Question 1

Double-entry accounting is used by private-sector firms,but not public-sector organizations.

Accepted Answer

A) True 
 B)False

Question 2

If you wanted to see how much Mega Computer owed your company,where would be the best place to look for the information?

Accepted Answer

A)  The income statement 
B)  The balance sheet 
C)  The cash flow statement 
D)  The budget 
E)  None of these would provide the information 
A)  The income statement 
B)  The balance sheet 
C)  The cash flow statement 
D)  The budget 
E)  None of these would provide the information

Question 3

A(n)________ is any economic resource expected to benefit a firm or the individual who owns it.

Accepted Answer

A)  owners' equity 
B)  asset 
C)  debit 
D)  liability 
E)  credit 
A)  owners' equity 
B)  asset 
C)  debit 
D)  liability 
E)  credit

Question 4

Describe the major elements of an income statement.

Accepted Answer

- revenues: monies received as a result

Question 5

As buildings and equipment wear out or become obsolete,their value decreases.To reflect decreasing value,accountants use

Accepted Answer

A)  prepaid expenses. 
B)  licensing. 
C)  subtracting methods. 
D)  depreciation. 
E)  all of these. 
A)  prepaid expenses. 
B)  licensing. 
C)  subtracting methods. 
D)  depreciation. 
E)  all of these.

Question 6

Laura is preparing annual income statements and balance sheets for her company.The field of accounting in which she is engaged is

Accepted Answer

A)  auditing. 
B)  bookkeeping. 
C)  financial accounting. 
D)  public accounting. 
E)  managerial accounting. 
A)  auditing. 
B)  bookkeeping. 
C)  financial accounting. 
D)  public accounting. 
E)  managerial accounting.

Question 7

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 8

The field of accounting that serves internal users of a company's financial information is

Accepted Answer

A)  financial accounting. 
B)  auditing. 
C)  public accounting. 
D)  bookkeeping. 
E)  managerial accounting. 
A)  financial accounting. 
B)  auditing. 
C)  public accounting. 
D)  bookkeeping. 
E)  managerial accounting.

Question 9

What is the difference between financial accounting and managerial accounting?

Accepted Answer

- financial accounting: the process wher

Question 10

Which of the following is correct with respect to generally accepted accounting principles?

Accepted Answer

A)  Public and private businesses can no longer use generally accepted accounting principles. 
B)  They are used in many foreign countries but not in Canada. 
C)  Public companies in Canada have moved away from using generally accepted accounting principles and have adopted International Financial Reporting Standards (IFRS). 
D)  Private companies must use the new International Financial Reporting Standards (IFRS). 
E)  None of these statements in correct. 
A)  Public and private businesses can no longer use generally accepted accounting principles. 
B)  They are used in many foreign countries but not in Canada. 
C)  Public companies in Canada have moved away from using generally accepted accounting principles and have adopted International Financial Reporting Standards (IFRS). 
D)  Private companies must use the new International Financial Reporting Standards (IFRS). 
E)  None of these statements in correct.

Question 11

Firm A enjoys a better activity ratio than Firm B.What might this mean?

Accepted Answer

A)  Firm A likely generates greater profits or sales than Firm B. 
B)  Firm A uses its resources less efficiently than Firm B. 
C)  Firm A has more customers than Firm B. 
D)  Firm A generates greater profits on sales and uses its resources more efficiently than B. 
E)  It might not mean anything. 
A)  Firm A likely generates greater profits or sales than Firm B. 
B)  Firm A uses its resources less efficiently than Firm B. 
C)  Firm A has more customers than Firm B. 
D)  Firm A generates greater profits on sales and uses its resources more efficiently than B. 
E)  It might not mean anything.

Question 12

If a company needs cash for emergencies,it can use the money in retained earnings.

Accepted Answer

A) True 
 B)False

Question 13

Retained earnings are net profits minus dividend payments to shareholders.

Accepted Answer

A) True 
 B)False

Question 14

A(n)______________ is a detailed statement of estimated receipts and expenditures for a period of time in the future.

Accepted Answer

A)  statement of cash flows 
B)  balance sheet 
C)  budget 
D)  income statement 
E)  profitability ratio 
A)  statement of cash flows 
B)  balance sheet 
C)  budget 
D)  income statement 
E)  profitability ratio

Question 15

Which of the following is true regarding CAs,CGAs,and CMAs?

Accepted Answer

A)  Formerly,CGAs were not allowed to audit the financial statements of publicly held companies,but now they have the right to audit such companies in most provinces. 
B)  There are more CMAs than there are CAs or CGAs. 
C)  CGAs place more emphasis on strategic management than either CAs or CMAs. 
D)  CGAs are not allowed to work in CA firms. 
E)  The federal government feels that accounting designations no longer have any significance. 
A)  Formerly,CGAs were not allowed to audit the financial statements of publicly held companies,but now they have the right to audit such companies in most provinces. 
B)  There are more CMAs than there are CAs or CGAs. 
C)  CGAs place more emphasis on strategic management than either CAs or CMAs. 
D)  CGAs are not allowed to work in CA firms. 
E)  The federal government feels that accounting designations no longer have any significance.

