When employees work for a frim without yet being paid, the firm experinces.

a.) a liability

b.) an expense

c.) both a liability and an expense

d.) neither a liability nor an expense

All publicly-held firms must file financial data yearly with the SEC using Form...

a.) 10-A

b.) 10-K

c.) no publicly held firm is required to file financial data with the SEC

d.) 10-Q

Retained earnings represents

a.) the current year's ending cash balance of cash

b.) the current year's beginning balance of cash

c.) the current year's average balance of cash

d.) none of the above

Working capital for a firm...

a.) equals its current assets minus its current liabilities

b.) equals its total liabilities minus its total assets

c.) can be calculated from amounts appearing on a firm's income statement.

d.) none of the above

Working capital for a firm...

a.) equals its current assets minus its current liabilities

An accounts receivable arises when a customer at the time he/she purchases goods

a.) pays in dolar bills

b.) pays in coins

c.) charges the purchase using a national charge card

d.) charges the purchase using the store's own charge card, such as the Macy's card.

An accounts receivable arises when a customer at the time he/she purchases goods

d.)charges the purchase using the store's own charge card, such as the Macy's card.

A classified balance sheet is one in which the assets and liabilities are divided into

a.) those exceeding $25,000 and those below $25,000

b.) current and noncurrent

c.) those that arose eight years ago and those that arose 1-7 years ago

d.) those exceeding $50,000 and those below $50,000

A classified balance sheet is one in which the assets and liabilities are divided into

b.) current and non current

The total stockholder's equity of a firm

a.) is arrived at by subtracting total liabilities from total assets

b.) can be greater that $0

c.) can be less than $0

d.) all of the above are correct

The total stockholder's equity of a firm

d.) all of the above are correct

Unlike managerial accounting, financial accounting focuses on

a.) information needs of those outside the firm

b.) information needs of persons over the age of 25

c.) information needs of those inside the firm

d. the information needs of person over 40

Unlike managerial accounting, financial accounting focuses on

a.) information needs of those outside the firm

Balance sheets...

a.) represents a snapshot of what the firm;s revenues and expenses are as of a given date

b.) are prepared for a period of time

c.) get their name from the fact that total assets usually equal total liabilities

d.) none of the above

Balance Sheets....

d.) none of the above

Depending on the circumstances, it could be correct to recognize revenue

a.) months before cash is recieved from the customer

b.) at the same time that cash is received from the customer

c.) months after cash is received from the customer

d.) all of the above are correct

Depending on the circumstances, it could be correct to recognize revenue

d.) all of the above

Firms that recognize at the same time revenue and the costs required to generate that revenue are following:

a.) the matching concept

b.) conservatisim

c.) the going concern concept

d.) both A and C are correct

Firms that recognize at the same time revenue and the costs required to generate that revenue are following:

a.) the matching concept

Revenues represent

a.) an inflow of assets from borrowing at a bank

b.) an infow of assets from providing goods and services

an inflow of assets from issuing common stock

d.) all of the above

Revenues represent:

a.) an inflow of assets from borrowing at a bank

The Sarbanes-Oxley Act of 2002 requires that

a.) corporate executives personally certify the company's financial statements and financial disclosures

b.) all amounts in financial statements be rounded to the nearest thousand dollars

c.) corporate executies establish procedures that reduce losses from theft by at least 15%

d.) all of the above are correct

The Sarbanes-Oxley Act of 2002 requires that

a.) corporate executives personally certify the company's financial statements and financial disclosures

Internal control over cash is improved if

a.) the employee depositing cash is different from the person who receives cash

b.) the firm holds off making a bank deposit until it has recieved at least $5,000

c.) the firm holds off making a bank deposit until it has received at least $5,000 in cash or checks

d.) both A and B are correct

Internal control over cash is improved if

a.) the employee depositing cash is different from the person who receives cash

Internal control is a company's plan to

a.) safeguard the company's liabilities

b.) improve the accuracy and reliability of accounting information

c.) encourage multi-tasking among its employees

d.) both A and B are correct

Internal Control is a company's plan to

b.) improve the accuracy and reliability of accounting information

Spaulding Co. would include as a cash equivalent

a.) 120-day treasury bills

b.) shares of stock that Spaulding owns in a start-up company

c.) shares of IBM stock that Spaulding owns

d.) none of the above are correct

Spaulding Co. would include as a cash equivalent

d.) none of the above are correct

The first current asset listed on most firm's balance sheets is labeled

a.) cash, checks, and coins

b.) cash and cash equivalents

c.) retained earnings

d.) depending on the firms circumstances, either B or C could be correct

The first asset listed on most firm's balance sheets is labeled

b.) cash and cash equivalents

The amount a firm expects to collect from customers can be referred to as

a.) gross accounts receivable

b.) net accounts receivable

c.) allowance for uncollectible accounts

d.) both B and C are correct

The amount a firm expects to collect from customers can be referred to as

b.) net accounts receivable

A sales discount

a.) in a reduction in the selling price of a product or service

b.) is the same thing as a trade discount

c.) could be a 2% reduction in the amount owed if payment is made within 10 days of purchase

d.) all of the above

A sales discount

c.) could be a 2% reduction in the amount owed if payment is made within 10 days of purchase

The Allowance Method is used to account for uncollectible accounts

a.) in order to follow the Matching Concept

b.) because accountants just love to make mistakes

c.) to minimize the amount shown for bad debt expenses

d.) Both A and C are correct

The Allowance Method is used to account for uncollectible accounts

a.) in order to follow the Matching Concept

Gross Profit

a.) always equal a firm's net income

b.) always exceed a firm's operating expenses

c.) usually equal a firm's net income

d.) none of the above is correct

Gross Profit

d.) none of the above

The specific identification inventory costing method is

a.) used for accounting purposes by over 50% of all firms

b.) primarily useful for companies selling large numbers of similar-looking items

c.) subject to manipulation by management

d.) none of the above is correct

The specific identification inventory costing method is

c.) subject to manipulation by management

Ending inventory amounts calculated using FIFO and LIFO would be identical if

a.) inventory costs did not change over time

b.) the firm's inventory consisted of fewer than fifty units

c.) should make use of the LIFO Reserve disclosure made by the LIFO firm

d.) must certify to the IRS that is=t actually sells its oldest goods before it sells its newest goods

Ending inventory amounts calculated using FIFO and LIFO would be identical if

a.) inventory costs did not change over time