Question 1

The accounting statement that reports cash receipts and disbursements for a business is called the:

Accepted Answer

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

Question 2

Rent,salaries,insurance,and amortization are all examples of the cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 3

Liabilities are reported on the income statement.

Accepted Answer

A) True 
 B)False

Question 4

How many professional accounting designations does Canada have?

Accepted Answer

A) One 
B) Two 
C) Three 
D) Four 
A) One 
B) Two 
C) Three 
D) Four

Question 5

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

Accepted Answer

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

Question 6

McCartney Consulting Group is a management-consulting firm that provides its expertise to businesses that employ its services.Since it does not hold an inventory of goods or produce any goods itself:

Accepted Answer

A) its balance sheet will not record any current assets. 
B) its revenue will equal its net income. 
C) it is unlikely to have any operating expenses. 
D) its gross profit could be identical to its net revenue. 
A) its balance sheet will not record any current assets. 
B) its revenue will equal its net income. 
C) it is unlikely to have any operating expenses. 
D) its gross profit could be identical to its net revenue.

Question 7

refers to how fast an asset could be converted into cash.

Accepted Answer

A) Fundability 
B) Liquidity 
C) Accessibility 
D) Velocity 
A) Fundability 
B) Liquidity 
C) Accessibility 
D) Velocity

Question 8

Assets are reported on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 9

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 10

The debt to owners' equity ratio is a common type of liquidity ratio.

Accepted Answer

A) True 
 B)False

Question 11

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 12

At present,accounting software packages have proven to be too complex and expensive to be useful for owners of small businesses.

Accepted Answer

A) True 
 B)False

Question 13

Financial accounting involves activities such as preparing budgets and measuring production costs.

Accepted Answer

A) True 
 B)False

Question 14

Rent,amortization,and salaries are all examples of:

Accepted Answer

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

Question 15

Accounting information is not relevant for non-profit organizations.

Accepted Answer

A) True 
 B)False

Question 16

To find out details of the maintenance costs,within the accounting system,you should refer to the ledger.

Accepted Answer

A) True 
 B)False

Question 17

Jill wants to start her own business,but knows little about how to set up an accounting system or interpret financial information."I'm not worried about accounting," she tells her friends."I'll just hire a part-time bookkeeper to handle all that type of stuff,and focus my attention on what I like-finding ways to satisfy my customers." Which of the following is the best response to Jill's comments?

Accepted Answer

A) Jill has a good plan.Only managers of large firms require knowledge of accounting.Owners and managers of small businesses can easily get away with just a part-time bookkeeper. 
B) Although Jill can hire someone for bookkeeping,she'll still need to know how to read,understand,and interpret basic accounting reports in order to make good business decisions. 
C) Jill should make sure the bookkeeper she hires knows how to use a database,since this type of software is the heart of any efficient accounting system. 
D) Most entrepreneurs would agree with Jill's opinion.The work done by accountants is mainly clerical in nature,so time spent by business owners on accounting tends to take them away from more important tasks. 
A) Jill has a good plan.Only managers of large firms require knowledge of accounting.Owners and managers of small businesses can easily get away with just a part-time bookkeeper. 
B) Although Jill can hire someone for bookkeeping,she'll still need to know how to read,understand,and interpret basic accounting reports in order to make good business decisions. 
C) Jill should make sure the bookkeeper she hires knows how to use a database,since this type of software is the heart of any efficient accounting system. 
D) Most entrepreneurs would agree with Jill's opinion.The work done by accountants is mainly clerical in nature,so time spent by business owners on accounting tends to take them away from more important tasks.

Question 18

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

Question 19

A balance sheet lists assets in order of their _______.

Accepted Answer

A) income generating ability 
B) dollar value,from smallest to largest 
C) date of acquisition,with the most recently acquired assets listed first 
D) liquidity,with the most liquid assets listed first 
A) income generating ability 
B) dollar value,from smallest to largest 
C) date of acquisition,with the most recently acquired assets listed first 
D) liquidity,with the most liquid assets listed first

Question 20

Brand names such as Coca-Cola and McDonald's are examples of fixed assets.

Accepted Answer

A) True 
 B)False

The accounting statement that reports cash receipts and disbursements for a business is called the:

Rent,salaries,insurance,and amortization are all examples of the cost of goods sold.

Liabilities are reported on the income statement.

How many professional accounting designations does Canada have?

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

McCartney Consulting Group is a management-consulting firm that provides its expertise to businesses that employ its services.Since it does not hold an inventory of goods or produce any goods itself:

refers to how fast an asset could be converted into cash.

Assets are reported on the balance sheet.

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 debt to owners' equity ratio is a common type of liquidity ratio.

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

At present,accounting software packages have proven to be too complex and expensive to be useful for owners of small businesses.

Financial accounting involves activities such as preparing budgets and measuring production costs.

Rent,amortization,and salaries are all examples of:

Accounting information is not relevant for non-profit organizations.

To find out details of the maintenance costs,within the accounting system,you should refer to the ledger.

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:

A balance sheet lists assets in order of their _______.

Brand names such as Coca-Cola and McDonald's are examples of fixed assets.

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 accounting statement that reports cash receipts and disbursements for a business is called the:

Rent,salaries,insurance,and amortization are all examples of the cost of goods sold.

Liabilities are reported on the income statement.

How many professional accounting designations does Canada have?

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

McCartney Consulting Group is a management-consulting firm that provides its expertise to businesses that employ its services.Since it does not hold an inventory of goods or produce any goods itself:

refers to how fast an asset could be converted into cash.

Assets are reported on the balance sheet.

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 debt to owners' equity ratio is a common type of liquidity ratio.

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

At present,accounting software packages have proven to be too complex and expensive to be useful for owners of small businesses.

Financial accounting involves activities such as preparing budgets and measuring production costs.

Rent,amortization,and salaries are all examples of:

Accounting information is not relevant for non-profit organizations.

To find out details of the maintenance costs,within the accounting system,you should refer to the ledger.

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:

A balance sheet lists assets in order of their _______.

Brand names such as Coca-Cola and McDonald's are examples of fixed assets.

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