Question 16

What is the formula for return on equity?

Accepted Answer

(net incom

Question 17

Identify the potential users of accounting information.

Accepted Answer

The potential users of account

Question 18

Which of the following would be classified as an asset?

Accepted Answer

A)  Goodwill 
B)  Accounts receivable 
C)  Land 
D)  Inventory 
E)  All of these 
A)  Goodwill 
B)  Accounts receivable 
C)  Land 
D)  Inventory 
E)  All of these

Question 19

Owners' equity is meaningful for investors,but not for lenders.

Accepted Answer

A) True 
 B)False

Question 20

The ________ is the value of a nation's currency as determined by market forces.

Accepted Answer

A)  market multiplier 
B)  foreign currency exchange rate 
C)  balance of trade 
D)  foreign equity factor 
E)  trade deficit 
A)  market multiplier 
B)  foreign currency exchange rate 
C)  balance of trade 
D)  foreign equity factor 
E)  trade deficit

Double-entry accounting is used by private-sector firms,but not public-sector organizations.

If you wanted to see how much Mega Computer owed your company,where would be the best place to look for the information?

A(n)________ is any economic resource expected to benefit a firm or the individual who owns it.

Describe the major elements of an income statement.

As buildings and equipment wear out or become obsolete,their value decreases.To reflect decreasing value,accountants use

Laura is preparing annual income statements and balance sheets for her company.The field of accounting in which she is engaged is

What does return on equity measure?

The field of accounting that serves internal users of a company's financial information is

What is the difference between financial accounting and managerial accounting?

Which of the following is correct with respect to generally accepted accounting principles?

Firm A enjoys a better activity ratio than Firm B.What might this mean?

If a company needs cash for emergencies,it can use the money in retained earnings.

Retained earnings are net profits minus dividend payments to shareholders.

A(n)______________ is a detailed statement of estimated receipts and expenditures for a period of time in the future.

Which of the following is true regarding CAs,CGAs,and CMAs?

What is the formula for return on equity?

Identify the potential users of accounting information.

Which of the following would be classified as an asset?

Owners' equity is meaningful for investors,but not for lenders.

The ________ is the value of a nation's currency as determined by market forces.

Understanding the Canadian Business System

Understanding the Environments of Business

Conducting Business Ethically and Responsibly

Understanding Entrepreneurship, small Business, and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Managing Human Resources

Understanding Labourmanagement Relations

Motivating and Leading Employees

Producing Goods and Services

Increasing Productivity and Quality

Managing Information Systems and Communication Technology

Understanding Marketing Processes and Consumer Behaviour

Developing and Promoting Goods and Services

Pricing and Distributing Goods and Services

Understanding Money and Banking

Understanding Securities and Investments

Financial Decisions and Risk Management

Filters

Exam 14: Understanding Accounting Issues

Double-entry accounting is used by private-sector firms,but not public-sector organizations.

If you wanted to see how much Mega Computer owed your company,where would be the best place to look for the information?

A(n)________ is any economic resource expected to benefit a firm or the individual who owns it.

Describe the major elements of an income statement.

As buildings and equipment wear out or become obsolete,their value decreases.To reflect decreasing value,accountants use

Laura is preparing annual income statements and balance sheets for her company.The field of accounting in which she is engaged is

What does return on equity measure?

The field of accounting that serves internal users of a company's financial information is

What is the difference between financial accounting and managerial accounting?

Which of the following is correct with respect to generally accepted accounting principles?

Firm A enjoys a better activity ratio than Firm B.What might this mean?

If a company needs cash for emergencies,it can use the money in retained earnings.

Retained earnings are net profits minus dividend payments to shareholders.

A(n)______________ is a detailed statement of estimated receipts and expenditures for a period of time in the future.

Which of the following is true regarding CAs,CGAs,and CMAs?

What is the formula for return on equity?

Identify the potential users of accounting information.

Which of the following would be classified as an asset?

Owners' equity is meaningful for investors,but not for lenders.

The ________ is the value of a nation's currency as determined by market forces.

Understanding the Canadian Business System

Understanding the Environments of Business

Conducting Business Ethically and Responsibly

Understanding Entrepreneurship, small Business, and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Managing Human Resources

Understanding Labourmanagement Relations

Motivating and Leading Employees

Producing Goods and Services

Increasing Productivity and Quality

Managing Information Systems and Communication Technology

Understanding Marketing Processes and Consumer Behaviour

Developing and Promoting Goods and Services

Pricing and Distributing Goods and Services

Understanding Money and Banking

Understanding Securities and Investments

Financial Decisions and Risk Management

Filters