All Quizizz
Scott Corp., an apparel company, has total assets worth $8,500. The owner's initial investment in Scott Corp. stood at $4,000, and profits that were not paid out to the owners over time was at $2,000 . Calculate the total liabilities.
$2,500
An asset turnover ratio of 2.5 means that for every $1 in assets, the firm generates ____ in sales.
$2.50
Currently, approximately how much is the US Total Federal debt?
$21 Trillion
Milwaukee Fabrication has $80 million in assets and $50 million in owners' equity. How much does the firm have in liabilities?
$30 million
A firm has total assets of $50 million and owner's equity of $40 million. What is the firm's debt ratio?
20 percent
Mitchell works for a travel agency. Her job involves preparing financial reports and interpreting those reports to provide information for decision making. Which title is appropriate for Mitchell's job?
Accountant
Professionals who are responsible for gathering, recording, reporting, and interpreting the financial information of an organization are known as ____.
Accountants
Expenses that have been incurred (such as wages) but have yet to be paid, are reported on the balance sheet as ________.
Accurals
Which economist is considered the father of capitalism?
Adam Smith
Cash budgets include all of the following EXCEPT an ________.
Analysis of interest on cash earned from company profits
Which of the following represents the accounting equation?
Assets = liabilities + owner's equity
If Perry Enterprises has a debt ratio of 40 percent, it means that for every $1 in ____, the firm has 40 cents in ____.
Assets, liabilities
A ____ is a financial statement that is directly based on the accounting equation
Balance sheet
Which of the following financial statements shows a firm's financial position on a particular date?
Balance sheet
Which of the following statements is correct?
Budgets serve as a planning and control tool
If a firm has a current ratio of $2.50 in ____ it has $1.00 in ____
Current assets, current liabilities
Which of the following is a non-cash expense?
Depreciation
What is the primary role of a government accountant?
Determining how efficiently the organization accomplishes its objectives
Public accountants typically perform all of the following tasks for a business client EXCEPT ____
Developing the firm's marketing strategy
Which of the following interest rates does the Federal Reserve actually set?
Discount rate
Haley is a corporate certified public accountant (CPA) working on a new budget. When she lists the company's liabilities, which of the following will she include?
Employees' wages and salaries
When looking at the data from the Bureau of Labor Statistics, as the unemployment rate falls, it automatically means that more workers (as a percentage of the labor force) are participating in the labor market.
False
The natural progression of a business begins with ____.
Financing
____ activities provide the necessary funds to start a business and to expand it after it begins operations.
Financing
Tariffs, duties, and import taxes administered globally were once under the ____, but for some time they have been administered by the ____.
GATT; WTO
To promote reliable, consistent, and unbiased information to decision makers, accountants follow guidelines, or standards, known as ____
Generally accepted accounting principles (GAAP)
Preston performs professional services similar to those of a management accountant while working for the city of Portland. Preston can be best described as a ____.
Government accountant
Which of the following was established in 1973 to promote worldwide consistency in financial reporting practices?
IASC
Frank, chief financial officer for a company, wants to take a look at the summary of expenses, revenues, and profits of the firm for the most recent quarter. He can best find this information by consulting the ____.
Income statement
Melissa is the Executive Director of a local food bank and is assessing the financial situation of her not-for-profit organization. Melissa uses an ____ to determine whether revenues from contributions and other sources will cover operating costs.
Income statement
Elena works for a mid-sized manufacturing company. Her responsibility is to examine the firm's financial practices to ensure that the records include accurate data and that the firm's operations are in compliance with federal, states, and local laws and regulations. Elena is an ____
Internal auditor
Which of the following current assets is NOT included when calculating the acid-test ratio?
Inventory
All of the following are profitability ratios EXCEPT
Inventory turnover
____ activities focus on providing valuable assets to business.
Investing
Zane Corporation sells $1,000 worth of goods on July 25 on credit. The customer sends the company a check on August 15. The customer receives the goods on September 1. Assuming the company uses accrual accounting, the sale will be recorded in ____.
July
Weston wants to assess his firm's ability to meet its short-term obligations. Which of the following ratios are the most relevant?
Liquidity ratios
Last year, a firm had a current ratio of 2.0 and an acid-test ratio of 1.0. This year, the firm's current ratio is 2.5 and its acid-test ratio is 1.5. This firm's ____ has ____.
Liquidity, improved
Reese works as a tax accountant at a mid-sized manufacturing company. Reese would be considered a ____.
Management accountant
The four basic forms of competition are
Monopoly, pure competition, monopolistic competition, and oligopoly
Cash budgets are usually prepared ____
Monthly
Diana asked her accountant to prepare a summary of the company's "bottom line". What specific information is Diana interested in?
Net income after taxes
Which of the following policy tools does the Fed use most frequently?
Open market operations
____ activities focus on selling goods and services.
Operating
All of the following are tangible assets EXCEPT ____.
Patents
Rhianna owns a business and is reviewing her company's current financial statements. As a user of accounting information, Rhianna is most interested in using this information to ____
Plan and control activities
____ ratios are designed to evaluate a firm's ability to generate revenues in excess of operating costs and other expenses.
Profitability
The ____ was created by the Sarbanes-Oxley Act of 2002.
