1. The budget information prepared by a company must be a part of financial statements included in form 10-k.

A. True B. False

2. MD&A ( included in form 10-k) stands for:

A. Minor disclosure and Analysis

B. Management's disclosure and Analysis

C. Management's discussion and Analysis

3. The statement of cash flows can provide statement users with information about which of the following:

A. how a company is generating its cash

B. whether the income reported on the income statement is realized as cash

C. how the company used its cash resources.

D. All of the above

4. A process cost accounting system is best suited to accumlate the manfacturing costs for which of the following products?

A. Construction of an electric power generation facility

B. a house

C. Paper clips

D. an automobile

5. The statement of cash flows focuses only on what happened to:

A. revenues and expenses

B. fixed asset purchases

C. the issuance of stock and bonds

D. cash

6. The balance sheet equation ( the accounting equation) can be defined as which of the following:

A. Assets - liabilities = stock holder equity

B. Assets + liabilities = stockholders equity

C. Assets= liabilities - stockholders equity

D. Assets + stockholders equity= Liabilities

7. One of the major criticisms aimed at financial accountants is that their information is not

A. accurate

B. timely

C.proper

D. Added correctly

8. Which of the following provides the greatest level of detail?

A. general ledger system

B. balance sheet

C. income statement

D. cost accounting system

9. Which audit opinion states " The financial statements follow GAAP except in the following sentences..."?

A. Unqualifed

B. Qualified

C. Adverse

D. Disclaimer of Opinion

10. Which of the following management functions or characteristics are most enhanced by the budget process?

A. timeliness and responsiveness

B. planning and accuracy

C. control and accountability

D. focus and accountability