Section 5

Question 1

This is a contributory earnings related social insurance program. It is one of the 22 public retirement income systems of Canada, the other being old age security

Answer 1

Canada pension plan

Question 2

The equity of the owners in a business enterprise

Answer 2

Capital

Question 3

When one entity acquires control of another entity

Answer 3

Capital acquisitions

Question 4

What is cash accounting?

Answer 4

A system that only recognizes income when cash is collected from a sale and only recognizes expenses when cash is paid for goods and services

Question 5

Accounting method that measures income when cash is received and expenses, when cash is spent

Answer 5

Cash basis

Question 6

An estimate of cash receipts and disbursements for a specific period of time. Used to determine whether a business has enough money to maintain standard operations, and also helps determine if cash money is being used in unproductive capacities.

Answer 6

Cash budget

Question 7

Financial report on the sources of cash and uses of cash

Answer 7

Cash flow statement

Question 8

An accounting professional, with a higher level of professional education

Answer 8

CPA certified public accountant

Question 9

A systematic listing of all accounts, names and numbers used by a company

Answer 9

Chart of accounts

Question 10

What is a CPA called in Canada?

Answer 10

Just a chartered accountant

Question 11

A procedure set in place to reduce mistakes of improper behaviour

Answer 11

Checks and balances

Question 12

A reduction in price for services or products to an individual

Answer 12

Client discounts

Question 13

The process of collecting funds owned to the business

Answer 13

Collections

Question 14

The amount a practice owes to suppliers

Answer 14

Accounts payable

Question 15

Money that is owed to the practice for products or services

Answer 15

Accounts receivables

Question 16

An accounting system recognizes revenues as earned and expenses as incurred

Answer 16

Accrual accounting

Question 17

Accounting method that recognizes income, when it is earned and expenses, with they are incurred, regardless of when cash is received

Answer 17

Accrual basis

Question 18

Relating to income that remains after the deduction of taxes

Answer 18

After tax

Question 19

A particular period of time as distinguished from other periods

Answer 19

Ageing

Question 20

Periodic expense attributed to the decline in usefulness of intangible assets over its estimated useful life

Answer 20

Amortization

Question 21

An asset that lacks physical substance, and is hard to evaluate

Answer 21

Intangible asset

Question 22

A trust which can be used to maintain control over the trust assets for designated period of time which may survive death

Answer 22

Asset control

Question 23

Things of value owned by a business, such as cash, accounts, receivable, and equipment

Answer 23

Assets

Question 24

An asset expected to be sold, consumed or exhausted through the normal operations of the business within the current fiscal year

Answer 24

Current assets

Question 25

An asset that cannot easily be converted to cash

Answer 25

Fixed asset

Question 26

Describe the difference between current fixed and intangible assets

Answer 26

Current is short-term assets, such as inventory and cash. Fixed is long-term assets, such as land, buildings, and equipment. And tangible is not physical in nature, such as copyrights and goodwill. 

Question 27

A record of financial transactions, where an accountant can reconstruct the sequence of events

Answer 27

Audit trails

Question 28

Total revenue, divided by total number of transactions in the same time period.

Answer 28

Average revenue per invoice or average transaction charge

Question 29

Illegal procedure, through which some portion of an employees earnings is withheld by an employer for the payment of services or products

Answer 29

Commission pay garnishments

Question 30

What is the consumer price index?

Answer 30

An index of prices used to measure the change in the cost of basic goods and services and comparison with a fixed base period

Question 31

I fixed step-by-step sequence of activities that must be followed in the same order to perform a task

Answer 31

Day end procedures

Question 32

Clear written guidelines, that set the terms and conditions for supplying goods and services on credit

Answer 32

Credit policy

Question 33

Theoretical price index that measures relative cost-of-living overtime or regions. It measures the differences in price of goods and services.

