ACC 561 Week 6 Final Exam / University of Phoenix / (30/30) - 69119

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Question 1


Which of the following is an advantage of corporations relative to partnerships and sole proprietorships?


·         Lower taxes


·         Most common form of organization


·         Reduced legal liability for investors


·         Harder to transfer ownership


Question 2


The group of users of accounting information charged with achieving the goals of the business is its


·         Managers


·         Creditors


·         Auditors


·         investors


Question 3


Which of the following financial statements is concerned with the company at a point in time?


·         Income statement.


·         Retained Earnings statement


·         Balance sheet


·         Statement of cash flows


Question 4


An income statement


·         presents the revenues and expenses for a specific period of time


·         summarizes the changes in retained earnings for a specific period of time


·         reports the changes in assets, liabilities, and stockholders’ equity over a period of time


·         reports the assets, liabilities, and stockholders’ equity at a specific date


Question 5 


The most important information needed to determine if companies can pay their current obligations is the


·         relationship between short-term and long-term liabilities


·         net income for this year


·         relationship between current assets and current liabilities


·         projected net income for next year


Question 6


A liquidity ratio measures the


·         ability of a company to survive over a long period of time


·         short-term ability of a company to pay its maturing obligations and to meet unexpected needs for cash


·         percentage of total financing provided by creditors


·         income or operating success of a company over a period of time


Question 7


The convention of consistency refers to consistent use of accounting principles


·         among accounting periods


·         among firms


·         within industries


·         throughout the accounting periods




Question 8


Horizontal analysis is also known as


·         linear analysis


·         vertical analysis


·         trend analysis


·         common size analysis




Question 9


Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time


·         to determine which items are in error


·         to determine the amount and/or percentage increase or decrease that has taken place


·         that has been arranged from the highest number to the lowest number


·         that has been arranged from the lowest number to the highest number






Question 10 






Vertical analysis is a technique that expresses each item in a financial statement


·         in dollars and cents


·         starting with the highest value down to the lowest value


·         as a percent of the item in the previous year


·         as a percent of a base amount



Solution Description

ACC 561

Week 6 Final Exam Questions with answers.docx
Week 6 Final Ex...