Strayer JWI530 Week 1 Knowledge Check Latest 2020 JULY

JWI530 FINANCIAL MANAGEMENT I

Week 1 Knowledge Check

Question 1Historical cost is an accounting principle that says what a company owns is originally recorded at which of the following

Answers:            

A. Appraised value

B. Purchase cost

C. Insured value

D. Market value

Question 2Generally accepted accounting principles include

Answers:            

A. Revenue recognition

B. Matching revenues and expenses

C. Historical cost

D. Full disclosure

E. All of the above

Question 3Which of the following statements are correct

Answers:            

A. Revenues are top line

B. Profits are bottom line

C. Both A and B

D. Costs are the same as expenses

Question 4The finance department has responsibility for which of the following

Answers:            

A. Treasury function

B. Insurance and risk management

C. Mergers and acquisitions

D. All of the above

Question 5Cash appears on which of the following financial statements

Answers:            

A. Statement of cash flows

B. Balance sheet

C. Both A and B

D. Income statement

Question 6The matching principle means which of the following

Answers:            

A. Record cash as revenue when received

B. Record costs associated with producing revenue at the same time

C. Applies to accrual accounting

D. Both B and C

Question 7Which of the following issues domestic Generally Accepted Accounting Principles

Answers:            

A. IFRS

B. SEC

C. NASDAQ

D. FASB

Question 8Solvency is the same as profitability

True

False

Question 9Finance is responsible for which of the following

Answers:            

A. Internal control

B. Collecting data for financial reporting

C. Financial information used by other departments

D. All of the above

Question 10Which is a correct statement under the accrual method of accounting?

Answers:            

A. A company recognizes revenue when it receives cash

B. A company recognizes expense when it pays cash

C. A company recognizes revenue when earned or it consummates a sale

D. A company matches cash received with cash paid