Question 1

All of the following are external users except

Accepted Answer

A)  labour unions. 
B)  management. 
C)  regulators. 
D)  journalists. 
A)  labour unions. 
B)  management. 
C)  regulators. 
D)  journalists. B

Question 2

What are the "notes to the financial statements"? Why are they used?

Accepted Answer

The notes to the financial statements are a critical part of the financial statements. In them management gives more detail about specific items such as the various types of inventory held by the company and details on their long-term assets. By including additional explanations in notes rather than in the financial statements, management keeps the company's statements simple and uncluttered. Note disclosures help to increase the usefulness of the financial statements and enhance the user's understanding of the various components of the statements.

Question 3

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 4

The following data was taken from the books of Polo, Inc. as of December 31, 2020:   Instructions 
a) Calculate total assets.
b) Calculate total revenue, expenses and net income.
c) Calculate total liabilities.
d) Calculate earnings per share.

Accepted Answer

The answer of The following data was taken from the...

Question 5

How do internal users differ from external users of financial statements? Identify two internal and two external users of annual reports.

Accepted Answer

Internal users are using the information

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

The shareholders typically elect which of the following to represent their interests?

Accepted Answer

A)  senior management 
B)  independent auditors 
C)  board of directors 
D)  chief operating officer 
A)  senior management 
B)  independent auditors 
C)  board of directors 
D)  chief operating officer

Question 8

Which of the following statements best describes a partnership?

Accepted Answer

A)  separate legal entity 
B)  single owner 
C)  most expensive to establish 
D)  owners are responsible for debt of the company 
A)  separate legal entity 
B)  single owner 
C)  most expensive to establish 
D)  owners are responsible for debt of the company

Question 9

Businesses can be operated in a number of different forms, such as a

Accepted Answer

A)  corporation. 
B)  partnership. 
C)  proprietorship. 
D)  all of the above. 
A)  corporation. 
B)  partnership. 
C)  proprietorship. 
D)  all of the above.

Question 10

An example of an operating activity is

Accepted Answer

A)  repaying loan principal. 
B)  paying dividends. 
C)  purchase of shares of other companies. 
D)  payments of taxes owed to the government. 
A)  repaying loan principal. 
B)  paying dividends. 
C)  purchase of shares of other companies. 
D)  payments of taxes owed to the government.

Question 11

Which of the following statements best describes a corporation?

Accepted Answer

A)  can be single or multiple owners 
B)  taxed separately 
C)  most expensive to establish 
D)  all of the above 
A)  can be single or multiple owners 
B)  taxed separately 
C)  most expensive to establish 
D)  all of the above

Question 12

Share capital records the amount that investors have received in the form of dividends.

Accepted Answer

A) True 
 B)False

Question 13

All of the following are investing activities except

Accepted Answer

A)  earning interest income. 
B)  purchasing property, plant, and equipment. 
C)  purchasing other companies' shares. 
D)  selling property, plant, and equipment. 
A)  earning interest income. 
B)  purchasing property, plant, and equipment. 
C)  purchasing other companies' shares. 
D)  selling property, plant, and equipment.

Question 14

Licences, patents, trademarks, and copyrights are all examples of

Accepted Answer

A)  current assets. 
B)  goodwill. 
C)  intangible assets. 
D)  short-term investments. 
A)  current assets. 
B)  goodwill. 
C)  intangible assets. 
D)  short-term investments.

Question 15

Profit is determined by subtracting the income earned during the period from the expenses incurred during the same period.

Accepted Answer

A) True 
 B)False

Question 16

Companies that are growing normally have negative cash flows from investing activities.

Accepted Answer

A) True 
 B)False

Question 17

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 18

Match each of the following financial statement lines to the correct financial statement by placing the appropriate letter in the space provided.

Accepted Answer

1. a
2. b
3. a
4. d

Question 19

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 20

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

Accepted Answer

A) True 
 B)False

All of the following are external users except

What are the "notes to the financial statements"? Why are they used?

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

The following data was taken from the books of Polo, Inc. as of December 31, 2020: Instructions a) Calculate total assets. b) Calculate total revenue, expenses and net income. c) Calculate total liabilities. d) Calculate earnings per share.

How do internal users differ from external users of financial statements? Identify two internal and two external users of annual reports.

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

The shareholders typically elect which of the following to represent their interests?

Which of the following statements best describes a partnership?

Businesses can be operated in a number of different forms, such as a

An example of an operating activity is

Which of the following statements best describes a corporation?

Share capital records the amount that investors have received in the form of dividends.

All of the following are investing activities except

Licences, patents, trademarks, and copyrights are all examples of

Profit is determined by subtracting the income earned during the period from the expenses incurred during the same period.

Companies that are growing normally have negative cash flows from investing activities.

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

Match each of the following financial statement lines to the correct financial statement by placing the appropriate letter in the space provided.

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

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

Analyzing Transaction and Their Effect on Financial Statement

Double-Entry Accounting and the Accounting Cycle

Revenue Recognition and the Statement of Income

The Statement of Cash Flows

Cash and Accounts

Inventory

Long-Term Assets

Current Liabilities

Long-Term Liabilities

Shareholders Equity

Financial Statement Analysis

Filters

Exam 1: Overview of Corporate Financial Reporting

All of the following are external users except

What are the "notes to the financial statements"? Why are they used?

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

The following data was taken from the books of Polo, Inc. as of December 31, 2020: Instructions a) Calculate total assets. b) Calculate total revenue, expenses and net income. c) Calculate total liabilities. d) Calculate earnings per share.

How do internal users differ from external users of financial statements? Identify two internal and two external users of annual reports.

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

The shareholders typically elect which of the following to represent their interests?

Which of the following statements best describes a partnership?

Businesses can be operated in a number of different forms, such as a

An example of an operating activity is

Which of the following statements best describes a corporation?

Share capital records the amount that investors have received in the form of dividends.

All of the following are investing activities except

Licences, patents, trademarks, and copyrights are all examples of

Profit is determined by subtracting the income earned during the period from the expenses incurred during the same period.

Companies that are growing normally have negative cash flows from investing activities.

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

Match each of the following financial statement lines to the correct financial statement by placing the appropriate letter in the space provided.

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

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

Analyzing Transaction and Their Effect on Financial Statement

Double-Entry Accounting and the Accounting Cycle

Revenue Recognition and the Statement of Income

The Statement of Cash Flows

Cash and Accounts

Inventory

Long-Term Assets

Current Liabilities

Long-Term Liabilities

Shareholders Equity

Financial Statement Analysis

Filters