Exam 14: The Role of Accountants and Accounting Information

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A) 0.85
B) 2
C) 2 .44
D) 5
E) 11.76

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A) Forensic accounting is mostly used as a tool for government regulation and investigation.
B) Forensic accounting is mostly used as a tool for intracompany investigations.
C) Forensic accounting is rarely used to investigate the misuse of government funds.
D) Forensic accounting is often used to investigate the misuse of government funds.
E) Forensic accounting is mostly used as a tool for local police enforcement.

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A) operating activities, purchase activities, taxes
B) profit inflow, debt outflow, taxes
C) profitable activities, deficit activities, taxes
D) operating activities, investing activities, taxes
E) operating activities, investing activities, financing activities

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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
E) the bakery's equity ratio

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Owners' equity includes the amount that ...

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A) Is it a good time for the business to grow?
B) Can the company survive a season of low revenues?
C) Does the company have too many employees?
D) Can the company take on more debt?
E) What is the value of the company's assets?

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A) Kershner is not accounting for all of the possible sources of revenue for the company.
B) Kershner is not including owners' equity as part of sales revenue.
C) Income statements are not as important as balance sheets in determining a company's fiscal health.
D) Many employees are not happy with the direction the company is headed.
E) Kershner is not accounting for the contribution that expenses will make to the income statement.

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A) In order to have a net income of more than $1.5 million, the operating expenses and income taxes need to be less than $0.25 million.
B) In order to have a net income of more than $1.5 million, the operating expenses and income taxes need to be less than $0.75 million.
C) In order to have a net income of more than $1.5 million, the operating expenses and income taxes need to be less than $1.75 million.
D) In order to have a net income of more than $1.5 million, the operating expenses and income taxes need to be less than $2.25 million.
E) In order to have a net income of more than $1.5 million, the operating expenses and income taxes need to be less than $2.75.

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A) Santos has a high profitability ratio.
B) Santos has a high inventory turnover ratio.
C) Santos has a low inventory turnover ratio.
D) Santos has a high debt to owners' equity ratio.
E) Santos has a low debt to owners' equity ratio.

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Noncertified public accountants assist w...

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A) The company needs to make sure it is not spending too much.
B) The company needs to make sure it is generating enough revenue.
C) The company needs to make sure its employees perform well.
D) The company needs to make sure it can always pay its bills.
E) The company needs to make sure it can make capital expenditures.

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A) managerial and forensic
B) financial and managerial
C) bookkeeping and advisory
D) corporate and individual
E) public and private

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A) Accounting Disclosure Board
B) Financial Accounting Standards Board
C) Association of Certified Fraud Examiners
D) Securities and Exchange Commission
E) American Institute of Certified Public Accountants

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A) As common practice, a sales representative for a firm receives information from the firm's financial accounting system.
B) As common practice, a sales representative for a firm receives information from the firm's managerial accounting system.
C) As common practice, a sales representative for a firm receives information from both the firm's managerial accounting system and its financial accounting system.
D) As common practice, a sales representative for a firm receives information from the firm's revenue accounting system.
E) As common practice, a sales representative for a firm does not receive any information from the firm's accounting system.

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