Question 1 of 40 5.0 Points Which of the following is NOT an unethical or illegal accounting action?

Question 1 of 40

5.0 Points

Which of the following is NOT an unethical or illegal accounting action?

 A. hiding expenses

 B. underreporting liabilities

 C. overestimating depreciation value of equipment

 D. maximizing the value of a company's intangible assets

Question 2 of 40

5.0 Points

Which of the following documents would most likely come from a planning strategy meeting?

 A. income statement

 B. flow of cash statement

 C. balance sheet

 D. budget

Question 3 of 40

5.0 Points

Which of the following bodies formulates the generally accepted accounting principles?  

 A. Accounting Disclosure Board

 B. Financial Accounting Standards Board

 C. Association of Certified Fraud Examiners

 D. Securities and Exchange Commission

Question 4 of 40

5.0 Points

Which of the following scenarios would most likely occur with a company that has reported disappointing earnings recently but still looks to be financially stable for quite some time?

 A. high long-term solvency ratio but low profitability ratio

 B. high short-term solvency ratio but low profitability ratio

 C. high long-term solvency ratio but low activity ratio

 D. high short-term solvency ratio but low activity ratio

Question 5 of 40

5.0 Points

Which of the following bodies enforces accounting and auditing rules and procedures?

 A. Accounting Disclosure Board

 B. Financial Accounting Standards Board

 C. Association of Certified Fraud Examiners

 D. Securities and Exchange Commission

Question 6 of 40

5.0 Points

Which of the following statements BEST describes the need for global accounting standards?

 A. The complexity of the global market increases the risk of unethical accounting behavior by allowing accountants to choose which national GAAP standards are best for their clients.

 B. The rise of the global market increases the risk of money laundering and offshore accounting.

 C. The rise of the global market increases the risk of fraudulent business transactions across borders.

 D. The rise of the global market increases the risk of international dumping and profit-skimming.

Question 7 of 40

5.0 Points

Which of the following BEST describes a certified fraud examiner?

 A. a specialized managerial accountant concerned with issues of fraud

 B. a specialized certified public accountant concerned with issues of fraud

 C. a specialized forensic accountant concerned with issues of fraud

 D. an accounting agent for the Securities and Exchange Commission concerned with issues of fraud

Question 8 of 40

5.0 Points

Which of the following refers to the rules and procedures governing the content and form of financial reports?

 A. national bookkeeping standards

 B. core competencies for accounting

 C. accounting and financial rules

 D. generally accepted accounting principles

Question 9 of 40

5.0 Points

Bennequin Accounting has been hired by XYZ Manufacturing to help plan its merger with ABC Distribution. Which of the following terms best describes the capacity for which Bennequin has been hired?

 A. regulatory accounting

 B. corporate bookkeeping

 C. company auditing

 D. management advisory

Question 10 of 40

5.0 Points

Due to investor disgruntlement, Howard Industries needs to provide a complete review of its financial records in order to confirm that they have been conforming with generally accepted accounting principles. Which of the following processes does Howard Industries need to start?

 A. company-wide analysis

 B. company-wide audit

 C. portfolio analysis

 D. preliminary investigation

Question 11 of 40

5.0 Points

Which of the following refers to the financial statement detailing a firm's assets, liabilities, and owners' equity?

 A. income statement

 B. statement of cash flows

 C. balance sheet

 D. expense report

Question 12 of 40

5.0 Points

Which of the following ratios measures a firm's ability to meet its current debt obligations?

 A. short-term solvency ratio

 B. long-term solvency ratio

 C. profitability ratio

 D. activity ratio

Question 13 of 40

5.0 Points

Which of the following are the three categories on a company's cash flow statement?

 A. operating activities, purchase activities, taxes

 B. profit inflow, debt outflow, taxes

 C. profitable activities, deficit activities, taxes

 D. operating activities, investing activities, financing activities

Question 14 of 40

5.0 Points

Aardvark is a small pest-control business that has 30 employees. The company started business within the past year, and needs to make a decision on how best to make sure its finances are managed well as the company continues to grow its customer base and its business. Which of the following, if true, would NOT strengthen the case that Aardvark needs to hire a full-time controller?

