Question 1

The current ratio is found by dividing the firm's total assets by its total liabilities.

Accepted Answer

A) True 
 B)False

Question 2

The accounting book or computer program where each day's transactions are first recorded is called a:

Accepted Answer

A) journal. 
B) general ledger. 
C) balance sheet. 
D) posting workbook. 
A) journal. 
B) general ledger. 
C) balance sheet. 
D) posting workbook.

Question 3

The main reason an accountant would conduct a trial balance would be to:

Accepted Answer

A) determine whether account figures in ledgers are correct and balanced. 
B) ensure the audit was done correctly. 
C) obtain an estimate of the amount of taxes the firm owes. 
D) verify the validity of last year's balance sheet before beginning the next accounting cycle. 
A) determine whether account figures in ledgers are correct and balanced. 
B) ensure the audit was done correctly. 
C) obtain an estimate of the amount of taxes the firm owes. 
D) verify the validity of last year's balance sheet before beginning the next accounting cycle.

Question 4

Prattville Manufacturing has applied for a short-term loan with CIBC.The loan officers of the bank are likely to look carefully at Prattville's liquidity ratios before they decide to grant the loan.

Accepted Answer

A) True 
 B)False

Question 5

On December 31,2001,Saskatoon Laboratories had assets of $235,000 and owners' equity of $84,000.We can conclude that Saskatoon Laboratories must have:

Accepted Answer

A) suffered a net loss of $151,000. 
B) experienced a cash inflow of $319,000. 
C) paid a dividend of $3.00 per share. 
D) total liabilities of $151,000. 
A) suffered a net loss of $151,000. 
B) experienced a cash inflow of $319,000. 
C) paid a dividend of $3.00 per share. 
D) total liabilities of $151,000.

Question 6

If the total assets of a business are $107,000 and its liabilities are $75,000,which of the following statements is correct?

Accepted Answer

A) The current assets are worth $32,000. 
B) The owners' equity is $32,000. 
C) The net income for the period is $32,000. 
D) The owners' equity equals $182,000. 
A) The current assets are worth $32,000. 
B) The owners' equity is $32,000. 
C) The net income for the period is $32,000. 
D) The owners' equity equals $182,000.

Question 7

Accounting transactions are very important to a firm's operations.All of the following activities would affect account balances  EXCEPT :

Accepted Answer

A) buying and selling goods and services. 
B) paying taxes. 
C) using supplies. 
D) forecasting consumer demand. 
A) buying and selling goods and services. 
B) paying taxes. 
C) using supplies. 
D) forecasting consumer demand.

Question 8

The supplier of coffee beans to the local coffee shop now demands to be paid on a cash basis for all purchases.The supplier has done this because:

Accepted Answer

A) the coffee shop now stays open 24 hours a day. 
B) the coffee shop has been very slow in paying for previous purchases. 
C) the coffee shop is over 50 miles away from the supplier. 
D) the coffee shop's purchases are growing. 
A) the coffee shop now stays open 24 hours a day. 
B) the coffee shop has been very slow in paying for previous purchases. 
C) the coffee shop is over 50 miles away from the supplier. 
D) the coffee shop's purchases are growing.

Question 9

Accounting includes______ information related to financial transactions.

Accepted Answer

A) buying 
B) distributing 
C) interpreting 
D) selling 
A) buying 
B) distributing 
C) interpreting 
D) selling

Question 10

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 11

Profitability ratios are often used to measure management's performance.

Accepted Answer

A) True 
 B)False

Question 12

The specialized accounting book in which information from journals is accumulated into specific categories is called a:

Accepted Answer

A) balance sheet. 
B) trial balance. 
C) journal. 
D) ledger. 
A) balance sheet. 
B) trial balance. 
C) journal. 
D) ledger.

Question 13

A(n)______is a yearly statement of the financial condition,progress and expectations of an organization.

Accepted Answer

A) mission statement 
B) independent audit 
C) balance sheet 
D) annual report 
A) mission statement 
B) independent audit 
C) balance sheet 
D) annual report

Question 14

An income statement reports what a company owns and owes on a certain day.

