Question 1

What are accountants who track down hidden funds in business called?

Accepted Answer

A) Private accountants 
B) Investigative accountants 
C) Forensic accountants 
D) Fraud accountants 
E) Criminal accountants 
A) Private accountants 
B) Investigative accountants 
C) Forensic accountants 
D) Fraud accountants 
E) Criminal accountants

Question 2

Explain how the accounting equation and double-entry accounting are used in record keeping.

Accepted Answer

Accountants use the accounting equation

Question 3

What is a budget? Who uses a budget?

Accepted Answer

A budget is a detailed financial plan fo

Question 4

Al Rosen is working as a private investigator of white-collar crimes.He is

Accepted Answer

A) an IFRS accountant. 
B) a financial scanner. 
C) a whistleblower. 
D) an auditor. 
E) a forensic accountant. 
A) an IFRS accountant. 
B) a financial scanner. 
C) a whistleblower. 
D) an auditor. 
E) a forensic accountant.

Question 5

What is the difference between financial accounting and managerial accounting?

Accepted Answer

Financial accounting is the process wher

Question 6

What is a comprehensive system for collecting,analyzing and communicating financial information called?

Accepted Answer

A) Data collection 
B) Bookkeeping 
C) Balancing 
D) Auditing 
E) Accounting 
A) Data collection 
B) Bookkeeping 
C) Balancing 
D) Auditing 
E) Accounting

Question 7

A(n)________ is a debt owed by a firm to an outside organization or individual.

Accepted Answer

A) liability 
B) owners' equity 
C) debit 
D) asset 
E) credit 
A) liability 
B) owners' equity 
C) debit 
D) asset 
E) credit

Question 8

Prahbat is looking at a financial statement produced by Iron Corp.The statement lists the company's annual revenues,its expenses,and its profit.Prahbat is looking at a(n)

Accepted Answer

A) cash flow statement. 
B) revenue-expense statement. 
C) balance sheet. 
D) budget. 
E) income statement. 
A) cash flow statement. 
B) revenue-expense statement. 
C) balance sheet. 
D) budget. 
E) income statement.

Question 9

What is any money received by a firm as a result of selling a good or service or from other sources such as interest,rent and licensing fees called?

Accepted Answer

A) Revenue 
B) Income 
C) Profit 
D) Retained earnings 
E) Owner's equity 
A) Revenue 
B) Income 
C) Profit 
D) Retained earnings 
E) Owner's equity

Question 10

A(n)________ examines a company's accounting system to determine whether its financial reports fairly present its operations.

Accepted Answer

A) tax analysis 
B) preliminary examination 
C) company-wide analysis 
D) portfolio analysis 
E) audit 
A) tax analysis 
B) preliminary examination 
C) company-wide analysis 
D) portfolio analysis 
E) audit

Question 11

Which of the following scenarios would most likely occur with a company that has reported disappointing earnings recently but still looks to be financially stable for quite some time?

Accepted Answer

A) High long-term solvency ratio but low profitability ratio 
B) High short-term solvency ratio but low profitability ratio 
C) High long-term solvency ratio but low activity ratio 
D) High short-term solvency ratio but low activity ratio 
E) High long-term solvency ratio but low short-term solvency ratio 
A) High long-term solvency ratio but low profitability ratio 
B) High short-term solvency ratio but low profitability ratio 
C) High long-term solvency ratio but low activity ratio 
D) High short-term solvency ratio but low activity ratio 
E) High long-term solvency ratio but low short-term solvency ratio

Question 12

Executives at Belize Inc.want to see the company's short-term solvency ratios.What question do they most likely want to have answered?

Accepted Answer

A) Can immediate debts be paid without obtaining more loans? 
B) Is there enough inventory to fulfill sales demands? 
C) How much inventory does the company have on hand? 
D) How much debt is the company carrying? 
E) Are the company's products priced correctly to maximize revenue? 
A) Can immediate debts be paid without obtaining more loans? 
B) Is there enough inventory to fulfill sales demands? 
C) How much inventory does the company have on hand? 
D) How much debt is the company carrying? 
E) Are the company's products priced correctly to maximize revenue?

Question 13

Barry is a private accountant who is working through the accounting cycle.He has already analyzed transaction documents.His next step is to

Accepted Answer

A) record transactions in a journal. 
B) do a trial balance. 
C) prepare financial statements. 
D) analyze the financial statements using ratio analysis. 
E) transfer entries from the journal to the ledger. 
A) record transactions in a journal. 
B) do a trial balance. 
C) prepare financial statements. 
D) analyze the financial statements using ratio analysis. 
E) transfer entries from the journal to the ledger.

Question 14

Accounting Information System (AIS)is defined as an organized procedure for identifying,measuring,recording,and retaining financial information for use in accounting statements and management reports.

Accepted Answer

A) True 
 B)False

Question 15

What is the matching principle?

Accepted Answer

The matching principle states

Question 16

Marlin wants to calculate the inventory turnover ratio for his company.He has the following information: beginning inventory = $30 000;ending inventory = $20 000;the cost of goods sold = $100 000.From this he concludes that the inventory turnover ratio is 4.0.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is an intangible asset?

