BUSA 1105 Test 2 Questions with Revised Answers 100% Correct
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Course
BUSA 1105
Institution
BUSA 1105
BUSA 1105 Test 2 Questions with Revised Answers 100% Correct
According to the US Small Business Administration (SBA), to officially count as a small business the - Answer- number of employees should range from fewer than 100 to 1,500
In the context of small businesses and the economy of a coun...
BUSA 1105 Test 2 Questions with
Revised Answers 100% Correct
According to the US Small Business Administration (SBA), to officially count as a small
business the - Answer- number of employees should range from fewer than 100 to
1,500
In the context of small businesses and the economy of a country, which of the following
factors can bring down entrepreneurship rates? - Answer- a high level of employment
opportunities
Which of the following is a reason why many members of the European Union have low
entrepreneurship rates? - Answer- they provide strong unemployment insurance to their
citizens
stockholders typically want to view a firm's accounting information to - Answer- know if
management has generated a strong enough return on investment
work within their organization to detect problems such as waste, mismanagement,
embezzlement, and employee theft - Answer- internal auditors
generally accepted accounting principles (GAAP) are a set of accounting standards that
is used in the: - Answer- preparation of financial statements
in the US, the ultimate legal authority to set and enforce accounting standards lies with
the: - Answer- securities and exchange commission
in the US, the securities and exchange commission has delegated the responsibility for
developing accounting standards to a private organization called the: - Answer- financial
accounting standards board
the major responsibilities involved in financial accounting are the preparation of the: -
Answer- balance sheet, income statement, and statement. of cash flows
in the context of financial statements, _____ are debts that come due within a year of
the date on the balance sheet - Answer- current liabilities
refers to the claims owners have against their firm's assets - Answer- stockholders'
equity
, in the context of the balance sheet, which of the following serves to be the rationale
behind the accounting equation? - Answer- a firm must finance the purchase of their
assets, and the owners and nonowners should contribute towards it
increases in a firms assets that result from the sale of goods, provision of services, or
other activities intended to earn income - Answer- revenue
in the context of statement of cash flows, cash flows from investing activities: - Answer-
show the amount of cash received from the sale of fixed assets
in the context of an independent auditor's report, ________ indicated that the auditor
believes the financial statements are seriously flawed and that they may be misleading
and unreliable - Answer- an adverse opinon
in the context of external audits of financial statements, which of the following
statements is true of CPA firms? - Answer- they must be independent of the companies
they are auditing
the securities and exchange commission requires publicly traded corporations to
provide: - Answer- comparative financial statements
in the context of interpreting financial statements, using statements to identify changes
in key accounting values over time is called: - Answer- horizontal analysis
budgets that identify projected sales and production goals and the various costs the firm
will insure to meet these goals - Answer- operating budgets
in the context of budget preparation, the cash budget is a financial budget document
that identifies: - Answer- short-term fluctuations in cash flow
a financial budget and shows how a firm's operations, investing, and financing activities
are expected to affect all of the asset, liability, and owners' equity accounts - Answer-
budgets balance sheet
the opportunity cost that arises when a firm uses owner-supplied resources is known as
an - Answer- implicit cost
in the context of managerial accounting, _______ are costs that change directly with the
level of production - Answer- variable costs
costs that are the result of a firm's general operations and are not tied to any specific
cost object - Answer- indirect costs
the functional area of business that is responsible for finding the best sources of funds
and the best ways to use them - Answer- finance
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