Question 1

Managerial accounting is an area of accounting that provides internal reports to assistthe decision-making needs of internal users.

Accepted Answer

A) True 
 B)False

Question 2

The Canadian accounting profession was recently united and grants the CharteredProfessional Accountant (CPA)designation.

Accepted Answer

A) True 
 B)False

Question 3

An obligation of a business that represents the claims of others against the assets of the business is called a(n):

Accepted Answer

A) Expense. 
B) Equity. 
C) Liability. 
D) Revenue. 
E) Asset. 
A) Expense. 
B) Equity. 
C) Liability. 
D) Revenue. 
E) Asset.

Question 4

Transactions that impact only assets do not require the accounting equation to stay in balance.

Accepted Answer

A) True 
 B)False

Question 5

List the three types of activities reported on the statement of cash flows

Accepted Answer

The three types of activities

Question 6

If, on January 1, Terry Chervinski Company paid $2,000 of its accounts payable in cash, what would be the effect of this transaction on assets, on liabilities, and on equity?

Accepted Answer

The answer of If, on January 1, Terry Chervinski Company...

Question 7

How would the accounting equation of Lenore Turner's consulting business be affectedby the billing of a client for $2,000 for consulting work completed?

Accepted Answer

A) Accounts receivable, $2,000 increase, liabilities, $2,000 decrease. 
B) Accounts receivable, $2,000 increase, cash, $2,000 decrease. 
C) Accounts receivable, $2,000 increase, cash, $2,000 increase. 
D) Accounts receivable, $2,000 increase, equity, $2,000 increase. 
E) Accounts receivable, $2,000 increase, liabilities, $2,000 increase. 
A) Accounts receivable, $2,000 increase, liabilities, $2,000 decrease. 
B) Accounts receivable, $2,000 increase, cash, $2,000 decrease. 
C) Accounts receivable, $2,000 increase, cash, $2,000 increase. 
D) Accounts receivable, $2,000 increase, equity, $2,000 increase. 
E) Accounts receivable, $2,000 increase, liabilities, $2,000 increase.

Question 8

If financial information is relevant, this means that

Accepted Answer

A) The information is prepared using the same accounting procedures from one accounting period to the next. 
B) Decision makers can depend on it. 
C) The financial statements have not been prepared according to GAAP. 
D) Users are able to compare different companies, if all the companies use similar accounting practices. 
E) It can affect the types of decisions made by users. 
A) The information is prepared using the same accounting procedures from one accounting period to the next. 
B) Decision makers can depend on it. 
C) The financial statements have not been prepared according to GAAP. 
D) Users are able to compare different companies, if all the companies use similar accounting practices. 
E) It can affect the types of decisions made by users.

Question 9

Social responsibility

Accepted Answer

A) Allows Canada Revenue Agency to regulate businesses. 
B) Requires analysts to report information favourable to their companies. 
C) Requires that all businesses conduct social audits. 
D) Is a concern for the impact of our actions on society as a whole. 
E) Is a code that helps accountants when dealing with confidential information. 
A) Allows Canada Revenue Agency to regulate businesses. 
B) Requires analysts to report information favourable to their companies. 
C) Requires that all businesses conduct social audits. 
D) Is a concern for the impact of our actions on society as a whole. 
E) Is a code that helps accountants when dealing with confidential information.

Question 10

A balance sheet lists

Accepted Answer

A) Only the information about what happened to equity during a specific time period. 
B) The types and amounts of the revenues and expenses of a business. 
C) The assets and liabilities of a business but not the equity. 
D) The types and amounts of assets, liabilities, and equity of a business at a specific date. 
E) The inflows and outflows of cash during a specific time period. 
A) Only the information about what happened to equity during a specific time period. 
B) The types and amounts of the revenues and expenses of a business. 
C) The assets and liabilities of a business but not the equity. 
D) The types and amounts of assets, liabilities, and equity of a business at a specific date. 
E) The inflows and outflows of cash during a specific time period.

Question 11

The description of the relationship between a company's assets, liabilities, and equity, which is expressed as Assets = Liabilities + Equity, is known as the:

Accepted Answer

A) Accounting equation. 
B) Business equation. 
C) Balance sheet. 
D) Net income. 
E) Liability equation. 
A) Accounting equation. 
B) Business equation. 
C) Balance sheet. 
D) Net income. 
E) Liability equation.

Question 12

The difference between a company's assets and its liabilities, or the residual interest in the assets of an entity that remains after deducting its liabilities, is called:

Accepted Answer

A) Net loss. 
B) Net income. 
C) Shares. 
D) Equity. 
E) Revenue. 
A) Net loss. 
B) Net income. 
C) Shares. 
D) Equity. 
E) Revenue.

Question 13

Blue Company collected $2,000 cash for work completed. The effects on the accounting equation are:

Accepted Answer

A) Total assets, total liabilities, and equity are unchanged. 
B) Total assets increase and equity increases. 
C) Both total assets and total liabilities decrease. 
D) Both total assets and equity are unchanged. 
E) Total assets decrease and equity increases. 
A) Total assets, total liabilities, and equity are unchanged. 
B) Total assets increase and equity increases. 
C) Both total assets and total liabilities decrease. 
D) Both total assets and equity are unchanged. 
E) Total assets decrease and equity increases.

