Question 1

Accountants play fundamental roles in not only business but also other aspects of society.

Accepted Answer

A) True 
 B)False

Question 2

All of the following are assets EXCEPT ________.

Accepted Answer

A)  Inventory 
B)  bank loans 
C)  Patents 
D)  Cash 
A)  Inventory 
B)  bank loans 
C)  Patents 
D)  Cash

Question 3

The basic relationship that states assets equal liabilities plus owners' equity is called the _____.

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 4

All of the following are tangible assets EXCEPT ________.

Accepted Answer

A)  Cash 
B)  Inventory 
C)  Building 
D)  Patents 
A)  Cash 
B)  Inventory 
C)  Building 
D)  Patents

Question 5

Kwane wants to assess his firm's ability to meet its short-term obligations.Which of the following ratios are the most relevant?

Accepted Answer

A)  Profitability ratios 
B)  Liquidity ratios 
C)  Debt ratios 
D)  Activity ratios 
A)  Profitability ratios 
B)  Liquidity ratios 
C)  Debt ratios 
D)  Activity ratios

Question 6

A firm's acid-test ratio can never be higher than its current ratio.

Accepted Answer

A) True 
 B)False

Question 7

Public accountants typically perform all of the following tasks for a business client EXCEPT ________.

Accepted Answer

A)  developing the firm's marketing strategy 
B)  reviewing a firm's financial statements 
C)  tax planning 
D)  management consulting 
A)  developing the firm's marketing strategy 
B)  reviewing a firm's financial statements 
C)  tax planning 
D)  management consulting

Question 8

Double-entry bookkeeping refers to the process by which accounting transactions are recorded.

Accepted Answer

A) True 
 B)False

Question 9

An international firm's consolidated financial statements must reflect any gains or losses due to changes in exchange rates during specific periods of time.

Accepted Answer

A) True 
 B)False

Question 10

The Canadian Security Intelligence Service is an example of a governmental agency that hires accountants.

Accepted Answer

A) True 
 B)False

Question 11

Explain the differences between public accountants and management accountants.

Accepted Answer

A public accountant is an independent pr

Question 12

Using the following balance sheet information,find the firm's acid-test ratio.

Accepted Answer

A)  0.60 
B)  1.00 
C)  1.40 
D)  2.00 
A)  0.60 
B)  1.00 
C)  1.40 
D)  2.00

Question 13

Since publicly traded companies are required to report their financial information,anyone can find out how much Target made during the past three months.

Accepted Answer

A) True 
 B)False

Question 14

Expenses that have been incurred (such as wages)but have yet to be paid,are reported on the balance sheet as ________.

Accepted Answer

A)  accounts payable 
B)  accounts receivable 
C)  Accruals 
D)  notes payable 
A)  accounts payable 
B)  accounts receivable 
C)  Accruals 
D)  notes payable

Question 15

The not-for-profit sector is one of the fastest growing segments of accounting practice.

Accepted Answer

A) True 
 B)False

Question 16

Jackson,chief financial officer for a company,is interested in a summary of all the costs related to producing revenues for the most recent quarter.He can best find this information by consulting the ________ section of the ________.

Accepted Answer

A)  current asset;balance sheet 
B)  operating;cash flow statement 
C)  expense;income statement 
D)  current liability;balance sheet 
A)  current asset;balance sheet 
B)  operating;cash flow statement 
C)  expense;income statement 
D)  current liability;balance sheet

Question 17

The three principal financial statements are the balance sheet,income statement,and the statement of retained earnings.

Accepted Answer

A) True 
 B)False

Question 18

A public accounting firm is prohibited from providing both consulting services and audit services to the same firm.

Accepted Answer

A) True 
 B)False

Question 19

If Topeka Enterprises has a debt ratio of 40 percent,it means that for every $1 in ________,the firm has 40 cents in ________.

Accepted Answer

A)  owners' equity;liabilities 
B)  owners' equity;assets 
C)  assets;owners' equity 
D)  assets;liabilities 
A)  owners' equity;liabilities 
B)  owners' equity;assets 
C)  assets;owners' equity 
D)  assets;liabilities

Question 20

What is accounting? Provide examples of tasks that accountants perform.

Accepted Answer

Accounting is the process of measuring,i

Accountants play fundamental roles in not only business but also other aspects of society.

All of the following are assets EXCEPT ________.

The basic relationship that states assets equal liabilities plus owners' equity is called the _____.

All of the following are tangible assets EXCEPT ________.

Kwane wants to assess his firm's ability to meet its short-term obligations.Which of the following ratios are the most relevant?

A firm's acid-test ratio can never be higher than its current ratio.

Public accountants typically perform all of the following tasks for a business client EXCEPT ________.

Double-entry bookkeeping refers to the process by which accounting transactions are recorded.

An international firm's consolidated financial statements must reflect any gains or losses due to changes in exchange rates during specific periods of time.

The Canadian Security Intelligence Service is an example of a governmental agency that hires accountants.

Explain the differences between public accountants and management accountants.

Using the following balance sheet information,find the firm's acid-test ratio.

Since publicly traded companies are required to report their financial information,anyone can find out how much Target made during the past three months.

Expenses that have been incurred (such as wages)but have yet to be paid,are reported on the balance sheet as ________.

The not-for-profit sector is one of the fastest growing segments of accounting practice.

Jackson,chief financial officer for a company,is interested in a summary of all the costs related to producing revenues for the most recent quarter.He can best find this information by consulting the section of the .

The three principal financial statements are the balance sheet,income statement,and the statement of retained earnings.

A public accounting firm is prohibited from providing both consulting services and audit services to the same firm.

If Topeka Enterprises has a debt ratio of 40 percent,it means that for every $1 in ,the firm has 40 cents in .

What is accounting? Provide examples of tasks that accountants perform.

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

Accountants play fundamental roles in not only business but also other aspects of society.

All of the following are assets EXCEPT ________.

The basic relationship that states assets equal liabilities plus owners' equity is called the _____.

All of the following are tangible assets EXCEPT ________.

Kwane wants to assess his firm's ability to meet its short-term obligations.Which of the following ratios are the most relevant?

A firm's acid-test ratio can never be higher than its current ratio.

Public accountants typically perform all of the following tasks for a business client EXCEPT ________.

Double-entry bookkeeping refers to the process by which accounting transactions are recorded.

An international firm's consolidated financial statements must reflect any gains or losses due to changes in exchange rates during specific periods of time.

The Canadian Security Intelligence Service is an example of a governmental agency that hires accountants.

Explain the differences between public accountants and management accountants.

Using the following balance sheet information,find the firm's acid-test ratio.

Since publicly traded companies are required to report their financial information,anyone can find out how much Target made during the past three months.

Expenses that have been incurred (such as wages)but have yet to be paid,are reported on the balance sheet as ________.

The not-for-profit sector is one of the fastest growing segments of accounting practice.

Jackson,chief financial officer for a company,is interested in a summary of all the costs related to producing revenues for the most recent quarter.He can best find this information by consulting the ________ section of the ________.

The three principal financial statements are the balance sheet,income statement,and the statement of retained earnings.

A public accounting firm is prohibited from providing both consulting services and audit services to the same firm.

If Topeka Enterprises has a debt ratio of 40 percent,it means that for every $1 in ________,the firm has 40 cents in ________.

What is accounting? Provide examples of tasks that accountants perform.

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

Jackson,chief financial officer for a company,is interested in a summary of all the costs related to producing revenues for the most recent quarter.He can best find this information by consulting the section of the .

If Topeka Enterprises has a debt ratio of 40 percent,it means that for every $1 in ,the firm has 40 cents in .