Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
192. Which of the following is an example of a financial transaction?
193. Although accounting has several specific uses, the overall purpose of accounting can be
summarized as:
194. Which of the following responses is the best and most comprehensive? "A company's
accounting information is useful to ____________."
195. Accountants record, classify, and ____________ the results of the financial information
they gather.
196. The reports and financial statements prepared by accountants:
197. A person's pulse rate and blood pressure are indicators of a person's health. Similarly,
_________ can help assess the health of a business.
198. Accounting transactions are very important to a firm's operations. Which of the following
activities would affect the firm's account balances?
199. As an accountant, Joe's responsibilities include:
200. Jill wants to start her own business, but knows little about how to set up an accounting
system or interpret financial information. "I'm not worried about accounting," she tells her friends.
"I'll just hire a part-time bookkeeper to handle all that type of stuff, and focus my attention on
what I like—finding ways to satisfy my customers." Which of the following is the best response to
Jill's comments?
201. Before starting his landscape business, Andrew took a marketing class at the local
community college. He decided that his time would be better utilized in this class because if he
could learn to sell his services well, the revenues and profits would follow. Your assessment of
his plan might include which of the following?
202. Phil O'Keefe is opening a small sports store in his town. At the advice of a friend who is a
bookkeeper, he keeps the receipts of everything he purchases for the business in the bottom
drawer of his desk, along with all other business expenses, such as his retail license, his rent
expense, and insurance expense. You suggest that _______.
203. Given that measuring a firm's financial health is important to its survival, which of the
following strategies is good advice for a person just starting a business?
204. The accounting profession is divided into 5 key working areas, two of which are:
205. The area of accounting that provides managers
inside
the organization with information
they need to make decisions is called:
206. The preparation of financial statements for people outside the firm (creditors, unions,
suppliers, and others) is the goal of:
207. A(n) __________ provides accounting services to individuals or firms on a fee basis.
208. An accountant who works for a single business or government agency is referred to as a:
209. __________ involves the review and evaluation of the records that are used to prepare the
organization's financial statements.
210. A(n) _________ is a yearly published statement of the financial condition, progress and
expectations of an organization.
211. A(n) ___________ is an evaluation and unbiased opinion of the accuracy of a firm's
financial statements.
212. Skilled professionals who are responsible for the development of strategies to minimize
taxes are called:
213. The accounting scandals of the early 2000s led many people to question the legitimacy
of:
214. The accounting profession follows
generally accepted accounting principles
as defined by
__________________.
215. Important provisions of the Sarbanes-Oxley Act:
216. The __________ sets accounting standards used in government accounting.
217. As U.S. firms focus on cost cutting in order to stay competitive with producers in low-
wage countries, they will rely on __________ to create strategies to help reduce costs.
218. Which of the following agencies would have the greatest impact on the methods used to
record, classify, summarize, and interpret accounting information for the State of Kentucky's
Department of Transportation?
219. Benjamin works in the accounting department for a textbook publishing firm preparing
budgets and reporting production costs. He is a:
220. For the past several years, Bill Reynolds has retained accountant Chelsea Jones for help
in preparing his personal income tax forms. Bill's boss recommended Chelsea because she had
done a good job setting up the company's new accounting system. Bill is very satisfied with
Chelsea's work and feels that the fees she charges are quite reasonable. Chelsea would be
classified as a(n):
221. Jose just graduated from college with a bachelor's degree in accounting. He plans to go to
work for the American Cancer Society as an accountant. Jose will be a(n):
222. Taylor Casual, a chain of retail clothing stores, wants to assure investors and other
outsiders that its financial statements are accurate. One way to do so would be to hire a public
accounting firm to:
223. Kelley's Kloset, LLC, has applied for a business loan. Her prospective banker has
requested information concerning the financial condition of her business. Which accounting
discipline is responsible for providing accounting information to outside stakeholders?
224. Stockholders of the Sasha Deal Company are concerned about irregularities in the firm's
accounting system. One approach to identify problems in the records of the company would be to
have a(n) ________ performed.
225. Becky Hunter is an accountant employed by FAF Enterprises. Recently she has spent
much of her time working on defining measures of costs for the production department and
checking to ensure that various departments are staying within their budgets. Becky is a:
