Question 1

Public accountants are typically employees of the firm for which they are providing services.

Accepted Answer

A) True 
 B)False  False

Question 2

__________ measure a firm's ability to meet its short-term obligations when they come due

Accepted Answer

A) Chartered Accountant 
B) International Financial Reporting Standards 
C) Asset 
D) Liability 
E) owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Corruption of Foreign Public Officials Act
J)accrual accounting
K)open book management
L)Budget
M)GAAP
N)AcSB
O)profitability ratio
P)International Accounting Standards Committee
Q)liquidity ratios
r budget 
A) Chartered Accountant 
B) International Financial Reporting Standards 
C) Asset 
D) Liability 
E) owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Corruption of Foreign Public Officials Act
J)accrual accounting
K)open book management
L)Budget
M)GAAP
N)AcSB
O)profitability ratio
P)International Accounting Standards Committee
Q)liquidity ratios
r budget Q

Question 3

Assets can include intangible possessions such as patents and trademarks.

Accepted Answer

A) True 
 B)False  True

Question 4

Montreal Fabrication has $80 million in assets and $50 million in owners' equity.How much does the firm have in liabilities?

Accepted Answer

A)  $20 million 
B)  $30 million 
C)  $50 million 
D)  $80 million 
A)  $20 million 
B)  $30 million 
C)  $50 million 
D)  $80 million

Question 5

Ricardo is a loan officer for a bank and is reviewing the financial statements of a prospective borrower.As a user of accounting information,Ricardo is most interested in using this information ________.

Accepted Answer

A)  evaluate credit risk 
B)  to make an investment decision 
C)  in contract negotiations 
D)  to plan and control 
A)  evaluate credit risk 
B)  to make an investment decision 
C)  in contract negotiations 
D)  to plan and control

Question 6

All organizations perform three basic business activities.List and describe these activities.

Accepted Answer

All businesses perform,in natural progre

Question 7

The accounting method that records revenues and expenses when they occur is called _____.

Accepted Answer

A) Chartered Accountant 
B) International Financial Reporting Standards 
C) Asset 
D) Liability 
E) owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Corruption of Foreign Public Officials Act
J)accrual accounting
K)open book management
L)Budget
M)GAAP
N)AcSB
O)profitability ratio
P)International Accounting Standards Committee
Q)liquidity ratios
r budget 
A) Chartered Accountant 
B) International Financial Reporting Standards 
C) Asset 
D) Liability 
E) owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Corruption of Foreign Public Officials Act
J)accrual accounting
K)open book management
L)Budget
M)GAAP
N)AcSB
O)profitability ratio
P)International Accounting Standards Committee
Q)liquidity ratios
r budget

Question 8

When examining a statement of cash flows,investors obtain relevant information about a firm's cash receipts and payments for its operations,investments,and financing during an accounting period.

Accepted Answer

A) True 
 B)False

Question 9

Not-for-profit organizations use only public accountants.

Accepted Answer

A) True 
 B)False

Question 10

A firm has $12 million in current assets,of which $8 million is inventory.If the company has $4 million in current liabilities,then its current ratio equals 1.0.

Accepted Answer

A) True 
 B)False

Question 11

Financing activities focus on providing valuable assets required to run a business.

Accepted Answer

A) True 
 B)False

Question 12

Morgan works for a travel agency.Her job involves preparing financial reports and interpreting those reports to provide information for decision making.Which title is appropriate for Morgan's job?

Accepted Answer

A)  Investor 
B)  Systems analyst 
C)  Accountant 
D)  Auditor 
A)  Investor 
B)  Systems analyst 
C)  Accountant 
D)  Auditor

Question 13

A firm has $15 million in assets and $5 million in owner's equity.Therefore,the firm must also have $15 million in liabilities.

Accepted Answer

A) True 
 B)False

Question 14

Raphael works as a tax accountant at a mid-sized manufacturing company.Raphael would be considered a ________.

