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- Question
The chart of accounts is designed to
Options- A. alphabetized the accounts to make reading easier for its financial statement users
- B. summarize the transactions and determine their ending balances
- C. meet the information needs of a company and other financial statement users
- D. analyse the accounts and organize them in order of dollar amount to simplify the accounting information for users
- Correct Answer
- meet the information needs of a company and other financial statement users
ExplanationThe chart of accounts is designed to to meet the information needs of a company and other financial statement users.
- 1. Accrual accounting is used because
Options- A. it provides a better indication of ability to generate cash flows than the cash basis.
- B. it recognizes revenues when cash is received and expenses when cash is paid.
- C. cash flows are considered less important.
- D. All of the above Discuss
- 2. A Credit may signify a
Options- A. Increase in the liability account
- B. Decrease in an asset account
- C. Increase in the capital stock account
- D. All of the above Discuss
- 3. A distinguishing feature of managerial accounting is
Options- A. general-purpose reports
- B. very detailed reports
- C. quarterly and annual reports
- D. external users Discuss
- 4. Which is the most accurate statement about trade?
Options- A. Trade makes some nations better off and others worse off
- B. Trading for a good can make a nation better off only if the nation cannot produce that good itself
- C. Trade helps rich nations and hurts poor nations
- D. Trade can make every nation better off Discuss
- 5. What is the Debit Balance recovery? How we can recover if we wont have any future transactions from supplier? Discuss
- 6. Select the correct statement regarding fixed costs.
Options- A. Because they do not change, fixed costs should be ignored in decision making.
- B. The fixed cost per unit decreases when volume increases.
- C. The fixed cost per unit does not change when volume decreases.
- D. The fixed cost per unit increases when volume increases. Discuss
- 7. Which of the following bonds has the greatest interest rate price risk?
Options- A. a 10 year, 5% coupon bond
- B. a 5 year, 5% coupon bond
- C. a 5 year, 10% coupon bond
- D. a 10 year, 10% coupon bond Discuss
- 8. Which of the following is not a direct tax?
Options- A. Sales tax
- B. Corporation tax
- C. Wealth tax
- D. Estate tax Discuss
- 9. Generally accepted accounting principles are Discuss
- 10. Financial statements are prepared in the following order.
Options- A. Income statement - Balance sheet - Statement of retained earnings
- B. Income statement - Statement of retained earnings - Balance sheet
- C. Balance sheet - Statement of retained earnings - Income statement
- D. Statement of retained earnings - Balance sheet - Income statement Discuss
Accounting and Finance problems
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Correct Answer: it provides a better indication of ability to generate cash flows than the cash basis.
Correct Answer: All of the above
Explanation:
A credit may signify a decrease in an asset account or an increase in a liability or capital stock account.
A debit may signify an increase in an asset account.
Correct Answer: very detailed reports
Explanation:
Managerial accounting is the process of identifying, measuring, analyzing, interpreting and communicating information for the pursuit of an organization's goals. This branch of accounting is also known as cost accounting.
Hence, the distinguishing feature of managerial accounting is very detailed reports.
Correct Answer: Trade can make every nation better off
Correct Answer: The Debit balance recovery is usually made by raising a credit memo for the regular vendors However if there are no future transactions from the supplier, we ask the vendor to send the check / make an EFT for the amount due from him
Correct Answer: The fixed cost per unit decreases when volume increases.
Explanation:
The fixed cost per unit decreases when volume increases is the correct statement regarding fixed costs.
Correct Answer: a 10 year, 5% coupon bond
Explanation:
A 10 year, 5% coupon bond has the greatest interest rate price risk.
Correct Answer: Sales tax
Explanation:
Direct tax is a tax directly paid to the government by the individuals or organizations on whom it is imposed. Sales Tax is paid for the sales of certain goods and services.
Correct Answer: Generally Accepted Accounting Principles (GAAP) are basic accounting principles and guidelines are concepts that govern the field of accounting Accounting principles and guidelines include : * Business Entity Assumption * Accounting Period * Historical Cost Concept * Full Disclosure Principle * Cost Principle * Matching Principle * Materiality * Monetary Unit Assumption
Correct Answer: Income statement - Statement of retained earnings - Balance sheet
Explanation:
The financial statements should be prepared in the following order:
Income statement - Statement of retained earnings - Balance sheet
1. Income statement reports revenues and expenses and calculates net income or net loss for the time period.
2. Statement of retained earnings show how retained earnings changed during the period due to net income or net loss and dividends.
3. Balance sheet reports assets, liabilities, and stockholders? equity as of the last day of the period.
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