Introduction to Accountancy

A company with a high inventory turnover ratio likely demonstrates what?

In which scenario would an accountant's objectivity be most severely compromised?

Which accounting career path offers the LEAST opportunity to work directly with external clients?

An accountant discovers a significant error in a previously audited financial statement that inflates the company's net income. What is their most ethical course of action?

Which of the following is the best example of applying efficiency ratios together with profitability ratios?

Which of the following is the MOST comprehensive description of the role of accountancy?

A company is seeking a loan from a bank. Which accounting function is MOST relevant to the bank's decision to grant the loan?

Which user of accounting information would be MOST interested in assessing a company's ability to pay its short-term debts?

A company suspects fraudulent activities within its finance department. Which type of accounting would be MOST suitable for investigating this?

Why are Generally Accepted Accounting Principles (GAAP) important for financial reporting?

Which of the following pairs BEST illustrates the difference between managerial and financial accounting?

How could accounting information assist a government entity?

What is the primary focus of cost accounting?

Which fundamental accounting principle dictates that a company should record revenue when it is earned, irrespective of when the cash is received?

According to GAAP, which organization is primarily responsible for establishing accounting standards in the United States?

A company's current assets are $200,000 and its current liabilities are $100,000. What is the current ratio?

Which activity is classified as a financing activity on the statement of cash flows?

Which of the following is an example of an internal control procedure related to physical controls?

A company uses the double-declining balance method for depreciation. An asset cost $10,000, has a salvage value of $1,000 and a useful life of 5 years. What is the depreciation expense in Year 1?

Which inventory valuation method assumes that the last units purchased are the first units sold?

Which financial statement reflects a company's financial position at a specific point in time?

According to the accounting equation, if a company's liabilities increase by $50,000 and its equity decreases by $20,000, what is the net effect on the company's assets?

Which of the following is NOT a step in the accounting cycle?

A company has revenues of $300,000 and expenses of $200,000. What is the net income?

The times interest earned ratio is a type of:

Which accounting principle states that a company should choose the option that is least likely to overstate assets or income when faced with uncertainty?

Which of the following describes the purpose of segregation of duties in internal control?

What is the book value of an asset that originally cost $50,000 and has accumulated depreciation of $20,000?