Question 1

Which of the following represents the accounting equation?

Accepted Answer

A)  Assets + Liabilities = Owners' Equity 
B)  Liabilities = Assets + Owners' Equity 
C)  Assets = Liabilities + Owners' Equity 
D)  Owners' Equity - Liabilities = Assets 
A)  Assets + Liabilities = Owners' Equity 
B)  Liabilities = Assets + Owners' Equity 
C)  Assets = Liabilities + Owners' Equity 
D)  Owners' Equity - Liabilities = Assets

Question 2

Most companies refuse to share any financial information with employees.

Accepted Answer

A) True 
 B)False

Question 3

Camille is an accountant who works for a firm providing auditing services to other businesses. Camille is a public accountant.

Accepted Answer

A) True 
 B)False

Question 4

Ricardo is a loan officer for a bank and is reviewing the financial statements of a prospective borrower. As a user of accounting information, Ricardo is most interested in using this information ______.

Accepted Answer

A)  to evaluate credit risk 
B)  to make an investment decision 
C)  in contract negotiations 
D)  to plan and control 
A)  to evaluate credit risk 
B)  to make an investment decision 
C)  in contract negotiations 
D)  to plan and control

Question 5

The budget establishes the standards with which actual performance may be compared.

Accepted Answer

A) True 
 B)False

Question 6

Complete the following using the terms listed below.
-______ is primarily responsible for evaluating, setting, or modifying the generally accepted accounting principles.

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

Question 7

Since publicly traded companies are required to report their financial information, anyone can find out how much Tim Horton's made during the past three months.

Accepted Answer

A) True 
 B)False

Question 8

An asset turnover ratio of 2.5 means that for every $1 in assets, the firm generates ______ in sales.

Accepted Answer

A)  $2.00 
B)  $2.50 
C)  $3.00 
D)  $0.50 
A)  $2.00 
B)  $2.50 
C)  $3.00 
D)  $0.50

Question 9

Public accountants are typically employees of the firm for which they are providing services.

Accepted Answer

A) True 
 B)False

Question 10

The Canadian Security Intelligence Service is an example of a governmental agency that hires accountants.

Accepted Answer

A) True 
 B)False

Question 11

Cash budgets are usually prepared ______.

Accepted Answer

A)  yearly 
B)  weekly 
C)  quarterly 
D)  monthly 
A)  yearly 
B)  weekly 
C)  quarterly 
D)  monthly

Question 12

Complete the following using the terms listed below.
-Proponents of ______ allow employees to view sensitive financial information so that they better understand how their work contributes to the company's success.

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

Question 13

Complete the following using the terms listed below.
-A (n) ______ demonstrates his or her accounting knowledge by meeting provincial requirements for education and experience, as well as successfully completing a number of rigorous tests in accounting theory and practice, auditing, law, finance, strategy, and taxation.

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

Question 14

The natural progression of a business begins with operating the business.

Accepted Answer

A) True 
 B)False

Question 15

Olga owns a business and is reviewing her company's current financial statements. As a user of accounting information, Olga is most interested in using this information to ______.

Accepted Answer

A)  evaluate credit risk 
B)  approve new issues of stocks and bonds 
C)  evaluate tax liabilities 
D)  plan and control 
A)  evaluate credit risk 
B)  approve new issues of stocks and bonds 
C)  evaluate tax liabilities 
D)  plan and control

Question 16

All organizations perform three basic business activities. List and describe these activities.

Accepted Answer

All businesses perform, in natural progr

Question 17

What is the purpose of the balance sheet? Explain how it is it organized.

Accepted Answer

The balance sheet shows a firm's financi

Question 18

Current ratio is an example of liquidity ratios. It's calculated by dividing total liabilities by total assets.

Accepted Answer

A) True 
 B)False

Question 19

Fayez performs professional services similar to those of a management accountant, while working for the city of Edmonton. Fayez can best be described as a ______.

Accepted Answer

A)  tax accountant 
B)  government accountant 
C)  public accountant 
D)  cost accountant 
A)  tax accountant 
B)  government accountant 
C)  public accountant 
D)  cost accountant

Question 20

Daily business decisions are generally unaffected by accounting information; long-term decisions, however, are affected by accounting information and the interpretation of financial reports.

Accepted Answer

A) True 
 B)False

Which of the following represents the accounting equation?

Most companies refuse to share any financial information with employees.

Camille is an accountant who works for a firm providing auditing services to other businesses. Camille is a public accountant.

Ricardo is a loan officer for a bank and is reviewing the financial statements of a prospective borrower. As a user of accounting information, Ricardo is most interested in using this information ______.

The budget establishes the standards with which actual performance may be compared.

Complete the following using the terms listed below. -______ is primarily responsible for evaluating, setting, or modifying the generally accepted accounting principles.

Since publicly traded companies are required to report their financial information, anyone can find out how much Tim Horton's made during the past three months.

An asset turnover ratio of 2.5 means that for every $1 in assets, the firm generates ______ in sales.

Public accountants are typically employees of the firm for which they are providing services.

The Canadian Security Intelligence Service is an example of a governmental agency that hires accountants.

Cash budgets are usually prepared ______.

Complete the following using the terms listed below. -Proponents of ______ allow employees to view sensitive financial information so that they better understand how their work contributes to the company's success.

The natural progression of a business begins with operating the business.

Olga owns a business and is reviewing her company's current financial statements. As a user of accounting information, Olga is most interested in using this information to ______.

All organizations perform three basic business activities. List and describe these activities.

What is the purpose of the balance sheet? Explain how it is it organized.

Current ratio is an example of liquidity ratios. It's calculated by dividing total liabilities by total assets.

Fayez performs professional services similar to those of a management accountant, while working for the city of Edmonton. Fayez can best be described as a ______.

Daily business decisions are generally unaffected by accounting information; long-term decisions, however, are affected by accounting information and the interpretation of financial reports.

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

Which of the following represents the accounting equation?

Most companies refuse to share any financial information with employees.

Camille is an accountant who works for a firm providing auditing services to other businesses. Camille is a public accountant.

Ricardo is a loan officer for a bank and is reviewing the financial statements of a prospective borrower. As a user of accounting information, Ricardo is most interested in using this information ______.

The budget establishes the standards with which actual performance may be compared.

Complete the following using the terms listed below. -______ is primarily responsible for evaluating, setting, or modifying the generally accepted accounting principles.

Since publicly traded companies are required to report their financial information, anyone can find out how much Tim Horton's made during the past three months.

An asset turnover ratio of 2.5 means that for every $1 in assets, the firm generates ______ in sales.

Public accountants are typically employees of the firm for which they are providing services.

The Canadian Security Intelligence Service is an example of a governmental agency that hires accountants.

Cash budgets are usually prepared ______.

Complete the following using the terms listed below. -Proponents of ______ allow employees to view sensitive financial information so that they better understand how their work contributes to the company's success.

The natural progression of a business begins with operating the business.

Olga owns a business and is reviewing her company's current financial statements. As a user of accounting information, Olga is most interested in using this information to ______.

All organizations perform three basic business activities. List and describe these activities.

What is the purpose of the balance sheet? Explain how it is it organized.

Current ratio is an example of liquidity ratios. It's calculated by dividing total liabilities by total assets.

Fayez performs professional services similar to those of a management accountant, while working for the city of Edmonton. Fayez can best be described as a ______.

Daily business decisions are generally unaffected by accounting information; long-term decisions, however, are affected by accounting information and the interpretation of financial reports.

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