Question 1

In the above statement of cash flows which letters represent cash outflows?

Accepted Answer

A)  B,C,D,F and G.
B)  A,E and G.
C)  B,C,E and F.
D)  A,E,F and G.E) None of the above
F) B) and D)

Question 2

The AcSB:

Accepted Answer

A)  has primary responsibility for setting the underlying rules of accounting in Canada.
B)  is an entity that regulates issuance of securities in Ontario.
C)  an independent body to develop and establish standards and guidance than govern financial accounting and reporting in Canada.
D)  is an examination of a company's financial statements by an independent auditor.E) All of the above
F) B) and D)

Question 3

The balance sheets at the beginning and end of a time period are linked by the income statement,the statement of cash flows,and the statement of retained earnings for the time period.
BT: Comprehension

Accepted Answer

A) True 
 B)False

Question 4

Just like footnotes in some articles and books,notes to the financial statements (also known as footnotes)report extra information that is not relevant to the financial statements.
BT: Knowledge

Accepted Answer

A) True 
 B)False

Question 5

Expenses are shown on the income statement only in the time period in which they are paid.
BT: Comprehension

Accepted Answer

A) True 
 B)False

Question 6

Which of the following are elements to be measure and reported?

Accepted Answer

A)  Assets,liabilities,shareholders equity,revenues,expenses,dividends
B)  Unit of measure,separate entity,going concern,time period
C)  Cost,revenue recognition,matching,full disclosure
D)  Cost-benefit,materiality,industry practicesE) All of the above
F) B) and D)

Question 7

Which of the following statements is false?

Accepted Answer

A)  When choosing between a company that pays steady dividends and one that retains its earnings to support future growth,investors will always choose the company that pays steady dividends.
B)  Companies can develop reputations for honest financial reporting even when conveying bad news.
C)  Trends in a company's net income from year to year can provide clues about its future earnings,which can help investors to decide whether to buy stock in the company.
D)  Information in the notes to the financial statements can influence a user's interpretation of balance sheet and income statement information.E) A) and C)
F) None of the above

Question 8

Investors are often interested in the amount of net income distributed as dividends.In which section of the financial statements would investors look to find this amount?

Accepted Answer

A)  Statement of retained earnings.
B)  Balance sheet.
C)  Notes to the financial statements.
D)  Income statement.E) All of the above
F) A) and B)

Question 9

Financial statements are most commonly prepared:

Accepted Answer

A)  semi-monthly.
B)  monthly,quarterly and annually.
C)  whenever management feels like it.
D)  weekly.E) None of the above
F) B) and C)

Question 10

Internal financial statement users include:

Accepted Answer

A)  investors interested in the company.
B)  creditors of the company.
C)  management of the company.
D)  stock exchanges.E) A) and B)
F) B) and D)

Question 11

Anonymous,Inc.is owed $310,500 from customers who have purchased goods or services from the company,but have not yet paid for them.
BT: Comprehension

Accepted Answer

A) True 
 B)False

Question 12

Shareholders are creditors of a company.
BT: Comprehension

Accepted Answer

A) True 
 B)False

Question 13

The Don't Bite Me pest control company has 10,000 gallons of insecticide supplies on hand that cost $300,000; a bill from the vendor for $100,000 of these supplies has not yet been paid.The company expects to earn $800,000 for its services when it uses the insecticide supplies.The company would report:

Accepted Answer

A)  $300,000 in assets under supplies and no accounts payable.
B)  $200,000 in assets under supplies and no accounts payable.
C)  $300,000 in assets under supplies and $100,000 in liabilities under accounts payable.
D)  $800,000 in assets under supplies and $100,000 in liabilities under accounts payable.E) B) and C)
F) A) and C)

Question 14

Notes payable are like accounts payable except that notes payable:

Accepted Answer

A)  are not interest free.
B)  can remain unpaid longer than accounts payable.
C)  are documented using formal written debt contracts.
D)  Accounts payables are not reported in the balance sheet while notes payables are.E) A) and B)
F) A) and C)

Question 15

Find the missing data.

Accepted Answer

A)  Total revenues are $3,810,200,other selling and administrative expenses are $1,051,500,and net income is $364,600.
B)  Total revenues are $2,495,300,other selling and administrative expenses are $1,051,500,and net income is ($950,300) .
C)  Total revenues are $364,600,other selling and administrative expenses are $3,081,000,and net income is $7,255,800.
D)  Total revenues are $3,810,200,other selling and administrative expenses are $364,600,and net income is $7,255,800.E) None of the above
F) A) and B)

Question 16

Notes to the financial statements (also known as footnotes)immediately follow the four individual financial statements,and include descriptions of accounting decisions made when preparing the financial statements.
BT: Knowledge

Accepted Answer

A) True 
 B)False

Question 17

The shareholders' equity in a company is the difference between assets and liabilities.
BT: Comprehension

Accepted Answer

A) True 
 B)False

Question 18

The effects of net income and its distribution on the financial position of the company is reported in:

Accepted Answer

A)  Balance sheet
B)  Income statement
C)  Statement of retained earnings
D)  Statement of cash flowsE) None of the above
F) B) and C)

Question 19

Cash flow from investing activities includes money received from a company's shareholders.
BT: Knowledge

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is not true?

