1)Business use accounting as a language to communicate financial information to three groups of people. Who are these three groups?

A. external users, suppliers, and consumers

B. internal users, external users, and the government

C. internal users, external users, and suppliers

D. consumers, suppliers, and the government

2) Human Resources and many other departments at Walmart will use the following as a form of business communication:

A. speeches

B. accounting

C. powerpoint

D. brochures

3) Information needed to evaluate business performance to external entities are provided by:

A. financial accountants

B. attorneys

C. forensic accountants

D. managerial accountants

4) Managerial accountants:

A. negotiate contracts with suppliers

B. create the company's financial statements that are submitted to government agencies such as the Internal Revenue Service

C. provide managers within the organization with reports to make good business decisions

D. create financial reports and provide other types of accounting information to investors

5) The ________ ________ for a given point in time can be calculated using the balance sheet.

A. accounting equation

B. financial statements

C. income statement

D. owner's equity

6) Assets are just one of the accounts listed on the:

A. profit and loss statement

B. balance sheet

C. income statement

D. statement of cash flows

7) The income statement reports the profitability of a business organization for:

A. the life of the company

B. as long as the company wishes to report it

C. the previous year

D. for a stated period of time

8) The statement of retained earnings (or owner's equity) uses information from what other financial statement:

A. balance sheet

B. income statement

C. statement of retained earnings

D. statement of cash flows

9) This statement summarizes the effects on cash of the operating, investing, and financial activities of a business during an accounting period.

A. statement of retained earnings

B. income statement

C. balance sheet

D. statement of cash flows

10) Income statements and statement of owner's equity are two of the financial statements used to explain changes in a business:

A. a specific moment in time

B. during a period of time

C. on an annual basis

D. from the beginning of the business

11) Contribution Margin covers fixed expense at:

A. equilibrium

B. profitability

C. break-even

D. year end

12) In a manufacturing operation parts used to produce the finished product are considered:

A. appreciation expense

B. depreciation expense

C. a variable cost

D. a fixed cost

13) Sales revenue of $110,000 will achieve breakeven when the contribution margin is $30,000 and the fixed costs are:

A. $25,000

B. $110,000

C. $80,000

D. $50,000

14) Contribution margin per unit divided by sales price per unit is:

A. breakeven

B. profit margin ratio

C. profit

D. contribution margin ration

15) If the margin of safety is $200,000, fixed expenses are $50,000 and sales revenue is $500,000, what are variable costs?

A. $150,000

B. $500,000

C. $250,000

D. $400,000

16) The contribution margin ratio will show how much ________ a company will make on each dollar of sales.

A. revenue

B. liquidity

C. profit

D. loss

17) If ACTII Costumes has a current ratio of 12:1, its liabilities total $40,00, and its cash and accounts receivable total $140,000, how much inventory do they have?

A. $140,000

B. $340,000

C. $275,000

D. $480,000

18) Act II Costumes has a quick ratio of 3.5:1, $120,000 in cash, $340,000 in inventory, and $20,000 in accounts receivable. What are its current liabilities?

A. $480,000

B. $50,000

C. $40,000

D. $35,000

19) Exotech has an inventory turn ratio of 60 with $50milllion in annual sales, and average inventory of $250,000. What is Exotech's cost of goods sold?

A. $50,000

B. $60million

C. $5million

D. $15million

20) Which of the following items are included in The Code of Professional Ethics of the American Institute of Certified Public Accountants:

A. weigh all sides of decisions

B. attending annual meetings

C. generate innovative approaches to accounting

D. integrity and objectivity

21) How many sections are included in the Sarbanes Oxley (SOX) Act?

A. 13

B. 20

C. 11

D. 7