Question 1

Trademarks, franchises, patents, and copyrights are carried on the company's books as which of the following?

Accepted Answer

A)  intangible assets 
B)  owners' equity 
C)  tangible assets 
D)  long-term assets 
A)  intangible assets 
B)  owners' equity 
C)  tangible assets 
D)  long-term assets

Question 2

The postage stamps and petty cash in the architect's drawer as well as his drawing table, his office furniture, and money owed to him by clients are all examples of assets.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is the system used to record a company's financial transactions in a routine and clerical process?

Accepted Answer

A)  auditing 
B)  bookkeeping 
C)  record keeping 
D)  accounting 
A)  auditing 
B)  bookkeeping 
C)  record keeping 
D)  accounting

Question 4

Why do Canadian accountants follow generally accepted accounting principles and/or IFRS?

Accepted Answer

to ensure accuracy a

Question 5

The usual expression of the accounting equation is Assets = Liabilities + Owners' Equity.

Accepted Answer

A) True 
 B)False

Question 6

The ratio of current assets to current liabilities is called the ownership ratio.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is arrived at by subtracting current liabilities from current assets?

Accepted Answer

A)  owners' equity 
B)  net margin 
C)  net working capital 
D)  net profit 
A)  owners' equity 
B)  net margin 
C)  net working capital 
D)  net profit

Question 8

A yearly document that describes a company's financial status and usually discusses a company's financial activities during the past year and its prospects for the future is called the balance sheet.

Accepted Answer

A) True 
 B)False

Question 9

The five-step process that takes a transaction from being mere raw financial data to being summarized in the financial statements is called the accounting cycle.

Accepted Answer

A) True 
 B)False

Question 10

What is the term for the expenses of running a business that are not directly related to producing or buying its products?

Accepted Answer

A)  selling expenses 
B)  office expenses 
C)  general and administrative expenses 
D)  operating expenses 
A)  selling expenses 
B)  office expenses 
C)  general and administrative expenses 
D)  operating expenses

Question 11

To ensure accuracy and consistency in the way financial information is reported, accountants have historically followed which of the following rules?

Accepted Answer

A)  generally accepted accounting principles 
B)  comparable accounting standards 
C)  accounting rules and principles 
D)  principled accounting procedures 
A)  generally accepted accounting principles 
B)  comparable accounting standards 
C)  accounting rules and principles 
D)  principled accounting procedures

Question 12

Which of the following is an example of an asset?

Accepted Answer

A)  accounts payable 
B)  bank loan 
C)  inventory 
D)  owner's equity 
A)  accounts payable 
B)  bank loan 
C)  inventory 
D)  owner's equity

Question 13

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 14

Which of the following is NOT one of the three main profitability ratios?

Accepted Answer

A)  earnings per share 
B)  return on equity 
C)  inventory turnover ratio 
D)  net profit margin 
A)  earnings per share 
B)  return on equity 
C)  inventory turnover ratio 
D)  net profit margin

Question 15

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

Question 16

The income statement is a snapshot of the company's financial position at a certain point in time.

Accepted Answer

A) True 
 B)False

Question 17

Financial accounting focuses on preparing external financial reports that are used by outsiders to assess the financial strength of a business.

Accepted Answer

A) True 
 B)False

Question 18

What is the difference between net sales and cost of goods sold?

Accepted Answer

A)  net income 
B)  general income 
C)  net revenues 
D)  gross profit 
A)  net income 
B)  general income 
C)  net revenues 
D)  gross profit

Question 19

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

Accepted Answer

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

Question 20

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)  All accountants belong to the Chartered Professional Accountants of Canada (CP
A) . 
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)  All accountants belong to the Chartered Professional Accountants of Canada (CP
A) . 
D)  Accountants need a master's degree to obtain their designation.

Trademarks, franchises, patents, and copyrights are carried on the company's books as which of the following?

The postage stamps and petty cash in the architect's drawer as well as his drawing table, his office furniture, and money owed to him by clients are all examples of assets.

Which of the following is the system used to record a company's financial transactions in a routine and clerical process?

Why do Canadian accountants follow generally accepted accounting principles and/or IFRS?

The usual expression of the accounting equation is Assets = Liabilities + Owners' Equity.

The ratio of current assets to current liabilities is called the ownership ratio.

Which of the following is arrived at by subtracting current liabilities from current assets?

A yearly document that describes a company's financial status and usually discusses a company's financial activities during the past year and its prospects for the future is called the balance sheet.

The five-step process that takes a transaction from being mere raw financial data to being summarized in the financial statements is called the accounting cycle.

What is the term for the expenses of running a business that are not directly related to producing or buying its products?

To ensure accuracy and consistency in the way financial information is reported, accountants have historically followed which of the following rules?

Which of the following is an example of an asset?

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

Which of the following is NOT one of the three main profitability ratios?

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?

The income statement is a snapshot of the company's financial position at a certain point in time.

Financial accounting focuses on preparing external financial reports that are used by outsiders to assess the financial strength of a business.

What is the difference between net sales and cost of goods sold?

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

Which of the following statements best describes the accounting profession?

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

Exam 16: Accounting for Financial Success

Trademarks, franchises, patents, and copyrights are carried on the company's books as which of the following?

The postage stamps and petty cash in the architect's drawer as well as his drawing table, his office furniture, and money owed to him by clients are all examples of assets.

Which of the following is the system used to record a company's financial transactions in a routine and clerical process?

Why do Canadian accountants follow generally accepted accounting principles and/or IFRS?

The usual expression of the accounting equation is Assets = Liabilities + Owners' Equity.

The ratio of current assets to current liabilities is called the ownership ratio.

Which of the following is arrived at by subtracting current liabilities from current assets?

A yearly document that describes a company's financial status and usually discusses a company's financial activities during the past year and its prospects for the future is called the balance sheet.

The five-step process that takes a transaction from being mere raw financial data to being summarized in the financial statements is called the accounting cycle.

What is the term for the expenses of running a business that are not directly related to producing or buying its products?

To ensure accuracy and consistency in the way financial information is reported, accountants have historically followed which of the following rules?

Which of the following is an example of an asset?

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

Which of the following is NOT one of the three main profitability ratios?

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?

The income statement is a snapshot of the company's financial position at a certain point in time.

Financial accounting focuses on preparing external financial reports that are used by outsiders to assess the financial strength of a business.

What is the difference between net sales and cost of goods sold?

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

Which of the following statements best describes the accounting profession?

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