Question 1

The procedure used by accountants to convert transactions into financial statements is called ______.

Accepted Answer

A)  the accounting cycle 
B)  processing financial information 
C)  recording financial information 
D)  summarizing financial information 
A)  the accounting cycle 
B)  processing financial information 
C)  recording financial information 
D)  summarizing financial information A

Question 2

Complete the following using the terms listed below.
-The ______ are regulations and interpretations adopted by the International Accounting Standards Board.

Accepted Answer

A) Chartered Professional 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 Professional 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 B

Question 3

Government and not-for-profit accountants assess an organization's operational efficiency.

Accepted Answer

A) True 
 B)False  True

Question 4

Investing activities focus on selling goods and services, but they also consider cost control as an important element of sound financial management.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following financial statements shows a firm's financial position at a particular date?

Accepted Answer

A)  balance sheet 
B)  income statement 
C)  statement of cash flows 
D)  statement of changes in retained earnings 
A)  balance sheet 
B)  income statement 
C)  statement of cash flows 
D)  statement of changes in retained earnings

Question 6

The rules followed by accountants when preparing financial statements are referred to as ______.

Accepted Answer

A)  Generally Accepted Accounting Practices (GAAP) 
B)  Financial Accounting Standards Board (FAS
B)  
C)  the accounting process 
D)  the accounting system 
A)  Generally Accepted Accounting Practices (GAAP) 
B)  Financial Accounting Standards Board (FAS
B)  
C)  the accounting process 
D)  the accounting system

Question 7

Makayla is a corporate CPA working on a new budget. When she lists the company's liabilities, which of the following will she include?

Accepted Answer

A)  employees' wages and salaries 
B)  owners' equity 
C)  marketable securities 
D)  computer software 
A)  employees' wages and salaries 
B)  owners' equity 
C)  marketable securities 
D)  computer software

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Profitability ratios measure a firm's ability to meet its short-term obligations.

Accepted Answer

A) True 
 B)False

Question 10

Assets can include intangible possessions such as patents and trademarks.

Accepted Answer

A) True 
 B)False

Question 11

A cash budget tracks a firm's

Accepted Answer

A)  gross sales. 
B)  cash inflow and outflows. 
C)  tax obligation. 
D)  shareholders' dividends. 
A)  gross sales. 
B)  cash inflow and outflows. 
C)  tax obligation. 
D)  shareholders' dividends.

Question 12

Jenna asked her accountant to prepare a summary of the company's "bottom line." What specific information is Jenna interested in?

Accepted Answer

A)  the company's financial position for that week 
B)  net income after taxes 
C)  comparison of assets and liabilities 
D)  statement of owners' equity 
A)  the company's financial position for that week 
B)  net income after taxes 
C)  comparison of assets and liabilities 
D)  statement of owners' equity

Question 13

Ratios assist managers by interpreting actual performance and making comparisons with what should have happened.

Accepted Answer

A) True 
 B)False

Question 14

Two commonly used liquidity ratios are the inventory turnover ratio and the leverage ratio.

Accepted Answer

A) True 
 B)False

Question 15

A firm has $12 million in current assets, of which $8 million is inventory. If the company has $4 million in current liabilities, then its current ratio equals 1.0.

Accepted Answer

A) True 
 B)False

Question 16

Monica is involved in obtaining new funds to run and expand the business. She is engaged in an investing activity.

Accepted Answer

A) True 
 B)False

Question 17

A company's overall operating budget is a composite of many individual budgets for separate units of the firm.

Accepted Answer

A) True 
 B)False

Question 18

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 19

An accountant employed by a business other than an accounting firm is called a management accountant.

Accepted Answer

A) True 
 B)False

Question 20

If a Canadian company has substantial operations in Europe, and the value of the euro falls relative to the Canadian dollar, the company's profits, stated in Canadian dollars, will also fall.

Accepted Answer

A) True 
 B)False

The procedure used by accountants to convert transactions into financial statements is called ______.

Complete the following using the terms listed below. -The ______ are regulations and interpretations adopted by the International Accounting Standards Board.

Government and not-for-profit accountants assess an organization's operational efficiency.

Investing activities focus on selling goods and services, but they also consider cost control as an important element of sound financial management.

Which of the following financial statements shows a firm's financial position at a particular date?

The rules followed by accountants when preparing financial statements are referred to as ______.

Makayla is a corporate CPA working on a new budget. When she lists the company's liabilities, which of the following will she include?

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

Profitability ratios measure a firm's ability to meet its short-term obligations.

Assets can include intangible possessions such as patents and trademarks.

A cash budget tracks a firm's

Jenna asked her accountant to prepare a summary of the company's "bottom line." What specific information is Jenna interested in?

Ratios assist managers by interpreting actual performance and making comparisons with what should have happened.

Two commonly used liquidity ratios are the inventory turnover ratio and the leverage ratio.

A firm has $12 million in current assets, of which $8 million is inventory. If the company has $4 million in current liabilities, then its current ratio equals 1.0.

Monica is involved in obtaining new funds to run and expand the business. She is engaged in an investing activity.

A company's overall operating budget is a composite of many individual budgets for separate units of the firm.

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

An accountant employed by a business other than an accounting firm is called a management accountant.

If a Canadian company has substantial operations in Europe, and the value of the euro falls relative to the Canadian dollar, the company's profits, stated in Canadian dollars, will also fall.

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

The procedure used by accountants to convert transactions into financial statements is called ______.

Complete the following using the terms listed below. -The ______ are regulations and interpretations adopted by the International Accounting Standards Board.

Government and not-for-profit accountants assess an organization's operational efficiency.

Investing activities focus on selling goods and services, but they also consider cost control as an important element of sound financial management.

Which of the following financial statements shows a firm's financial position at a particular date?

The rules followed by accountants when preparing financial statements are referred to as ______.

Makayla is a corporate CPA working on a new budget. When she lists the company's liabilities, which of the following will she include?

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

Profitability ratios measure a firm's ability to meet its short-term obligations.

Assets can include intangible possessions such as patents and trademarks.

A cash budget tracks a firm's

Jenna asked her accountant to prepare a summary of the company's "bottom line." What specific information is Jenna interested in?

Ratios assist managers by interpreting actual performance and making comparisons with what should have happened.

Two commonly used liquidity ratios are the inventory turnover ratio and the leverage ratio.

A firm has $12 million in current assets, of which $8 million is inventory. If the company has $4 million in current liabilities, then its current ratio equals 1.0.

Monica is involved in obtaining new funds to run and expand the business. She is engaged in an investing activity.

A company's overall operating budget is a composite of many individual budgets for separate units of the firm.

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

An accountant employed by a business other than an accounting firm is called a management accountant.

If a Canadian company has substantial operations in Europe, and the value of the euro falls relative to the Canadian dollar, the company's profits, stated in Canadian dollars, will also fall.

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