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Student Centre Fundamental Accounting Principles
10th Canadian Edition
Larson / Jensen / Carroll

Student Centre

Chapter 1: Accounting: The Key to Success

| Learning Objectives | True/False Quiz | Multiple Choice Quiz | Fill-In-The-Blanks | Internet Exercises | Beyond the Numbers | Glossary Match | Glossary Match 2 | Glossary Match 3 | Key Terms and Glossary | PowerPoint Chapter Review |

    Multiple Choice Quiz

    1-1. The phase of accounting that deals with collecting and controlling the costs of producing a given product or service is called

        a. internal auditing
        b. bookkeeping
        c. cost accounting
        d. general accounting

    1-2. Which of the following is a primary goal to provide managers with a clear understanding of the activities to be undertaken and completed to accomplish the company's objectives?

        a. financial accounting
        b. budgeting
        c. auditing
        d. cost accounting

    1-3. If revenues for the accounting period total $5,000, and the expenses total $1,000, then the net income (loss) must total

        a. $6,000
        b. $4,000
        c. ($6,000)
        d. ($4,000)

    1-4. If revenues for the accounting period total $6,000, and the expenses totals $10,000, then the net income (loss) must total

        a. $16,000
        b. $4,000
        c. ($4,000)
        d. ($16,000)

    1-5. Allowing workers time to work for nonprofit organizations, making donations to schools, hospitals, and community projects, sponsoring community programs such as the special Olympics is a part of

        a. ethics
        b. regulations
        c. research and development
        d. social programs

    1-6. The recording of financial transactions and events manually or electronically is called

        a. bookkeeping
        b. information technology
        c. reporting
        d. auditing

    1-7. Which of the following statements is false regarding a sole proprietorship?

        a. A proprietorship has only one owner.
        b. A proprietorship is legally a separate entity.
        c. The owner is subject to unlimited liability.
        d. Income of the proprietorship is taxes on the owner's personal return

    1-8. Nike sold a pair of shoes to a retailer for $100. The retailer sold the shoes to you for $125. It cost Nike $80 to make the shoe. It cost the retailer $105 total to buy and sell the shoe. Which answer below is not correct?

        a. Nike will make $20 on the transaction
        b. The retailer will make $20 on the transaction
        c. They both will have the same revenue on the sale
        d. They both will have the same net profit on the sale

    1-9. External user of financial information include all of the following except:

        a. Shareholders
        b. Customers
        c. Managers
        d. Suppliers

    1-10. A partnership

        a. is a legally separate business entity.
        b. enables owners to limit their liability.
        c. requires one or more owners.
        d. is taxed on the partners' individual income tax return.


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