Accepted Answer

A)  Retained earnings of $350,500 will appear on the balance sheet as of December 31,2008.
B)  The net income in the above statement came from the income statement for the year ended December 31,2008.
C)  Dividends are shown in parenthesis because they are payments made by a company to its shareholders as a return on their investment.
D)  Retained earnings are the amount of distributions made to the shareholders since the company started.E) All of the above
F) A) and B)

Exam 1: Business Decisions and Financial Accounting

Expenses are shown on the income statement only in the time period in which they are paid. BT: Comprehension

Correct Answer
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The effects of net income and its distribution on the financial position of the company is reported in:

Correct Answer
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Notes payable are like accounts payable except that notes payable:

Correct Answer
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Shareholders are creditors of a company. BT: Comprehension

Correct Answer
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Find the missing data.

Correct Answer
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The AcSB:

Correct Answer
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Anonymous,Inc.is owed $310,500 from customers who have purchased goods or services from the company,but have not yet paid for them. BT: Comprehension

Correct Answer
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Which of the following is not true?

Correct Answer
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Financial statements are most commonly prepared:

Correct Answer
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Internal financial statement users include:

Correct Answer
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In the above statement of cash flows which letters represent cash outflows?

Correct Answer
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The shareholders' equity in a company is the difference between assets and liabilities. BT: Comprehension

Correct Answer
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Just like footnotes in some articles and books,notes to the financial statements (also known as footnotes)report extra information that is not relevant to the financial statements. BT: Knowledge

Correct Answer
verified

The balance sheets at the beginning and end of a time period are linked by the income statement,the statement of cash flows,and the statement of retained earnings for the time period. BT: Comprehension

Correct Answer
verified

Correct Answer
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Cash flow from investing activities includes money received from a company's shareholders. BT: Knowledge

Correct Answer
verified

Which of the following are elements to be measure and reported?

Correct Answer
verified

Which of the following statements is false?

Correct Answer
verified

Investors are often interested in the amount of net income distributed as dividends.In which section of the financial statements would investors look to find this amount?

Correct Answer
verified

Notes to the financial statements (also known as footnotes)immediately follow the four individual financial statements,and include descriptions of accounting decisions made when preparing the financial statements. BT: Knowledge

Correct Answer
verified

Exam 1: Business Decisions and Financial Accounting

Expenses are shown on the income statement only in the time period in which they are paid. BT: Comprehension

Correct AnswerverifiedShow Answer

The effects of net income and its distribution on the financial position of the company is reported in:

Correct AnswerverifiedShow Answer

Notes payable are like accounts payable except that notes payable:

Correct AnswerverifiedShow Answer

Shareholders are creditors of a company. BT: Comprehension

Correct AnswerverifiedShow Answer

Find the missing data.

Correct AnswerverifiedShow Answer

The AcSB:

Correct AnswerverifiedShow Answer

Anonymous,Inc.is owed $310,500 from customers who have purchased goods or services from the company,but have not yet paid for them. BT: Comprehension

Correct AnswerverifiedShow Answer

Which of the following is not true?

Correct AnswerverifiedShow Answer

Financial statements are most commonly prepared:

Correct AnswerverifiedShow Answer

Internal financial statement users include:

Correct AnswerverifiedShow Answer

In the above statement of cash flows which letters represent cash outflows?

Correct AnswerverifiedShow Answer

The shareholders' equity in a company is the difference between assets and liabilities. BT: Comprehension

Correct AnswerverifiedShow Answer

Just like footnotes in some articles and books,notes to the financial statements (also known as footnotes)report extra information that is not relevant to the financial statements. BT: Knowledge

Correct AnswerverifiedShow Answer

The balance sheets at the beginning and end of a time period are linked by the income statement,the statement of cash flows,and the statement of retained earnings for the time period. BT: Comprehension

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Cash flow from investing activities includes money received from a company's shareholders. BT: Knowledge

Correct AnswerverifiedShow Answer

Which of the following are elements to be measure and reported?

Correct AnswerverifiedShow Answer

Which of the following statements is false?

Correct AnswerverifiedShow Answer

Investors are often interested in the amount of net income distributed as dividends.In which section of the financial statements would investors look to find this amount?

Correct AnswerverifiedShow Answer

Notes to the financial statements (also known as footnotes)immediately follow the four individual financial statements,and include descriptions of accounting decisions made when preparing the financial statements. BT: Knowledge

Correct AnswerverifiedShow Answer

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