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Exam 16: Understanding Accounting and Financial Information

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Question 151

Multiple Choice

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Many business decisions are made in hopes of improving a firm's "bottom line".Which of the following financial statements will reflect a firm's "bottom line?"

A) income statement
B) balance sheet
C) cash flow statement
D) trial balance

E) B) and C)
F) A) and C)

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Question 152

Multiple Choice

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__________ is the accounting practice of recording every transaction in two places.

A) Double-entry bookkeeping
B) Trial balancing
C) Account matching
D) Entry duplication

E) A) and D)
F) A) and C)

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Question 153

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At present,accounting software packages have proven to be too complex and expensive to be useful for owners of small businesses.

Accounting transactions are very important to a firm's operations.All of the following activities would affect account balances EXCEPT:

________ measures the amount of profit earned by a company for each share of outstanding common stock.

The accounting statement that reports cash receipts and disbursements for a business is called the:

_________ is the systematic write-off of the value of a tangible asset over its useful life.

The balance sheet reports revenues and selling costs for a period of time.

The financial ratios that measure management's effectiveness in using the assets of the organization are called the ________ ratios.

Financial accounting is used to provide information and analysis that managers within the organization can use to assist them in decision making.

A basic purpose of accounting is to:

An extremely high inventory turnover ratio may represent lost sales due to holding inadequate stocks of merchandise.

When a firm sells merchandise from its inventory,there are different techniques used to calculate the cost of goods sold.

In Canada,there are three different professional accounting designations.

The accounting profession is divided into two main fields: bookkeeping and auditing.

The "bottom line" of an income statement is the net worth of the firm.

Accounting software for small businesses has become so sophisticated that most small business owners will never need to consult with an actual accountant.

How many professional accounting designations does Canada have?

General expenses would include office salaries,rent,and insurance.

What is the major problem a Canadian company faces when they look to form a joint venture globally?