Accepted Answer

A)  management consultant 
B)  management accountant 
C)  public accountant 
D)  government accountant 
A)  management consultant 
B)  management accountant 
C)  public accountant 
D)  government accountant

Question 15

_____ is primarily responsible for evaluating,setting,or modifying the generally accepted accounting principles.

Accepted Answer

A) Chartered Accountant 
B) International Financial Reporting Standards 
C) Asset 
D) Liability 
E) owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Corruption of Foreign Public Officials Act
J)accrual accounting
K)open book management
L)Budget
M)GAAP
N)AcSB
O)profitability ratio
P)International Accounting Standards Committee
Q)liquidity ratios
r budget 
A) Chartered Accountant 
B) International Financial Reporting Standards 
C) Asset 
D) Liability 
E) owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Corruption of Foreign Public Officials Act
J)accrual accounting
K)open book management
L)Budget
M)GAAP
N)AcSB
O)profitability ratio
P)International Accounting Standards Committee
Q)liquidity ratios
r budget

Question 16

Which of the following current assets is NOT included when calculating the acid-test ratio?

Accepted Answer

A)  Cash 
B)  Marketable securities 
C)  Inventory 
D)  Accounts receivable 
A)  Cash 
B)  Marketable securities 
C)  Inventory 
D)  Accounts receivable

Question 17

Companies such as Coca-Cola generate more than half their annual revenues from sales outside the United States,including Europe.If the dollar gets stronger relative to the euro,what will be the financial impact on the company?

Accepted Answer

A)  Overall earnings will decrease 
B)  Earnings will decrease in euros,but increase in dollars 
C)  Overall earnings will increase 
D)  Earnings will increase in euros,but decrease in dollars 
A)  Overall earnings will decrease 
B)  Earnings will decrease in euros,but increase in dollars 
C)  Overall earnings will increase 
D)  Earnings will increase in euros,but decrease in dollars

Question 18

The _____ is the federal law that prohibits Canadian citizens and companies from bribing foreign officials to win or continue business.

Accepted Answer

A) Chartered Accountant 
B) International Financial Reporting Standards 
C) Asset 
D) Liability 
E) owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Corruption of Foreign Public Officials Act
J)accrual accounting
K)open book management
L)Budget
M)GAAP
N)AcSB
O)profitability ratio
P)International Accounting Standards Committee
Q)liquidity ratios
r budget 
A) Chartered Accountant 
B) International Financial Reporting Standards 
C) Asset 
D) Liability 
E) owners' equity
F)accounting equation
G)balance sheet
H)income statement
I)Corruption of Foreign Public Officials Act
J)accrual accounting
K)open book management
L)Budget
M)GAAP
N)AcSB
O)profitability ratio
P)International Accounting Standards Committee
Q)liquidity ratios
r budget

Question 19

Fayez performs professional services similar to those of a management accountant,while working for the city of Edmonton Fayez can best be described as a ________.

Accepted Answer

A)  tax accountant 
B)  government accountant 
C)  public accountant 
D)  cost accountant 
A)  tax accountant 
B)  government accountant 
C)  public accountant 
D)  cost accountant

Question 20

The rules followed by accountants when preparing financial statements are referred to as ________.

Accepted Answer

A)  Generally Accepted Accounting Practices (GAAP) 
B)  Financial Accounting Standards Board (FAS
B)  
C)  the accounting process 
D)  the accounting system 
A)  Generally Accepted Accounting Practices (GAAP) 
B)  Financial Accounting Standards Board (FAS
B)  
C)  the accounting process 
D)  the accounting system

Public accountants are typically employees of the firm for which they are providing services.

__________ measure a firm's ability to meet its short-term obligations when they come due

Assets can include intangible possessions such as patents and trademarks.

Montreal Fabrication has $80 million in assets and $50 million in owners' equity.How much does the firm have in liabilities?

Ricardo is a loan officer for a bank and is reviewing the financial statements of a prospective borrower.As a user of accounting information,Ricardo is most interested in using this information ________.

