Question 1

Retained earnings is the earnings that have been kept and not paid out as dividends.

Accepted Answer

A) True 
 B)False  True

Question 2

Canadian companies use a 12-month period to distinguish between items that are current from those that are non-current.

Accepted Answer

A) True 
 B)False  True

Question 3

The starting point in the operating activities section of the cash flow statement is

Accepted Answer

A)  Sales Revenue. 
B)  Retained Earnings. 
C)  Beginning Cash Balance. 
D)  Net Income. 
A)  Sales Revenue. 
B)  Retained Earnings. 
C)  Beginning Cash Balance. 
D)  Net Income. D

Question 4

Amounts owed to customers for advance payments until the related goods or services have been provided are called

Accepted Answer

A)  Accounts Payable. 
B)  Deferred Revenue. 
C)  Accrued Liabilities. 
D)  Deferred Income Taxes. 
A)  Accounts Payable. 
B)  Deferred Revenue. 
C)  Accrued Liabilities. 
D)  Deferred Income Taxes.

Question 5

Net earnings is the amount of the company's revenue that remains after all of its expenses are accounted for.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is a typical financing activity?

Accepted Answer

A)  payment of dividends 
B)  payment of interest expense 
C)  payment of wages 
D)  purchases of inventory 
A)  payment of dividends 
B)  payment of interest expense 
C)  payment of wages 
D)  purchases of inventory

Question 7

Income can also include gains that a company generates from sales that are outside their normal course of operations.

Accepted Answer

A) True 
 B)False

Question 8

Working capital measures the company's ability to meet its short-term obligations using its non-current assets.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is NOT a typical operating activity?

Accepted Answer

A)  payment of accounts payable 
B)  payment of long term notes payable 
C)  payment of wages 
D)  collection of accounts receivable 
A)  payment of accounts payable 
B)  payment of long term notes payable 
C)  payment of wages 
D)  collection of accounts receivable

Question 10

What is the initial investment by the shareholders in a company called?

Accepted Answer

A)  owners' capital 
B)  shareholders' capital 
C)  retained earnings 
D)  shareholders' equity 
A)  owners' capital 
B)  shareholders' capital 
C)  retained earnings 
D)  shareholders' equity

Question 11

A gain or increase in the value of shares is known as capital appreciation.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is an example of an operating activity?

Accepted Answer

A)  paying dividends 
B)  sale of investment in other companies' shares 
C)  purchase of property, plant, and equipment 
D)  payment of interest expense 
A)  paying dividends 
B)  sale of investment in other companies' shares 
C)  purchase of property, plant, and equipment 
D)  payment of interest expense

Question 13

The following information is NOT found on the Statement of Income:

Accepted Answer

A)  EPS. 
B)  Depreciation Expense. 
C)  Future Income Taxes. 
D)  Cost of Goods Sold. 
A)  EPS. 
B)  Depreciation Expense. 
C)  Future Income Taxes. 
D)  Cost of Goods Sold.

Question 14

If an investor owns 10% of the shares of a company, they normally own 10 shares of the company.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following statements is true?

Accepted Answer

A)  The market value and the book value of a company's shareholders' equity are usually the same. 
B)  The market value is usually less than the book value of a company's shareholders' equity. 
C)  The market value is usually more than the book value of a company's shareholders' equity. 
D)  The value of the shareholders' equity on the Statement of Financial Position is based on the value of the company's shares in the market. 
A)  The market value and the book value of a company's shareholders' equity are usually the same. 
B)  The market value is usually less than the book value of a company's shareholders' equity. 
C)  The market value is usually more than the book value of a company's shareholders' equity. 
D)  The value of the shareholders' equity on the Statement of Financial Position is based on the value of the company's shares in the market.

Question 16

Prepaid expenses can be found on the Statement of Income.

Accepted Answer

A) True 
 B)False

Question 17

In which section of the annual report does management comment on the company and its operating results?

