Question 1

The income statement reports the difference between a firm's assets and its liabilities as of a certain date.

Accepted Answer

A) True 
 B)False

Question 2

Accountant Alan Wingspan has just finished working on the balance sheet,income statement,and statement of cash flows for his company.The next step in the accounting cycle will involve:

Accepted Answer

A) analyzing the firm's financial statements to evaluate the financial condition of the firm. 
B) placing the data used to construct the statements into an archive known as a data warehouse. 
C) posting the results of these statements to the appropriate journal. 
D) conducting forensic tests of the data to ensure its accuracy. 
A) analyzing the firm's financial statements to evaluate the financial condition of the firm. 
B) placing the data used to construct the statements into an archive known as a data warehouse. 
C) posting the results of these statements to the appropriate journal. 
D) conducting forensic tests of the data to ensure its accuracy.

Question 3

The accounting profession is divided into two main fields: bookkeeping and auditing.

Accepted Answer

A) True 
 B)False

Question 4

The job of reviewing and evaluating the records used to prepare a company's financial statements is referred to as compliance.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

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

Question 6

The cost of goods sold reflects the selling price of the merchandise sold over a period of time.

Accepted Answer

A) True 
 B)False

Question 7

The sixth step in the accounting cycle involves:

Accepted Answer

A) preparing the income statement. 
B) performing a trial balance to verify that the accounting statements are internally consistent. 
C) auditing the books to ensure that they were prepared according to generally accepted accounting principles. 
D) analyzing major accounting statements to evaluate the financial condition of the firm. 
A) preparing the income statement. 
B) performing a trial balance to verify that the accounting statements are internally consistent. 
C) auditing the books to ensure that they were prepared according to generally accepted accounting principles. 
D) analyzing major accounting statements to evaluate the financial condition of the firm.

Question 8

A firm's annual report is a yearly statement of the financial condition,progress,and expectations of the organization during one year.

Accepted Answer

A) True 
 B)False

Question 9

Financial accounting and managerial accounting are similar in that they both provide information intended primarily for people inside the organization.

Accepted Answer

A) True 
 B)False

Question 10

The key financial statements are the balance sheet,income statement,and cash flow statement.

Accepted Answer

A) True 
 B)False

Question 11

The current ratio is used to evaluate a firm's ability to pay its short-term debts.

Accepted Answer

A) True 
 B)False

Question 12

What are the benefits of computerized accounting software programs to managers?

Accepted Answer

It's now possible,thanks to computers,to

Question 13

General expenses would include office salaries,rent,and insurance.

Accepted Answer

A) True 
 B)False

Question 14

A bookkeeper's first task is to record the firm's transactions in a journal.

Accepted Answer

A) True 
 B)False

Question 15

Explain the differences between managerial and financial accounting and give examples of the types of problems and issues examined by each of these areas of accounting.

Accepted Answer

Managerial accounting is used to provide

Question 16

One of the major financial statements prepared in the fifth step of the accounting cycle is the:

Accepted Answer

A) cash flow statement. 
B) general journal. 
C) social audit. 
D) asset summary. 
A) cash flow statement. 
B) general journal. 
C) social audit. 
D) asset summary.

Question 17

Taylor Casual,a chain of retail clothing stores,wants to assure investors and other outsiders that its financial statements are accurate.One way to do so would be to hire a public accounting firm to:

Accepted Answer

A) provide a "generally accepted practices" endorsement. 
B) take over all of its accounting functions. 
C) produce an internal audit. 
D) perform an independent audit. 
A) provide a "generally accepted practices" endorsement. 
B) take over all of its accounting functions. 
C) produce an internal audit. 
D) perform an independent audit.

Question 18

Salaries of salespeople and advertising costs are common examples of general expenses.

Accepted Answer

A) True 
 B)False

Question 19

There standard inventory turnover ratio that applies to any company in any industry is what?

Accepted Answer

A) 0 
B) -1 
C) 1 
D) There is no standard 
A) 0 
B) -1 
C) 1 
D) There is no standard

Question 20

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

The income statement reports the difference between a firm's assets and its liabilities as of a certain date.

Accountant Alan Wingspan has just finished working on the balance sheet,income statement,and statement of cash flows for his company.The next step in the accounting cycle will involve:

The accounting profession is divided into two main fields: bookkeeping and auditing.

The job of reviewing and evaluating the records used to prepare a company's financial statements is referred to as compliance.

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

The cost of goods sold reflects the selling price of the merchandise sold over a period of time.

The sixth step in the accounting cycle involves:

A firm's annual report is a yearly statement of the financial condition,progress,and expectations of the organization during one year.

Financial accounting and managerial accounting are similar in that they both provide information intended primarily for people inside the organization.

The key financial statements are the balance sheet,income statement,and cash flow statement.

The current ratio is used to evaluate a firm's ability to pay its short-term debts.

What are the benefits of computerized accounting software programs to managers?

General expenses would include office salaries,rent,and insurance.

A bookkeeper's first task is to record the firm's transactions in a journal.

Explain the differences between managerial and financial accounting and give examples of the types of problems and issues examined by each of these areas of accounting.

One of the major financial statements prepared in the fifth step of the accounting cycle is the:

Taylor Casual,a chain of retail clothing stores,wants to assure investors and other outsiders that its financial statements are accurate.One way to do so would be to hire a public accounting firm to:

Salaries of salespeople and advertising costs are common examples of general expenses.

There standard inventory turnover ratio that applies to any company in any industry is what?

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.

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

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Exam 16: Understanding Accounting and Financial Information

The income statement reports the difference between a firm's assets and its liabilities as of a certain date.

Accountant Alan Wingspan has just finished working on the balance sheet,income statement,and statement of cash flows for his company.The next step in the accounting cycle will involve:

The accounting profession is divided into two main fields: bookkeeping and auditing.

The job of reviewing and evaluating the records used to prepare a company's financial statements is referred to as compliance.

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

The cost of goods sold reflects the selling price of the merchandise sold over a period of time.

The sixth step in the accounting cycle involves:

A firm's annual report is a yearly statement of the financial condition,progress,and expectations of the organization during one year.

Financial accounting and managerial accounting are similar in that they both provide information intended primarily for people inside the organization.

The key financial statements are the balance sheet,income statement,and cash flow statement.

The current ratio is used to evaluate a firm's ability to pay its short-term debts.

What are the benefits of computerized accounting software programs to managers?

General expenses would include office salaries,rent,and insurance.

A bookkeeper's first task is to record the firm's transactions in a journal.

Explain the differences between managerial and financial accounting and give examples of the types of problems and issues examined by each of these areas of accounting.

One of the major financial statements prepared in the fifth step of the accounting cycle is the:

Taylor Casual,a chain of retail clothing stores,wants to assure investors and other outsiders that its financial statements are accurate.One way to do so would be to hire a public accounting firm to:

Salaries of salespeople and advertising costs are common examples of general expenses.

There standard inventory turnover ratio that applies to any company in any industry is what?

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.

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