All organizations perform three basic business activities.List and describe these activities.

The accounting method that records revenues and expenses when they occur is called _____.

When examining a statement of cash flows,investors obtain relevant information about a firm's cash receipts and payments for its operations,investments,and financing during an accounting period.

Not-for-profit organizations use only public accountants.

A firm has $12 million in current assets,of which $8 million is inventory.If the company has $4 million in current liabilities,then its current ratio equals 1.0.

Financing activities focus on providing valuable assets required to run a business.

Morgan works for a travel agency.Her job involves preparing financial reports and interpreting those reports to provide information for decision making.Which title is appropriate for Morgan's job?

A firm has $15 million in assets and $5 million in owner's equity.Therefore,the firm must also have $15 million in liabilities.

Raphael works as a tax accountant at a mid-sized manufacturing company.Raphael would be considered a ________.

_____ is primarily responsible for evaluating,setting,or modifying the generally accepted accounting principles.

Which of the following current assets is NOT included when calculating the acid-test ratio?

Companies such as Coca-Cola generate more than half their annual revenues from sales outside the United States,including Europe.If the dollar gets stronger relative to the euro,what will be the financial impact on the company?

The _____ is the federal law that prohibits Canadian citizens and companies from bribing foreign officials to win or continue business.

Fayez performs professional services similar to those of a management accountant,while working for the city of Edmonton Fayez can best be described as a ________.

The rules followed by accountants when preparing financial statements are referred to as ________.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

Competing in World Markets

Forms of Business Ownership and Organization

Starting Your Own Business: The Entrepreneurship Alternative

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labour Relations

Top Performance through Empowerment, Teamwork, and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

The Financial System

Financial Management

Filters

Exam 15: Understanding Accounting and Financial Statements

Public accountants are typically employees of the firm for which they are providing services.

__________ measure a firm's ability to meet its short-term obligations when they come due

Assets can include intangible possessions such as patents and trademarks.

Montreal Fabrication has $80 million in assets and $50 million in owners' equity.How much does the firm have in liabilities?

Ricardo is a loan officer for a bank and is reviewing the financial statements of a prospective borrower.As a user of accounting information,Ricardo is most interested in using this information ________.

All organizations perform three basic business activities.List and describe these activities.

The accounting method that records revenues and expenses when they occur is called _____.

When examining a statement of cash flows,investors obtain relevant information about a firm's cash receipts and payments for its operations,investments,and financing during an accounting period.

Not-for-profit organizations use only public accountants.

A firm has $12 million in current assets,of which $8 million is inventory.If the company has $4 million in current liabilities,then its current ratio equals 1.0.

Financing activities focus on providing valuable assets required to run a business.

Morgan works for a travel agency.Her job involves preparing financial reports and interpreting those reports to provide information for decision making.Which title is appropriate for Morgan's job?

A firm has $15 million in assets and $5 million in owner's equity.Therefore,the firm must also have $15 million in liabilities.

Raphael works as a tax accountant at a mid-sized manufacturing company.Raphael would be considered a ________.

_____ is primarily responsible for evaluating,setting,or modifying the generally accepted accounting principles.

Which of the following current assets is NOT included when calculating the acid-test ratio?

Companies such as Coca-Cola generate more than half their annual revenues from sales outside the United States,including Europe.If the dollar gets stronger relative to the euro,what will be the financial impact on the company?

The _____ is the federal law that prohibits Canadian citizens and companies from bribing foreign officials to win or continue business.

Fayez performs professional services similar to those of a management accountant,while working for the city of Edmonton Fayez can best be described as a ________.

The rules followed by accountants when preparing financial statements are referred to as ________.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

Competing in World Markets

Forms of Business Ownership and Organization

Starting Your Own Business: The Entrepreneurship Alternative

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labour Relations

Top Performance through Empowerment, Teamwork, and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

The Financial System

Financial Management

Filters