BUS201 test twp review

Accounting provides a framework for looking at:

• past performance

• current financial health

• possible future performance

• all of the above

Managerial accounting provides information that would probably be most beneficial to:

• the IRS

• financial analysts

• a lending officer of the bank

• a middle manager of the company

The Financial Accounting Standards Board (FASB) is a:

• private organization that is responsible for establishing financial accounting standards in the United States

• federal government agency that is responsible for establishing financial accounting standards in the United States

• United Nations organization that is responsible for establishing financial accounting standards globally

• federal government agency that mediates disputes between accountants and the companies they work for

Which of the following statements about the accounting profession is true?

• Most CPAs first work for public accounting firms and later become private accountants or financial managers.

• Managerial accountants become a certified management accountant when they meet the requirements of the professional certification program.

• Private accountants are also called corporate accountants.

• All of the above statement about the accounting profession are true.

Things of value owned by a firm are called its:

• owners' equity

• tangibles

• assets

• liabilities

Which of the following is an example of an asset that might be owned by a minor league baseball team?

• salaries owed to its players

• the cost of getting tickets printed

• reputation as a winning team

• the price made for advertising on local radio

_____ are temporary investments of excess cash in bonds and stocks that can readily be converted into cash.

• Accounts receivable

• Marketable securities

• Notes payable

• Owners' net contribution margins

_____ is the company's ability to expense fixed assets over their useful life.

• Acceleration

• Depreciation

• Capital budgeting

• Maturation

Trademarks, franchises, patents, and copyrights are carried on the company's books as:

• tangible assets

• intangible assets

• owners' equity

• long-term assets

_____ is a summary of what a company has earned and spent over a given period.

• balance sheet

• income statement

• cash flow statement

• trial balance