Accepted Answer

A) An inventory level of 1000 copies of a book 
B) The copyright for a textbook 
C) A printing press used in the publication of a book 
D) A $1000 Canada Savings Bond 
E) The building in which a book was printed 
A) An inventory level of 1000 copies of a book 
B) The copyright for a textbook 
C) A printing press used in the publication of a book 
D) A $1000 Canada Savings Bond 
E) The building in which a book was printed

Question 18

Which financial statement shows the cost of obtaining materials to make products that were sold during the year?

Accepted Answer

A) Income statement 
B) Balance sheet 
C) Statement of cash flows 
D) Operating expenses statement 
E) Statement of retained earnings 
A) Income statement 
B) Balance sheet 
C) Statement of cash flows 
D) Operating expenses statement 
E) Statement of retained earnings

Question 19

What are the three major classifications of ratios that are used to analyze financial statements? What is measured by each of these types of ratios?

Accepted Answer

- Solvency ratios,both short-t

Question 20

Why has accounting ethics become an important issue in recent years?

Accepted Answer

There has been increased interest in acc

What are accountants who track down hidden funds in business called?

Explain how the accounting equation and double-entry accounting are used in record keeping.

What is a budget? Who uses a budget?

Al Rosen is working as a private investigator of white-collar crimes.He is

What is the difference between financial accounting and managerial accounting?

What is a comprehensive system for collecting,analyzing and communicating financial information called?

A(n)________ is a debt owed by a firm to an outside organization or individual.

Prahbat is looking at a financial statement produced by Iron Corp.The statement lists the company's annual revenues,its expenses,and its profit.Prahbat is looking at a(n)

What is any money received by a firm as a result of selling a good or service or from other sources such as interest,rent and licensing fees called?

A(n)________ examines a company's accounting system to determine whether its financial reports fairly present its operations.

Which of the following scenarios would most likely occur with a company that has reported disappointing earnings recently but still looks to be financially stable for quite some time?

Executives at Belize Inc.want to see the company's short-term solvency ratios.What question do they most likely want to have answered?

Barry is a private accountant who is working through the accounting cycle.He has already analyzed transaction documents.His next step is to

Accounting Information System (AIS)is defined as an organized procedure for identifying,measuring,recording,and retaining financial information for use in accounting statements and management reports.

What is the matching principle?

Marlin wants to calculate the inventory turnover ratio for his company.He has the following information: beginning inventory = $30 000;ending inventory = $20 000;the cost of goods sold = $100 000.From this he concludes that the inventory turnover ratio is 4.0.

Which of the following is an intangible asset?

Which financial statement shows the cost of obtaining materials to make products that were sold during the year?

What are the three major classifications of ratios that are used to analyze financial statements? What is measured by each of these types of ratios?

Why has accounting ethics become an important issue in recent years?

Understanding the Canadian Business System

The Environment of Business

Conducting Business Ethically and Responsibly

Entrepreneurship,small Business,and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating,satisfying,and Leading Employees

Operations Management,productivity,and Quality

Understanding Marketing Principles and Developing Products

Pricing,promoting,and Distributing Products

Money and Banking

Financial Decisions and Risk Management

Filters

Exam 11: Understanding Accounting

What are accountants who track down hidden funds in business called?

Explain how the accounting equation and double-entry accounting are used in record keeping.

What is a budget? Who uses a budget?

Al Rosen is working as a private investigator of white-collar crimes.He is

What is the difference between financial accounting and managerial accounting?

What is a comprehensive system for collecting,analyzing and communicating financial information called?

A(n)________ is a debt owed by a firm to an outside organization or individual.

Prahbat is looking at a financial statement produced by Iron Corp.The statement lists the company's annual revenues,its expenses,and its profit.Prahbat is looking at a(n)

What is any money received by a firm as a result of selling a good or service or from other sources such as interest,rent and licensing fees called?

A(n)________ examines a company's accounting system to determine whether its financial reports fairly present its operations.

Which of the following scenarios would most likely occur with a company that has reported disappointing earnings recently but still looks to be financially stable for quite some time?

Executives at Belize Inc.want to see the company's short-term solvency ratios.What question do they most likely want to have answered?

Barry is a private accountant who is working through the accounting cycle.He has already analyzed transaction documents.His next step is to

Accounting Information System (AIS)is defined as an organized procedure for identifying,measuring,recording,and retaining financial information for use in accounting statements and management reports.

What is the matching principle?

Marlin wants to calculate the inventory turnover ratio for his company.He has the following information: beginning inventory = $30 000;ending inventory = $20 000;the cost of goods sold = $100 000.From this he concludes that the inventory turnover ratio is 4.0.

Which of the following is an intangible asset?

Which financial statement shows the cost of obtaining materials to make products that were sold during the year?

What are the three major classifications of ratios that are used to analyze financial statements? What is measured by each of these types of ratios?

Why has accounting ethics become an important issue in recent years?

Understanding the Canadian Business System

The Environment of Business

Conducting Business Ethically and Responsibly

Entrepreneurship,small Business,and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating,satisfying,and Leading Employees

Operations Management,productivity,and Quality

Understanding Marketing Principles and Developing Products

Pricing,promoting,and Distributing Products

Money and Banking

Financial Decisions and Risk Management

Filters