1. Carmen Santiago works for a number of businesses as a
“consultant.” She has helped design accounting systems,
provided accounting services, and analyzed the financial
strength of her clients’ businesses. Carmen is working as a
A. public accountant.
B. certified management accountant.
C. certified internal auditor.
D. private accountant.
2. Guaranteed replacement cost in a homeowner’s insurance
policy means that the insurance company
A. guarantees they’ll replace the lost items for you.
B. guarantees they’ll pay the current value of items lost.
C. will pay you what it costs to replace the items
new.
D. will pay you something for lost items, but the amount
can’t be determined, so they guarantee an average market value.
3. The primary purpose of accounting is to
A. facilitate government tracking of business activities.
B. make sure a business is paying its taxes.
C. help managers and other stakeholders make informed decisions.
D. provide a method of spending money wisely.
4. Which of the following statements about the money invested in a traditional IRA account is correct?
A. It isn’t taxed until it’s withdrawn.
B. It’s subject to double taxation.
C. It’s taxed as you make deposits.
D. It isn’t taxed.
5. The _______ reports a firm’s financial condition on a specific date.
A. income statement
B. cash flow statement
C. statement of stockholder’s equity
D. balance sheet
6. The _______ Act legislated new government reporting standards for publicly traded companies.
A. Wagner
C. Sarbanes-Oxley
B. Robinson-Patman
D. Clayton
7. _______ life insurance is the type in which some part of the money you pay in premiums goes to pure insurance while another portion goes toward savings.
A. Whole
C. Term
B. Variable
D. Fixed annuity
8. Which of the following statements about when the Fed increases the reserve requirement is correct?
A. Interest rates go down.
B. Banks have more money to lend.
C. Inflation tends to go up.
D. Banks have less money to lend.
9. Gross profit (gross margin) is equal to
A. gross sales minus net sales.
B. operating expenses minus taxes.
C. revenue minus cost of goods sold.
D. cost of goods sold minus operating expenses.
10. The first public offering of a corporation’s stock is called a/an _______, and it’s handled by the _______ market.
A. IPO; primary
C. PSO: secondary
B. IPO; secondary
D. PSO; primary
11. The primary function of the Fed’s Board of Directors is to
A. supervise banks.
C. regulate credit.
B. set monetary policy.
D. buy government bonds.
12. The contrarian approach to investing is best illustrated by
A. staying out of the market no matter what experts are saying.
B. always buying when others are selling.
C. investing in mutual funds, contradicting the idea that investing in individual stocks
is better.
D. investing predominantly in the bond market when others are investing in the stock market.
13. An index fund is a mutual fund that
A. guarantees dividends.
B. offers a minimum return.
C. invests in stocks that follow Moody’s or other rating indexes.
D. invests only in certain kinds of stock, such as those related to transportation.
14. In referring to the money supply, which of the following can be accessed quickly and easily and includes coins and paper money as well as checks?
A. M-1
C. M-3
B. M-2
D. e-cash
15. Daddy Warbucks bought Annie some stock for her birthday. The stock provides a fixed dividend, and, if the dividend isn’t paid when it’s due, the missed dividend will accumulate to be paid later. Daddy bought Annie _______ stock.
A. common
C. convertible
B. preferred
D. preemptive right
16. When a European coffee maker becomes
less expensive to buy in the United States, you could probably say that we’re experiencing a _______ dollar.
A. falling
C. rising
B. inflated
D. stable
17. Earnings per share, return on sales, and return on equity are all _______ ratios.
A. activity
C. liquidity
B. profitability
D. debt
18. Regarding bonds, which statement is
most accurate?
A. Bond holders are creditors, not owners.
B. Bond holdings are nearly always converted to common stock.
C. Bonds are a primary source for a company’s long-term funding.
D. It’s illegal for a firm to offer bonds with a floating dividend rate.
19. The first step in taking control of your finances is
A. keeping track of all your expenses.
B. preparing a budget.
C. paying off your debts.
D. taking an inventory of your assets.
20. The first step in the accounting cycle is
A. putting information into journals.
B. preparing a trial balance.
C. analyzing and categorizing documents.
D. posting transactions to ledgers.
21. The major completely electronic securities exchange in the United States is the
A. NYSE.
C. AMEX.
B. NASDAQ.
D. Chicago Commodity Exchange.
22. A specialized accounting book in which information is posted into specific categories so managers can find information about one account in the same place is called a
A. ledger.
C. trial balance sheet.
B. journal.
D. double-entry book.
23. When planning for your future, an investment in a college education will, above all,
A. provide you with new ideas.
B. give you a chance to learn about different ways of life.
C. improve your earning potential.
D. guarantee a certain desired job.
24. The type of accounting concerned with providing information and analyses to managers within the organization is referred to as
A. financial accounting.
C. auditing.
B. managerial accounting.
D. tax accounting.
25. With respect to the Federal Reserve, the discount rate is the
A. interest rate charged for loans to member banks.
B. amount of money member banks must keep on hand at the Fed.
C. rate the Fed charges for selling bonds.
D. interest rate banks charge other banks.
Someone might be able to check your answers if you post them.
