Chapter 1,2,3

Question 0

Karl and Mandy own a business this style of ownership is called

Answer 0

Partnership

Question 1

Auditing may be described as

Answer 1

Testing a firms records and procedures for accuracy

Question 2

A business that is called first pages publishing LTD is organized as a…

Answer 2

Corporation

Question 3

A good accounting system should provide adequate information for the use of …

Answer 3

Management and owners of the firm
Lenders
Governmental

Question 4

In the event of a business closing down who gets paid first

Answer 4

Creditors

Question 5

What does the heading on a balance sheet answer

Answer 5

Who?
What?
When?

Question 6

Tf. A non profit organization is an organization that provides a social benefit

Answer 6

True

Question 7

Tf. The three main categories of accounting work are: routine daily activities, periodic accounting activities and miscellaneous activity

Answer 7

True

Question 8

Tf. A merchandising business buys goods for resale at a lower price

Answer 8

False

Question 9

Tf. Shareholders own shares in a company but are not considered to be owners of the corporation

Answer 9

False

Question 10

Tf. A book keeper is also called an accountant

Answer 10

False

Question 11

Tf. A single ruled line should be placed below the figure for total assets

Answer 11

False

Question 12

Tf. Assets- owners equity= liability

Answer 12

True

Question 13

Tf. Liquidity refers to the order in which assets are converted into cash

Answer 13

True

Question 14

Tf. The heading in a balance sheet must answer who, what and when

Answer 14

True

Question 15

Tf. Private businesses in Canada can choose between adopting international financial reporting standards or accounting standards for private enterprises

Answer 15

True

Question 16

Tf. Accounts payable would be listed before a mortgage on a balance sheet

Answer 16

True

Question 17

Tf. A persons net worth can be calculated by subtracting liabilities from assets

Answer 17

True

Question 18

Tf. Overstating the value of the assets is in violation of the principle of conservatism

Answer 18

True

Question 19

Tf the objectivity principle related to source documents

Answer 19

True

Question 20

Tf the purchase of office equipment on credit affects both assets and liabilities

Answer 20

True

Question 21

Tf. The purchase of a new computer for the office qualifies as a business transaction

Answer 21

True

Question 22

Tf an owner investing another 1000 into the business qualifies as a business transaction

Answer 22

True

Question 23

Tf liabilities represent the claims of the owner against the business

Answer 23

False

Question 24

Tf. A copy of a cheque is a source document

Answer 24

True