Accepted Answer

A) True 
 B)False

Question 15

Liabilities are what the firm owes to others.

Accepted Answer

A) True 
 B)False

Question 16

Financial accounting information about a firm is useful:

Accepted Answer

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

Question 17

Bookkeepers would normally be involved with:

Accepted Answer

A) recording business transactions. 
B) preparing financial statements. 
C) interpreting accounting data. 
D) approving decisions about major expenditures. 
A) recording business transactions. 
B) preparing financial statements. 
C) interpreting accounting data. 
D) approving decisions about major expenditures.

Question 18

What is the difference between a private accountant and a public accountant?

Accepted Answer

A public accountant provides s

Question 19

The basic earnings per share ratio does not take stock options,warrants,and preferred stock into account.

Accepted Answer

A) True 
 B)False

Question 20

Financial accounting is used to provide information and analysis that managers within the organization can use to assist them in decision making.

Accepted Answer

A) True 
 B)False

The current ratio is found by dividing the firm's total assets by its total liabilities.

The accounting book or computer program where each day's transactions are first recorded is called a:

The main reason an accountant would conduct a trial balance would be to:

Prattville Manufacturing has applied for a short-term loan with CIBC.The loan officers of the bank are likely to look carefully at Prattville's liquidity ratios before they decide to grant the loan.

On December 31,2001,Saskatoon Laboratories had assets of $235,000 and owners' equity of $84,000.We can conclude that Saskatoon Laboratories must have:

If the total assets of a business are $107,000 and its liabilities are $75,000,which of the following statements is correct?

Accounting transactions are very important to a firm's operations.All of the following activities would affect account balances EXCEPT :

The supplier of coffee beans to the local coffee shop now demands to be paid on a cash basis for all purchases.The supplier has done this because:

Accounting includes______ information related to financial transactions.

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.

Profitability ratios are often used to measure management's performance.

The specialized accounting book in which information from journals is accumulated into specific categories is called a:

A(n)______is a yearly statement of the financial condition,progress and expectations of an organization.

An income statement reports what a company owns and owes on a certain day.

Liabilities are what the firm owes to others.

Financial accounting information about a firm is useful:

Bookkeepers would normally be involved with:

What is the difference between a private accountant and a public accountant?

The basic earnings per share ratio does not take stock options,warrants,and preferred stock into account.

Financial accounting is used to provide information and analysis that managers within the organization can use to assist them in decision making.

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 current ratio is found by dividing the firm's total assets by its total liabilities.

The accounting book or computer program where each day's transactions are first recorded is called a:

The main reason an accountant would conduct a trial balance would be to:

Prattville Manufacturing has applied for a short-term loan with CIBC.The loan officers of the bank are likely to look carefully at Prattville's liquidity ratios before they decide to grant the loan.

On December 31,2001,Saskatoon Laboratories had assets of $235,000 and owners' equity of $84,000.We can conclude that Saskatoon Laboratories must have:

If the total assets of a business are $107,000 and its liabilities are $75,000,which of the following statements is correct?

Accounting transactions are very important to a firm's operations.All of the following activities would affect account balances EXCEPT :

The supplier of coffee beans to the local coffee shop now demands to be paid on a cash basis for all purchases.The supplier has done this because:

Accounting includes______ information related to financial transactions.

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.

Profitability ratios are often used to measure management's performance.

The specialized accounting book in which information from journals is accumulated into specific categories is called a:

A(n)______is a yearly statement of the financial condition,progress and expectations of an organization.

An income statement reports what a company owns and owes on a certain day.

Liabilities are what the firm owes to others.

Financial accounting information about a firm is useful:

Bookkeepers would normally be involved with:

What is the difference between a private accountant and a public accountant?

The basic earnings per share ratio does not take stock options,warrants,and preferred stock into account.

Financial accounting is used to provide information and analysis that managers within the organization can use to assist them in decision making.

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