1. Melissa is examining the major financial statements of a company that she has invested in. Although the company’s sto

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1. Melissa is examining the major financial statements of acompany that she has invested in. Although the company’s stock hasbeen increasing in value, she believes they may be having issueswith liquidity.
Refer to Scenario 8.1. Melissa is concerned that the company hastoo many immediate costs related to their core operations. Melissais thinking about the company’s ___________.
A. liabilities
B. revenues
C. assets
D. expenses
2. Allegra was hired to work for a large consulting firm rightout of college, and she has only been with the company for sixmonths. She is responsible for compiling, organizing, and analyzingaccounting information for the company’s stockholders. She spendsmost of her time meeting with various business-unit managers todiscuss how they should present their numbers to the public.Allegra could best be described as a ________.
A. government accountant
B. management accountant
C. certified public accountant (CPA)
D. financial accountant
3. Merle’s boss is worried about stockholders’ reaction to theircompany’s recent performance. He has asked Merle to add extraneousinformation in the financial statements to help disguise the badnumbers. Merle knows that this would be a violation of thegenerally accepted accounting principles (GAAP) requirement thatfinancial statements be _________, so he has escalated the issue tothe company’s chief financial officer.
A. comparable
B. consistent
C. relevant
D. reliable
4. Abel is preparing his firm’s accounting statements for theyear, and he notices that someone has changed some of theterminology. Although some terms are interchangeable, like “sales”and “revenues,” he is concerned that these changes may be aviolation of the generally accepted accounting principles (GAAP)requirement that financial statements be ____________.
A. comparable
B. reliable
C. consistent
D. relevant