Question 13

2.5 Points

Which of the following is an example of a company's asset?

a)Mortgage loans

b)Short-term loans

c)Inventory in a warehouse

d)Debt security raised by the company

e)Bonds issued by the company

Question 14

2.5 Points

Bookkeeping refers to __________________.

a)preparing financial forecasts

b)record keeping; the clerical aspect of accounting

c)the cost accounting component of accounting

d)analyzing financial information

e)performing profitability analysis for a company

Question 15

2.5 Points

Which of the following is a statement of a firm's cash receipts and cash payments that presents information on its sources and uses of cash.

a)EBITDA

b)Income statement

c)Net operating income

d)Statement of cash flows

e)Balance Sheet

Question 16

2.5 Points

Public accountants are professionals who provide _______________.

a)financial services without charging a fee for them

b)accounting services to publicly owned firms only

c)free auditing services to people who trade in the stock market

d)financial services to not-for-profit organizations only

e)accounting services to businesses and individuals for a fee

Question 17

2.5 Points

Private accountants are professionals who are __________________.

a)bookkeepers

b)in-house accountants employed by organizations other than a public accounting firm

c)controllers

d)financial advisors

e)accounting professors

Question 18

2.5 Points

__________________ refers to combining accounting and investigating skills to assist in legal and criminal matters.

a)Cost accounting

b)Tax accounting

c)Forensic accounting

d)Financial analysis

e)Bookkeeping

Question 19

2.5 Points

_________________ is comprehensive legislation designed to improve the integrity and accountability of financial information.

a)Ethics in Government Act

b)Reconstruction Finance Corporation Act

c)Public Utility Company Act

d)Sarbanes-Oxley Act (SOX)

e)Financial Services Modernization Act

Question 20

2.5 Points

The ____________ requires that expenses incurred in producing revenues be deducted from the revenue they generated during the same accounting period.

a)deferral principle

b)matching principle

c)principle of prudence

d)principle of continuity

e)materiality principle