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Question 1
Go Co. has purchased a large piece of machinery that it expects to use over the next twenty years. In accounting for this transaction, the company will likely:
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Correct In an asset such as the one here, where the machine's useful life runs into multiple years, the general accounting principle used to account for the cost of the machine is a depreciation of the asset over time. The idea behind depreciation is that if a machine is going to last for multiple years, the company needs to expense some portion of it every year. Thus, the government (for tax purposes) and FASB (for accounting purposes) produce fixed tables so a company will know how to depreciate its assets.
Incorrect! In an asset such as the one here, where the machine's useful life runs into multiple years, the general accounting principle used to account for the cost of the machine is a depreciation of the asset over time. The idea behind depreciation is that if a machine is going to last for multiple years, the company needs to expense some portion of it every year. Thus, the government (for tax purposes) and FASB (for accounting purposes) produce fixed tables so a company will know how to depreciate its assets.
Question 2
Kelly is the head accountant for HighTop, Inc. In many companies, Kelly is likely to hold a position as the firm's:
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Incorrect!
Correct The chief financial officer (CFO) of a company is its highest ranking official tasked with being in charge of the company's finances. In many cases, the CFO will have extensive training or knowledge, either formal or informal, in the areas of accounting and finance, and is often a CPA.
Incorrect! The chief financial officer (CFO) of a company is its highest ranking official tasked with being in charge of the company's finances. In many cases, the CFO will have extensive training or knowledge, either formal or informal, in the areas of accounting and finance, and is often a CPA.
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Incorrect!
Correct
Incorrect!
Question 3
Which of the following roles is typically played by a firm's accountant?
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Correct Accountants play a wide variety of roles in the firms for which they work. Apart from things that most people associate with accountants, such as bookkeeping and tax preparation, there are a great many other parts of their jobs. Among these roles is the oversight of the firm's inventory control methods and the structuring of transactions to ensure that the firm retains the optimal benefits from any merger or business combination transaction.
Incorrect! Accountants play a wide variety of roles in the firms for which they work. Apart from things that most people associate with accountants, such as bookkeeping and tax preparation, there are a great many other parts of their jobs. Among these roles is the oversight of the firm's inventory control methods and the structuring of transactions to ensure that the firm retains the optimal benefits from any merger or business combination transaction.
Question 4
Typically, accountants and lawyers:
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Correct Lawyers and accountants interact on a fairly regular basis. This applies both to the company's 'in-house' attorneys and accountants, and also to any 'outside' counsel or accounting firm that the company may retain. The reason for this is that lawyers and accountants are often acting together to insure that a company is properly addressing various filing and reporting requirements of companies. Additionally, when a company is in any form of financial or legal trouble, lawyers and accountants act in combination to help extricate the firm from its difficulties.
Incorrect! Lawyers and accountants interact on a fairly regular basis. This applies both to the company's 'in-house' attorneys and accountants, and also to any 'outside' counsel or accounting firm that the company may retain. The reason for this is that lawyers and accountants are often acting together to insure that a company is properly addressing various filing and reporting requirements of companies. Additionally, when a company is in any form of financial or legal trouble, lawyers and accountants act in combination to help extricate the firm from its difficulties.
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Incorrect!