Question 1

What do forensic accountants do?

Accepted Answer

Forensic accountants assist in the inves

Question 2

If current assets are $10 000 and current liabilities are $5000, the current ratio is 0.5.

Accepted Answer

A) True 
 B)False

Question 3

What does return on equity measure?

Accepted Answer

A)  The amount of pre-tax profit earned for each dollar invested 
B)  The amount of profit earned for each share of stock 
C)  The amount of profit earned for each dollar of previous profit retained in the business 
D)  The amount of profit earned for each dollar invested 
E)  The amount of pre-tax profit earned for each share of stock 
A)  The amount of pre-tax profit earned for each dollar invested 
B)  The amount of profit earned for each share of stock 
C)  The amount of profit earned for each dollar of previous profit retained in the business 
D)  The amount of profit earned for each dollar invested 
E)  The amount of pre-tax profit earned for each share of stock

Question 4

A private accountant deals with a company's day-to-day activities.

Accepted Answer

A) True 
 B)False

Question 5

Managerial accounting is

Accepted Answer

A)  a field of accounting that serves internal users of a company's financial information. 
B)  the rules and procedures governing the content and form of financial reports. 
C)  the field of accounting concerned with external users of a company's financial information. 
D)  a systematic examination of a company's accounting system to determine whether its financial reports fairly represent its operations. 
E)  a bookkeeping system that balances the accounting equation by recording the dual effects of every financial transaction. 
A)  a field of accounting that serves internal users of a company's financial information. 
B)  the rules and procedures governing the content and form of financial reports. 
C)  the field of accounting concerned with external users of a company's financial information. 
D)  a systematic examination of a company's accounting system to determine whether its financial reports fairly represent its operations. 
E)  a bookkeeping system that balances the accounting equation by recording the dual effects of every financial transaction.

Question 6

What types of services did CAs, CGAs, and CMAs provide before the three groups merged? How will the merger change the situation?

Accepted Answer

Services include auditing (examination o

Question 7

David is an accountant who calls attention to problems and helps managers carry out the planning, decision making, and controlling functions. David is involved in ________ accounting.

Accepted Answer

A)  budgeting 
B)  financial 
C)  auditing 
D)  managerial 
E)  generally accepted accounting principles 
A)  budgeting 
B)  financial 
C)  auditing 
D)  managerial 
E)  generally accepted accounting principles

Question 8

Financial statements fall into three broad categories, which are

Accepted Answer

A)  debits, credits, and loans. 
B)  income statements, balance sheets, and statements of cash flows. 
C)  assets, liabilities, and owners' equity. 
D)  cash, marketable securities, and goodwill. 
E)  budgets, income statements, and profit-and-loss statements. 
A)  debits, credits, and loans. 
B)  income statements, balance sheets, and statements of cash flows. 
C)  assets, liabilities, and owners' equity. 
D)  cash, marketable securities, and goodwill. 
E)  budgets, income statements, and profit-and-loss statements.

Question 9

Identify the profitability ratios and what they measure.

Accepted Answer

Profitability ratios give investors an i

Question 10

Documents generated by the financial accounting system focus on the activities of the company as a whole, rather than on individual departments or divisions. By contrast, documents generated by the management accounting system focus on individual departments.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is correct with regard to private accountants?

Accepted Answer

A)  They are hired by business firms who do not want to use the services of CPAs. 
B)  They are employed by business firms in areas such as marketing research, law, and production technology. 
C)  They are becoming less common as CPAs become more prominent and skilled. 
D)  They are almost exclusively found at the head office of business firms. 
E)  They are hired to deal with companies' day-to-day accounting needs. 
A)  They are hired by business firms who do not want to use the services of CPAs. 
B)  They are employed by business firms in areas such as marketing research, law, and production technology. 
C)  They are becoming less common as CPAs become more prominent and skilled. 
D)  They are almost exclusively found at the head office of business firms. 
E)  They are hired to deal with companies' day-to-day accounting needs.

Question 12

What is an income statement?

Accepted Answer

An income statement reports re

Question 13

If a company needs cash for emergencies, it typically uses the money in retained earnings.

Accepted Answer

A) True 
 B)False

Question 14

A forensic accountant is a special type of accountant who audits companies that have gone bankrupt.

Accepted Answer

A) True 
 B)False

Question 15

Liabilities reflected on the balance sheet are divided into two general categories: current (debts to be paid within one year) and long term (due more than a year into the future).

Accepted Answer

A) True 
 B)False

Question 16

John wants to determine gross profit for his company. To do so, he must subtract the cost of goods sold from gross sales revenue.

Accepted Answer

A) True 
 B)False

Question 17

40.Peter, an accountant, enters every transaction in the journal to reflect its impact on assets and its impact on liabilities and owners' equity. He is using

Accepted Answer

A)  a double-entry accounting system. 
B)  a balance sheet. 
C)  a financial ratio. 
D)  breakeven analysis. 
E)  a financial statement. 
A)  a double-entry accounting system. 
B)  a balance sheet. 
C)  a financial ratio. 
D)  breakeven analysis. 
E)  a financial statement.

