Question 1

Current liabilities are payments due in one year or less.

Accepted Answer

A) True 
 B)False  True

Question 2

Leverage ratios are concerned with the extent to which a firm relies on borrowed funds in its operations.

Accepted Answer

A) True 
 B)False  True

Question 3

The books where accounting data are first entered are called ledgers.

Accepted Answer

A) True 
 B)False  False

Question 4

All of the following are steps included in the accounting cycle Except:

Accepted Answer

A) recording information into journals. 
B) posting journal information into ledgers. 
C) forecasting of expenses and revenues. 
D) preparing a trial balance. 
A) recording information into journals. 
B) posting journal information into ledgers. 
C) forecasting of expenses and revenues. 
D) preparing a trial balance.

Question 5

The net income of a firm can change significantly depending upon the specific accounting procedures that are used for amortization and inventory valuation.

Accepted Answer

A) True 
 B)False

Question 6

(p.507.)If the economy began experiencing a prolonged period of deflation in which the costs of most goods were actually falling,many firms would find that the LIFO method of inventory valuation would result in higher reported profits.

Accepted Answer

A) True 
 B)False

Question 7

As Hector was packing to return to Simon Fraser University after his summer vacation,he realized that he owned many valuable things such as a laptop computer,stereo system,and DVD player.An accountant would list all of these as Hector's:

Accepted Answer

A) assets. 
B) liabilities. 
C) owners' equity. 
D) intangibles. 
A) assets. 
B) liabilities. 
C) owners' equity. 
D) intangibles.

Question 8

The supplier of coffee beans to the local coffee shop now demands to be paid on a cash basis for all purchases.The supplier has done this because:

Accepted Answer

A) the coffee shop's purchases are growing. 
B) the coffee shop has been very slow in paying for previous purchases. 
C) the coffee shop is over 50 miles away from the supplier. 
D) the coffee shop now stays open 24 hours a day. 
A) the coffee shop's purchases are growing. 
B) the coffee shop has been very slow in paying for previous purchases. 
C) the coffee shop is over 50 miles away from the supplier. 
D) the coffee shop now stays open 24 hours a day.

Question 9

Explain the difference between current,capital,and intangible assets.Give two examples of each of these different types of assets.

Accepted Answer

Current assets are items that can be con

Question 10

Over the past month,Monica noted that she disbursed $6,347 in payments for operations in her travel agency and received $6,189 in cash receipts for services rendered.She had no cash receipts or disbursements from investments or financing activities.Thus,Monica had a:

Accepted Answer

A) positive disbursement. 
B) negative cash flow. 
C) bad debt allowance. 
D) tax credit payment. 
A) positive disbursement. 
B) negative cash flow. 
C) bad debt allowance. 
D) tax credit payment.

Question 11

Tickets sold for the Rolling Stones concert are considered to be the net income for the concert promoter.

Accepted Answer

A) True 
 B)False

Question 12

Debts that are due in one year or less are classified as:

Accepted Answer

A) current liabilities. 
B) debit items. 
C) callable debts. 
D) immediate expenses. 
A) current liabilities. 
B) debit items. 
C) callable debts. 
D) immediate expenses.

Question 13

Keith will be graduating from Acadia University this year.He has accumulated $18,000 dollars in student loans during his four years at college.An accountant would classify the loans as:

Accepted Answer

A) assets. 
B) liabilities. 
C) owners' equity. 
D) intangibles. 
A) assets. 
B) liabilities. 
C) owners' equity. 
D) intangibles.

Question 14

Gross margin represents the amount a firm earns by buying (or making)and selling merchandise.

Accepted Answer

A) True 
 B)False

Question 15

Prattville Manufacturing has applied for a short-term loan with CIBC.The loan officers of the bank are likely to look carefully at Prattville's liquidity ratios before they decide to grant the loan.

Accepted Answer

A) True 
 B)False

Question 16

A firm's financial statements represent a health report regarding the condition of the firm.

Accepted Answer

A) True 
 B)False

Question 17

Carlisle Communications is preparing its cash flow statement.Among other things,this statement will show:

Accepted Answer

A) net income from operations after taxes. 
B) general expenses and operating expenses. 
C) cash inflows and cash outflows that resulted from financing activities. 
D) the total owners' equity for the firm. 
A) net income from operations after taxes. 
B) general expenses and operating expenses. 
C) cash inflows and cash outflows that resulted from financing activities. 
D) the total owners' equity for the firm.

Question 18

The LIFO method of inventory valuation assumes that the newest items in inventory are sold first.

Accepted Answer

A) True 
 B)False

Question 19

Liabilities are what the firm owes to others.

Accepted Answer

A) True 
 B)False

Question 20

Jim works in the accounting department at the Brunswick Sunflower Corporation,where it is his job to record all transactions into journals.After completing this task,the next step in the accounting process is to:

Accepted Answer

A) prepare the firm's financial statements. 
B) post the information into ledgers. 
C) determine the tax liability of the firm. 
D) balance the difference between assets and liabilities. 
A) prepare the firm's financial statements. 
B) post the information into ledgers. 
C) determine the tax liability of the firm. 
D) balance the difference between assets and liabilities.

Current liabilities are payments due in one year or less.

