Solutions Manual for College Accounting A Practical Approach 14th Canadian Edition Jeffrey Slater, Debra Good

TEST BANK FOR
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COLLEGE ACCOUNTING A PRACTICAL APPROACH 14TH
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CANADIAN EDITION JEFFREY SLATER, DEBRA GOO
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College f#Accounting, f#14Ce f#(Slater/Good)
Chapter f#1 Accounting f#Concepts f#and f#Procedures: f#An f#Introduction

1.1 Defining f#and f#listing f#the f#functions f#of f#accounting.

1) Which f#of f#the f#following f#professional f#accounting f#designations f#has f#been f#replaced f#by f#"CPA"?
A) CA
B) CMA
C) CGA
D) All f#of f#the f#above
f#Answer: f # D

Diff: f#1 Type: f#MC
f#Objective: 1-1

2) The f#type f#of f#business f#organization f#that f#can f#continue f#indefinitely f#is f#known f#as f#a
A) sole f#proprietorship.
B) partnership.
C) corporation.
D) None f#of f#the f#above.
f#Answer: f # C

Diff: f#1 Type: f#MC
f#Objective: 1-1

3) This f#type f#of f#business f#organization f#is f#subject f#to f#income f#tax.
A) sole f#proprietorship.
B) partnership.
C) corporation.
D) All f#of f#the f#above.
f#Answer: f # C

Diff: f#1 Type: f#MC
f#Objective: 1-1

4) Putting f#the f#information f#into f#the f#accounting f#system f#would f#be f#called
A) analyzing.
B) recording.
C) classifying.
D) summarizing.
Answer: f # f # B
Diff: f#2 Type: f#MC
f#Objective: 1-1
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Copyright f#© f#2021 f#Pearson f#Education,
f#Inc.

,5) The f#purpose f#of f#the f#accounting f#process f#is f#to f#provide f#financial f#information f#about
A) sole f#proprietorships.
B) small f#businesses.
C) large f#corporations.
D) All f#of f#these f#answers f#are f#correct.
f#Answer: f # D

Diff: f#2 Type: f#MC
f#Objective: 1-1

6) The f#advantages f#of f#a f#corporation f#do f#NOT f#include
A) limited f#personal f#risk.
B) can f#continue f#indefinitely.
C) business f#decisions f#made f#by f#career f#administrators.
D) easy f#to f#set f#up.
f#Answer: f # D

Diff: f#1 Type: f#MC
f#Objective: 1-1

7) Accounting f#reports f#are f#least f#helpful f#in f#answering f#which f#of f#the f#following f#questions?
A) How f#much f#cash f#was f#available f#at f#the f#end f#of f#the f#last f#year?
B) How f#well f#were f#the f#employees f#treated f#by f#management?
C) Did f#the f#company f#make f#a f#profit f#for f#the f#previous f#year?
D) Can f#the f#company f#pay f#its f#debts f#on f#time?
f#Answer: f # B

Diff: f#3 Type: f#MC
f#Objective: 1-1

8) Accounting f#provides f#information f#to
A) managers.
B) government.
C) investors.
D) All f#of f#these f#answers f#are f#correct
f#Answer: f # D

Diff: f#2 Type: f#MC
f#Objective: 1-1

9) Which f#of f#the f#following f#is f#a f#characteristic f#of f#a f#sole f#proprietorship?
A) Business f#owned f#by f#more f#than f#one f#person
B) Easy f#to f# form
C) Each f#shareholder f#acts f#as f#an f#owner f#of f#the f#company
D) Can f#continue f#indefinitely
f#Answer: f # B

Diff: f#1 Type: f#MC
f#Objective: 1-1




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Copyright f#© f#2021 f#Pearson f#Education,
f#Inc.

,10) A f#partnership f#is f#a f#business f#which f#is
A) easy f#to f#form.
B) ends f#with f#the f#death f#of f#a f#partner.
C) owned f#by f#more f#than f#one f#person.
D) All f#of f#these f#answers f#are f#correct.
f#Answer: f # D

Diff: f#1 Type: f#MC
f#Objective: 1-1

11) Which f#is f#an f#advantage f#of f#a f#sole f#proprietorship f#form f#of f#business?
A) There f#is f#limited f#personal f#risk.
B) The f#business f#can f#continue f#indefinitely.
C) The f#owner f#makes f#all f#the f#decisions.
D) All f#of f#these f#answers f#are f#correct.
f#Answer: f # C

Diff: f#1 Type: f#MC
f#Objective: 1-1

12) Which f#of f#the f#following f#is f#NOT f#a f#type f#of f#business f#organization?
A) Corporation
B) Partnership
C) Sole f#proprietorship
D) Operation
f#Answer:

f # D

Diff: f#2 Type: f#MC
f#Objective: 1-1

13) A f#corporation
A) can f#continue f#indefinitely.
B) is f#owned f#by f#shareholders.
C) has f#limited f#risk f#to f#shareholders.
D) all f#of f#the f#above.
f#Answer: f # D

Diff: f#2 Type: f#MC
f#Objective: 1-1

14) The f#Sarbanes-Oxley f#Act f# in f#the f#United f#States f#and f#National f#Policies f#in f#Canada f#were f#passed f#to
A) prevent f#fraud f#at f#public f#companies.
B) replace f#all f#of f#the f#old f#accounting f#procedures f#with f#new f#ones.
C) improve f#the f#accuracy f#of f#the f#company's f#financial f#reporting.
D) Both f#A f#and f#C f#are f#correct.
f#Answer: f # D

Diff: f#2 Type: f#MC
f#Objective: 1-1



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Copyright f#© f#2021 f#Pearson f#Education,
f#Inc.

, 15) A f#legal f#firm f#would f#be f#considered f#a
A) merchandise f#company.
B) manufacturer.
C) service f#company.
D) None f#of f#the f#above f#are f#correct.
f#Answer: f # C

Diff: f#1 Type: f#MC
f#Objective: 1-1

16) Not-for-profit f#organizations
A) aim f#to f#improve f#society f#in f#some f#way.
B) seek f#to f#maximize f#profits.
C) usually f#obtain f#funding f#from f#donations f#and f#government f#grants.
D) Both f#A f#and f#C f#are f#correct.
f#Answer: f # D

Diff: f#1 Type: f#MC
f#Objective: 1-1

17) Generally f#Accepted f#Accounting f#Principles f#are f#the f#underlying f#concepts f#that f#make f#up
f#acceptable f#accounting f#practices.

Answer: f # TRUE
f#Diff: f#1 Type: f#TF
f#Objective: 1-1

18) Not-for-profit f#businesses f#are f#not f#permitted f#to f#earn f#any f#revenue.
f#Answer: f # FALSE

Diff: f#2 Type: f#TF
f#Objective: 1-1

19) The f#primary f#objective f#of f#a f#not-for-profit f#business f#is f#to f#maximize f#revenue.
f#Answer: f # FALSE

Diff: f#1 Type: f#TF
f#Objective: 1-1

20) The f#new f#accounting f#designation f#for f#Canada f#is f#CGA.
f#Answer: f # FALSE

Diff: f#1 Type: f#TF
f#Objective: 1-1

21) A f#disadvantage f#of f#a f#corporation f#is f#that f#shareholders f#are f#held f#personally f#liable f#for f#the
f#corporation's f#debts.

Answer: f # FALSE
f#Diff: f#2 Type: f#TF
f#Objective: 1-1




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Copyright f#© f#2021 f#Pearson f#Education,
f#Inc.