Question 1

A corporation has which of the following set of characteristics?

Accepted Answer

A) shareholder control, income tax disadvantages, increased skills and resources 
B) simple to set up and maintains control with founder 
C) harder to raise funds and gives shareholders control 
D) Easier to transfer ownership and raise funds, no personal liability 
A) shareholder control, income tax disadvantages, increased skills and resources 
B) simple to set up and maintains control with founder 
C) harder to raise funds and gives shareholders control 
D) Easier to transfer ownership and raise funds, no personal liability

Question 2

The accounting equation can be expressed as: Assets + Liabilities = Shareholders' Equity.

Accepted Answer

A) True 
 B)False

Question 3

Allocating the cost of using long-term assets over their useful lives is called

Accepted Answer

A) allocation expense. 
B) depreciation expense. 
C) a general expense. 
D) asset use expense. 
A) allocation expense. 
B) depreciation expense. 
C) a general expense. 
D) asset use expense.

Question 4

Buying assets needed to operate a business is an example of a(n)

Accepted Answer

A) purchasing activity. 
B) financing activity. 
C) investing activity. 
D) operating activity. 
A) purchasing activity. 
B) financing activity. 
C) investing activity. 
D) operating activity.

Question 5

The concept that economic activity which can be identified with a particular company must be kept separate and distinct from the owner(s) and from all other economic entities is known as

Accepted Answer

A) the separation concept. 
B) the reporting entity concept. 
C) the economic concept. 
D) the business organization concept. 
A) the separation concept. 
B) the reporting entity concept. 
C) the economic concept. 
D) the business organization concept.

Question 6

Which of the following statements is not true?

Accepted Answer

A) Public corporations must use international financial reporting standards. 
B) Private corporations can choose to use either international financial reporting standards (IFRS) or accounting standards for private enterprises (ASP
E) . 
C) Both public and private corporations issue shares. 
D) All private corporations are small. 
A) Public corporations must use international financial reporting standards. 
B) Private corporations can choose to use either international financial reporting standards (IFRS) or accounting standards for private enterprises (ASP
E) . 
C) Both public and private corporations issue shares. 
D) All private corporations are small.

Question 7

Retained earnings at the end of the period is equal to

Accepted Answer

A) retained earnings at the beginning of the period plus profit minus liabilities. 
B) retained earnings at the beginning of the period plus profit minus dividends. 
C) profit for the period. 
D) assets plus liabilities. 
A) retained earnings at the beginning of the period plus profit minus liabilities. 
B) retained earnings at the beginning of the period plus profit minus dividends. 
C) profit for the period. 
D) assets plus liabilities.

Question 8

The world's economic systems depend on financial reporting that is

Accepted Answer

A) highly transparent. 
B) accurate. 
C) reliable. 
D) all of the above. 
A) highly transparent. 
B) accurate. 
C) reliable. 
D) all of the above.

Question 9

Expenses are the cost of assets consumed or services used in the process of generating revenue.

Accepted Answer

A) True 
 B)False

Question 10

Claims of creditors and shareholders on the assets of a business are called liabilities.

Accepted Answer

A) True 
 B)False

Question 11

A company's policy toward dividends and growth could best be determined by examining the

Accepted Answer

A) statement of financial position. 
B) income statement. 
C) statement of changes in equity. 
D) statement of cash flows. 
A) statement of financial position. 
B) income statement. 
C) statement of changes in equity. 
D) statement of cash flows.

Question 12

External users of accounting information include the managers who plan, organize, and run a business.

Accepted Answer

A) True 
 B)False

Question 13

Profit is another term for revenue.

Accepted Answer

A) True 
 B)False

Question 14

The statement of financial position reports assets and claims to those assets at a specific point in time.

Accepted Answer

A) True 
 B)False

Question 15

Creditors use the statement of financial position as another source of information to determine the likelihood they will be repaid.

Accepted Answer

A) True 
 B)False

Question 16

The accounting equation can be expressed as: Assets - Shareholders' Equity = Liabilities.

Accepted Answer

A) True 
 B)False

Question 17

Common shares represent

Accepted Answer

A) the creditors' claims on the company. 
B) the total profit of the company to date. 
C) the amount paid by investors for ownership in the company. 
D) the owners' claims on the company. 
A) the creditors' claims on the company. 
B) the total profit of the company to date. 
C) the amount paid by investors for ownership in the company. 
D) the owners' claims on the company.

Question 18

The statement of cash flows shows how cash was used during the period.

Accepted Answer

A) True 
 B)False

Question 19

Liabilities of a company are owed to

Accepted Answer

A) debtors. 
B) owners. 
C) creditors. 
D) shareholders. 
A) debtors. 
B) owners. 
C) creditors. 
D) shareholders.

Question 20

Which of the following uses accounting information to determine whether a company can pay its obligations?

Accepted Answer

A) shareholders 
B) marketing managers 
C) creditors 
D) Canada Revenue Agency 
A) shareholders 
B) marketing managers 
C) creditors 
D) Canada Revenue Agency

A corporation has which of the following set of characteristics?

The accounting equation can be expressed as: Assets + Liabilities = Shareholders' Equity.

Allocating the cost of using long-term assets over their useful lives is called

Buying assets needed to operate a business is an example of a(n)

The concept that economic activity which can be identified with a particular company must be kept separate and distinct from the owner(s) and from all other economic entities is known as

Which of the following statements is not true?

Retained earnings at the end of the period is equal to

The world's economic systems depend on financial reporting that is

Expenses are the cost of assets consumed or services used in the process of generating revenue.

Claims of creditors and shareholders on the assets of a business are called liabilities.

A company's policy toward dividends and growth could best be determined by examining the

External users of accounting information include the managers who plan, organize, and run a business.

Profit is another term for revenue.

The statement of financial position reports assets and claims to those assets at a specific point in time.

Creditors use the statement of financial position as another source of information to determine the likelihood they will be repaid.

The accounting equation can be expressed as: Assets - Shareholders' Equity = Liabilities.

Common shares represent

The statement of cash flows shows how cash was used during the period.

Liabilities of a company are owed to

Which of the following uses accounting information to determine whether a company can pay its obligations?

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: the Big Picture

Managerial Accounting

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Exam 1: Introduction to Financial Statements

A corporation has which of the following set of characteristics?

The accounting equation can be expressed as: Assets + Liabilities = Shareholders' Equity.

Allocating the cost of using long-term assets over their useful lives is called

Buying assets needed to operate a business is an example of a(n)

The concept that economic activity which can be identified with a particular company must be kept separate and distinct from the owner(s) and from all other economic entities is known as

Which of the following statements is not true?

Retained earnings at the end of the period is equal to

The world's economic systems depend on financial reporting that is

Expenses are the cost of assets consumed or services used in the process of generating revenue.

Claims of creditors and shareholders on the assets of a business are called liabilities.

A company's policy toward dividends and growth could best be determined by examining the

External users of accounting information include the managers who plan, organize, and run a business.

Profit is another term for revenue.

The statement of financial position reports assets and claims to those assets at a specific point in time.

Creditors use the statement of financial position as another source of information to determine the likelihood they will be repaid.

The accounting equation can be expressed as: Assets - Shareholders' Equity = Liabilities.

Common shares represent

The statement of cash flows shows how cash was used during the period.

Liabilities of a company are owed to

Which of the following uses accounting information to determine whether a company can pay its obligations?

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: the Big Picture

Managerial Accounting

Filters