Understanding Financial Accounting 3rd Canadian Edition by Christopher D. Burnley test bank
Answer: True
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Identify and explain the content and reporting objectives of the four basic financial statements and the notes to the financial statements.
CPA: Financial Reporting
AACSB: Analytic
24. Working capital measures the company’s ability to meet its short-term obligations using its non-current assets.
Answer: False
Bloomcode: Knowledge
Difficulty: Medium
Learning Objective: Identify and explain the content and reporting objectives of the four basic financial statements and the notes to the financial statements.
CPA: Financial Reporting
AACSB: Analytic
25. Deferred revenue represents customer deposits.
Answer: True
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Identify and explain the content and reporting objectives of the four basic financial statements and the notes to the financial statements.
CPA: Financial Reporting
AACSB: Analytic
26. Shareholders’ equity is often referred to as the net assets of the company.
Answer: True
Bloomcode: Knowledge
Difficulty: Medium
Learning Objective: Identify and explain the content and reporting objectives of the four basic financial statements and the notes to the financial statements.
CPA: Financial Reporting
AACSB: Analytic
27. Share capital records the amount that investors have received in the form of dividends.
Answer: False
Bloomcode: Knowledge
Difficulty: Medium
Learning Objective: Identify and explain the content and reporting objectives of the four basic financial statements and the notes to the financial statements.
CPA: Financial Reporting
AACSB: Analytic
28. Companies that are growing normally have negative cash flows from investing activities.
Answer: True
Bloomcode: Comprehension
Difficulty: Easy
Learning Objective: Identify and explain the content and reporting objectives of the four basic financial statements and the notes to the financial statements.
CPA: Financial Reporting
AACSB: Analytic
29. IFRS is the financial reporting standard that must be followed by Canadian public companies.
Answer: True
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Identify and explain the content and reporting objectives of the four basic financial statements and the notes to the financial statements.
CPA: Financial Reporting
AACSB: Analytic
30. The MD&A section of the annual report provides a discussion of the risks facing the company and information about future plans.
Answer: True
Bloomcode: Knowledge
Difficulty: Medium
Learning Objective: Identify and explain the content and reporting objectives of the four basic financial statements and the notes to the financial statements.
CPA: Financial Reporting
AACSB: Analytic
MULTIPLE CHOICE QUESTIONS
31. The annual report includes everything, EXCEPT for
a) managerial statements.
b) management discussion and analysis.
c) financial statements.
d) notes to the financial statements.
Answer: a
Bloomcode: Knowledge
Difficulty: Easy
Learning Objective: Define financial accounting and understand its relationship to economic decision-making.
CPA: Financial Reporting
AACSB: Analytic
32. Financial accounting is also referred to as
a) internal reporting.
b) management reporting.
c) external financial reporting.
d) stakeholder reporting.
Answer: c
Bloomcode: Knowledge
Difficulty: Medium
Learning Objective: Define financial accounting and understand its relationship to economic decision-making.
CPA: Financial Reporting
AACSB: Analytic
33. In which section of the annual report does management comment on the company and its operating results?
a) report to the shareholders
b) management's discussion and analysis
c) corporate profile
d) selected financial data
Answer: b
Bloomcode: Knowledge
Difficulty: Medium
Learning Objective: Define financial accounting and understand its relationship to economic decision-making.
CPA: Financial Reporting
AACSB: Analytic
34. Which of the following is an internal user of the annual report information?
a) creditors