Leverage ratios are concerned with the extent to which a firm relies on borrowed funds in its operations.

The books where accounting data are first entered are called ledgers.

All of the following are steps included in the accounting cycle Except:

The net income of a firm can change significantly depending upon the specific accounting procedures that are used for amortization and inventory valuation.

(p.507.)If the economy began experiencing a prolonged period of deflation in which the costs of most goods were actually falling,many firms would find that the LIFO method of inventory valuation would result in higher reported profits.

As Hector was packing to return to Simon Fraser University after his summer vacation,he realized that he owned many valuable things such as a laptop computer,stereo system,and DVD player.An accountant would list all of these as Hector's:

The supplier of coffee beans to the local coffee shop now demands to be paid on a cash basis for all purchases.The supplier has done this because:

Explain the difference between current,capital,and intangible assets.Give two examples of each of these different types of assets.

Over the past month,Monica noted that she disbursed $6,347 in payments for operations in her travel agency and received $6,189 in cash receipts for services rendered.She had no cash receipts or disbursements from investments or financing activities.Thus,Monica had a:

Tickets sold for the Rolling Stones concert are considered to be the net income for the concert promoter.

Debts that are due in one year or less are classified as:

Keith will be graduating from Acadia University this year.He has accumulated $18,000 dollars in student loans during his four years at college.An accountant would classify the loans as:

Gross margin represents the amount a firm earns by buying (or making)and selling merchandise.

Prattville Manufacturing has applied for a short-term loan with CIBC.The loan officers of the bank are likely to look carefully at Prattville's liquidity ratios before they decide to grant the loan.

A firm's financial statements represent a health report regarding the condition of the firm.

Carlisle Communications is preparing its cash flow statement.Among other things,this statement will show:

The LIFO method of inventory valuation assumes that the newest items in inventory are sold first.

Liabilities are what the firm owes to others.

Jim works in the accounting department at the Brunswick Sunflower Corporation,where it is his job to record all transactions into journals.After completing this task,the next step in the accounting process is to:

Taking Risks and Making Profits Within the Dynamic Business Environment

How Economic Issues Affect Business

Competing in Global Markets

The Role of Government in Business

Ethics and Social Responsibility

Forms of Business Ownership

Entrepreneurship and Starting a Small Business

Management and Leadership

Adapting Organizations to Todays Markets

Producing World-Class Goods and Services

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Understanding Employeemanagement Issues and Relations

Marketing: Building Customer and Stakeholder Relationships

Managing the Marketing Mix: Product, Price, Place, and Promotion

Financial Management

The Financial Services Industry in Canada

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Exam 16: Understanding Accounting and Financial Information

Current liabilities are payments due in one year or less.

Leverage ratios are concerned with the extent to which a firm relies on borrowed funds in its operations.

The books where accounting data are first entered are called ledgers.

All of the following are steps included in the accounting cycle Except:

The net income of a firm can change significantly depending upon the specific accounting procedures that are used for amortization and inventory valuation.

(p.507.)If the economy began experiencing a prolonged period of deflation in which the costs of most goods were actually falling,many firms would find that the LIFO method of inventory valuation would result in higher reported profits.

As Hector was packing to return to Simon Fraser University after his summer vacation,he realized that he owned many valuable things such as a laptop computer,stereo system,and DVD player.An accountant would list all of these as Hector's:

The supplier of coffee beans to the local coffee shop now demands to be paid on a cash basis for all purchases.The supplier has done this because:

Explain the difference between current,capital,and intangible assets.Give two examples of each of these different types of assets.

Over the past month,Monica noted that she disbursed $6,347 in payments for operations in her travel agency and received $6,189 in cash receipts for services rendered.She had no cash receipts or disbursements from investments or financing activities.Thus,Monica had a:

Tickets sold for the Rolling Stones concert are considered to be the net income for the concert promoter.

Debts that are due in one year or less are classified as:

Keith will be graduating from Acadia University this year.He has accumulated $18,000 dollars in student loans during his four years at college.An accountant would classify the loans as:

Gross margin represents the amount a firm earns by buying (or making)and selling merchandise.

Prattville Manufacturing has applied for a short-term loan with CIBC.The loan officers of the bank are likely to look carefully at Prattville's liquidity ratios before they decide to grant the loan.

A firm's financial statements represent a health report regarding the condition of the firm.

Carlisle Communications is preparing its cash flow statement.Among other things,this statement will show:

The LIFO method of inventory valuation assumes that the newest items in inventory are sold first.

Liabilities are what the firm owes to others.

Jim works in the accounting department at the Brunswick Sunflower Corporation,where it is his job to record all transactions into journals.After completing this task,the next step in the accounting process is to:

Taking Risks and Making Profits Within the Dynamic Business Environment

How Economic Issues Affect Business

Competing in Global Markets

The Role of Government in Business

Ethics and Social Responsibility

Forms of Business Ownership

Entrepreneurship and Starting a Small Business

Management and Leadership

Adapting Organizations to Todays Markets

Producing World-Class Goods and Services

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Understanding Employeemanagement Issues and Relations

Marketing: Building Customer and Stakeholder Relationships

Managing the Marketing Mix: Product, Price, Place, and Promotion

Financial Management

The Financial Services Industry in Canada

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