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Introduction to Accounting: Help and Review Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Monica reads in the newspaper that in the year ended December 31, 2015, Profit For Two Inc made $1 million profit. Monica wants to confirm for herself that this is really the case. What financial statement of Profit For Two Inc should Monica read to confirm the newspaper report?

Question 2 2. Ethics are defined as _____.

Question 3 3. What is the formula for the basic accounting equation?

Question 4 4. Which of the following is NOT a financial statement?

Question 5 5. Who investigated Arthur Andersen and Enron?

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Question 6 6. Djokovic is the Chief Information Officer for InfoTech Inc. Murray is the Chief Lending Officer at the Bank where InfoTech has a large bank loan. Which statement is true for both Djokovic and Murray, in connection with InfoTech?

Question 7 7. GAAP sets the standards for the creation of what?

Question 8 8. Why is accounting important to business?

Question 9 9. Which of the following is an example of external users of accounting information?

Question 10 10. In our ever-evolving world, there have been many advances that have made accounting processes easier to complete. Which of the following is an example of man-made technology that has impacted the accounting industry throughout history?

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Question 11 11. How many basic accounting principles make up GAAP?

Question 12 12. Adam wants to find out the assets and liabilities of a company. Which financial statement should Adam read to find out this information?

Question 13 13. _____ and technology go hand in hand.

Question 14 14. Dan's organization stores their software applications and other information on a group of external computers known as virtual network servers. Employees often refer to this storage space as the _____.

Question 15 15. What was the accounting firm that made unethical choices in the Enron scandal?

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Question 16 16. Which law was enacted as a direct result of the unethical financial practices of both Enron and Arthur Andersen?

Question 17 17. What does the term 'accounting' mean?

Question 18 18. Michael, the majority shareholder of a company, decided to produce the company's balance sheet whose cash balance included the cash in his own bank account. Would Michael be allowed to do this by GAAP?

Question 19 19. Bob is the CEO of ABC Hydraulics. Bob is committed to ethical business practices. He ensures that his investors are kept well-informed of the state of the company. As part of his commitment to transparency and ethical practices, he prefers that the top level executives don't see the inner workings of the company's financials so that they aren't tempted to try to defraud the company by embezzling. Is this complying with SOX (Sarbanes-Oxley Act)?

Question 20 20. What has technology done to the accounting process?

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Question 21 21. What does ALOE stand for?

Question 22 22. What statement(s) do external and internal users of accounting information rely on?

Question 23 23. Which company, listed on the New York Stock Exchange would definitely be in breach of the Going Concern Principle?

Question 24 24. Which of the following is an example of how publicly-traded companies can apply the principle of conservatism with their financial statements?

Question 25 25. With accounting software, Bob is able to complete five times as many transactions as he can manually; this supports the explanation of technology as

Introduction to Accounting: Help and Review Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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