Question 1

Which of the following classification of ratios reflects the speed with which resources are converted to cash or sales?

Accepted Answer

A)  leverage 
B)  equity 
C)  activity 
D)  profitability 
A)  leverage 
B)  equity 
C)  activity 
D)  profitability

Question 2

Which of the following terms equals the total profits of a company minus all dividends (distributions of profits)to shareholders?

Accepted Answer

A)  net earnings 
B)  net worth 
C)  retained earnings 
D)  owners' equity 
A)  net earnings 
B)  net worth 
C)  retained earnings 
D)  owners' equity

Question 3

Which of the following calculations is a formal expression of the accounting equation?

Accepted Answer

A)  assets - owners' equity = liabilities 
B)  assets = liabilities + owners' equity 
C)  assets ? liabilities = retained earnings 
D)  assets + liabilities = owners' equity 
A)  assets - owners' equity = liabilities 
B)  assets = liabilities + owners' equity 
C)  assets ? liabilities = retained earnings 
D)  assets + liabilities = owners' equity

Question 4

Which of the following statements best describes the accounting profession?

Accepted Answer

A)  Accountants need a master's degree to obtain their designation. 
B)  Many CGA's own their own business. 
C)  Managerial accountants become Certified Management Accountants when they complete a degree and apply to the association. 
D)  Most CGAs work only in industry. 
A)  Accountants need a master's degree to obtain their designation. 
B)  Many CGA's own their own business. 
C)  Managerial accountants become Certified Management Accountants when they complete a degree and apply to the association. 
D)  Most CGAs work only in industry.

Question 5

The final figure or bottom line on an income statement is called the net revenue.

Accepted Answer

A) True 
 B)False

Question 6

What is the dollar amount of sales plus any other income received from sources such as interest and dividends?

Accepted Answer

A)  revenues 
B)  capital 
C)  intangible assets 
D)  equities 
A)  revenues 
B)  capital 
C)  intangible assets 
D)  equities

Question 7

On a statement of cash flows for a manufacturer of digital thermometers,the cash flows from operating activities would include which of the following?

Accepted Answer

A)  the sale of land adjacent to the manufacturer's administrative office building 
B)  repayment of long-term loan by a wholesaler of weather-related items 
C)  increases in the manufacturer's inventory 
D)  the money borrowed from the bank to start the company 
A)  the sale of land adjacent to the manufacturer's administrative office building 
B)  repayment of long-term loan by a wholesaler of weather-related items 
C)  increases in the manufacturer's inventory 
D)  the money borrowed from the bank to start the company

Question 8

Dayton Industries manufactures the motors used in heating and air conditioning systems.It had sales of $300,000 during the last quarter.Its gross profit was $120,000.On an income statement,an accountant would classify the remaining $180,000 as which of the following?

Accepted Answer

A)  cost of production 
B)  operating expenses 
C)  cost of goods sold 
D)  production income 
A)  cost of production 
B)  operating expenses 
C)  cost of goods sold 
D)  production income

Question 9

Which of the following is an example of a liability that might be owed by a discount shoe store?

Accepted Answer

A)  promotional signs 
B)  money owed to shoe distributors 
C)  money in the cash register 
D)  the reduced prices paid by customers 
A)  promotional signs 
B)  money owed to shoe distributors 
C)  money in the cash register 
D)  the reduced prices paid by customers

Question 10

Fixed assets are property and buildings that a company expects to use for more than which of the following periods of time?

Accepted Answer

A)  one month 
B)  six months 
C)  one year 
D)  two years 
A)  one month 
B)  six months 
C)  one year 
D)  two years

Question 11

What are the two types of expenses that are shown on a company's income statement?

Accepted Answer

cost of go

Question 12

Which of the following statements best describes the accounting profession?

Accepted Answer

A)  Certified Management Accountants work for local, provincial, and national agencies. 
B)  Accountants do not need a degree to obtain their designation. 
C)  Accountants are typically classified as one of three professional designations. 
D)  Accountants need a master's degree to obtain their designation. 
A)  Certified Management Accountants work for local, provincial, and national agencies. 
B)  Accountants do not need a degree to obtain their designation. 
C)  Accountants are typically classified as one of three professional designations. 
D)  Accountants need a master's degree to obtain their designation.

Question 13

Myriad Canning Company has current assets of $8,000 and current liabilities of $2,000.What is its current ratio?

Accepted Answer

A)  2.5 
B)  4 
C)  8 
D)  25 
A)  2.5 
B)  4 
C)  8 
D)  25

Question 14

On a statement of cash flows for a manufacturer of digital thermometers,the cash flows from investment activities section would include which of the following?

Accepted Answer

A)  the sale of land adjacent to the manufacturer's administrative office building 
B)  purchase of a new $25,000 copying machine 
C)  repayment of long-term loan by a wholesaler of weather-related items 
D)  the money borrowed from the bank to start the company 
A)  the sale of land adjacent to the manufacturer's administrative office building 
B)  purchase of a new $25,000 copying machine 
C)  repayment of long-term loan by a wholesaler of weather-related items 
D)  the money borrowed from the bank to start the company

Question 15

What are things of value owned by a company?

Accepted Answer

A)  intangibles 
B)  assets 
C)  owners' equity 
D)  tangibles 
A)  intangibles 
B)  assets 
C)  owners' equity 
D)  tangibles

Question 16

Which of the following is a summary of what a company has earned and spent over a given period?

