Question 1

A loss arises when revenues are higher than expenses.

Accepted Answer

A) True 
 B)False

Question 2

Social responsibility:

Accepted Answer

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

Question 3

Financial information that is verifiable means that:

Accepted Answer

A)  Information is clear and concise. 
B)  Knowledgeable users agree that the financial information is faithfully represented. 
C)  The information is useful to users with reasonable knowledge of accounting as well as business and economic activities. 
D)  Users are able to compare different companies,if all the companies use similar accounting practices. 
E)  The financial statements have not been prepared according to GAAP. 
A)  Information is clear and concise. 
B)  Knowledgeable users agree that the financial information is faithfully represented. 
C)  The information is useful to users with reasonable knowledge of accounting as well as business and economic activities. 
D)  Users are able to compare different companies,if all the companies use similar accounting practices. 
E)  The financial statements have not been prepared according to GAAP.

Question 4

Explain the difference between the functions of an internal auditor and an external auditor.

Accepted Answer

An internal auditor is employed within t

Question 5

A balance sheet covers a period of time such as a month or year.

Accepted Answer

A) True 
 B)False

Question 6

Equity is increased when cash is received from customers in payment of a previously recorded accounts receivable.

Accepted Answer

A) True 
 B)False

Question 7

You are reviewing the accounting records of April's Attic,owned by April Lapierre.You have uncovered the following situations.Compose a memo to Ms.Lapierre.Cite the appropriate accounting principle and suggest an action for each separate item.

Accepted Answer

The answer of You are reviewing the accounting records of...

Question 8

Willie's Attic has the following account balances for the dates given:   What would equity be on September 1 and September 30?

Accepted Answer

A)  $86,000; $4,000. 
B)  $86,000; $106,000. 
C)  $74,000; $106,000. 
D)  $74,000; $4,000. 
E)  None of these answers is correct. 
A)  $86,000; $4,000. 
B)  $86,000; $106,000. 
C)  $74,000; $106,000. 
D)  $74,000; $4,000. 
E)  None of these answers is correct.

Question 9

Explain the accounting equation,also called the balance sheet equation.

Accepted Answer

The accounting equation is stated as ass

Question 10

Revenues are:

Accepted Answer

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

Question 11

Profit is another name for:

Accepted Answer

A)  The income statement. 
B)  Net income. 
C)  Equity. 
D)  A business transaction. 
E)  Assets. 
A)  The income statement. 
B)  Net income. 
C)  Equity. 
D)  A business transaction. 
E)  Assets.

Question 12

Items such as sales slips,invoices,cheques,purchase orders,and employee earnings records are also called source documents.

Accepted Answer

A) True 
 B)False

Question 13

The accounting equation is the link between a company's assets,liabilities and equity.

Accepted Answer

A) True 
 B)False

Question 14

Business events do not affect the accounting equation.

Accepted Answer

A) True 
 B)False

Question 15

Internal users include creditors,shareholders,internal auditors and managers.

Accepted Answer

A) True 
 B)False

Question 16

Which financial statement shows whether the business earned a profit or loss,and also lists the types and amounts of the revenues and expenses?

Accepted Answer

A)  Balance sheet. 
B)  Statement of changes in equity. 
C)  Statement of cash flows. 
D)  Income statement. 
E)  Statement of financial position. 
A)  Balance sheet. 
B)  Statement of changes in equity. 
C)  Statement of cash flows. 
D)  Income statement. 
E)  Statement of financial position.

Question 17

A business:

Accepted Answer

A)  Is one or more individuals selling products or services for profit. 
B)  Can only have one legal form of organization. 
C)  Can have adequate financial records without a formal accounting system. 
D)  Has to issue shares before it opens. 
E)  Is one or more individuals selling products or services for profit and has to issue shares before it opens. 
A)  Is one or more individuals selling products or services for profit. 
B)  Can only have one legal form of organization. 
C)  Can have adequate financial records without a formal accounting system. 
D)  Has to issue shares before it opens. 
E)  Is one or more individuals selling products or services for profit and has to issue shares before it opens.

Question 18

A(n)____________________ is a business owned by one person.

Accepted Answer

The answer of A(n)____________________ is a business owned by one...

Question 19

The conceptual framework summarizes the qualitative characteristics and supportive building blocks that are required to prepare financial information.

Accepted Answer

A) True 
 B)False

Question 20

Withdrawals represent distributions from a corporation to its owners.

Accepted Answer

A) True 
 B)False

A loss arises when revenues are higher than expenses.

Social responsibility:

Financial information that is verifiable means that:

Explain the difference between the functions of an internal auditor and an external auditor.

A balance sheet covers a period of time such as a month or year.

Equity is increased when cash is received from customers in payment of a previously recorded accounts receivable.

You are reviewing the accounting records of April's Attic,owned by April Lapierre.You have uncovered the following situations.Compose a memo to Ms.Lapierre.Cite the appropriate accounting principle and suggest an action for each separate item.

Willie's Attic has the following account balances for the dates given: What would equity be on September 1 and September 30?

Explain the accounting equation,also called the balance sheet equation.

Revenues are:

Profit is another name for:

Items such as sales slips,invoices,cheques,purchase orders,and employee earnings records are also called source documents.

The accounting equation is the link between a company's assets,liabilities and equity.

Business events do not affect the accounting equation.

Internal users include creditors,shareholders,internal auditors and managers.

Which financial statement shows whether the business earned a profit or loss,and also lists the types and amounts of the revenues and expenses?

A business:

A(n)____________________ is a business owned by one person.

The conceptual framework summarizes the qualitative characteristics and supportive building blocks that are required to prepare financial information.

Withdrawals represent distributions from a corporation to its owners.

Analyzing and Reporting Transactions

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Merchandise Inventory and Cost of Sales

Accounting Information Systems

Internal Control and Cash

Receivables

Filters

Exam 1: Accounting in Business

A loss arises when revenues are higher than expenses.

Social responsibility:

Financial information that is verifiable means that:

Explain the difference between the functions of an internal auditor and an external auditor.

A balance sheet covers a period of time such as a month or year.

Equity is increased when cash is received from customers in payment of a previously recorded accounts receivable.

You are reviewing the accounting records of April's Attic,owned by April Lapierre.You have uncovered the following situations.Compose a memo to Ms.Lapierre.Cite the appropriate accounting principle and suggest an action for each separate item.

Willie's Attic has the following account balances for the dates given: What would equity be on September 1 and September 30?

Explain the accounting equation,also called the balance sheet equation.

Revenues are:

Profit is another name for:

Items such as sales slips,invoices,cheques,purchase orders,and employee earnings records are also called source documents.

The accounting equation is the link between a company's assets,liabilities and equity.

Business events do not affect the accounting equation.

Internal users include creditors,shareholders,internal auditors and managers.

Which financial statement shows whether the business earned a profit or loss,and also lists the types and amounts of the revenues and expenses?

A business:

A(n)____________________ is a business owned by one person.

The conceptual framework summarizes the qualitative characteristics and supportive building blocks that are required to prepare financial information.

Withdrawals represent distributions from a corporation to its owners.

Analyzing and Reporting Transactions

Adjusting Accounts for Financial Statements

Completing the Accounting Cycle and Classifying Accounts

Accounting for Merchandising Activities

Merchandise Inventory and Cost of Sales

Accounting Information Systems

Internal Control and Cash

Receivables

Filters