Please just highlight in bold the correct answer under each question no need for explanation

Question 1

Which of the following defines managerial accounting system?

Measures the cost of replacing an employee.

Provides the appropriate information to the external community.

Records transactions when money is either received or spent.

Provides information to the management of a business and aids in internal controls.

Records transactions when they occur. Question 2 Which of the following defines cash-based accounting system?

Measures the cost of replacing an employee.

Provides the appropriate information to the external community.

Records transactions when money is either received or spent.

Provides information to the management of a business and aids in internal controls.

Records transactions when they occur. Question 3 Which of the following defines accrual accounting system?

Measures the cost of replacing an employee.

Provides the appropriate information to the external community.

Records transactions when money is either received or spent.

Provides information to the management of a business and aids in internal controls.

Records transactions when they occur. Question 4 Which of the following is an advantage of using a cash-based accounting system?

It accurately specifies a company's current cash position.

It is in compliance with GAAP standards.

It needs greater bookkeeping requirements.

It is a more sophisticated approach to accounting.

It provides a more accurate indication of the profitability of a business. Question 5 Which of the following is a benefit of using an accrual accounting system?

It accurately specifies a company's current cash position.

It is only appropriate for cash-based businesses.

It greatly reduces the demand on bookkeeping.

It can be used to affect tax bills.

It provides a more accurate indication of the profitability of a business.

Question 6 Which of the following is a drawback of using an accrual accounting system?

It greatly reduces the demand on bookkeeping.

It is only appropriate for cash-based businesses.

It may be misleading with respect to understanding a company's actual cash position.

It can be used to affect tax bills.

It can distort measure of the profitability of a business. Question 7 Which of the following defines marketable securities?

Stocks and bonds that a business may hold in the hope that they would provide a greater return to the business rather than just letting cash "sit" in a bank account.

The amount of money due to a business from prior credit sales.

A formal debt instrument that will be paid to the company within a year.

An accrual accounting term that represents payments made in advance of their actual occurrence.

Tangible goods held by a business for the production of goods and services. Question 8 Which of the following defines notes receivable?

Stocks and bonds that a business may hold in the hope that they would provide a greater return to the business rather than just letting cash "sit" in a bank account.

The amount of money due to a business from prior credit sales.

A formal debt instrument that will be paid to the company within a year.

An accrual accounting term that represents payments made in advance of their actual occurrence.

Tangible goods held by a business for the production of goods and services. Question 9 Which of the following defines prepaid expenses?

Stocks and bonds that a business may hold in the hope that they would provide a greater return to the business rather than just letting cash "sit" in a bank account.

The amount of money due to a business from prior credit sales.

A formal debt instrument that will be paid to the company within a year.

An accrual accounting term that represents payments made in advance of their actual occurrence.

Tangible goods held by a business for the production of goods and services. Question 10 Which of the following is the equation form of total current assets?

cash + marketable securities + accounts receivable + prepaid expenses + inventory

investments + fixed assets - accumulated depreciation + intangible assets

notes payable + accounts payable + other items payable + dividends payable + the current portion of long-term debt

notes payable + accounts payable + other items payable - dividends payable + the current portion of long-term debt

long-term debt + pension fund liabilities + long-term lease obligations Question 11 Current liabilities can be defined as:

debts and obligations that are to be paid within a year.

stocks and bonds that a business may hold in the hope that they would provide a greater return to the business rather than just letting cash "sit" in a bank account.

the amount of money due to a business from prior credit sales.

formal debts that will be paid to the company within a year.

tangible goods held by a business for the production of goods and services. Question 12 Which of the following is the equation form of current liabilities?

cash + marketable securities + accounts receivable + prepaid expenses + inventory

cash + marketable securities + accounts receivable - prepaid expenses + inventory

investments + fixed assets - accumulated depreciation + intangible assets

notes payable + accounts payable + other items payable + dividends payable + the current portion of long-term debt

long-term debt + pension fund liabilities + long-term lease obligations Question 13 Which of the following defines notes payable?

The amount of money due to a business from prior credit sales.

Money, such as short-term bank loans or mortgage obligations, that is owed and must be repaid within a year.

An accrual accounting term that represents payments in advance of their actual occurrence.

Short-term obligations that a business owes to suppliers, vendors, and other creditors.

A formal debt instrument that will be paid to the company within a year. Question 14 An income statement:

examines a business's assets, liabilities, and owner's equity at some particular point in time.

attempts to identify cash flows into a firm and cash flows from a firm for some future period.

examines the reinvested income in a business and which has not been paid out to shareholders as dividends.

examines the overall profitability of a firm over a particular period of time.

examines cash inflows and cash outflows for a business during a specified period of time. Question 15 Which of the following is the equation form of gross profit?

income - COGS

gross profit - operating expenses

liabilities + owner's equity

operating profit - other revenues and expenses

EBT - taxes Question 16 Which of the following is the equation form of earnings before taxes (EBT)?

liabilities + owner's equity

gross profit - operating expenses

operating profit - other revenues and expenses

variable cost per unit sales quantity

income - COGS Question 17 Which of the following is the equation form of net profit?

income - COGS

gross profit - operating expenses

liabilities + owner's equity

operating profit - other revenues and expenses

EBT - taxes Question 18 Which of the following is a cash outflow from operating activities?

Purchase of debt or equity

Payment of dividends

Payments to suppliers

Purchase of plant, property, and equipment

Redemption of capital stock Question 19 Which of the following is a cash outflow from operating activities?

Purchase of debt or equity

Payment of dividends

Payments for taxes

Purchase of plant, property, and equipment

Redemption of capital stock Question 20 Which of the following is a cash inflow from investing activities?

Revenue from sale of good and services

Collection of the principle on loans

Sale of securities

Dividends from other companies

Issue debt instruments Question 21 Which of the following is a cash inflow from financing activities?

Sale of securities

Interest from securities

Sale of debt or equity

Revenue from sale of goods and services

Sales of plant, property, and equipment

Question 22 Which of the following is a cash outflow from financing activities?

Payments for taxes

Purchase of debt or equity

Purchase of plant, property, and equipment

Payments to employees

Payment of dividends

Question 23 Which of the following defines financial leverage ratios?

Ratios that look at the amount of profit that is being generated by each dollar of sales (revenue).

Ratios that are designed to show how well a business is using its assets.

Ratios that provide information on a firm's ability to meet its total and long-term debt obligations.

Ratios that measure the performance of the stock of publicly held companies. Question 24 Profitability ratios are:

ratios drawn from a business's current assets and current liabilities on the balance sheet that provide insight on its ability to meet short-term debt obligations.

ratios that look at the amount of profit that is being generated by each dollar of sales (revenue).

ratios that provide information on a firm's ability to meet its total and long-term debt obligations.

ratios that are designed to show how well a business is using its assets.

ratios that measure the performance of the stock of publicly held companies. Question 25 Market value ratios are:

ratios drawn from a business's current assets and current liabilities on the balance sheet that provide insight on its ability to meet short-term debt obligations.

ratios that look at the amount of profit that is being generated by each dollar of sales (revenue).

ratios that provide information on a firm's ability to meet its total and long-term debt obligations.

ratios that are designed to show how well a business is using its assets.

ratios that measure the performance of the stock of publicly held companies.