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8.Fixed assets are saleable, but are not expected to be converted to cash in the _________ course of business.

a)average

b)equal

c)final

d)normal

9.Liabilities are debts or _________ stemming from goods or services received by the company.

a)obligations

b)others

c)outstandings

d)owed

10.If the assets of a company are greater than its liabilities, then the equity of the business is the positive _________ between the two numbers.

a)calculation

b)difference

c)dividend

d)sum

Test №4 Income statements

1.The statement of income and expenses reports the company's income and expenses for the time period: it is also called a _________-and-loss statement.

a)earnings

b)gain

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c)profit

d)win

2.The first item on the statement is the total amount of sales of products or services; this is often referred to as _________ sales.

a)gross

b)mass

c)overall

d)whole

3.The main deduction from this revenue is called _________ of sales, the amount of money the company spent to produce the same goods or services.

a)cost

b)discount

c)expense

d)reduction

4.The next deduction is _________ expenses — for example, administrative salaries and research costs, which do not vary directly with production.

a)fixed

b)operating

c)standard

d)unproductive

5.Depreciation expenses the wear and _________ on assets like machinery, equipment and furnishings.

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a)age

b)change

c)repair

d)tear

6.The depreciation charge for using these assets during the accounting period is a _________ of their original cost.

a)foundation

b)fractile

c)fragment

d)function

7._________ income is the money that the company earns by keeping its cash in savings accounts, term deposits, etc.

a)Illicit

b)Inactive

c)Interest

d)Internal

8.Finally, _________ tax is deducted.

a)business

b)commercial

c)income

d)value-added

9.The final entry is the _________ line, which represents net earnings of the company during the accounting period.

a)balance

b)base

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c)black

d)bottom

10.Additionally, _________ indicates how much shareholders would receive if the company distributed all of its net earnings as dividends.

a)EPS

b)GDP

c)GNP

d)VAT

Test №5 Cost accounting

1._________ or cost accounting systems are part of a company's information system and are used for tracking costs and allocations to judge operational efficiency.

a)Corporate

b)Domestic

c)Management

d)Monitoring

2.This is an _________ accounting system, rather than one for outside reporting.

a)inner

b)inside

c)interior

d)internal

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3.There are no _________ rules governing how a company should keep track of cash flows for cost accounting purposes.

a)amended

b)fixed

c)required

d)restricted

4._________ budgeting is a form of forecasted cost accounting for longterm projects or expenditures.

a)Capital

b)Major

c)Overhead

d)Terminal

5.Cost accounting applications are major financial _________ in everyday corporate decision-making.

a)distractors

b)drivers

c)fetters

d)operators

6.Cost accounting is important for estimating the _________ of current and future activities.

a)foreseeability

b)profitability

c)sensibility

d)variability

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7.When good cost accounting procedures are _________, the company may find out that they have been producing a non-profitable product or service.

a)contracted

b)discarded

c)implemented

d)suggested

8.Cost accounting _________ managers toward company goals.

a)aggravates

b)gravitates

c)insulates

d)motivates

9.It also measures the _________ of managers and departments in the company.

a)acceleration

b)doings

c)performance

d)seniority

10._________ costs change in proportion to the level of production activity, while fixed costs remain unchanged.

a)varicose

b)various

c)variable

d)versatile

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Test №6 International Accounting standards

1.With the activities and interests of investors, lenders and companies becoming increasingly global, the Securities and Exchange Commission is increasing its involvement in a number of forums to develop a globally accepted, high quality financial reporting

_________.

a)bulwark

b)framework

c)outline

d)scaffold

2.Our efforts, at both a domestic and international level, consistently have been based on the view that the only way to achieve fair, liquid and efficient capital markets worldwide is by providing investors with information that is _________, transparent and reliable.

a)commensurate

b)commercial

c)comparable

d)compatible

3.That is why we have pursued a dual objective of upholding the quality of financial reporting domestically, while encouraging _________

towards a high quality global financial reporting structure internationally.

a)convention

b)convergence

c)conversion

d)conveyance

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4.Over the last two decades, the global financial _________ has undergone a significant transformation.

a)landscape

b)panorama

c)prospect

d)scenery

5.These developments have been _________, in part, to dramatic changes in the business and political climates, increasing global competition, the development of more market-based economies, and rapid technological improvements.

a)accountable

b)amenable

c)answerable

d)attributable

6.Our efforts to develop a global financial reporting structure have been guided by the _________ principle underlying our system of regulation

— pursuing our mandate of investor protection by promoting informed investment decisions through full and fair disclosure.

a)bedrock

b)cornerstone

c)keynote

d)landmark

7.In 1988, we issued a policy statement that noted that all securities regulators should work together _________, to create sound international regulatory systems that will enhance the vitality of capital markets.

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a)definitively

b)desultorily

c)diligently

d)distinctly

8.Currently, issuers wishing to access capital markets in different jurisdictions must comply with the requirements of each jurisdiction, which differ in many _________.

a)angles

b)respects

c)senses

d)views

9.Throughout this effort, we have been _________ in advocating that capital markets operate most efficiently when investors have access to high quality financial information.

a)headstrong

b)heavyhanded

c)singleminded

d)steadfast

10.While the accounting standards used must be high quality, they also must be supported by an infrastructure that ensures that the standards are _________ interpreted and applied, and that issues and problematic practices are identified and resolved in a timely fashion.

a)righteously

b)rightfully

c)rigidly

d)rigorously

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Test №7 International Accounting standards (2)

1.High quality accounting standards are critical _________ the development of a high quality global financial reporting structure.

a)of

b)over

c)to

d)under

2.Different accounting traditions have developed around the world in response to varying needs of users for whom the financial information is prepared; in some countries, accounting standards have been

_________ primarily by the needs of private creditors, while in other countries the needs of tax authorities or central planners have been the predominant influence.

a)drawn

b)shaped

c)sketched

d)written

3.Establishing and maintaining high quality accounting standards are critical to the US approach to regulation of capital markets, which depends on providing high quality information to facilitate _________

investment decisions.

a)advised

b)advisory

c)informational

d)informed

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