BUS10 Chp. 17 – Flashcards
20 test answers
Unlock all answers in this set
Unlock answers 20question
Today much of the pressure on corporate executives to "cook" the books is driven by the desire to look good to Wall Street analysts and investors
answer
True
Unlock the answer
question
According to the Occupational Outlook Handbook, job opportunities for accountants, auditors, and managers in the accounting area are expected to experience average growth between now and the year 2018
answer
False
Unlock the answer
question
Net income is the profit earned (or the loss suffered) by a firm during an accounting period after the cost of goods sold and all expenses have been deducted from revenues
answer
True
Unlock the answer
question
Accounting information is, first and foremost, management information
answer
True
Unlock the answer
question
A person who wishes to practice accounting as a CPA must pass an exam prepared by the American Institute of Certified Public Accountants (AICPA)
answer
True
Unlock the answer
question
According to the accounting equation, cash, inventory, equipment, and real estate are classified as owners' equity
answer
False
Unlock the answer
question
Dividing current assets by current liabilities gives the current ratio
answer
True
Unlock the answer
question
Equipment and patents are known as intangible assets
answer
False
Unlock the answer
question
The certified management accountant exam is designed to develop and measure not only accounting skills but also decision-making and critical-thinking skills
answer
True
Unlock the answer
question
The form of financial statement used varies for different business, from a neighborhood video arcade to a giant conglomerate
answer
False
Unlock the answer
question
Without the audit function and GAAP, there would be very little oversight or supervision of corporate accounting practices
answer
True
Unlock the answer
question
A public accountant works on a fee basis for clients
answer
True
Unlock the answer
question
Footnotes in accounting documents can offer red flags for investors and should he read and paid close attention to
answer
True
Unlock the answer
question
The cost of goods sold equals beginning inventory plus net purchases minus ending inventory
answer
True
Unlock the answer
question
A recent PricewaterhouseCoopers survey revealed that outsiders, primarily customers and intermediaries, are much more likely to be responsible for fraud committed against U.S. businesses
answer
False
Unlock the answer
question
Often, the ones who are hurt when corporations cook the books are the firm's employees, investors, lenders, and suppliers
answer
True
Unlock the answer
