Question 1

Accrual-basis accounting is the method that recognizes revenue when it is earned and matches expenses to those revenues.

Accepted Answer

A) True 
 B)False

Question 2

Two of the goals underlying GAAP are to ensure that the statements prepared in financial accounting are relevant and consistent.

Accepted Answer

A) True 
 B)False

Question 3

Private and public accountants do the same type of work but have different qualifications.

Accepted Answer

A) True 
 B)False

Question 4

Discuss the career opportunities available to accountants.

Accepted Answer

The answer of Discuss the career opportunities available to accountants....

Question 5

The accounting equation shows us that the value of the firm's assets must equal the value of which of the following?

Accepted Answer

A) owners' equity 
B) earnings at a point in time 
C) revenues minus expenses 
D) financing provided by owners and creditors

Question 6

What does accounting provide to users?

Accepted Answer

A) auditing references to assist Canada Revenue Agency in collecting tax payments 
B) timely and relevant information needed to make sound economic decisions 
C) information on the financial decisions of its shareholders 
D) knowledge of how to position a product for its market

Question 7

Assets are the tangible and intangible resources of value owned by a firm.

Accepted Answer

A) True 
 B)False

Question 8

When managerial accountants assign costs to the production of specific products,which of the following costs are easiest to assign?

Accepted Answer

A) insurance premiums and depreciation expenses 
B) property taxes and income taxes 
C) direct labour and direct materials costs 
D) general maintenance expenses and direct labour

Question 9

Sabiha is the small business loan officer at Regional National Bank.It is her job to approve loans for small businesses so that the local economy will grow.One factor she looks at carefully when making loan decisions is the amount of debt the firm already has outstanding.She can find this information by looking at which of the following financial statements of the firm?

Accepted Answer

A) income statement 
B) balance sheet 
C) statement of cash flows 
D) cash budget

Question 10

Financial accounting is the branch of accounting that prepares financial statements for use by owners,creditors,suppliers,and other stakeholders.

Accepted Answer

A) True 
 B)False

Question 11

Ralph owns some stock in the Lottadoe Corporation,and wants to know whether this company earned a profit over the most recent year.This information would be available on the company's balance sheet.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following are assets?

Accepted Answer

A) salaries payable 
B) bad debts 
C) inventory 
D) accounts payable

Question 13

Accounting is a system for recognizing,recording,organizing,analyzing,summarizing,and reporting information about the financial transactions that affect an organization.

Accepted Answer

A) True 
 B)False

Question 14

What process would provide shareholders or creditors with information about the overall financial performance of a firm?

Accepted Answer

A) accrual accounting 
B) internal auditing 
C) financial accounting 
D) managerial accounting

Question 15

The cash balance reported at the bottom of the statement of cash flows should equal the amount of cash reported for a balance sheet prepared at the end of the same accounting period.

Accepted Answer

A) True 
 B)False

Question 16

GAAP is the policy board that establishes the rules known as the FASB of accounting.

Accepted Answer

A) True 
 B)False

Question 17

In order to compute a firm's gross profit on the income statement,its cost of goods sold is subtracted from which of the following?

Accepted Answer

A) revenue 
B) liabilities 
C) revenue. 
D) total assets.

Question 18

Financial budgets are the budget documents that identify cash and other financial resources the firm will acquire and use to finance operations and make planned investments in fixed assets.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following best describes how the auditor indicate(s)whether the firm's financial statements are prepared and presented in a way that is likely to fairly represent the firm's financial condition?

Accepted Answer

A) opinion 
B) certification statement 
C) letter to the CEO 
D) footnotes

Question 20

Budgeting is a management tool that explicitly shows how a firm will acquire and use resources needed to achieve its goals over a specific time period.

Accepted Answer

A) True 
 B)False

Exam 7: Accounting: Decision Making by the Numbers

Accrual-basis accounting is the method that recognizes revenue when it is earned and matches expenses to those revenues.

Two of the goals underlying GAAP are to ensure that the statements prepared in financial accounting are relevant and consistent.

Private and public accountants do the same type of work but have different qualifications.

Discuss the career opportunities available to accountants.

The accounting equation shows us that the value of the firm's assets must equal the value of which of the following?

What does accounting provide to users?

Assets are the tangible and intangible resources of value owned by a firm.

When managerial accountants assign costs to the production of specific products,which of the following costs are easiest to assign?

Financial accounting is the branch of accounting that prepares financial statements for use by owners,creditors,suppliers,and other stakeholders.

Ralph owns some stock in the Lottadoe Corporation,and wants to know whether this company earned a profit over the most recent year.This information would be available on the company's balance sheet.

Which of the following are assets?

Accounting is a system for recognizing,recording,organizing,analyzing,summarizing,and reporting information about the financial transactions that affect an organization.

What process would provide shareholders or creditors with information about the overall financial performance of a firm?

The cash balance reported at the bottom of the statement of cash flows should equal the amount of cash reported for a balance sheet prepared at the end of the same accounting period.

GAAP is the policy board that establishes the rules known as the FASB of accounting.

In order to compute a firm's gross profit on the income statement,its cost of goods sold is subtracted from which of the following?

Financial budgets are the budget documents that identify cash and other financial resources the firm will acquire and use to finance operations and make planned investments in fixed assets.

Which of the following best describes how the auditor indicate(s) whether the firm's financial statements are prepared and presented in a way that is likely to fairly represent the firm's financial condition?

Budgeting is a management tool that explicitly shows how a firm will acquire and use resources needed to achieve its goals over a specific time period.