Question 1

Independent audits are prepared by accountants within the organization to ensure that proper accounting procedures are followed.

Accepted Answer

A) True 
 B)False

Question 2

The higher the risk of a particular investment,the greater the expected rate of return required by investors.

Accepted Answer

A) True 
 B)False

Question 3

When it comes to the treatment of amortization and valuation of inventory,generally accepted accounting principles:

Accepted Answer

A) provide almost no guidance to accountants. 
B) allow accountants to choose among different methods both for amortization and the valuation of inventory. 
C) require accountants to use only one specific method of amortization,but permit several methods of inventory valuation. 
D) require accountants to use one specific method for valuing inventory,but permit several methods for depreciating fixed assets. 
A) provide almost no guidance to accountants. 
B) allow accountants to choose among different methods both for amortization and the valuation of inventory. 
C) require accountants to use only one specific method of amortization,but permit several methods of inventory valuation. 
D) require accountants to use one specific method for valuing inventory,but permit several methods for depreciating fixed assets.

Question 4

The cash flow statement shows a firm's revenues,costs of goods sold,expenses,and net income.

Accepted Answer

A) True 
 B)False

Question 5

If a firm has $100,000 in assets and liabilities of $62,000,then the owner's equity is equal to $162,000.

Accepted Answer

A) True 
 B)False

Question 6

Accounting and bookkeeping are terms used for essentially the same activity in an organization.

Accepted Answer

A) True 
 B)False

Question 7

A cash flow statement reports the receipts and disbursements of cash in a given time period as the result of three types of activities: operations,investments,and financing.

Accepted Answer

A) True 
 B)False

Question 8

Name two purposes of accounting.

Accepted Answer

One purpose is to help managers evaluate

Question 9

Double-entry bookkeeping requires that every transaction be recorded in two places.

Accepted Answer

A) True 
 B)False

Question 10

The cost of goods sold includes all the costs of buying and keeping merchandise available for sale.

Accepted Answer

A) True 
 B)False

Question 11

The preparation of financial statements for people outside the firm (creditors,unions,suppliers,and others)is the goal of:

Accepted Answer

A) auditing. 
B) financial accounting. 
C) managerial accounting. 
D) cost accounting. 
A) auditing. 
B) financial accounting. 
C) managerial accounting. 
D) cost accounting.

Question 12

If prices of inventory are unchanged throughout the year,LIFO and FIFO inventory valuation methods will produce the same reported net income.

Accepted Answer

A) True 
 B)False

Question 13

The specialized accounting book in which information from journals is accumulated into specific categories is called a:

Accepted Answer

A) journal. 
B) trial balance. 
C) ledger. 
D) balance sheet. 
A) journal. 
B) trial balance. 
C) ledger. 
D) balance sheet.

Question 14

A cash flow statement summarizes a company's cash receipts and cash payments over a period of time.

Accepted Answer

A) True 
 B)False

Question 15

Jose just graduated from college with a bachelor's degree in accounting.He plans to go to work for the Canadian Cancer Society as an accountant.Jose will be a(n):

Accepted Answer

A) private accountant. 
B) public accountant. 
C) forensic accountant. 
D) independent accountant. 
A) private accountant. 
B) public accountant. 
C) forensic accountant. 
D) independent accountant.

Question 16

To accurately evaluate a firm's financial ratios you should compare the ratios to:

Accepted Answer

A) other firms in the same industry. 
B) firms in the same geographic region of the country. 
C) the norms established by generally accepted accounting principles. 
D) to the largest firms in the country. 
A) other firms in the same industry. 
B) firms in the same geographic region of the country. 
C) the norms established by generally accepted accounting principles. 
D) to the largest firms in the country.

Question 17

The owners' equity in a firm is listed as an asset on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 18

What is the difference between a private accountant and a public accountant?

Accepted Answer

A public accountant provides s

Question 19

The individuals in a firm that are responsible for the development of strategies to minimize taxes are called:

Accepted Answer

A) tax accountants. 
B) certified public accountants. 
C) certified management accountants. 
D) certified internal auditors. 
A) tax accountants. 
B) certified public accountants. 
C) certified management accountants. 
D) certified internal auditors.

