Question 1

What a company owes to its creditors is called debts. What is the term in accounting terminology?

Accepted Answer

A)  liabilities 
B)  accounts payable 
C)  owners' equity 
D)  creditables 
A)  liabilities 
B)  accounts payable 
C)  owners' equity 
D)  creditables

Question 2

In manufacturing, how are all costs directly related to production-including raw materials, labour, and factory overhead-classified?

Accepted Answer

A)  cost of goods sold 
B)  intangible profits 
C)  operating expenses 
D)  inventory expenses 
A)  cost of goods sold 
B)  intangible profits 
C)  operating expenses 
D)  inventory expenses

Question 3

By dividing cost of goods sold by the average inventory to measure the speed with which inventory moves through the company and is turned into sales, which of the following ratios is calculated?

Accepted Answer

A)  price-earnings ratio 
B)  inventory turnover ratio 
C)  profitability ratio 
D)  sales to inventory ratio 
A)  price-earnings ratio 
B)  inventory turnover ratio 
C)  profitability ratio 
D)  sales to inventory ratio

Question 4

Which of the following is the process of distributing the original cost of a long-term asset over the years of its useful life?

Accepted Answer

A)  depreciation 
B)  accountable life 
C)  cost distribution 
D)  appreciation 
A)  depreciation 
B)  accountable life 
C)  cost distribution 
D)  appreciation

Question 5

Which of the following is NOT one of the three primary financial statements included in the annual report?

Accepted Answer

A)  balance sheet 
B)  cash flow statement 
C)  statement of changes in equity 
D)  income statement 
A)  balance sheet 
B)  cash flow statement 
C)  statement of changes in equity 
D)  income statement

Question 6

Administrative accounting is the term given to the internal workings of the company, such as budgets, sales reports, and analyses of how well marketing strategies are working.

Accepted Answer

A) True 
 B)False

Question 7

What are the two types of reports generated by accounting systems?

Accepted Answer

internal a

Question 8

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 9

Which of the following expenses are related to marketing and distributing of a company's products?

Accepted Answer

A)  administrative expenses 
B)  selling expenses 
C)  distribution costs 
D)  functional costs 
A)  administrative expenses 
B)  selling expenses 
C)  distribution costs 
D)  functional costs

Question 10

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 11

What the two main types of operating expenses?

Accepted Answer

selling expenses and

Question 12

Wehrmann-Longo sells landscape rocks to retailers. It recently purchased a trainload of lava rocks from a mine in Hawaii. Until Wehrmann-Longo pays the bill, the purchase will be carried on the Hawaiian company's books as which of the following?

Accepted Answer

A)  account payable 
B)  account receivable 
C)  intangible asset 
D)  current asset 
A)  account payable 
B)  account receivable 
C)  intangible asset 
D)  current asset

Question 13

Which of the following classifications of ratios measures the degree and effect of the company's use of borrowed funds to finance its operations?

Accepted Answer

A)  liquidity 
B)  debt 
C)  equity 
D)  profitability 
A)  liquidity 
B)  debt 
C)  equity 
D)  profitability

Question 14

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 15

What is the ratio of net profit to total owners' equity?

Accepted Answer

A)  return on inventory 
B)  return on earnings 
C)  return on equity 
D)  return on sales 
A)  return on inventory 
B)  return on earnings 
C)  return on equity 
D)  return on sales

Question 16

Which of the following are debts that are to be paid within 12 months?

Accepted Answer

A)  current assets 
B)  fixed assets 
C)  current liabilities 
D)  fixed liabilities 
A)  current assets 
B)  fixed assets 
C)  current liabilities 
D)  fixed liabilities

Question 17

Which of the following are the two types of expenses recorded on the income statement?

Accepted Answer

A)  cost of goods sold and production costs 
B)  sales expenses and administrative expenses` 
C)  operating expenses and administrative expenses 
D)  cost of goods sold and operating expenses 
A)  cost of goods sold and production costs 
B)  sales expenses and administrative expenses` 
C)  operating expenses and administrative expenses 
D)  cost of goods sold and operating expenses

Question 18

The most significant accounting trend right now is the expectation of companies to report green and social accounting.

