Question 1

The balance sheet reports revenues and selling costs for a period of time.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

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

Question 3

Accounting involves both the recording and the interpreting of financial events.

Accepted Answer

A) True 
 B)False

Question 4

A look at the EPS ratio for a corporation will give you insights into its ability to pay a dividend to its stockholders.

Accepted Answer

A) True 
 B)False

Question 5

On a balance sheet,what a firm owes to creditors would be listed under:

Accepted Answer

A) expenses. 
B) liabilities. 
C) owners' equity. 
D) contra-assets. 
A) expenses. 
B) liabilities. 
C) owners' equity. 
D) contra-assets.

Question 6

There is a standard inventory turnover ratio that applies to any company.

Accepted Answer

A) True 
 B)False

Question 7

A(n)______provides a summary of money coming in to and money going out of a firm in a given time period.

Accepted Answer

A) income statement 
B) cash flow statement 
C) receivables and payables report 
D) cash budget 
A) income statement 
B) cash flow statement 
C) receivables and payables report 
D) cash budget

Question 8

The value of things you own minus the amount of money you owe others is called equity.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

The reports and financial statements prepared by accountants:

Accepted Answer

A) have lost much of their relevance as firms have moved into a more global environment. 
B) are much more useful for profit-seeking businesses than for non-profit organizations. 
C) are mainly used to help the firm complete its tax forms. 
D) provide information that can be used by decision-makers both inside and outside the organization. 
A) have lost much of their relevance as firms have moved into a more global environment. 
B) are much more useful for profit-seeking businesses than for non-profit organizations. 
C) are mainly used to help the firm complete its tax forms. 
D) provide information that can be used by decision-makers both inside and outside the organization.

Question 11

Careful consideration of the use of computers in accounting indicates that computers:

Accepted Answer

A) cannot handle the increasing data demands of accounting. 
B) have a very limited use in accounting due to inadequate privacy controls. 
C) will soon eliminate all of the accounting functions. 
D) are tools to help the accountant perform his or her job. 
A) cannot handle the increasing data demands of accounting. 
B) have a very limited use in accounting due to inadequate privacy controls. 
C) will soon eliminate all of the accounting functions. 
D) are tools to help the accountant perform his or her job.

Question 12

The balance sheet is composed of the following types of accounts:

Accepted Answer

A) assets,liabilities,and owners' equity. 
B) revenue,expenses,and earnings. 
C) capital,cost,and valuation. 
D) operating expenses,cash flow,and capital expenditures. 
A) assets,liabilities,and owners' equity. 
B) revenue,expenses,and earnings. 
C) capital,cost,and valuation. 
D) operating expenses,cash flow,and capital expenditures.

Question 13

Computer-based continuous auditing can be used to discover cash flow problems.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

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

Question 15

There are five key working areas in accounting: financial accounting,managerial accounting,auditing,tax accounting,and governmental and not-for-profit accounting.

Accepted Answer

A) True 
 B)False

Question 16

is the accounting practice of recording every transaction in two places.

Accepted Answer

A) Entry duplication 
B) Double-entry bookkeeping 
C) Trial balancing 
D) Account matching 
A) Entry duplication 
B) Double-entry bookkeeping 
C) Trial balancing 
D) Account matching

Question 17

Stockholders of the Sasha Deal Company are concerned about irregularities in the firm's accounting system.One approach to identify problems in the records of the company would be to have a(n)______performed.

Accepted Answer

A) certified audit 
B) internal audit 
C) independent audit 
D) GAAP analysis 
A) certified audit 
B) internal audit 
C) independent audit 
D) GAAP analysis

Question 18

The current ratio is found by dividing the firm's current assets by its______ _.

Accepted Answer

A) total liabilities 
B) current liabilities 
C) debt 
D) equity 
A) total liabilities 
B) current liabilities 
C) debt 
D) equity

Question 19

Accounting has been called the language of business.

Accepted Answer

A) True 
 B)False

Question 20

Both the current ratio and the acid-test ratio are ______ratios.

Accepted Answer

A) liability 
B) performance 
C) liquidity 
D) leverage 
A) liability 
B) performance 
C) liquidity 
D) leverage

The balance sheet reports revenues and selling costs for a period of time.

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

Accounting involves both the recording and the interpreting of financial events.

A look at the EPS ratio for a corporation will give you insights into its ability to pay a dividend to its stockholders.

On a balance sheet,what a firm owes to creditors would be listed under:

There is a standard inventory turnover ratio that applies to any company.

A(n)______provides a summary of money coming in to and money going out of a firm in a given time period.

The value of things you own minus the amount of money you owe others is called equity.

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

The reports and financial statements prepared by accountants:

Careful consideration of the use of computers in accounting indicates that computers:

The balance sheet is composed of the following types of accounts:

Computer-based continuous auditing can be used to discover cash flow problems.

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

There are five key working areas in accounting: financial accounting,managerial accounting,auditing,tax accounting,and governmental and not-for-profit accounting.

is the accounting practice of recording every transaction in two places.

Stockholders of the Sasha Deal Company are concerned about irregularities in the firm's accounting system.One approach to identify problems in the records of the company would be to have a(n)______performed.

The current ratio is found by dividing the firm's current assets by its______ _.

Accounting has been called the language of business.

Both the current ratio and the acid-test ratio are ______ratios.

The Dynamic Business Environment

How Economic Issues Affect Business

Competing in Global Markets

The Role of Government in Business Appendix a Working Within the Legal Environment of Business

Ethics and Social Responsibility

Forms of Business Ownership

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Producing World-Class Goods and Services

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employeemdashmanagement Issues and Relations

Marketing: Helping Buyers Buy

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

Financial Management Appendix C Managing Risk

The Financial Services Industry in Canada

Filters

Exam 16: Understanding Accounting and Financial Information

The balance sheet reports revenues and selling costs for a period of time.

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

Accounting involves both the recording and the interpreting of financial events.

A look at the EPS ratio for a corporation will give you insights into its ability to pay a dividend to its stockholders.

On a balance sheet,what a firm owes to creditors would be listed under:

There is a standard inventory turnover ratio that applies to any company.

A(n)______provides a summary of money coming in to and money going out of a firm in a given time period.

The value of things you own minus the amount of money you owe others is called equity.

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

The reports and financial statements prepared by accountants:

Careful consideration of the use of computers in accounting indicates that computers:

The balance sheet is composed of the following types of accounts:

Computer-based continuous auditing can be used to discover cash flow problems.

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

There are five key working areas in accounting: financial accounting,managerial accounting,auditing,tax accounting,and governmental and not-for-profit accounting.

is the accounting practice of recording every transaction in two places.

Stockholders of the Sasha Deal Company are concerned about irregularities in the firm's accounting system.One approach to identify problems in the records of the company would be to have a(n)______performed.

The current ratio is found by dividing the firm's current assets by its______ _.

Accounting has been called the language of business.

Both the current ratio and the acid-test ratio are ______ratios.

The Dynamic Business Environment

How Economic Issues Affect Business

Competing in Global Markets

The Role of Government in Business Appendix a Working Within the Legal Environment of Business

Ethics and Social Responsibility

Forms of Business Ownership

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Producing World-Class Goods and Services

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employeemdashmanagement Issues and Relations

Marketing: Helping Buyers Buy

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

Financial Management Appendix C Managing Risk

The Financial Services Industry in Canada

Filters