Question 1

Today's computerized accounting programs are:

Accepted Answer

A) very helpful for small business owners who lack strong accounting support within their companies. 
B) too expensive for most small businesses. 
C) easily affordable,but seldom necessary for the simple needs of the typical small business. 
D) so sophisticated that they can make most financial decisions without the aid of an accountant. 
A) very helpful for small business owners who lack strong accounting support within their companies. 
B) too expensive for most small businesses. 
C) easily affordable,but seldom necessary for the simple needs of the typical small business. 
D) so sophisticated that they can make most financial decisions without the aid of an accountant.

Question 2

Once a trial balance has been prepared,the next step of the accounting cycle involves:

Accepted Answer

A) posting the information to the correct ledger accounts. 
B) completing ratio analysis. 
C) preparing major financial statements such as the balance sheet. 
D) classifying the transactions into logical categories. 
A) posting the information to the correct ledger accounts. 
B) completing ratio analysis. 
C) preparing major financial statements such as the balance sheet. 
D) classifying the transactions into logical categories.

Question 3

The accounting cycle is a six-step procedure that results in the preparation and analysis of major financial statements.

Accepted Answer

A) True 
 B)False

Question 4

The calculation revenue minus cost of goods sold will give the firm its:

Accepted Answer

A) retained earnings. 
B) fundamental accounting equation. 
C) gross margin. 
D) net income. 
A) retained earnings. 
B) fundamental accounting equation. 
C) gross margin. 
D) net income.

Question 5

Churches,schools,and charitable organizations all hire accountants.

Accepted Answer

A) True 
 B)False

Question 6

Financial accounting information about a firm is useful:

Accepted Answer

A) only to managers within the firm. 
B) only to creditors and stockholders of the firm. 
C) only to the tax authorities and other government agencies that regulate the firm. 
D) to managers,owners,creditors,employees,and the government. 
A) only to managers within the firm. 
B) only to creditors and stockholders of the firm. 
C) only to the tax authorities and other government agencies that regulate the firm. 
D) to managers,owners,creditors,employees,and the government.

Question 7

Because each business is unique,the accounting profession recognizes that the accounting principles followed by one company may need to be completely different from the accounting principles followed by another firm.

Accepted Answer

A) True 
 B)False

Question 8

In trying to evaluate the management of inventory you could calculate the inventory turnover ratio and compare that ratio to the industry average.You would conclude that inventory could be managed better if

Accepted Answer

A) the company's inventory turnover was higher than the industry's. 
B) the company's inventory turnover was lower than the industry's. 
C) cost of goods sold for the company was higher than the industry's average. 
D) cost of goods sold for the company was lower than the industry's average. 
A) the company's inventory turnover was higher than the industry's. 
B) the company's inventory turnover was lower than the industry's. 
C) cost of goods sold for the company was higher than the industry's average. 
D) cost of goods sold for the company was lower than the industry's average.

Question 9

Martha is a member of a conservative political group that wants to identify and publicize examples of wasteful government spending.The type of accounting information that Martha and her group will follow most closely will be provided by certified public accountants.

Accepted Answer

A) True 
 B)False

Question 10

Purchasing insurance,paying employees,and using supplies are all examples of financial transactions.

Accepted Answer

A) True 
 B)False

Question 11

In order to calculate the current ratio for your firm,you would divide current assets by:

Accepted Answer

A) earnings per share. 
B) current liabilities. 
C) owners' equity. 
D) cost of goods sold. 
A) earnings per share. 
B) current liabilities. 
C) owners' equity. 
D) cost of goods sold.

Question 12

If total liabilities were subtracted from total assets,the residual value would be:

Accepted Answer

A) revenues. 
B) owners' equity. 
C) current assets. 
D) current expenses. 
A) revenues. 
B) owners' equity. 
C) current assets. 
D) current expenses.

Question 13

The accounting cycle usually involves the work of both the bookkeeper and the accountant.

Accepted Answer

A) True 
 B)False

Question 14

A(n)___________ is an evaluation and unbiased opinion of the accuracy of a firm's financial statements.

Accepted Answer

A) internal audit 
B) annual report 
C) independent audit 
D) certified audit 
A) internal audit 
B) annual report 
C) independent audit 
D) certified audit

Question 15

A cash flow statement reports cash receipts and disbursements for a firm that result:

Accepted Answer

A) only from its operations. 
B) only from its investments. 
C) from both its operations and investments,but not from its financing. 
D) from its operations,investments and financing. 
A) only from its operations. 
B) only from its investments. 
C) from both its operations and investments,but not from its financing. 
D) from its operations,investments and financing.