Question 18

According to the accounting equation, if assets equal $4000 and liabilities equal $1500, then owner's equity would equal

Accepted Answer

A)  $5500. 
B)  $2500. 
C)  $3500. 
D)  $8000. 
E)  It is not possible to tell with the information given. 
A)  $5500. 
B)  $2500. 
C)  $3500. 
D)  $8000. 
E)  It is not possible to tell with the information given.

Question 19

________ ratios give investors an idea of what returns they can expect on their investment; dividing ________ by total owners' equity is one such ratio.

Accepted Answer

A)  Profitability; earnings per share 
B)  Long-term liquidity; net income 
C)  Activity; average inventory 
D)  Short-term liquidity; earnings per share 
E)  Profitability; net income 
A)  Profitability; earnings per share 
B)  Long-term liquidity; net income 
C)  Activity; average inventory 
D)  Short-term liquidity; earnings per share 
E)  Profitability; net income

Question 20

List the potential users of accounting information.

Accepted Answer

The potential users of account

What do forensic accountants do?

If current assets are $10 000 and current liabilities are $5000, the current ratio is 0.5.

What does return on equity measure?

A private accountant deals with a company's day-to-day activities.

Managerial accounting is

What types of services did CAs, CGAs, and CMAs provide before the three groups merged? How will the merger change the situation?

David is an accountant who calls attention to problems and helps managers carry out the planning, decision making, and controlling functions. David is involved in ________ accounting.

Financial statements fall into three broad categories, which are

Identify the profitability ratios and what they measure.

Documents generated by the financial accounting system focus on the activities of the company as a whole, rather than on individual departments or divisions. By contrast, documents generated by the management accounting system focus on individual departments.

Which of the following is correct with regard to private accountants?

What is an income statement?

If a company needs cash for emergencies, it typically uses the money in retained earnings.

A forensic accountant is a special type of accountant who audits companies that have gone bankrupt.

Liabilities reflected on the balance sheet are divided into two general categories: current (debts to be paid within one year) and long term (due more than a year into the future).

John wants to determine gross profit for his company. To do so, he must subtract the cost of goods sold from gross sales revenue.

40.Peter, an accountant, enters every transaction in the journal to reflect its impact on assets and its impact on liabilities and owners' equity. He is using

According to the accounting equation, if assets equal $4000 and liabilities equal $1500, then owner's equity would equal

ratios give investors an idea of what returns they can expect on their investment; dividing by total owners' equity is one such ratio.

List the potential users of accounting information.

Understanding the Canadian Business System

The Environment of Business

Conducting Business Ethically and Responsibly

Entrepreneurship, Small Business, and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating, Satisfying, and Leading Employees

Operations Management, Productivity, and Quality

Understanding Marketing Principles and Developing Products

Pricing, Promotion, and Distributing Products

Money and Banking

Finacial Decisions and Risk Management

Filters

Exam 11: Understanding Accounting

What do forensic accountants do?

If current assets are $10 000 and current liabilities are $5000, the current ratio is 0.5.

What does return on equity measure?

A private accountant deals with a company's day-to-day activities.

Managerial accounting is

What types of services did CAs, CGAs, and CMAs provide before the three groups merged? How will the merger change the situation?

David is an accountant who calls attention to problems and helps managers carry out the planning, decision making, and controlling functions. David is involved in ________ accounting.

Financial statements fall into three broad categories, which are

Identify the profitability ratios and what they measure.

Documents generated by the financial accounting system focus on the activities of the company as a whole, rather than on individual departments or divisions. By contrast, documents generated by the management accounting system focus on individual departments.

Which of the following is correct with regard to private accountants?

What is an income statement?

If a company needs cash for emergencies, it typically uses the money in retained earnings.

A forensic accountant is a special type of accountant who audits companies that have gone bankrupt.

Liabilities reflected on the balance sheet are divided into two general categories: current (debts to be paid within one year) and long term (due more than a year into the future).

John wants to determine gross profit for his company. To do so, he must subtract the cost of goods sold from gross sales revenue.

40.Peter, an accountant, enters every transaction in the journal to reflect its impact on assets and its impact on liabilities and owners' equity. He is using

According to the accounting equation, if assets equal $4000 and liabilities equal $1500, then owner's equity would equal

________ ratios give investors an idea of what returns they can expect on their investment; dividing ________ by total owners' equity is one such ratio.

List the potential users of accounting information.

Understanding the Canadian Business System

The Environment of Business

Conducting Business Ethically and Responsibly

Entrepreneurship, Small Business, and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating, Satisfying, and Leading Employees

Operations Management, Productivity, and Quality

Understanding Marketing Principles and Developing Products

Pricing, Promotion, and Distributing Products

Money and Banking

Finacial Decisions and Risk Management

Filters

ratios give investors an idea of what returns they can expect on their investment; dividing by total owners' equity is one such ratio.