Question 1

From the standpoint of financial accounting, annual revenue is

Accepted Answer

A) a component of the Balance Sheet. 
B) a through variable. 
C) an across variable. 
D) an asset. 
E) a liability. 
A) a component of the Balance Sheet. 
B) a through variable. 
C) an across variable. 
D) an asset. 
E) a liability.

Question 2

In a balance sheet Current Assets are $4 000; Long-term Assets are $6 000; Total Owners' Equity is $6 000; Current Liabilities are $3 000. What are Long-term Liabilities?

Accepted Answer

A) $1 000 
B) $5 000 
C) $9 000 
D) $13 000 
E) $15 000 
A) $1 000 
B) $5 000 
C) $9 000 
D) $13 000 
E) $15 000

Question 3

Which of the following are NOT quick assets?

Accepted Answer

A) Notes receivable 
B) Temporary investments 
C) Cash and deposits 
D) Capital assets 
E) Accounts receivable 
A) Notes receivable 
B) Temporary investments 
C) Cash and deposits 
D) Capital assets 
E) Accounts receivable

Question 4

The net-profit ratio is defined as

Accepted Answer

A) net income divided by total equity. 
B) revenue divided by net income. 
C) net income divided by total assets. 
D) net income divided by revenue. 
E) revenue divided by total assets. 
A) net income divided by total equity. 
B) revenue divided by net income. 
C) net income divided by total assets. 
D) net income divided by revenue. 
E) revenue divided by total assets.

Question 5

What are the most important features that should be emphasized in the Executive Summary (of the Business Plan)?

Accepted Answer

A) executive profiles, financial debt load, market penetration, and areas of research 
B) mission statement, Executive profiles, market penetration, and future plans 
C) mission statement, products and services provided, overall financial situation and future plans 
D) statement of income, balance statement, pertinent business ratios, and marketing efforts to date 
E) executive profiles, financial debt load, pertinent business ratios, and future plans 
A) executive profiles, financial debt load, market penetration, and areas of research 
B) mission statement, Executive profiles, market penetration, and future plans 
C) mission statement, products and services provided, overall financial situation and future plans 
D) statement of income, balance statement, pertinent business ratios, and marketing efforts to date 
E) executive profiles, financial debt load, pertinent business ratios, and future plans

Question 6

You are trying to estimate the annual cost of setting up a branch of an engineering consulting business in Vancouver, based on your experience of running the original business in Halifax. The original business employs 80 engineers, whereas the Vancouver branch will initially employ 15. On the other hand, Vancouver salaries are typically 50% higher than those paid in Halifax. If the annual salary bill for the Halifax office is $9 000 000, give an order of magnitude estimate for the salary bill of the Vancouver office.

Accepted Answer

A) $844 000 
B) $1 687 000 
C) $2 400 000 
D) $2 530 000 
E) $2 953 000 
A) $844 000 
B) $1 687 000 
C) $2 400 000 
D) $2 530 000 
E) $2 953 000

Question 7

The return-on-assets ratio is a reflection of a business's

Accepted Answer

A) marginal costs. 
B) profitability. 
C) marginal revenue. 
D) marginal benefits. 
E) net annual savings. 
A) marginal costs. 
B) profitability. 
C) marginal revenue. 
D) marginal benefits. 
E) net annual savings.

Question 8

One of the major drawbacks of the inventory-turnover ratio is that:

Accepted Answer

A) Inventories are an across variable while sales are a through variable. 
B) Inventories are a through variable while sales are an across variable. 
C) Sales are measured at costs while inventories are measured in terms of market prices. 
D) It includes only quick assets. 
E) It includes only current liabilities. 
A) Inventories are an across variable while sales are a through variable. 
B) Inventories are a through variable while sales are an across variable. 
C) Sales are measured at costs while inventories are measured in terms of market prices. 
D) It includes only quick assets. 
E) It includes only current liabilities.

Question 9

What is the main purpose of a Business Plan?

