Question 1

Rent for the period to come is included in which account on the balance sheet?

Accepted Answer

A) Inventory 
B) Cost of goods sold 
C) Merchandise inventory 
D) Accounts payable 
E) Prepaid expenses 
A) Inventory 
B) Cost of goods sold 
C) Merchandise inventory 
D) Accounts payable 
E) Prepaid expenses

Question 2

________ is the comprehensive information system for collecting,analyzing,and communicating financial information,while ________ is the recording of financial transactions.

Accepted Answer

A) Financial accounting;managerial accounting 
B) Managerial accounting;financial accounting 
C) Bookkeeping;accounting 
D) Accounting;bookkeeping 
E) Controlling;accounting 
A) Financial accounting;managerial accounting 
B) Managerial accounting;financial accounting 
C) Bookkeeping;accounting 
D) Accounting;bookkeeping 
E) Controlling;accounting

Question 3

Mary Ann is considering buying an existing catering business that is up for sale.The current balance sheet of the business shows that there are has more liabilities than assets.Mary Ann's friend Roland suggests that,even with the negative owners' equity,this business might still be worth buying.What other indicators within the auditor's report should they consider for this decision?

Accepted Answer

It must be determined whether the cateri

Question 4

Stephen is looking at a financial statement that shows detailed information about the accounting equation factors.He is looking at the company's

Accepted Answer

A) T-accounts. 
B) income statement. 
C) balance sheet. 
D) double-entry accounting system. 
E) profit-and-loss statement. 
A) T-accounts. 
B) income statement. 
C) balance sheet. 
D) double-entry accounting system. 
E) profit-and-loss statement.

Question 5

The financial statement that shows the status of assets,liabilities,and owners' equity at a particular point in time is the balance sheet.

Accepted Answer

A) True 
 B)False

Question 6

Explain the role of accountants and distinguish between the kinds of work done by public accountants,private accountants,management accountants,and forensic accountants.

Accepted Answer

The role of accountants is to maintain a

Question 7

What is the accounting method for distributing the cost of an asset over its useful life called?

Accepted Answer

A) Writing off 
B) Downloading 
C) Spread financing 
D) Depreciation 
E) Downstreaming 
A) Writing off 
B) Downloading 
C) Spread financing 
D) Depreciation 
E) Downstreaming

Question 8

The amount of profit or loss will be reflected in the

Accepted Answer

A) balance sheet. 
B) cost of goods sold. 
C) quick ratio. 
D) income statement. 
E) statement of cash flow. 
A) balance sheet. 
B) cost of goods sold. 
C) quick ratio. 
D) income statement. 
E) statement of cash flow.

Question 9

What is the formula for the current ratio?

Accepted Answer

Current as

Question 10

Arthur's primary responsibility as an auditor is

Accepted Answer

A) publishing the audit report results in the Financial Post. 
B) preparing budgets for the forthcoming year. 
C) ensuring the firm's accounting practices adhere to generally accepted accounting principles. 
D) collecting taxes. 
E) determining that the company has the inventory that it says it has. 
A) publishing the audit report results in the Financial Post. 
B) preparing budgets for the forthcoming year. 
C) ensuring the firm's accounting practices adhere to generally accepted accounting principles. 
D) collecting taxes. 
E) determining that the company has the inventory that it says it has.

Question 11

Marshall is preparing a statement of estimated profits and losses for a new product that has just been introduced by his company.The field of accounting that Marshall is working in is

Accepted Answer

A) managerial accounting. 
B) auditing. 
C) public accounting. 
D) financial accounting. 
E) bookkeeping. 
A) managerial accounting. 
B) auditing. 
C) public accounting. 
D) financial accounting. 
E) bookkeeping.

Question 12

What is the fundamental purpose of strong ethical standards in accounting?

Accepted Answer

The purpose is to maintain pub

Question 13

At Lexi Corp. ,sales revenue is $20 million,the cost of goods sold is $14 million,operating expenses are $3 million,and income taxes are $1 million.What is the company's net income?

Accepted Answer

A) $6 million 
B) $17 million 
C) $16 million 
D) $2 million 
E) The answer cannot be computed with the information provided. 
A) $6 million 
B) $17 million 
C) $16 million 
D) $2 million 
E) The answer cannot be computed with the information provided.

Question 14

Which of the following is correct with respect to the issue of owners' equity?

Accepted Answer

A) It is the amount of cash listed on the balance sheet. 
B) It is the amount of money the owners would receive if they sold all a company's assets and paid all its liabilities. 
C) If a company's assets exceed its liabilities,owners' equity equals $10 000 for each dollar of assets. 
D) If a company's liabilities exceed its assets,owners' equity equals minus $10 000 for each dollar of liabilities. 
E) All of these are correct. 
A) It is the amount of cash listed on the balance sheet. 
B) It is the amount of money the owners would receive if they sold all a company's assets and paid all its liabilities. 
C) If a company's assets exceed its liabilities,owners' equity equals $10 000 for each dollar of assets. 
D) If a company's liabilities exceed its assets,owners' equity equals minus $10 000 for each dollar of liabilities. 
E) All of these are correct.