Question 14

According to the cost principle, it is acceptable for managers to use their own estimate of an asset's value when recording the purchase.

Accepted Answer

A) True 
 B)False

Question 15

Equity is also known as

Accepted Answer

A) Expenses. 
B) Revenue. 
C) Net assets. 
D) Net loss. 
E) Net income. 
A) Expenses. 
B) Revenue. 
C) Net assets. 
D) Net loss. 
E) Net income.

Question 16

Identify the three forms of business organizations

Accepted Answer

The three forms of b

Question 17

The value of assets exchanged for goods or services provided to customers as part of the main operations of a business are called:

Accepted Answer

A) Equity. 
B) Revenues. 
C) Assets. 
D) Liabilities. 
E) Expenses. 
A) Equity. 
B) Revenues. 
C) Assets. 
D) Liabilities. 
E) Expenses.

Question 18

The accounting principle that requires that transactions are expressed using units ofmoney as the common denominator is the:

Accepted Answer

A) Monetary unit principle. 
B) Going concern principle. 
C) Cost principle. 
D) Business entity principle. 
E) Revenue recognition principle. 
A) Monetary unit principle. 
B) Going concern principle. 
C) Cost principle. 
D) Business entity principle. 
E) Revenue recognition principle.

Question 19

Revenues are

Accepted Answer

A) The amount a business earns after subtracting all expenses from sales. 
B) The value of assets exchanged for goods or services provided to the customer. 
C) Business events. 
D) Profits. 
E) Net assets. 
A) The amount a business earns after subtracting all expenses from sales. 
B) The value of assets exchanged for goods or services provided to the customer. 
C) Business events. 
D) Profits. 
E) Net assets.

Managerial accounting is an area of accounting that provides internal reports to assistthe decision-making needs of internal users.

The Canadian accounting profession was recently united and grants the CharteredProfessional Accountant (CPA)designation.

An obligation of a business that represents the claims of others against the assets of the business is called a(n):

Transactions that impact only assets do not require the accounting equation to stay in balance.

List the three types of activities reported on the statement of cash flows

If, on January 1, Terry Chervinski Company paid $2,000 of its accounts payable in cash, what would be the effect of this transaction on assets, on liabilities, and on equity?

How would the accounting equation of Lenore Turner's consulting business be affectedby the billing of a client for $2,000 for consulting work completed?

If financial information is relevant, this means that

Social responsibility

A balance sheet lists

The description of the relationship between a company's assets, liabilities, and equity, which is expressed as Assets = Liabilities + Equity, is known as the:

The difference between a company's assets and its liabilities, or the residual interest in the assets of an entity that remains after deducting its liabilities, is called:

Blue Company collected $2,000 cash for work completed. The effects on the accounting equation are:

According to the cost principle, it is acceptable for managers to use their own estimate of an asset's value when recording the purchase.

Equity is also known as

Identify the three forms of business organizations

The value of assets exchanged for goods or services provided to customers as part of the main operations of a business are called:

The accounting principle that requires that transactions are expressed using units ofmoney as the common denominator is the:

Revenues are

Analyzing and Recording Transactions

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Inventory Costing and Valuation

Internal Control and Cash

Receivables

Appendix

Filters

Exam 1: Accounting in Business

Managerial accounting is an area of accounting that provides internal reports to assistthe decision-making needs of internal users.

The Canadian accounting profession was recently united and grants the CharteredProfessional Accountant (CPA)designation.

An obligation of a business that represents the claims of others against the assets of the business is called a(n):

Transactions that impact only assets do not require the accounting equation to stay in balance.

List the three types of activities reported on the statement of cash flows

If, on January 1, Terry Chervinski Company paid $2,000 of its accounts payable in cash, what would be the effect of this transaction on assets, on liabilities, and on equity?

How would the accounting equation of Lenore Turner's consulting business be affectedby the billing of a client for $2,000 for consulting work completed?

If financial information is relevant, this means that

Social responsibility

A balance sheet lists

The description of the relationship between a company's assets, liabilities, and equity, which is expressed as Assets = Liabilities + Equity, is known as the:

The difference between a company's assets and its liabilities, or the residual interest in the assets of an entity that remains after deducting its liabilities, is called:

Blue Company collected $2,000 cash for work completed. The effects on the accounting equation are:

According to the cost principle, it is acceptable for managers to use their own estimate of an asset's value when recording the purchase.

Equity is also known as

Identify the three forms of business organizations

The value of assets exchanged for goods or services provided to customers as part of the main operations of a business are called:

The accounting principle that requires that transactions are expressed using units ofmoney as the common denominator is the:

Revenues are

Analyzing and Recording Transactions

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Inventory Costing and Valuation

Internal Control and Cash

Receivables

Appendix

Filters