Question 1

Bookkeeping is part of accounting,but accounting goes far beyond the activities involved in bookkeeping.

Accepted Answer

A) True 
 B)False

Question 2

The balance sheet reflects the fact that assets equal the sum of liabilities and owners' equity.

Accepted Answer

A) True 
 B)False

Question 3

Financial ratios are used to analyze a firm's financial condition and performance.

Accepted Answer

A) True 
 B)False

Question 4

Deron has a bachelor's degree in accounting and additional training in tax law.He is responsible for preparing tax returns and developing tax strategies for his employer,Lighting Freight Service,and has done so for the last seven years.Deron is a certified government accountant.

Accepted Answer

A) True 
 B)False

Question 5

A lower than average inventory turnover ratio indicates excellent inventory management practices.

Accepted Answer

A) True 
 B)False

Question 6

Which financial statement reports the company's revenues and selling costs over a period of time?

Accepted Answer

A) trial balance 
B) income statement 
C) balance sheet 
D) cash flow statement 
A) trial balance 
B) income statement 
C) balance sheet 
D) cash flow statement

Question 7

The______ is an accounting statement that reports the financial condition of a firm at a specific point in time.

Accepted Answer

A) balance sheet 
B) income statement 
C) trial balance 
D) cash flow statement 
A) balance sheet 
B) income statement 
C) trial balance 
D) cash flow statement

Question 8

Which key provision of the Sarbanes-Oxley act should minimize the opportunity for public accountants to minimize conflict of interest?

Accepted Answer

A) Establish a maximum fees chargeable by public accountants to firms they do work for 
B) Strengthens the protection for whistleblowers 
C) Having the CEO's and CFO's certify the accuracy of financial reports 
D) Prohibits accounting firms to provide consulting services and audit the same firm 
A) Establish a maximum fees chargeable by public accountants to firms they do work for 
B) Strengthens the protection for whistleblowers 
C) Having the CEO's and CFO's certify the accuracy of financial reports 
D) Prohibits accounting firms to provide consulting services and audit the same firm

Question 9

The current ratio is a good indicator of the degree to which a firm relies on borrowed funds in its operations.

Accepted Answer

A) True 
 B)False

Question 10

Cash provided by the sale of new cars at Joseph's Car Sales would be listed as a cash inflow from operations on Joseph's statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 11

A firm that takes on too much debt could experience problems repaying its lenders or meeting promises made to stockholders.

Accepted Answer

A) True 
 B)False

Question 12

The purpose of a trial balance is to prepare a practice balance sheet.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

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

Question 14

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

Accepted Answer

A) leverage. 
B) equity. 
C) liquidity. 
D) liabilities. 
A) leverage. 
B) equity. 
C) liquidity. 
D) liabilities.

Question 15

Assets are economic resources that are owned by a firm.

Accepted Answer

A) True 
 B)False

Question 16

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 17

Posting is a step in the accounting cycle that involves transferring information from the journal into the appropriate accounts in a ledger.

Accepted Answer

A) True 
 B)False

Question 18

Information contained in a firm's annual report largely represents work done by managerial accountants.

Accepted Answer

A) True 
 B)False

Question 19

A balance sheet is composed of assets,liabilities,and revenues.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

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

Bookkeeping is part of accounting,but accounting goes far beyond the activities involved in bookkeeping.

The balance sheet reflects the fact that assets equal the sum of liabilities and owners' equity.

Financial ratios are used to analyze a firm's financial condition and performance.

Deron has a bachelor's degree in accounting and additional training in tax law.He is responsible for preparing tax returns and developing tax strategies for his employer,Lighting Freight Service,and has done so for the last seven years.Deron is a certified government accountant.

A lower than average inventory turnover ratio indicates excellent inventory management practices.

Which financial statement reports the company's revenues and selling costs over a period of time?

The______ is an accounting statement that reports the financial condition of a firm at a specific point in time.

Which key provision of the Sarbanes-Oxley act should minimize the opportunity for public accountants to minimize conflict of interest?

The current ratio is a good indicator of the degree to which a firm relies on borrowed funds in its operations.

Cash provided by the sale of new cars at Joseph's Car Sales would be listed as a cash inflow from operations on Joseph's statement of cash flows.

A firm that takes on too much debt could experience problems repaying its lenders or meeting promises made to stockholders.

The purpose of a trial balance is to prepare a practice balance sheet.

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

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

Assets are economic resources that are owned by a firm.

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

Posting is a step in the accounting cycle that involves transferring information from the journal into the appropriate accounts in a ledger.

Information contained in a firm's annual report largely represents work done by managerial accountants.

A balance sheet is composed of assets,liabilities,and revenues.

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

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

Bookkeeping is part of accounting,but accounting goes far beyond the activities involved in bookkeeping.

The balance sheet reflects the fact that assets equal the sum of liabilities and owners' equity.

Financial ratios are used to analyze a firm's financial condition and performance.

Deron has a bachelor's degree in accounting and additional training in tax law.He is responsible for preparing tax returns and developing tax strategies for his employer,Lighting Freight Service,and has done so for the last seven years.Deron is a certified government accountant.

A lower than average inventory turnover ratio indicates excellent inventory management practices.

Which financial statement reports the company's revenues and selling costs over a period of time?

The______ is an accounting statement that reports the financial condition of a firm at a specific point in time.

Which key provision of the Sarbanes-Oxley act should minimize the opportunity for public accountants to minimize conflict of interest?

The current ratio is a good indicator of the degree to which a firm relies on borrowed funds in its operations.

Cash provided by the sale of new cars at Joseph's Car Sales would be listed as a cash inflow from operations on Joseph's statement of cash flows.

A firm that takes on too much debt could experience problems repaying its lenders or meeting promises made to stockholders.

The purpose of a trial balance is to prepare a practice balance sheet.

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

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

Assets are economic resources that are owned by a firm.

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

Posting is a step in the accounting cycle that involves transferring information from the journal into the appropriate accounts in a ledger.

Information contained in a firm's annual report largely represents work done by managerial accountants.

A balance sheet is composed of assets,liabilities,and revenues.

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

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