Accepted Answer

A)  report to the shareholders 
B)  management's discussion and analysis 
C)  corporate profile 
D)  selected financial data 
A)  report to the shareholders 
B)  management's discussion and analysis 
C)  corporate profile 
D)  selected financial data

Question 18

Goods held for resale to customers are called

Accepted Answer

A)  Inventory. 
B)  Prepaid Deposits. 
C)  Property, Plant, and Equipment. 
D)  Intangible Assets. 
A)  Inventory. 
B)  Prepaid Deposits. 
C)  Property, Plant, and Equipment. 
D)  Intangible Assets.

Question 19

The financial statements of a company are prepared by the shareholders.

Accepted Answer

A) True 
 B)False

Question 20

The MD&A provides a discussion of the risks facing the company and information about future plans.

Accepted Answer

A) True 
 B)False

Retained earnings is the earnings that have been kept and not paid out as dividends.

Canadian companies use a 12-month period to distinguish between items that are current from those that are non-current.

The starting point in the operating activities section of the cash flow statement is

Amounts owed to customers for advance payments until the related goods or services have been provided are called

Net earnings is the amount of the company's revenue that remains after all of its expenses are accounted for.

Which of the following is a typical financing activity?

Income can also include gains that a company generates from sales that are outside their normal course of operations.

Working capital measures the company's ability to meet its short-term obligations using its non-current assets.

Which of the following is NOT a typical operating activity?

What is the initial investment by the shareholders in a company called?

A gain or increase in the value of shares is known as capital appreciation.

Which of the following is an example of an operating activity?

The following information is NOT found on the Statement of Income:

If an investor owns 10% of the shares of a company, they normally own 10 shares of the company.

Which of the following statements is true?

Prepaid expenses can be found on the Statement of Income.

In which section of the annual report does management comment on the company and its operating results?

Goods held for resale to customers are called

The financial statements of a company are prepared by the shareholders.

The MD&A provides a discussion of the risks facing the company and information about future plans.

Nalyzing Transaction and Their Effect on Financial Statement

Double-Entry Accounting and the Accounting Cycle

Revenue Recognition and the Statement of Incom

Revenue Recognition and the Statement of Income

The Statement of Cash Flows

Cash and Accounts

Inventory

Long-Term Assets

Long-Term Liabilities

Shareholders Equity

Financial Statement Analysis

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Exam 1: Overview of Corporate Financial Reporting

Retained earnings is the earnings that have been kept and not paid out as dividends.

Canadian companies use a 12-month period to distinguish between items that are current from those that are non-current.

The starting point in the operating activities section of the cash flow statement is

Amounts owed to customers for advance payments until the related goods or services have been provided are called

Net earnings is the amount of the company's revenue that remains after all of its expenses are accounted for.

Which of the following is a typical financing activity?

Income can also include gains that a company generates from sales that are outside their normal course of operations.

Working capital measures the company's ability to meet its short-term obligations using its non-current assets.

Which of the following is NOT a typical operating activity?

What is the initial investment by the shareholders in a company called?

A gain or increase in the value of shares is known as capital appreciation.

Which of the following is an example of an operating activity?

The following information is NOT found on the Statement of Income:

If an investor owns 10% of the shares of a company, they normally own 10 shares of the company.

Which of the following statements is true?

Prepaid expenses can be found on the Statement of Income.

In which section of the annual report does management comment on the company and its operating results?

Goods held for resale to customers are called

The financial statements of a company are prepared by the shareholders.

The MD&A provides a discussion of the risks facing the company and information about future plans.

Nalyzing Transaction and Their Effect on Financial Statement

Double-Entry Accounting and the Accounting Cycle

Revenue Recognition and the Statement of Incom

Revenue Recognition and the Statement of Income

The Statement of Cash Flows

Cash and Accounts

Inventory

Long-Term Assets

Long-Term Liabilities

Shareholders Equity

Financial Statement Analysis

Filters