【正文】 analyzing and forecasting profits, and in planning activities.syReebok39。TRUE75.s ability to generate profit using its assets.t: A4Risk is the amount of uncertainty about the return we expect to earn.gy: A4Generally the lower the risk, the lower the return that can be expected.g: A4U. S. Government Treasury bonds provide high return and low risk to investors.g: A4The four basic financial statements include the balance sheet, ine statement, statement of owner39。TRUE80.FALSE81.FALSE82.TRUE83.FALSE84.FALSE85.FALSE86.TRUE87.s contributions and withdrawals are reported on the ine statement.yInvesting activities involve the buying and selling of assets such as land and equipment that are held for longterm use in the business.yOperating activities include longterm borrowing and repaying cash from lenders, and cash investments or withdrawals by the owner.yThe purchase of supplies appears on the statement of cash flows as an investing activity because it involves the purchase of assets.yThe ine statement reports on operating activities at a point in time.yThe statement of cash flows reports on cash flows separated into operating, investing, and financing activities over a period of time.yChuck Taylor invested $175,000 cash in FastForward. This amount would be reported in the statement of cash flows under financing activities.y Chuck Taylor withdrew $6,000 in cash from FastForward. This amount should be included as an expense on the ine statement. y Multiple Choice Questions Accounting is an informationt system that:Identifies business activities.B.Communicates business activities.D.All of these.96.A.Has not changed the work that accountants do.C.In accounting has replaced the need for decision makers.E.AACSB: TechnologyyAICPA FN: Leveraging Technology: C1The primary objective of financial accounting is:To serve the decisionmaking needs of internal users.B.s activities.C.To provide information on both the costs and benefits of looking after products and services.E.sy: C2Internal users of accounting information include:Shareholders.B.Lenders.D.Customers.99.A.Managerial accounting.C.SEC reporting.E.sy: C2The operating functions of a business include:Research and development.B.Marketing.D.All of these.101.102.A.Management consulting.C.Cost accounting.E.sy: C3Career opportunities in accounting include:Budgeting.B.Cost accounting.D.All of these.104.A.Certified Management Accountant.C.Personal Financial SpecialistE.sy: C3A Certified Public AccountantMust meet education and experience requirementsB.Must exhibit ethical characterD.All of these.106.A. pay not depend on the figures in the client39。Auditors to invest in businesses they audit.C.Managers to use accounting information to benefit themselves.E.AACSB: Ethicsl: C4Social responsibility:Is a concern for the impact of our actions on society.B.Is required by the SEC.D.All of these.108.AACSB: Ethicsy: C4slt: C5Businesses can take the following form(s):Sole proprietorship.B.Partnership.D.All of these.111.A.Is controlled by the FASB.C.Is the same as a limited liability partnership.E.sl: C5The rules adopted by the accounting profession as guides in preparing financial statements are:Comprised of both general and specific principles.B.Abbreviated as GAAP.D.All of these.113.A.FASB.C.SEC.E.sAICPA BB: Global: C5The private group that currently has the authority to establish generally accepted accounting principles is the:APB.B.AAA.D.SEC.115.A.Business entity assumption.C.Revenue recognition principle.E.sl: C5The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold, unless evidence shows that it will not continue, is the:Goingconcern principle.B.Objectivity principle.D.Monetary unit principle.117.A.Are known as generally accepted accounting principles.C.Arise from both longused practices and from rulings of authoritative groups.E.sy: C5To include the personal assets and transactions of a business39。A.Realization principle.C.Goingconcern principle.E.sl: C5The accounting principle that requires accounting information to be based on actual cost and requires assets and services to be recorded initially at the cash or cashequivalent amount given in exchange, is the:Accounting equation.B.Goingconcern principle.D.Business entity principle.121.A.Are basic assumptions, concepts, and guidelines in preparing financial statements.C.Arise from the rulings of authoritative bodies.E.sl: C5The objectivity principle:Means that information is supported by independent, unbiased evidence.B.Means that financial statements should contain information that is optimistic.D.All of these.123.A.Cost principle.C.Objectivity principle.E.sl: C5The question of when revenue should be recognized on the ine statement (according to GAAP) is addressed by the:Revenue recognition principle.B.Objectivity principle.D.Cost principle.125.A.Is the government group that establishes reporting requirements for panies that issue stock to the public.C.Is the only source of generally accepted accounting principles (GAAP).E.sAICPA BB: Global: C5The Maximum Experience Company acquired a buil