Question 1

The double-entry system is NOT used in the preparation of the ______.

Accepted Answer

A)  statement of changes in equity 
B)  income statement 
C)  balance sheets 
D)  statement of cash flows 
A)  statement of changes in equity 
B)  income statement 
C)  balance sheets 
D)  statement of cash flows

Question 2

The complexity of the budgeting process varies with the size and complexity of the organization.

Accepted Answer

A) True 
 B)False

Question 3

Identify and briefly describe the four categories of financial ratios.

Accepted Answer

The four categories of ratios are liquid

Question 4

Complete the following using the terms listed below.
-An organization's overall financial performance is measured by its ______, which evaluates the ability to generate revenues in excess of operating costs and other expenses.

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 5

Accounting information can be as important to those outside the organization as it is to those inside the organization.

Accepted Answer

A) True 
 B)False

Question 6

Accrual accounting recognizes revenues and expenses when cash changes hands.

Accepted Answer

A) True 
 B)False

Question 7

Cash budgets are typically prepared on a weekly basis.

Accepted Answer

A) True 
 B)False

Question 8

______ activities provide the necessary funds to start a business and to expand it after it begins operations.

Accepted Answer

A)  Investing 
B)  Financing 
C)  Operating 
D)  Selling 
A)  Investing 
B)  Financing 
C)  Operating 
D)  Selling

Question 9

Briefly describe the three business activities that involve accounting.

Accepted Answer

All organizations, whether for-profit or

Question 10

Julie is evaluating which province her company will expand into next. She is engaged in the ______ activity.

Accepted Answer

A)  accounting 
B)  operating 
C)  investing 
D)  marketing 
A)  accounting 
B)  operating 
C)  investing 
D)  marketing

Question 11

Sri manages the sales force for his company. He is engaged in the ______ activity.

Accepted Answer

A)  accounting 
B)  operating 
C)  financing 
D)  investing 
A)  accounting 
B)  operating 
C)  financing 
D)  investing

Question 12

A Canadian company with a subsidiary in France must restate the Canadian operations from Canadian dollars to euros.

Accepted Answer

A) True 
 B)False

Question 13

All public companies must prepare and publish ______.

Accepted Answer

A)  a statement of changes in equity 
B)  a statement of cash flows 
C)  the salaries of managers 
D)  a strategic plan for each year 
A)  a statement of changes in equity 
B)  a statement of cash flows 
C)  the salaries of managers 
D)  a strategic plan for each year

Question 14

An international firm's consolidated financial statements must reflect any gains or losses due to changes in exchange rates during specific periods of time.

Accepted Answer

A) True 
 B)False

Question 15

Accountants play a role in all three business activities: financing, investing, and operating.

Accepted Answer

A) True 
 B)False

Question 16

Financial statements that cover operations in two or more countries do NOT need to treat fluctuations consistently.

Accepted Answer

A) True 
 B)False

Question 17

Public accountants are NOT employees of the firm they provide services to. This allows them to provide

Accepted Answer

A)  not-for-profit services. 
B)  unbiased advice. 
C)  excessive risk assessments. 
D)  tax preparation services. 
A)  not-for-profit services. 
B)  unbiased advice. 
C)  excessive risk assessments. 
D)  tax preparation services.

Question 18

A firm's balance sheet shows its financial position over a period of time.

Accepted Answer

A) True 
 B)False

Question 19

Define the generally accepted accounting principles (GAAP) and its characteristics.

Accepted Answer

Generally accepted accounting principles

Question 20

The accounting cycle involves converting information and individual transactions into financial statements. Summarizing transactions is the first step in the accounting cycle.

Accepted Answer

A) True 
 B)False

The double-entry system is NOT used in the preparation of the ______.

The complexity of the budgeting process varies with the size and complexity of the organization.

Identify and briefly describe the four categories of financial ratios.

Complete the following using the terms listed below. -An organization's overall financial performance is measured by its ______, which evaluates the ability to generate revenues in excess of operating costs and other expenses.

Accounting information can be as important to those outside the organization as it is to those inside the organization.

Accrual accounting recognizes revenues and expenses when cash changes hands.

Cash budgets are typically prepared on a weekly basis.

______ activities provide the necessary funds to start a business and to expand it after it begins operations.

Briefly describe the three business activities that involve accounting.

Julie is evaluating which province her company will expand into next. She is engaged in the ______ activity.

Sri manages the sales force for his company. He is engaged in the ______ activity.

A Canadian company with a subsidiary in France must restate the Canadian operations from Canadian dollars to euros.

All public companies must prepare and publish ______.

An international firm's consolidated financial statements must reflect any gains or losses due to changes in exchange rates during specific periods of time.

Accountants play a role in all three business activities: financing, investing, and operating.

Financial statements that cover operations in two or more countries do NOT need to treat fluctuations consistently.

Public accountants are NOT employees of the firm they provide services to. This allows them to provide

A firm's balance sheet shows its financial position over a period of time.

Define the generally accepted accounting principles (GAAP) and its characteristics.

The accounting cycle involves converting information and individual transactions into financial statements. Summarizing transactions is the first step in the accounting cycle.

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 double-entry system is NOT used in the preparation of the ______.

The complexity of the budgeting process varies with the size and complexity of the organization.

Identify and briefly describe the four categories of financial ratios.

Complete the following using the terms listed below. -An organization's overall financial performance is measured by its ______, which evaluates the ability to generate revenues in excess of operating costs and other expenses.

Accounting information can be as important to those outside the organization as it is to those inside the organization.

Accrual accounting recognizes revenues and expenses when cash changes hands.

Cash budgets are typically prepared on a weekly basis.

______ activities provide the necessary funds to start a business and to expand it after it begins operations.

Briefly describe the three business activities that involve accounting.

Julie is evaluating which province her company will expand into next. She is engaged in the ______ activity.

Sri manages the sales force for his company. He is engaged in the ______ activity.

A Canadian company with a subsidiary in France must restate the Canadian operations from Canadian dollars to euros.

All public companies must prepare and publish ______.

An international firm's consolidated financial statements must reflect any gains or losses due to changes in exchange rates during specific periods of time.

Accountants play a role in all three business activities: financing, investing, and operating.

Financial statements that cover operations in two or more countries do NOT need to treat fluctuations consistently.

Public accountants are NOT employees of the firm they provide services to. This allows them to provide

A firm's balance sheet shows its financial position over a period of time.

Define the generally accepted accounting principles (GAAP) and its characteristics.

The accounting cycle involves converting information and individual transactions into financial statements. Summarizing transactions is the first step in the accounting cycle.

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