Accepted Answer

A) to provide a 3-5 year road map outlining the company's operating, marketing, financial and HR intentions 
B) to provide a 1 year estimate of the company's spending on operations and research/development 
C) to provide a road map describing corporate competitors and its approach of competing in the market 
D) to provide a document prepared for external financiers in order to apply for a loan 
E) to outline the research and development areas of commercial interest to the company 
A) to provide a 3-5 year road map outlining the company's operating, marketing, financial and HR intentions 
B) to provide a 1 year estimate of the company's spending on operations and research/development 
C) to provide a road map describing corporate competitors and its approach of competing in the market 
D) to provide a document prepared for external financiers in order to apply for a loan 
E) to outline the research and development areas of commercial interest to the company

Question 10

What items should be treated as extraordinary items for a Canadian company that sells its goods to the US market?

Accepted Answer

A) loss of revenues caused by the Bank of Canada as it raises the bank rate 
B) loss of revenues caused by the US government as it imposes extra duties on the company's goods 
C) loss of revenues caused by the increased delays on the Canada-US border that occur due to new security measures 
D) loss of revenues caused by the changes in demand for the company's goods in the US 
E) loss of revenues caused by the longer haul of goods that occurs as a result of heavy snow on the roads 
A) loss of revenues caused by the Bank of Canada as it raises the bank rate 
B) loss of revenues caused by the US government as it imposes extra duties on the company's goods 
C) loss of revenues caused by the increased delays on the Canada-US border that occur due to new security measures 
D) loss of revenues caused by the changes in demand for the company's goods in the US 
E) loss of revenues caused by the longer haul of goods that occurs as a result of heavy snow on the roads

Question 11

Working capital ratio is

Accepted Answer

A) the ratio of total assets to total liabilities. 
B) the ratio of total current assets to total current liabilities. 
C) the ratio of total owners' equity to total assets. 
D) the ratio of current assets to long-term assets. 
E) the ratio of long-term assets to long-term liabilities. 
A) the ratio of total assets to total liabilities. 
B) the ratio of total current assets to total current liabilities. 
C) the ratio of total owners' equity to total assets. 
D) the ratio of current assets to long-term assets. 
E) the ratio of long-term assets to long-term liabilities.

Question 12

Your supervisor, Ms. Applebee, is asking you to provide her with the cost of equipment the firm owns. Where will you look for it?

Accepted Answer

A) in a balance sheet under the Current Assets 
B) in a balance sheet under the Long-Term Assets 
C) in an income statement under the Operating Expenses 
D) in an income statement under the Revenues 
E) in an income statement under the Expenses 
A) in a balance sheet under the Current Assets 
B) in a balance sheet under the Long-Term Assets 
C) in an income statement under the Operating Expenses 
D) in an income statement under the Revenues 
E) in an income statement under the Expenses

Question 13

What is the fundamental difference between a Balance Sheet and an Income Statement?

Accepted Answer

A balance sheet is a snapshot of an ente

Question 14

How can a business plan can be used internally by business owners?

Accepted Answer

The Business Plan can be used internally

Question 15

The Funding Requirements section of the Business Plan should not only consider how much money will be borrowed from a bank (and interest rate), and how much funding comes from owners or investors, but also:

Accepted Answer

A) corporate cash flow and balance sheet 
B) how the company plans to attract investors for new projects or company start-up 
C) how the equity ratio and current ratio have performed over time 
D) executive profiles and human resource factors 
E) the company's track record for paying creditors 
A) corporate cash flow and balance sheet 
B) how the company plans to attract investors for new projects or company start-up 
C) how the equity ratio and current ratio have performed over time 
D) executive profiles and human resource factors 
E) the company's track record for paying creditors

Question 16

What is the cost principle of accounting?

Accepted Answer

The cost principle of accounting states

Question 17

According to a firm's balance sheet, total assets account for $10 million while total liabilities account for $8 million. Calculate the equity ratio.

Accepted Answer

The equity ratio is defined as: @#IMG-DLM& We know

Question 18

What is the difference between financial accounting and managerial accounting?

Accepted Answer

Financial accounting is concerned with r

Question 19

When describing your company's market share in the Market Analysis and Future Outlook section, what are some of the items that you could analyze?