Question 20

If a firm has a debt to owners' equity ratio of 54 (or 54%)we can conclude that:

Accepted Answer

A) it has relied more on debt than equity to finance its operations. 
B) the firm is likely to have trouble paying its short term debts when they come due. 
C) its total liabilities are less than its owners' equity. 
D) the firm has expenses that are exactly 54% of its gross margin. 
A) it has relied more on debt than equity to finance its operations. 
B) the firm is likely to have trouble paying its short term debts when they come due. 
C) its total liabilities are less than its owners' equity. 
D) the firm has expenses that are exactly 54% of its gross margin.

Independent audits are prepared by accountants within the organization to ensure that proper accounting procedures are followed.

The higher the risk of a particular investment,the greater the expected rate of return required by investors.

When it comes to the treatment of amortization and valuation of inventory,generally accepted accounting principles:

The cash flow statement shows a firm's revenues,costs of goods sold,expenses,and net income.

If a firm has $100,000 in assets and liabilities of $62,000,then the owner's equity is equal to $162,000.

Accounting and bookkeeping are terms used for essentially the same activity in an organization.

A cash flow statement reports the receipts and disbursements of cash in a given time period as the result of three types of activities: operations,investments,and financing.

Name two purposes of accounting.

Double-entry bookkeeping requires that every transaction be recorded in two places.

The cost of goods sold includes all the costs of buying and keeping merchandise available for sale.

The preparation of financial statements for people outside the firm (creditors,unions,suppliers,and others)is the goal of:

If prices of inventory are unchanged throughout the year,LIFO and FIFO inventory valuation methods will produce the same reported net income.

The specialized accounting book in which information from journals is accumulated into specific categories is called a:

A cash flow statement summarizes a company's cash receipts and cash payments over a period of time.

Jose just graduated from college with a bachelor's degree in accounting.He plans to go to work for the Canadian Cancer Society as an accountant.Jose will be a(n):

To accurately evaluate a firm's financial ratios you should compare the ratios to:

The owners' equity in a firm is listed as an asset on the balance sheet.

What is the difference between a private accountant and a public accountant?

The individuals in a firm that are responsible for the development of strategies to minimize taxes are called:

If a firm has a debt to owners' equity ratio of 54 (or 54%)we can conclude that:

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

Independent audits are prepared by accountants within the organization to ensure that proper accounting procedures are followed.

The higher the risk of a particular investment,the greater the expected rate of return required by investors.

When it comes to the treatment of amortization and valuation of inventory,generally accepted accounting principles:

The cash flow statement shows a firm's revenues,costs of goods sold,expenses,and net income.

If a firm has $100,000 in assets and liabilities of $62,000,then the owner's equity is equal to $162,000.

Accounting and bookkeeping are terms used for essentially the same activity in an organization.

A cash flow statement reports the receipts and disbursements of cash in a given time period as the result of three types of activities: operations,investments,and financing.

Name two purposes of accounting.

Double-entry bookkeeping requires that every transaction be recorded in two places.

The cost of goods sold includes all the costs of buying and keeping merchandise available for sale.

The preparation of financial statements for people outside the firm (creditors,unions,suppliers,and others)is the goal of:

If prices of inventory are unchanged throughout the year,LIFO and FIFO inventory valuation methods will produce the same reported net income.

The specialized accounting book in which information from journals is accumulated into specific categories is called a:

A cash flow statement summarizes a company's cash receipts and cash payments over a period of time.

Jose just graduated from college with a bachelor's degree in accounting.He plans to go to work for the Canadian Cancer Society as an accountant.Jose will be a(n):

To accurately evaluate a firm's financial ratios you should compare the ratios to:

The owners' equity in a firm is listed as an asset on the balance sheet.

What is the difference between a private accountant and a public accountant?

The individuals in a firm that are responsible for the development of strategies to minimize taxes are called:

If a firm has a debt to owners' equity ratio of 54 (or 54%)we can conclude that:

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

Filters