19 Free Test Bank for Accounting Information for Business Decisions 1st Edition by Cunningham

Free test bank for Accounting Information for Business Decisions 1st Edition by Cunningham offer concepts of both managerial and financial accounting under freely online questions and aid students in applying them into real situations through instant answers. Therefore, students are able to be confident of covering their knowledge in this study. Don’t waste your time! Explore how well you can understand each sheet of free typical test bank for accounting information systems. With 19  mutiple choice online free questions in this test bank that you can practice  easily and quickly!

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Which of the following do not cover a period of time?

•  a.Income statement.
•  b.Cash flow statement.
•  c.Balance sheet.
•  d.Accounts receivable ledger .

What is the primary difference between a manufacturer and a merchandiser?

•  a.Merchandisers purchase finished goods ready to sell, whereas a manufacturer must create the goods.
•  b.Manufacturers purchase finished goods ready to sell, whereas a merchandiser must create the goods.
•  c.Merchandisers do not sell directly to the public, but rather only to manufacturers.
•  d.Manufacturers buy the finished goods from a merchandiser then resell it, basically acting as a middle man.

Which of the following is an example of a manufacturer?

•  a.Dell Calculator
•  b.Bob’s lawnmower services
•  c.Air NZ
•  d.Qantas

Financial accounting information:

•  a.is a one size fits all approach to reporting business results.
•  b.can be tailored to the needs of the internal user.
•  c.follows statements on management accounting in the reporting process.
•  d.helps only external users make decisions.

Which of the following summarises a business’ financial position on a given date?

•  a.Income statement
•  b.Cash flow statement
•  c.Balance sheet
•  d.Budget

Which of the following summarises a business’ receipts and payments?

•  a.Budget.
•  b.Income statement.
•  c.Balance sheet.
•  d.Cash flow statement.

Which of the following is false?

•  a.Accounting keeps track of a business’ economic resources and activities, then reports the results and financial position to users who have an interest.
•  b.Accounting is a mere numbers game. The information is only useful to a limited few. The reality is that few managers need accounting information to make quality operating decisions.
•  c.Accounting focuses on the resources and activities of individual businesses.
•  d.Products and services affect almost every minute of our lives.

Financial position of a business can best be evaluated with which of the following?

•  a.Net income.
•  b.Assets, liabilities and owner’s equity.
•  c.Cash received and paid.
•  d.Owner investments.

Operating activities consist of:

•  a.how products get made and sold.
•  b.measuring actual operations and progress against a standard or benchmark.
•  c.establishing business goals.
•  d.establishing means of achieving business goals.

Which of the following summarises the results of a business’ operating activities for a specific time period?

•  a.Income statement
•  b.Cash flow statement
•  c.Balance sheet
•  d.Payables ledger

Which of the following would a manager do as a part of planning activities?

•  a.Compare estimates to benchmarks.
•  b.Purchase inventory.
•  c.Hire employees.
•  d.Prepare cost estimates.

A lack of solvency is demonstrated when:

•  a.assets are greater than liabilities.
•  b.liabilities are greater than assets.
•  c.revenues are greater than expenses.
•  d.expenses are greater than revenues.

The business’ obligations to its creditors are:

•  a.Liabilities.
•  b.Expenses.
•  c.Payments.
•  d.Owners' equity.

Managerial accounting information:

•  a.is a one size fits all approach to reporting business results.
•  b.can be tailored to the needs of the internal user.
•  c.follows GAAP in the reporting process.
•  d.helps shareholders make decisions.

A budget:

•  a.quantifies management’s plans.
•  b.determines and evaluates the cost of specific products or activities in a business.
•  c.compiles actual costs for a given period.
•  d.is used to determine if a product should be continued or discontinued.

Evaluating activities consist of:

•  a.establishing business goals.
•  b.establishing a means of achieving business goals.
•  c.providing feedback to managers to correct deviations from standards.
•  d.setting benchmarks or standards.

Statements on management accounting:

•  a.are binding and contractual in nature.
•  b.are general guidelines management accountants may turn to when faced with new situations to resolve.
•  c.are developed primarily to guide the structure of reporting to external users.
•  d.are issued by CPA Australia.

The business’ economic resources are:

•  a.Revenues.
•  b.Liabilities.
•  c.Owners' equity.
•  d.Assets.