Question 16

In addition to the mechanical tasks of recording and classifying accounting information,the best accounting software programs currently available for small businesses have the ability to make financial decisions,thus eliminating the need for owners of small businesses to consult with accountants.

Accepted Answer

A) True 
 B)False

Question 17

The "bottom line" of an income statement shows the firm's:

Accepted Answer

A) retained earnings. 
B) gross margin. 
C) net income or net loss. 
D) owners' equity. 
A) retained earnings. 
B) gross margin. 
C) net income or net loss. 
D) owners' equity.

Question 18

The most liquid asset is:

Accepted Answer

A) sales. 
B) cash. 
C) accounts payable. 
D) owners' equity. 
A) sales. 
B) cash. 
C) accounts payable. 
D) owners' equity.

Question 19

An income statement will present the net income (or net loss)of a firm resulting from the operations of the organization over a period of time.

Accepted Answer

A) True 
 B)False

Question 20

To effectively run a business,it is necessary to:

Accepted Answer

A) hire a full-time accountant. 
B) use a public accounting firm. 
C) understand and use accounting information. 
D) know the differences between accounting and bookkeeping. 
A) hire a full-time accountant. 
B) use a public accounting firm. 
C) understand and use accounting information. 
D) know the differences between accounting and bookkeeping.

Today's computerized accounting programs are:

Once a trial balance has been prepared,the next step of the accounting cycle involves:

The accounting cycle is a six-step procedure that results in the preparation and analysis of major financial statements.

The calculation revenue minus cost of goods sold will give the firm its:

Churches,schools,and charitable organizations all hire accountants.

Financial accounting information about a firm is useful:

Because each business is unique,the accounting profession recognizes that the accounting principles followed by one company may need to be completely different from the accounting principles followed by another firm.

In trying to evaluate the management of inventory you could calculate the inventory turnover ratio and compare that ratio to the industry average.You would conclude that inventory could be managed better if

Martha is a member of a conservative political group that wants to identify and publicize examples of wasteful government spending.The type of accounting information that Martha and her group will follow most closely will be provided by certified public accountants.

Purchasing insurance,paying employees,and using supplies are all examples of financial transactions.

In order to calculate the current ratio for your firm,you would divide current assets by:

If total liabilities were subtracted from total assets,the residual value would be:

The accounting cycle usually involves the work of both the bookkeeper and the accountant.

A(n)___________ is an evaluation and unbiased opinion of the accuracy of a firm's financial statements.

A cash flow statement reports cash receipts and disbursements for a firm that result:

In addition to the mechanical tasks of recording and classifying accounting information,the best accounting software programs currently available for small businesses have the ability to make financial decisions,thus eliminating the need for owners of small businesses to consult with accountants.

The "bottom line" of an income statement shows the firm's:

The most liquid asset is:

An income statement will present the net income (or net loss)of a firm resulting from the operations of the organization over a period of time.

To effectively run a business,it is necessary 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

Today's computerized accounting programs are:

Once a trial balance has been prepared,the next step of the accounting cycle involves:

The accounting cycle is a six-step procedure that results in the preparation and analysis of major financial statements.

The calculation revenue minus cost of goods sold will give the firm its:

Churches,schools,and charitable organizations all hire accountants.

Financial accounting information about a firm is useful:

Because each business is unique,the accounting profession recognizes that the accounting principles followed by one company may need to be completely different from the accounting principles followed by another firm.

In trying to evaluate the management of inventory you could calculate the inventory turnover ratio and compare that ratio to the industry average.You would conclude that inventory could be managed better if

Martha is a member of a conservative political group that wants to identify and publicize examples of wasteful government spending.The type of accounting information that Martha and her group will follow most closely will be provided by certified public accountants.

Purchasing insurance,paying employees,and using supplies are all examples of financial transactions.

In order to calculate the current ratio for your firm,you would divide current assets by:

If total liabilities were subtracted from total assets,the residual value would be:

The accounting cycle usually involves the work of both the bookkeeper and the accountant.

A(n)___________ is an evaluation and unbiased opinion of the accuracy of a firm's financial statements.

A cash flow statement reports cash receipts and disbursements for a firm that result:

In addition to the mechanical tasks of recording and classifying accounting information,the best accounting software programs currently available for small businesses have the ability to make financial decisions,thus eliminating the need for owners of small businesses to consult with accountants.

The "bottom line" of an income statement shows the firm's:

The most liquid asset is:

An income statement will present the net income (or net loss)of a firm resulting from the operations of the organization over a period of time.

To effectively run a business,it is necessary 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

Filters