Public Accounting Oversight Board
Maxwell is not an employee of the Edith Corporation, but he was hired as a management accountant to provide unbiased advice about Edith Corporation's financial condition. Maxwell is a ____
Public accountant
Who appoints the members of the Public Company Accounting Oversight Board?
Securities and Exchange Comission
Which of the following actions would have the effect of increasing the supply of money and credit and lowering interest rates?
The Fed buying government securities
The procedure used by accountants to convert data about transactions to financial statements is called ____.
The accounting cycle
Walter is a loan officer for a bank and is reviewing the financial statements of a prospective borrower. As a user of accounting information, Walter is most interested in using this information ____
To evaluate financial soundness of potential clients
A less-developed country wants to build new port facilities, which will allow it to increase agricultural exports. Financing for this project could come from the ____.
World Bank
Which curve goes up from the right?
a demand curve
The definition of a recession by the National Bureau of Economic Research (NBER) is:
a significant decline in economic activity spread across the economy, lasting more then a few months
Which curve goes up from the left?
a supply curve
Because of its climate and terrain, Guatemala possesses a(n) ____ over Iceland in coffee production.
absolute advantage
All of the following are liabilities EXCEPT ____.
accumulated profits not paid in dividends
When a country has a total ban on trade with another country, it is called:
an embargo
All of the following are assets EXCEPT ____
bank loans
Shane wishes to create a financial blueprint for a future period that reflects such items as expected sales revenues, operating expenses, and cash receipts and disbursements. Shane wants to create a ____
budget
The three major types of economic systems are:
capitalism, planned economies, and mixed economies
____ is an economic system in which private property is eliminated.
communism
The study of macroeconomics is ____
concerned with studying overall economic activity, both nationally and globally
Benito worked as a manager at a grocery chain that recently experienced a number of layoffs to an economic slowdown. Benito's employment would be described as ____.
cyclical
In general, as price of a good or service increases, the quantity demanded:
decreases
If the price of a substitute good ____, the demand for the other good ____.
decreases; decreases
An increase in income shifts the ____ curve to the ____ and as a result, the equilibrium price ____
demand; right; rises
A country has a good chance of selling more of its goods abroad if it ________.
devalues its currency
If a foreign company offers steel in the United States below the company's cost of production, the company might be accused of ________.
dumping
Which of the following fields is concerned with understanding the choices people make in using scarce resources?
economics
Automobiles that are manufactured in the United States and sold in Norway are categorized as U.S. ____.
exports
A trade deficit occurs when ____.
imports exceed exports
What will make the supply curve shift to the right?
increase in the number of suppliers
Assume that the number of people wanting to buy homes increases sharply in your local area. The price of homes will likely ____, which is an example of ____
increase; demand-pull inflation
Which of the following is true about holders of the United States debt?
intragovernmental holdings is the largest
If the number of buyers decreases, the demand curve will shift to the ____ and the price will ____
left; fall
A situation in which Monetary Policy by the Federal Reserve us ineffective at boosting the economy is called (a) ____>
liquidity trap
Williams & Co. management is trying to decide the appropriate prices for various products sold by the firm. This is a focus of ________.
microeconomics
____ is the study of the economic choices of individual consumers, families, or businesses.
microeconomics
The two major policy tools available for controlling economic activity are ____
monetary and fiscal policies
All of the following are included in M1 EXCEPT ____
money market mutual funds
Unless it is regulated or only temporary, the market situation called ________ is prohibited in the United States through antitrust legislation.
monopoly
Currently, how much does China hold of the U.S. Treasury debt?
nearly 7% of outstanding debt
What will make the demand curve shift to the left?
number of buyers decreases
Benjamin manages the sales force for his company. He is engaged in the ____ activity
operating
Holding supply constant and decreasing demand will cause ____
prices and production both to fall
If buyers' incomes increase, the demand curve will shift to the ____ and the price will ____.
right; rise
Jayce Products buys a $500,000 machine by taking out a bank loan. Th company's assets will ____ by $500,000 while its liabilities will ____ by $500,000.
rise, rise
Suppose that environmental legislation was passed that scaled back natural gas production by reducing the supply. Microeconomic theory would predict that the equilibrium price should ____ and the equilibrium quantity should ____ resulting from a shift in the ____ curve.
rise; fall; supply
The Federal Reserve decreases the supply of money and credit. In the short term, interest rates (i.e., the price of money) will likely ____, which is an example of ____ policy
rise; monetary
Consumers have become accustomed to decreases in the cost of technology, but what if the costs of technology rose? In this case the equilibrium price should ____ resulting from the ____ curve shifting to the ____
rise; supply; left
The united Stats has a trade surplus with which of the following items?
services
In a particular country country, the government owns all the transportation companies, the utilities, the energy suppliers, and major manufacturing firms. Small businesses are privately owned. What type of economic system does this country have?
socialism
Which type of unemployment typically lasts the longest?
structural
Which of the following does not add to the national debt?
taxes
A balanced budget occurs when ____.
taxes, fees, and borrowings are equal to government spending for the year
NAFTA includes
the United States, Canada, and Mexico
In the recent economic downturn, the Federal Reserve increased the money supply substantially, what is the most significant factor that explains why this has not led to substantial inflation?
the velocity of money
Allen works as a supervisor at an automobile company. He is also the leader of the worker's union at the factory. Allen is most likely to use the accoutign information of the company to
use in contractual negotiations