Question 15

Martin is a salaried accountant who has been hired by Lexar Corp.to carry out its day-to-day financial activities.Martin is a(n)

Accepted Answer

A) public accountant. 
B) auditor. 
C) controller. 
D) private accountant. 
E) advisor. 
A) public accountant. 
B) auditor. 
C) controller. 
D) private accountant. 
E) advisor.

Question 16

If a company does not produce accurate accounting information,the group that is hurt the most is investors.

Accepted Answer

A) True 
 B)False

Question 17

Aardvark is a small pest-control business that has 30 employees.The company started business within the past year and needs to decide on how best to manage its finances as the company continues to grow its customer base and its business. Which of the following,if true,would not strengthen the case that Aardvark needs to hire a full-time controller?

Accepted Answer

A) The company needs its cash flow to be continuously monitored. 
B) The company needs to determine how to market its products to reach the largest number of customers. 
C) The company needs to have its excess funds invested in high-growth opportunities. 
D) The company needs to have financial goals mapped out for it. 
E) The company needs to have good sources of funding identified. 
A) The company needs its cash flow to be continuously monitored. 
B) The company needs to determine how to market its products to reach the largest number of customers. 
C) The company needs to have its excess funds invested in high-growth opportunities. 
D) The company needs to have financial goals mapped out for it. 
E) The company needs to have good sources of funding identified.

Question 18

What is owners' equity?

Accepted Answer

The amount of money that busin

Question 19

What is a budget?

Accepted Answer

A) The estimated number of people required to complete a manufacturing project 
B) An estimate of costs submitted to a buyer in order to make a sale 
C) An estimate of the cash balance for the year 
D) A detailed estimate of receipts and expenditures for a given period of time 
E) An estimate of research and development costs 
A) The estimated number of people required to complete a manufacturing project 
B) An estimate of costs submitted to a buyer in order to make a sale 
C) An estimate of the cash balance for the year 
D) A detailed estimate of receipts and expenditures for a given period of time 
E) An estimate of research and development costs

Question 20

A forensic accountant is a special type of accountant who audits companies that have gone bankrupt.

Accepted Answer

A) True 
 B)False

Rent for the period to come is included in which account on the balance sheet?

is the comprehensive information system for collecting,analyzing,and communicating financial information,while is the recording of financial transactions.

Stephen is looking at a financial statement that shows detailed information about the accounting equation factors.He is looking at the company's

The financial statement that shows the status of assets,liabilities,and owners' equity at a particular point in time is the balance sheet.

Explain the role of accountants and distinguish between the kinds of work done by public accountants,private accountants,management accountants,and forensic accountants.

What is the accounting method for distributing the cost of an asset over its useful life called?

The amount of profit or loss will be reflected in the

What is the formula for the current ratio?

Arthur's primary responsibility as an auditor is

Marshall is preparing a statement of estimated profits and losses for a new product that has just been introduced by his company.The field of accounting that Marshall is working in is

What is the fundamental purpose of strong ethical standards in accounting?

At Lexi Corp. ,sales revenue is $20 million,the cost of goods sold is $14 million,operating expenses are $3 million,and income taxes are $1 million.What is the company's net income?

Which of the following is correct with respect to the issue of owners' equity?

Martin is a salaried accountant who has been hired by Lexar Corp.to carry out its day-to-day financial activities.Martin is a(n)

If a company does not produce accurate accounting information,the group that is hurt the most is investors.

What is owners' equity?

What is a budget?

A forensic accountant is a special type of accountant who audits companies that have gone bankrupt.

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

Rent for the period to come is included in which account on the balance sheet?

________ is the comprehensive information system for collecting,analyzing,and communicating financial information,while ________ is the recording of financial transactions.

Stephen is looking at a financial statement that shows detailed information about the accounting equation factors.He is looking at the company's

The financial statement that shows the status of assets,liabilities,and owners' equity at a particular point in time is the balance sheet.

Explain the role of accountants and distinguish between the kinds of work done by public accountants,private accountants,management accountants,and forensic accountants.

What is the accounting method for distributing the cost of an asset over its useful life called?

The amount of profit or loss will be reflected in the

What is the formula for the current ratio?

Arthur's primary responsibility as an auditor is

Marshall is preparing a statement of estimated profits and losses for a new product that has just been introduced by his company.The field of accounting that Marshall is working in is

What is the fundamental purpose of strong ethical standards in accounting?

At Lexi Corp. ,sales revenue is $20 million,the cost of goods sold is $14 million,operating expenses are $3 million,and income taxes are $1 million.What is the company's net income?

Which of the following is correct with respect to the issue of owners' equity?

Martin is a salaried accountant who has been hired by Lexar Corp.to carry out its day-to-day financial activities.Martin is a(n)

If a company does not produce accurate accounting information,the group that is hurt the most is investors.

What is owners' equity?

What is a budget?

A forensic accountant is a special type of accountant who audits companies that have gone bankrupt.

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

is the comprehensive information system for collecting,analyzing,and communicating financial information,while is the recording of financial transactions.