 A. The company needs its cash flow to be continuously monitored.

 B. The company needs to determine how to market its products so as to reach the largest number of customers.

 C. The company needs to have its excess funds invested in high-growth opportunities.

 D. The company needs to have financial goals mapped out for it.

Question 15 of 40

5.0 Points

Which of the following terms refers to the recording of financial transactions?

 A. bookkeeping

 B. accounting

 C. controlling

 D. budgeting

Question 16 of 40

5.0 Points

Financial statements that do not include interpretation and explanation by management are in violation of which GAAP principle?

 A. principle of sincerity

 B. principle of continuity

 C. principle of full disclosure

 D. principle of regularity

Question 17 of 40

5.0 Points

Which of the following ratios measures a firm's potential earnings?

 A. short-term solvency ratio

 B. long-term solvency ratio

 C. profitability ratio

 D. activity ratio

Question 18 of 40

5.0 Points

A local bakery is suddenly inundated with many more orders for wedding cakes than it has the physical capacity to make. Rather than turn away customers, the owner decides to rent another kitchen across town to fulfill all of the orders. But she needs to borrow money to pay for the rent and additional workers, the additional cost of which will be paid by the profits from the additional cakes. Which of the following ratios will be most affected by this decision?

 A. the bakery's short-term solvency ratio

 B. the bakery's long-term solvency ratio

 C. the bakery's profitability ratio

 D. the bakery's activity ratio

Question 19 of 40

5.0 Points

Which organization provides guidelines for ethical conduct for the accounting profession?

 A. AICPA

 B. SEC

 C. GAAP

 D. FASB

Question 20 of 40

5.0 Points

Which are the two major fields of accounting?

 A. managerial and forensic

 B. financial and managerial

 C. bookkeeping and advisory

 D. corporate and individual

Question 21 of 40

5.0 Points

Money frees society from a system of barter. In doing so, money is performing which of the following functions?

 A. store of value

 B. measure of worth

 C. unit of account

 D. medium of exchange

Question 22 of 40

5.0 Points

Regarding the international payments process, which statement is true?

 A. In international trade, money will flow from the country with the strongest currency to that of the weakest.

 B. The World Bank monitors the trade of its members to insure that money is flowing properly between the various countries.

 C. The World Bank monitors the national banks of its members to insure that money is flowing properly between the various countries.

 D. Money does not actually have to flow between two countries.

Question 23 of 40

5.0 Points

Which response is FALSE regarding the International Monetary Fund?

 A. The IMF promotes the stability of exchange rates.

 B. The IMF encourages members to cooperate on international monetary issues.

 C. The IMF provides long-term loans to member countries.

 D. In some developing countries, part of the IMF’s requirements are to cut back on social programs and spending.

Question 24 of 40

5.0 Points

Which of the following financial institutions is considered a thrift institution?

 A. pension fund

 B. credit union

 C. commercial bank

 D. savings and loan association

Question 25 of 40

5.0 Points

Which of the following is a consequence of the divisibility characteristic of money?

 A. Units of money do not expire after a certain time limit.

 B. Units of money can be accurately matched with the value of goods.

 C. Units of money are easily carried.

 D. Units of money have relatively stable value.

Question 26 of 40

5.0 Points

Which of the following best describes the durability characteristic of money?

 A. Units of money do not expire after a certain time limit.

 B. Units of money can be matched with the value of goods.

 C. Units of money allow people to measure the relative value of goods and services.

 D. Units of money of different nations are easily converted to other units of money.

Question 27 of 40

5.0 Points

Which of the following is NOT part of the M-2 money supply?

 A. debit card account

 B. time deposits

 C. money market mutual funds

 D. credit card account

Question 28 of 40

5.0 Points

Which of the following financial institutions are considered to be owned by their depositors?

