A) Sarbanes-Oxley Act.
B) Dodd-Frank Act.
C) Glass-Steagall Act.
D) Securities Exchange Act.
E) Gramm-Leach-Bliley Act.
207) Which of the following accounts is not included in the asset section of the balance sheet?
A) Cash.
B) Accounts receivable.
C) Supplies.
D) Land.
E) Services revenue.
208) Which of the following accounts is not included in the asset section of the balance sheet?
A) Buildings.
B) Wages expense.
C) Supplies.
D) Land.
E) Furniture.
209) Which of the following accounts is not included in the liability section of the balance sheet?
A) Accounts receivable.
B) Wages payable.
C) Accounts payable.
D) Notes payable.
E) Taxes payable.
210) Which of the following accounts is not included in the calculation of net income?
A) Services revenue.
B) Wages expense.
C) Rent expense.
D) Cash.
E) Rent revenue.
211) Which of the following combinations results in a net loss reported on the income statement?
A) Total revenues of $80,000 and total expenses of $74,000.
B) Total revenues of $70,000 and total expenses of $74,000.
C) Total revenues of $60,000 and total expenses of $52,000.
D) Total revenues of $20,000 and total expenses of $16,000.
E) Total revenues of $40,000 and total expenses of $31,000.
212) Which of the following combinations results does not result in the same amount of net income reported on the income statement?
A) Total revenues of $80,000 and total expenses of $60,000.
B) Total revenues of $170,000 and total expenses of $150,000.
C) Total revenues of $60,000 and total expenses of $40,000.
D) Total revenues of $70,000 and total expenses of $60,000.
E) Total revenues of $40,000 and total expenses of $20,000.
213) Match the following terms with the appropriate definition.
a. Financial accounting
b. Ethics
c. Recordkeeping
d. Internal users
e. Accounting
f. Certified Public Accountant (CPA)
g. Fraud triangle
h. Managerial accountingi. External users
____ 1. An information and measurement system that identifies, records and communicates relevant reliable and comparable information about an organization's business activities.
____ 2. The part of accounting that involves recording transactions and events, either electronically or manually.
____ 3. Persons using accounting information who are not directly involved in running the organization.
____ 4. Persons using accounting information who are directly involved in managing and operating the organization.
____ 5. The area of accounting that serves the decision-making needs of internal users.
____ 6. The area of accounting aimed at serving external users by providing them with general-purpose financial statements.
____ 7. Accounting specialists that have met educational and experience requirements, passed an examination and exhibit ethical characteristics to achieve a professional certification.
____ 8. Beliefs that distinguish right from wrong, considered accepted standards of good and bad behavior.
____ 9. A model that asserts the factors that must exist for a person to commit fraud.
214) Match each of the following terms with the most appropriate definition.
a. Return on assets
b. Assets
c. Expenses
d. Risk
e. Liabilities
f. Owner withdrawals
g. Accounting equation
h. Owner capital
____ 1. The uncertainty about the return to be earned.
____ 2. Resources such as cash that an owner puts into the company.
____ 3. A financial ratio stated as income divided by assets invested.
____ 4. Creditor's claims on a company's assets.
____ 5. Decreases in equity from costs of providing products or services to customers.
____ 6. Resources such as cash that an owner takes from the company for personal use.
____ 7.Resources a company owns or controls that are expected to yield future benefit.
____ 8. Expresses the relation of assets, liabilities and equity in a company, comparing the resources the company owns to the sources of funds to acquire the resources.
215) The following is a list of selected users of accounting information. Match the appropriate user to the following decisions they make with accounting information.
a. Suppliers
b. Lenders
c. Shareholders
d. Purchasing Managers
e. Regulators
____ 1. Know what, when, and how much to purchase.
____ 2. Judge the soundness of a customer before making sales on credit.
____ 3. Assess whether a company has paid all required taxes and complied with securities rules.
____ 4. Assess whether an organization is likely to repay its loans with interest.
____ 5. Decide whether to buy, hold, or sell a company's stock.