Accepted Answer

A) strengths/weaknesses, technological advances, geographic location, financial outlook, as well as experience and human factors 
B) strength/weaknesses, mission statement, financial outlook, year-over-year financials 
C) SWOT analysis, funding requirements, competitors' failures, stock market performance 
D) SWOT analysis, technological advances, funding requirements, executive profiles 
E) executive profiles, strength/weaknesses, mission statement, and the financial outlook 
A) strengths/weaknesses, technological advances, geographic location, financial outlook, as well as experience and human factors 
B) strength/weaknesses, mission statement, financial outlook, year-over-year financials 
C) SWOT analysis, funding requirements, competitors' failures, stock market performance 
D) SWOT analysis, technological advances, funding requirements, executive profiles 
E) executive profiles, strength/weaknesses, mission statement, and the financial outlook

Question 20

You are one of five shareholders in a corporation. You have invested $10 000 of your own money in the corporation. The business is unsuccessful and is left with no assets and liabilities of $100 000. Your partners all leave the country leaving no forwarding addresses. How much of the debt are you legally responsible for?

Accepted Answer

A) $0 
B) $2 000 
C) $10 000 
D) $20 000 
E) $100 000 
A) $0 
B) $2 000 
C) $10 000 
D) $20 000 
E) $100 000

From the standpoint of financial accounting, annual revenue is

In a balance sheet Current Assets are $4 000; Long-term Assets are $6 000; Total Owners' Equity is $6 000; Current Liabilities are $3 000. What are Long-term Liabilities?

Which of the following are NOT quick assets?

The net-profit ratio is defined as

What are the most important features that should be emphasized in the Executive Summary (of the Business Plan)?

The return-on-assets ratio is a reflection of a business's

One of the major drawbacks of the inventory-turnover ratio is that:

What is the main purpose of a Business Plan?

What items should be treated as extraordinary items for a Canadian company that sells its goods to the US market?

Working capital ratio is

Your supervisor, Ms. Applebee, is asking you to provide her with the cost of equipment the firm owns. Where will you look for it?

What is the fundamental difference between a Balance Sheet and an Income Statement?

How can a business plan can be used internally by business owners?

The Funding Requirements section of the Business Plan should not only consider how much money will be borrowed from a bank (and interest rate), and how much funding comes from owners or investors, but also:

What is the cost principle of accounting?

According to a firm's balance sheet, total assets account for $10 million while total liabilities account for $8 million. Calculate the equity ratio.

What is the difference between financial accounting and managerial accounting?

When describing your company's market share in the Market Analysis and Future Outlook section, what are some of the items that you could analyze?

Engineering Decision Making

Time Value of Money

Cash Flow Analysis

Comparison Methods: Part I

Comparison Methods: Part Ii

Replacement Decisions

Taxes

Inflation

Public Sector Decision Making

Project Management

Dealing With Uncertainty and Risk

Filters

Exam 6: Financial Accounting and Business Plans

From the standpoint of financial accounting, annual revenue is

In a balance sheet Current Assets are $4 000; Long-term Assets are $6 000; Total Owners' Equity is $6 000; Current Liabilities are $3 000. What are Long-term Liabilities?

Which of the following are NOT quick assets?

The net-profit ratio is defined as

What are the most important features that should be emphasized in the Executive Summary (of the Business Plan)?

The return-on-assets ratio is a reflection of a business's

One of the major drawbacks of the inventory-turnover ratio is that:

What is the main purpose of a Business Plan?

What items should be treated as extraordinary items for a Canadian company that sells its goods to the US market?

Working capital ratio is

Your supervisor, Ms. Applebee, is asking you to provide her with the cost of equipment the firm owns. Where will you look for it?

What is the fundamental difference between a Balance Sheet and an Income Statement?

How can a business plan can be used internally by business owners?

The Funding Requirements section of the Business Plan should not only consider how much money will be borrowed from a bank (and interest rate), and how much funding comes from owners or investors, but also:

What is the cost principle of accounting?

According to a firm's balance sheet, total assets account for $10 million while total liabilities account for $8 million. Calculate the equity ratio.

What is the difference between financial accounting and managerial accounting?

When describing your company's market share in the Market Analysis and Future Outlook section, what are some of the items that you could analyze?

Engineering Decision Making

Time Value of Money

Cash Flow Analysis

Comparison Methods: Part I

Comparison Methods: Part Ii

Replacement Decisions

Taxes

Inflation

Public Sector Decision Making

Project Management

Dealing With Uncertainty and Risk

Filters