Answer 33

Cost-of-living

Question 34

A notification sent to a customer stating that the customer is overdue and paying an account

Answer 34

Dunning letter or collection letter

Question 35

Electronic transfer of payment from the account of the payer to the recipient

Answer 35

Direct deposit

Question 36

This is defined as an additional amount of income that an employee is offered in order to motivate them to accept an undesirable job

Answer 36

Differential pay

Question 37

The process of allocating, the cost of an asset across the time period for which it provides benefit

Answer 37

Depreciation

Question 38

A sum of money placed in a bank account to gain interest

Answer 38

Deposits

Question 39

Business, expenses or losses that are legally permitted to be subtracted from the gross revenue from a business when computing its taxable income

Answer 39

Deductions

Question 40

A duty to pay money, deliver goods, or render services under an express or implied agreement

Answer 40

Debt

Question 41

The percentage rated which general level of prices is rising and subsequently purchasing power is falling

Answer 41

Inflation rate

Question 42

What does incorporated mean?

Answer 42

Formed into a legal corporation

Question 43

Tax levy by a government directly on income, especially on personal income

Answer 43

Income tax

Question 44

Another term for profit and loss statement

Answer 44

Income statement

Question 45

Name of the report on financial performance that covers a period of time and covers income and expenses

Answer 45

Income statement or profit and loss statement

Question 46

A recurrent benefit usually money

Answer 46

Income

Question 47

A fund or cash reserve that is maintained at a constant level for lengthy periods of time

Answer 47

Imprest account

Question 48

Salary compensation is exempt from overtime laws, true or false

Answer 48

True. Only hourly compensation has overtime pay for work in excess of 40 hours per week.

Question 49

Past data used as a basis for forecasting future trends

Answer 49

Historical data

Question 50

Total value of goods produced, and services provided in a country during one year

Answer 50

GDP gross domestic product

Question 51

The collection of assets liability, equity revenue, and expense accounts, from which the financial statements are derived

Answer 51

General ledger

Question 52

An intentional concealment of the truth to gain unlawful or unfair advantage. An act of deception.

Answer 52

Fraud

Question 53

Costs that may be manipulated in amount or eliminated by not engaging in the activity that incurred the expense

Answer 53

Flexible or variable expenses

Question 54

An expense that does not change with an increase, or decrease in the amount of goods or services provided

Answer 54

Fixed expense

Question 55

Expenses that have to be paid by a company independent of any business activity

Answer 55

Fixed costs

Question 56

Also referred to as the statement of financial conditions. It’s summarizes the assets, liabilities and owners equity at a particular date.

Answer 56

Balance sheet

Question 57

Summary of financial transactions, which have occurred over a given period on a bank account

Answer 57

Bank statement

Question 58

Measurable quantities for given period of time that are considered industry standards

Answer 58

Benchmark

Question 59

The process by which a business compares itself to others

Answer 59

Benchmarking

Question 60

What are billing fees?

Answer 60

A charge added to a bill, sent to a client to compensate the practice for the costs of billing when usually the policy requires payments at the time of service

Question 61

Money, or an equivalent, to given, in addition to an employees usual compensation

Answer 61

Bonus

Question 62

And analysis that is used to determine when your business will be able to cover all of its expenses, and begin to make a profit

Answer 62

Break even analysis

Question 63

The financial projection used to estimate and control the results of future business operations

Answer 63

Budget

Question 64

What is liability insurance?

Answer 64

Insurance that protects the company or business owner, and the event of a formal lawsuit or other third-party claim

Question 65

The fraudulent appropriation of funds or property, and trusted to your care, but owned by somebody else

Answer 65

Embezzlement

Question 66

This provides temporary financial assistance to unemployed Canadians, who have lost their job through no-fault of their own while they continue to look for work

Answer 66

Employment insurance

Question 67

The owners claim on the practises assets

Answer 67

Equity

Question 68

Measured outflow of services and goods matched to the revenue generated for the outflow

Answer 68

Expenses

Question 69

Attacks levied on annual earnings of individuals, corporations, trust, and other legal entities

Answer 69

Federal income tax

Question 70

Money charged for payments that extend beyond an ageee upon time limit

Answer 70

Finance charge

Question 71

A fee, representing the cost of credit, or the cost of borrowing

Answer 71

Finance fees