Did you ever get the answers?
A d c a d
THIS IS WHAT I GOT... CAN SOMEONE CHECK?1. A
2. D
3. C
4. A
5. D
6. C
7. A
8. D
9. C
10.A
11.B
12.B
13.D
14.A
15.D
16.C or D
17.C
18.B
19.D
20.C
21.B
22.A
23.C
24.B
25.A
your #2,13,15,17,18 are wrong
1a
2c
3c
4a
5d
6c
7a
8d
9c
10a
11b
12b
13c
14a
15b
16c
17b
18a
19d
20c
21b
22a
23c
24b
25a
1. The answer to question 1 is B. certified management accountant. To arrive at this answer, we need to understand the job responsibilities of Carmen Santiago. She works as a consultant and performs tasks such as designing accounting systems, providing accounting services, and analyzing the financial strength of her clients' businesses. These responsibilities suggest that Carmen is involved in management accounting, which focuses on providing financial information for internal use by managers and decision-makers. Therefore, the correct answer is B. certified management accountant.
2. The answer to question 2 is C. will pay you what it costs to replace the items new. To determine this, we need to understand the concept of guaranteed replacement cost in homeowner's insurance policies. Guaranteed replacement cost means that the insurance company will pay you the cost to replace the lost items with new ones, regardless of their current value. This provides coverage for the actual cost of replacing your items, without taking depreciation into account. Therefore, the correct answer is C. will pay you what it costs to replace the items new.
3. The answer to question 3 is C. help managers and other stakeholders make informed decisions. To arrive at this answer, we need to understand the primary purpose of accounting. Accounting is a discipline that involves the recording, analyzing, and reporting of financial transactions and information. The primary purpose of accounting is to provide information and financial data that can assist managers and other stakeholders in making informed business decisions. Therefore, the correct answer is C. help managers and other stakeholders make informed decisions.
4. The answer to question 4 is A. It isn't taxed until it's withdrawn. To determine this, we need to understand the taxation rules for a traditional IRA account. In a traditional IRA, the money invested is not taxed until it is withdrawn. This means that any contributions made to the account are tax-deductible, and the investment grows tax-free until withdrawals are made in retirement. At that point, the withdrawals are subject to income tax. Therefore, the correct answer is A. It isn't taxed until it's withdrawn.
5. The answer to question 5 is D. balance sheet. To determine this, we need to understand the purpose of different financial statements. An income statement reports a firm's financial performance over a period of time, showing revenues, expenses, and net income or loss. A cash flow statement shows the movement of cash in and out of a business during a period of time. The statement of stockholder's equity shows changes in the equity of a company's shareholders over a period of time. A balance sheet, on the other hand, reports a firm's financial condition on a specific date, showing its assets, liabilities, and shareholders' equity. Therefore, the correct answer is D. balance sheet.
6. The answer to question 6 is C. Sarbanes-Oxley. To arrive at this answer, we need to understand the legislation that introduced new government reporting standards for publicly traded companies. The Sarbanes-Oxley Act, also known as the Public Company Accounting Reform and Investor Protection Act of 2002, is a federal law that was enacted in response to accounting scandals such as Enron and WorldCom. The act established new reporting standards and requirements for publicly traded companies in the United States, with the goal of increasing transparency and accountability. Therefore, the correct answer is C. Sarbanes-Oxley.
(Note: For the remaining questions, the same process can be followed to arrive at the correct answers.)
7. The answer to question 7 is A. whole.
8. The answer to question 8 is D. Banks have less money to lend.
9. The answer to question 9 is C. revenue minus cost of goods sold.
10. The answer to question 10 is A. IPO; primary.
11. The answer to question 11 is B. set monetary policy.
12. The answer to question 12 is B. always buying when others are selling.
13. The answer to question 13 is C. invests in stocks that follow Moody's or other rating indexes.
14. The answer to question 14 is A. M-1.
15. The answer to question 15 is B. preferred.
16. The answer to question 16 is A. falling.
17. The answer to question 17 is B. profitability.
18. The answer to question 18 is A. Bond holders are creditors, not owners.
19. The answer to question 19 is A. keeping track of all your expenses.
20. The answer to question 20 is C. analyzing and categorizing documents.
21. The answer to question 21 is B. NASDAQ.
22. The answer to question 22 is A. ledger.
23. The answer to question 23 is C. improve your earning potential.
24. The answer to question 24 is B. managerial accounting.
25. The answer to question 25 is A. interest rate charged for loans to member banks.