Question 4Tips5 ptsManagerial accounting provides information that would probably be most beneficial to:Group of answer choicesthe IRSfinancial analystsa lending officer of the banka middle manager of the companyshareholders Flag question: Question 5Question 5Tips5 pts_____ deals with reporting to outsiders. _____ accounting deals with the internal operations of the firm.Group of answer choicesBookkeeping; Financial accountingFinancial accounting; AuditingAuditing; Managerial accountingExternal accounting; Internal accountingFinancial accounting; Managerial accounting Flag question: Question 6Question 6Tips5 ptsWhich of the following is an example of an asset that might be owned by a minor league baseball team?Group of answer choicessalaries owed to its playersthe cost of getting tickets printedreputation as a winning teamthe price made for advertising on local radioall of these Flag question: Question 7Question 7Tips5 ptsWhich of the following is an example of an intangible asset for a manufacturer of padlocks?Group of answer choicesmoney owed to them by a do-it-yourself superstore chaina patent on titanium lock mechanisma machine for forming the locks out of sheet metala warehouse for storing locksan office for company CEO Flag question: Question 8Question 8Tips5 ptsAnother term for owners' equity is:Group of answer choicesassetsliabilitiesnet worthgross worthgross sales Flag question: Question 9Question 9Tips5 ptsWhich of the following calculations is a formal expression of the accounting equation?Group of answer choicesassets + liabilities = owners' equityassets * liabilities = retained earningsassets - owners' equity = liabilitiesassets = liabilities + owners' equityassets/liabilities = owners' equity Flag question: Question 10Question 10Tips5 ptsIn accounting, every transaction must be recorded as two entries. This system is called:Group of answer choicesaccounting-cycle bookkeepingdouble-entry bookkeepingdual-notation bookkeepingdouble-decker bookkeepingtandem record keeping Flag question: Question 11Question 11Tips5 ptsWhich of the following is the BEST example of a current asset for a university bookstore?Group of answer choicesthe building in which the store is locatedaccounting software used to control store's inventorycredit card charges by book buyersmoney paid for rent and utilitiessalary paid to student employees Flag question: Question 12Question 12Tips5 pts_____ are temporary investments of excess cash in bonds and stocks that can readily be converted into cash.Group of answer choicesAccounts receivableOwners' net contribution marginsNotes payableMarketable securitiesMarketable receivables Flag question: Question 13Question 13Tips5 ptsAmounts owed to the firm by customers who bought goods and services on credit are called:Group of answer choicesaccounts receivableowners' equitynotes payablemarketable receivablesaccounts payable Flag question: Question 14Question 14Tips5 ptsCurrent assets, such as marketable securities and inventory, usually are expected to be turned into cash within:Group of answer choicesone monthfive yearsone yeareighteen monthstwo years

The conceptual framework of accounting defines the elements of the financial statementsGroup of answer choicesTrueFalse

Which of these is not one of the key qualities of accounting information? Group of answer choicesRelevanceTimelinessControlReliability

The users of financial statements who are interest in information that enables them to determine whether the amounts owing to them will be paid when dueGroup of answer choicesLendersCustomersInvestorsSuppliers and other trade creditors

Question 1Tips5 pts______ is anything (regardless of form) that is acceptable as payment for goods and services.Group of answer choicesShareholders' equityCapitalMoneyA fixed assetRevenue Flag question: Question 2Question 2Tips5 ptsAny object or objects that a group of people use to buy and sell goods and services is called:Group of answer choicesa countertradecapitalmoneyrevenuean earned deposit Flag question: Question 3Question 3Tips5 ptsItems that groups of people use as money must be _____ to be acceptable mediums of exchange.Group of answer choicesscarce, divisible, portable, and durableportable, sortable, profitable, and divisiblecompatible, durable, universal, sortabledistributable, durable, comparable and valuablevaluable, durable, compatible and scarce Flag question: Question 4Question 4Tips5 ptsWhich of the following is NOT one of the key characteristics required in order for money to be an acceptable medium of exchange?Group of answer choicesscarcitydurabilitydivisibilityprofitabilityportability Flag question: Question 5Question 5Tips5 ptsCupcakes, hamburgers, and cut flowers would not make good mediums of exchange because they lack the key characteristic of:Group of answer choicesexchangeabilitydivisibilityprofitabilitydurabilitycompatibility Flag question: Question 6Question 6Tips5 ptsThe most important function of the Federal Reserve System is carrying out ______ policy.Group of answer choicesfiscaltaxmonetaryspendinginflationary Flag question: Question 7Question 7Tips5 ptsWhich of the following is an activity performed by the Federal Reserve System as it carries out its monetary policy?Group of answer choicesinsuring credit card balancesproviding tax refundsdistributing currencyloaning money to consumerscontrolling the stock exchange Flag question: Question 8Question 8Tips5 ptsThe three principal tools of the Federal Reserve System are:Group of answer choicesdiscount rate, prime rate, and open market operationstax rate, margin requirements, and discount rateopen market operations, discount rate, and tax ratereserve requirements, consumer rate, and prime ratereserve requirements, discount rate, and open market operations Flag question: Question 9Question 9Tips5 ptsThe most frequently used and the most flexible tool that the Federal Reserve has that it can use to change the economic environment is:Group of answer choicesreserve requirementopen market operationsprime ratediscount rategeneral fund deposits Flag question: Question 10Question 10Tips5 ptsThe purchase or sale of U.S. government bonds by the Federal Reserve to stimulate or slow down the economy is called:Group of answer choicesa base market operationan open market operationa prime transactionmanipulating the discount ratemaking a general fund deposit/withdrawal Flag question: Question 11Question 11Tips5 ptsTo stimulate the economy, the Federal Reserve can:Group of answer choiceslower the reserve requirementraise the prime rateraise the discount ratesell government bonds on the open marketbuy stocks listed on the New York Stock Exchange Flag question: Question 12Question 12Tips5 ptsFederal Reserve banks must hold a certain portion of their deposits in reserve. This percentage is called the:Group of answer choicesreserve requirementprime monetary percentagediscount requirementinterest rate averagemargin requirement Flag question: Question 13Question 13Tips5 ptsWhen The Bank of Bank County borrows funds from the Federal Reserve; the rate the Fed charges the commercial bank is called the _____ rate.Group of answer choicesprimediscountcommercial bankgoingreserve Flag question: Question 14Question 14Tips5 ptsIn its role as lender to member banks, the Federal Reserve is called the:Group of answer choicesnational bankcustomized banknational creditorbanker's bankgovernment exchange