Accepted Answer

A) True 
 B)False

Question 19

Current assets are listed in a particular order. What is the listing order based on?

Accepted Answer

A)  value 
B)  net worth 
C)  liquidity 
D)  life span 
A)  value 
B)  net worth 
C)  liquidity 
D)  life span

Question 20

In Canada, all accountants belong to the Chartered Professional Accountants of Canada (CPA).

Accepted Answer

A) True 
 B)False

What a company owes to its creditors is called debts. What is the term in accounting terminology?

In manufacturing, how are all costs directly related to production-including raw materials, labour, and factory overhead-classified?

By dividing cost of goods sold by the average inventory to measure the speed with which inventory moves through the company and is turned into sales, which of the following ratios is calculated?

Which of the following is the process of distributing the original cost of a long-term asset over the years of its useful life?

Which of the following is NOT one of the three primary financial statements included in the annual report?

Administrative accounting is the term given to the internal workings of the company, such as budgets, sales reports, and analyses of how well marketing strategies are working.

What are the two types of reports generated by accounting systems?

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

Which of the following expenses are related to marketing and distributing of a company's products?

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 the two main types of operating expenses?

Wehrmann-Longo sells landscape rocks to retailers. It recently purchased a trainload of lava rocks from a mine in Hawaii. Until Wehrmann-Longo pays the bill, the purchase will be carried on the Hawaiian company's books as which of the following?

Which of the following classifications of ratios measures the degree and effect of the company's use of borrowed funds to finance its operations?

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

What is the ratio of net profit to total owners' equity?

Which of the following are debts that are to be paid within 12 months?

Which of the following are the two types of expenses recorded on the income statement?

The most significant accounting trend right now is the expectation of companies to report green and social accounting.

Current assets are listed in a particular order. What is the listing order based on?

In Canada, all accountants belong to the Chartered Professional Accountants of Canada (CPA).

Political Environment

Economic Environment

Social Environment

Technological Environment

International Environment

Entrepreneurship and Small Business

Understanding 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

Creating Marketing Strategies

Achieving World-class Operations Management

Understanding Money and the Canadian Financial System

Finance

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Exam 16: Accounting for Financial Success

What a company owes to its creditors is called debts. What is the term in accounting terminology?

In manufacturing, how are all costs directly related to production-including raw materials, labour, and factory overhead-classified?

By dividing cost of goods sold by the average inventory to measure the speed with which inventory moves through the company and is turned into sales, which of the following ratios is calculated?

Which of the following is the process of distributing the original cost of a long-term asset over the years of its useful life?

Which of the following is NOT one of the three primary financial statements included in the annual report?

Administrative accounting is the term given to the internal workings of the company, such as budgets, sales reports, and analyses of how well marketing strategies are working.

What are the two types of reports generated by accounting systems?

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

Which of the following expenses are related to marketing and distributing of a company's products?

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 the two main types of operating expenses?

Wehrmann-Longo sells landscape rocks to retailers. It recently purchased a trainload of lava rocks from a mine in Hawaii. Until Wehrmann-Longo pays the bill, the purchase will be carried on the Hawaiian company's books as which of the following?

Which of the following classifications of ratios measures the degree and effect of the company's use of borrowed funds to finance its operations?

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

What is the ratio of net profit to total owners' equity?

Which of the following are debts that are to be paid within 12 months?

Which of the following are the two types of expenses recorded on the income statement?

The most significant accounting trend right now is the expectation of companies to report green and social accounting.

Current assets are listed in a particular order. What is the listing order based on?

In Canada, all accountants belong to the Chartered Professional Accountants of Canada (CPA).

Political Environment

Economic Environment

Social Environment

Technological Environment

International Environment

Entrepreneurship and Small Business

Understanding 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

Creating Marketing Strategies

Achieving World-class Operations Management

Understanding Money and the Canadian Financial System

Finance

Filters