other matching
both a sole proprietorship and a corporation
what type of business may be owned by one individual a) corporation b) sole proprietorship c) partnership d) both a sole proprietorship and a corporation
financing activities
Activities involving obtaining necessary funds to purchase long-term assets, repay existing obligations, and provide a return for owners are referred to as: a) financing activities b) operating activities c) investing activities d) planning activities
investing activities
Activities involving the purchase and sale of long-term assets as well as other major items used in a business's operation are referred to as: a) operating activities b) investing activities c) financing activities d) planning activities
IFRS (internal financial reporting standards)
Financial accounting standards that define what constitutes acceptable accounting practice for financial reporting worldwide are referred to as: a) SFAS b) FASB c) IFRS d) GAAP
the company is using debt more than owners' equity to finance its assets
If the debt to equity ratio is greater than 1, it means: a) the company is using debt more than owners' equity to finance its assets b) the company has less debt than equity c) the company has more debt than assets d) the company is using more of its assets to finance its debt
they want some assurance that the financial statements are mathematically correct
Investors read the Independent Auditors' Opinion because a) they want to know if financial statements are mathematically correct b) they want some assurance that the financial statements are fairly presented c) they want to determine if the auditors found any fraud d) they want to know if the auditor thinks the company is a good investment
investing activities
Morland Corp purchased a building that will house its new manufacturing plant. This is part of Morland's a) operating activities b) investing activities c) financing activities d) planning activities
outstanding check
On a bank reconciliation, which of the following will reduce the bank's cash balance? a) outstanding check b) deposit in transit c) non-sufficient funds check d) failure of the company to record the correct amount of the check on the company's records
financing activities
Riga Corp borrowed $1,000,000 to buy a new manufacturing plant as part of their a) operating activities b) financing activities c) investing activities d) planning activities
the financial statements are presented fairly in accordance with GAAP
The Report of the Independent Auditor is the opinion of the CPA firm that examined the financial statements of a company and states which of the following a) the financial statements are correct as reported b) the financial statements are fairly presented c) the financial statements are freed from fraud d) the financial statements are presented fairly in accordance with GAAP
marketing
The business function designed to determine the wants and needs of consumers is referred to as: a) marketing b) finance c) human resources d) operations
finance
The business function which is responsible for managing a company's capital resources is referred to as: a) marketing b) human resources c) finance d) operations
balance sheet and statement of cash flows
The cash held by a company at the end of the year is found on which of the following statements? a) balance sheet and income statement b) balance sheet and statement of cash flows c) income statement and statement of cash flows d) statement of stockholders' equity an cash flows statement
total liabilities/total stockholders' equity
The debt to equity ratio is measured with which of the following a) total liabilities/total assets b) long-term liabilities/total stockholders' equity c) total stockholders' equity/total liabilities d) total liabilities/total stockholders' equity
accounting and information systems
The function of business responsible for providing the information used by other functional areas to perform their jobs is referred to as: a) production and operations b) human resources c) marketing d) accounting and information systems
operating activities
The profit making activities of an enterprise are referred to as: a) financing activities b) planning activities c) operating activities d) investing activities
merchandising firm
Walmart is an example of which of the following a) service firm b) merchandising firm c) manufacturing firm d) producer firm
non-sufficient funds check
Which of the following bank reconciliation items would require the cash on the company's books to be reduced? a) outstanding check b) deposit in transit c) non-sufficient funds check d) bank error
all are correct relationships
Which of the following is not a correct relationship? a) production function-determine cost of products manufactured b) marketing function- advertising c) finance function- borrow cash d) human resource function- layoff employees e) all are correct relationships
current ratio
Which of the following measures the liquidity of a company? a) return on owners' equity b) gross margin ratio c) return on invetment d) current ratio
return on investment
Which of the following ratios measures the profitability of the money invested in the firm's assets? a) quick ratio b) return on owners' equity c) gross margin ratio d) return on investment
service firm
a law firm is an example of a) manufacturing firm b) merchandising firm c) service firm d) producer firm
current assets/current liabilities
ratio for calculating current ratio
GAAP
the statements of financial accounting standards, and other authoritative pronouncements that define what constitutes acceptable accounting practice for financial reporting are collectively referred to as: a) SFAS b) FASB c) SEC d) GAAP