Accepted Answer

A)  the balance sheet 
B)  the cash flow statement 
C)  the income statement 
D)  the trial balance 
A)  the balance sheet 
B)  the cash flow statement 
C)  the income statement 
D)  the trial balance

Question 17

Which of the following ratios is a measure of the company's ability to pay its current liabilities once inventory is subtracted from current assets?

Accepted Answer

A)  the acid-test ratio 
B)  the net margin ratio 
C)  the profitability ratio 
D)  the inventory ratio 
A)  the acid-test ratio 
B)  the net margin ratio 
C)  the profitability ratio 
D)  the inventory ratio

Question 18

Which of the following deals with the internal operation of the company?

Accepted Answer

A)  managerial accounting 
B)  auditing accounting 
C)  bookkeeping 
D)  financial accounting 
A)  managerial accounting 
B)  auditing accounting 
C)  bookkeeping 
D)  financial accounting

Question 19

After all expenses have been subtracted from revenues on an income statement,if the final figure is negative,it is known as which of the following?

Accepted Answer

A)  owners' negative equity 
B)  net loss 
C)  negative liability 
D)  net liability 
A)  owners' negative equity 
B)  net loss 
C)  negative liability 
D)  net liability

Question 20

What is the first step in the accounting cycle?

Accepted Answer

Analyze bu

Which of the following classification of ratios reflects the speed with which resources are converted to cash or sales?

Which of the following terms equals the total profits of a company minus all dividends (distributions of profits)to shareholders?

Which of the following calculations is a formal expression of the accounting equation?

Which of the following statements best describes the accounting profession?

The final figure or bottom line on an income statement is called the net revenue.

What is the dollar amount of sales plus any other income received from sources such as interest and dividends?

On a statement of cash flows for a manufacturer of digital thermometers,the cash flows from operating activities would include which of the following?

Dayton Industries manufactures the motors used in heating and air conditioning systems.It had sales of $300,000 during the last quarter.Its gross profit was $120,000.On an income statement,an accountant would classify the remaining $180,000 as which of the following?

Which of the following is an example of a liability that might be owed by a discount shoe store?

Fixed assets are property and buildings that a company expects to use for more than which of the following periods of time?

What are the two types of expenses that are shown on a company's income statement?

Which of the following statements best describes the accounting profession?

Myriad Canning Company has current assets of $8,000 and current liabilities of $2,000.What is its current ratio?

On a statement of cash flows for a manufacturer of digital thermometers,the cash flows from investment activities section would include which of the following?

What are things of value owned by a company?

Which of the following is a summary of what a company has earned and spent over a given period?

Which of the following ratios is a measure of the company's ability to pay its current liabilities once inventory is subtracted from current assets?

Which of the following deals with the internal operation of the company?

After all expenses have been subtracted from revenues on an income statement,if the final figure is negative,it is known as which of the following?

What is the first step in the accounting cycle?

Politics Governments’ Roles

Economics Evolving Systems

Social Society, Corporate Responsibility, and Making Ethical Decisions

Technology Managing Information for Business Success

International The Global Marketplace

Entrepreneurship and Small Business

Analyzing the Business

Forms of Business Ownership

Management and Leadership in Today’s Organizations

Designing Organizational Structures

Motivating Employees

Managing Human Resources and Labour Relations

Marketing The Customer Focus

Creating Marketing Strategies

Achieving World-Class Operations Management

Understanding Money and the Canadian Financial System

Finance Maximizing the Value

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Exam 16: Accounting for Financial Success

Which of the following classification of ratios reflects the speed with which resources are converted to cash or sales?

Which of the following terms equals the total profits of a company minus all dividends (distributions of profits)to shareholders?

Which of the following calculations is a formal expression of the accounting equation?

Which of the following statements best describes the accounting profession?

The final figure or bottom line on an income statement is called the net revenue.

What is the dollar amount of sales plus any other income received from sources such as interest and dividends?

On a statement of cash flows for a manufacturer of digital thermometers,the cash flows from operating activities would include which of the following?

Dayton Industries manufactures the motors used in heating and air conditioning systems.It had sales of $300,000 during the last quarter.Its gross profit was $120,000.On an income statement,an accountant would classify the remaining $180,000 as which of the following?

Which of the following is an example of a liability that might be owed by a discount shoe store?

Fixed assets are property and buildings that a company expects to use for more than which of the following periods of time?

What are the two types of expenses that are shown on a company's income statement?

Which of the following statements best describes the accounting profession?

Myriad Canning Company has current assets of $8,000 and current liabilities of $2,000.What is its current ratio?

On a statement of cash flows for a manufacturer of digital thermometers,the cash flows from investment activities section would include which of the following?

What are things of value owned by a company?

Which of the following is a summary of what a company has earned and spent over a given period?

Which of the following ratios is a measure of the company's ability to pay its current liabilities once inventory is subtracted from current assets?

Which of the following deals with the internal operation of the company?

After all expenses have been subtracted from revenues on an income statement,if the final figure is negative,it is known as which of the following?

What is the first step in the accounting cycle?

Politics Governments’ Roles

Economics Evolving Systems

Social Society, Corporate Responsibility, and Making Ethical Decisions

Technology Managing Information for Business Success

International The Global Marketplace

Entrepreneurship and Small Business

Analyzing the Business

Forms of Business Ownership

Management and Leadership in Today’s Organizations

Designing Organizational Structures

Motivating Employees

Managing Human Resources and Labour Relations

Marketing The Customer Focus

Creating Marketing Strategies

Achieving World-Class Operations Management

Understanding Money and the Canadian Financial System

Finance Maximizing the Value

Filters