Question 7

2.5 Points

What must public accountants obtain before they are eligible to conduct a company's audit?

a)CMA licensing

b)External auditor approval

c)Financial analysis capabilities

d)CPA licensing

e)Background in forensic accounting

Question 8

2.5 Points

Assets = Liabilities + Owner's Equity is known as the _________________.

a)ratio analysis

b)trend analysis

c)Accounting Equation

d)owner's equity equation

e)formula for net income

Question 9

2.5 Points

How do banks and suppliers most often use the accounting information generated by an organization?

a)to determine the cost analysis variables

b)to determine the tax liability

c)to determine how the company compares to others

d)to determine profit potential

e)to determine credit worthiness

Question 10

2.5 Points

_______________ is an accounting procedure for systematically spreading the cost of a tangible asset over its estimated useful life.

a)Depreciation

b)Deferral basis

c)Cash basis

d)Accrual basis

e)Profit basis

Question 11

2.5 Points

Which of the following is a type of activity ratio?

a)Current ratio

b)Inventory turnover ratio

c)Acid-test ratio

d)Debt-to-assets ratio

e)Debt-to-equity ratio

Question 12

2.5 Points

Which of the following is a type of distributed ledger technology in which each new transaction is captured in a block?

a)Permissionless accounting

b)Cryptocurrency

c)Blockchain

d)EBITA

e)Quick ration processing