Question

1.

________ is the amount an investment is worth discounted back to the present.

Select one:

a. Present value of money

b. Future value of money

c. Time value of money

d. Prediscounted value of money

2.

How are private individuals most likely to benefit from the latest accounting software?

Select one:

a. to get investment advice

b. to help them prepare their taxes

c. to help them start their own business

d. to audit private companies

e. to help them find a job

3.

Which of the following agencies guarantees the safety of all of its members' bank accounts?

Select one:

a. Internal Revenue Service

b. Federal Open Market Committee

c. Federal Reserve Bank

d. Federal Deposit Insurance Corporation

e. Federal Exchange Commission

4.

Every time an entrepreneur spends cash, she or he takes a risk. If one buys ________, then the entrepreneur faces the risk of storage costs and pilfering.

Select one:

a. a computer for your chief financial officer

b. capital assets

c. inventory

d. None of the above.

5.

Howard is a public accountant working for a local nonprofit. How is he likely being paid for his accounting services?

Select one:

a. a fee basis

b. as a hired employee

c. a salaried basis

d. a standard industry rate

e. only during income tax season

6.

Which is the main kind of audit that external auditors typically provide?

Select one:

a. independent audits

b. certified internal audits

c. forensic audits

d. not-for-profit audits

e. private audits

Answer 1

1.

________ is the amount an investment is worth discounted back to the present

a. Present value of money - it is the present worth of the future invested sum of money.

2.How are private individuals most likely to benefit from the latest accounting software?

b. to help them prepare their taxes

3.Which of the following agencies guarantees the safety of all of its members' bank accounts?

d. Federal Deposit Insurance Corporation - FDIC primary responsibility is to guarantee the safety of all of its members' bank accounts

4.

Every time an entrepreneur spends cash, she or he takes a risk. If one buys ________, then the entrepreneur faces the risk of storage costs and pilfering

c. inventory - to invest in inventory the entrepreneur need to consider the impact on cash flow.

5.Howard is a public accountant working for a local nonprofit. How is he likely being paid for his accounting services?

a. a fee basis - as these are the services he is performing for a local non- profit.

6.

Which is the main kind of audit that external auditors typically provide?

a. independent audits