 A. commercial banks and savings and loan associations

 B. savings and loan associations and mutual savings banks

 C. mutual savings banks and credit unions

 D. credit unions and pension funds

Question 29 of 40

5.0 Points

David is saving $25 a week toward getting a new truck. Which function of money does this illustrate?

 A. stabilization of value

 B. foundation of banking

 C. medium of exchange

 D. store of value

Question 30 of 40

5.0 Points

How are the individual Federal Reserve Banks organized?

 A. by size of financial institution members—small, medium, large, etc.

 B. by type of financial institution members—commercial banks, credit unions, etc.

 C. by geographical region—Southeast, Northeast, West, etc.

 D. by financial purpose—buying, lending, interest controlling, etc.

Question 31 of 40

5.0 Points

Which of the following political bodies appoints the members of the board of governors for the Federal Reserve System?

 A. the Senate

 B. the House of Representatives

 C. the President of the United States

 D. the Council of American Governors

Question 32 of 40

5.0 Points

Which of the following statements best describes why a decrease in reserve requirements often results in an increase in the money supply?

 A. A decrease in reserve requirements gives banks more money to better determine their interest rates.

 B. A decrease in reserve requirements gives banks more money to pay off their debts.

 C. A decrease in reserve requirements gives banks more money to lend out.

 D. A decrease in reserve requirements gives banks more money to offer in dividend payments to their clients.

Question 33 of 40

5.0 Points

Which of the following best describes the stability characteristic of money?

 A. Units of money do not expire after a certain time limit.

 B. Units of money of different nations are easily converted to other units of money.

 C. Units of money can be matched with the value of goods.

 D. Units of money have relatively constant value.

Question 34 of 40

5.0 Points

Which of the following statements best describes why U.S. Treasury securities have always been considered risk-free investments?

 A. They are backed by the U.S. government.

 B. They have a guaranteed rate of return.

 C. They are easily sold.

 D. They are readily available for purchase.

Question 35 of 40

5.0 Points

Toyota, based in Japan, would like to build a new factory and a new retail distribution center. Both or either of these may be built in the United States and in Canada. Currently, the U.S. dollar is weak compared to the Canadian dollar. Which of the following would be in Toyota's best interest?

 A. build the cars in Canada and sell them in the United States

 B. build the cars in the United States and sell them in Canada

 C. build the cars in Canada and sell them in both countries

 D. build the cars in the United States and sell them in both countries

Question 36 of 40

5.0 Points

Which of the following best describes two of the three primary functions of the Federal Reserve System?

 A. developing new financial markets and aiding banks in conducting their business

 B. aiding banks in conducting business and managing the U.S. money supply and interest rates

 C. managing the U.S. money supply and interest rates and monitoring interbank relationships

 D. monitoring interbank relationships and acting as a bank for the federal government

Question 37 of 40

5.0 Points

Which of the following describes the requirements that the International Monetary Fund has made on certain developing countries?

 A. that the government decrease spending in order to bring inflation under control

 B. that private industries decrease prices in order to bring inflation under control

 C. that the government increase loans in order to create more money in the local markets

 D. that the local banks increase loans in order to create more money in the local markets

Question 38 of 40

5.0 Points

Which of the following financial institutions earn profits from loans taken from the funds in each of its depositors' accounts?

 A. securities investment firms

 B. pension funds

 C. credit unions

 D. commercial banks

Question 39 of 40

5.0 Points

A jeweler assesses the value of a flawless white diamond as considerably more than that of a rhinestone. Which function of money does this illustrate?  

 A. foundation of banking

 B. medium of exchange

 C. store of value

 D. measure of worth

Question 40 of 40

5.0 Points

Which of the following has a fixed term?

 A. demand deposits

 B. time deposits

 C. money market mutual funds

 D. credit card accounts

Running head: QUESTIONS1 QuestionsNameInstitution QUESTIONS2QuestionsQ1Maximizing the value of of company’s intangible asstsQ2BudgetQ3Financial Accounting Standards BoardQ4High...