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TEST BANK FOR
COLLEGE ACCOUNTING A PRACTICAL APPROACH 14TH CANADIAN EDITION
JEFFREY SLATER, DEBRA GOO
College Accounting, 14Ce (Slater/Good)
Chapter 1 Accounting Concepts and Procedures: An Introduction
1.1 Defining and listing the functions of accounting.
1) Which of the following professional accounting designations has been replaced by "CPA"?
- CA
B) CMA
C) CGA
- All of the above
Answer: D
Diff: 1 Type: MC
Objective: 1-1
2) The type of business organization that can continue indefinitely is known as a
- sole proprietorship.
- partnership.
- corporation.
- None of the above.
Answer: C
Diff: 1 Type: MC
Objective: 1-1
3) This type of business organization is subject to income tax.
- sole proprietorship.
- partnership.
- corporation.
- All of the above.
Answer: C
Diff: 1 Type: MC
Objective: 1-1
4) Putting the information into the accounting system would be called
- analyzing.
- recording.
- classifying.
- summarizing.
Answer: B
Diff: 2 Type: MC
Objective: 1-1 2 / 4
5) The purpose of the accounting process is to provide financial information about
- sole proprietorships.
- small businesses.
- large corporations.
- All of these answers are correct.
Answer: D
Diff: 2 Type: MC
Objective: 1-1
6) The advantages of a corporation do NOT include
- limited personal risk.
- can continue indefinitely.
- business decisions made by career administrators.
- easy to set up.
Answer: D
Diff: 1 Type: MC
Objective: 1-1
7) Accounting reports are least helpful in answering which of the following questions?
- How much cash was available at the end of the last year?
- How well were the employees treated by management?
- Did the company make a profit for the previous year?
- Can the company pay its debts on time?
Answer: B
Diff: 3 Type: MC
Objective: 1-1
8) Accounting provides information to
- managers.
- government.
- investors.
- All of these answers are correct
Answer: D
Diff: 2 Type: MC
Objective: 1-1
9) Which of the following is a characteristic of a sole proprietorship?
- Business owned by more than one person
- Easy to form
- Each shareholder acts as an owner of the company
- Can continue indefinitely
Answer: B
Diff: 1 Type: MC
Objective: 1-1 3 / 4
10) A partnership is a business which is
- easy to form.
- ends with the death of a partner.
- owned by more than one person.
- All of these answers are correct.
Answer: D
Diff: 1 Type: MC
Objective: 1-1
11) Which is an advantage of a sole proprietorship form of business?
- There is limited personal risk.
- The business can continue indefinitely.
- The owner makes all the decisions.
- All of these answers are correct.
Answer: C
Diff: 1 Type: MC
Objective: 1-1
12) Which of the following is NOT a type of business organization?
- Corporation
- Partnership
- Sole proprietorship
- Operation
Answer: D
Diff: 2 Type: MC
Objective: 1-1
13) A corporation
- can continue indefinitely.
- is owned by shareholders.
- has limited risk to shareholders.
- all of the above.
Answer: D
Diff: 2 Type: MC
Objective: 1-1
14) The Sarbanes-Oxley Act in the United States and National Policies in Canada were passed to
- prevent fraud at public companies.
- replace all of the old accounting procedures with new ones.
- improve the accuracy of the company's financial reporting.
- Both A and C are correct.
Answer: D
Diff: 2 Type: MC
Objective: 1-1
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