Financial Accounting for Managers
Final Exam
Course Introduction
Financial Accounting for Managers is designed to introduce students to the fundamental concepts, principles, and practices of financial accounting, specifically tailored for effective managerial decision-making. The course emphasizes understanding the accounting cycle, preparing and interpreting key financial statements, and applying accounting information to analyze an organizations financial position. Through real-world case studies and practical exercises, students learn how to use financial data for budgeting, performance evaluation, and strategic planning, enabling them to make informed financial decisions as future managers.
Recommended Textbook Fundamentals of Financial Accounting 5th Canadian Edition by Fred Phillips
Available Study Resources on Quizplus
13 Chapters
1573 Verified Questions
1573 Flashcards
Source URL: https://quizplus.com/study-set/3462
Page 2
Chapter 1: Business Decisions and Financial Accounting
Available Study Resources on Quizplus for this Chatper
131 Verified Questions
131 Flashcards
Source URL: https://quizplus.com/quiz/68812
Sample Questions
Q1) Which of the following is not an alternative term used for the income statement?
A)Statement of Income.
B)Statement of Financial Position.
C)Statement of Earnings.
D)Profit and Loss Statement. Answer: B
Q2) Expenses are shown on the income statement only in the time period in which they are paid.
A)True
B)False Answer: False
Q3) Which of the following is not an expense?
A)Wages of employees.
B)Interest incurred on a loan the company had taken out.
C)Dividends.
D)Corporate income tax. Answer: C
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: The Balance Sheet
Available Study Resources on Quizplus for this Chatper
124 Verified Questions
124 Flashcards
Source URL: https://quizplus.com/quiz/68811
Sample Questions
Q1) To maintain consistency,the accounting profession requires companies to use the same chart of accounts,whether operating under IFRS or ASPE.
A)True
B)False
Answer: False
Q2) The Supply Company buys $30,000 of equipment and funds the purchase through liquidating common shares that it owns.What is the impact of this transaction on the basic accounting equation?
A)There is no effect.
B)Only the left-hand side is impacted.
C)Only the right-hand side is impacted.
D)Both the right-hand side and left-hand side are impacted.
Answer: B
Q3) A current asset is one that:
A)the company has owned for over one year.
B)the company will use up or convert into cash in five years or more.
C)the company will use up or convert into cash in one year or less.
D)the company will use up or convert into cash in more than one year.
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: The Income Statement
Available Study Resources on Quizplus for this Chatper
135 Verified Questions
135 Flashcards
Source URL: https://quizplus.com/quiz/68810
Sample Questions
Q1) Which account is least likely to be credited when an expense is recorded?
A)Cash.
B)Accounts Payable.
C)Prepaid Expenses.
D)Accounts Receivable.
Answer: D
Q2) Which of the following statements is true?
A)When operating income is positive,revenue is greater than expenses.
B)When net income is negative,retained earnings decrease,all other things being equal.
C)When net income is positive,Shareholders' equity increases,all other things being equal.
D)All of the answers are acceptable.
Answer: D
Q3) A firm accumulated expenses of $8,700,$600 and $400 throughout the period and realized $15,500 in revenues over the same time frame.The owner is curious about how much profit is earned from each dollar of revenue.You're asked to calculate this for him.
Answer: Net profit margin = (15,500 - (8,700 + 600 + 400))/15,500
Therefore,net profit margin = 0.374 = 37.4%
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Adjustments, financial Statements, and Financial Results
Available Study Resources on Quizplus for this Chatper
130 Verified Questions
130 Flashcards
Source URL: https://quizplus.com/quiz/68809
Sample Questions
Q1) At the end of the accounting period:
A)all accounts are closed.
B)temporary accounts are closed; permanent accounts are not.
C)permanent accounts are closed; temporary accounts are not.
D)only accounts with a credit balance are closed.
Q2) Deferral adjustments are needed when a company has earned revenue or incurred an expense in the current period but has not yet recorded it because the related cash will not be received or paid until a later period.
A)True
B)False
Q3) Financial statements are prepared only after the trial balance has shown that debits equal credits.
A)True
B)False
Q4) Trial balances are prepared after the financial statements to verify that the numbers are accurate.
A)True
B)False
Page 6
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: Fraud, internal Control, and Cash
Available Study Resources on Quizplus for this Chatper
59 Verified Questions
59 Flashcards
Source URL: https://quizplus.com/quiz/68808
Sample Questions
Q1) When a company makes a sale and accepts a credit card payment from a customer,the company:
A)debits Cash.
B)credits Accounts Receivable.
C)credits Cash.
D)debits Accounts Receivable.
Q2) Cash equivalents are short-term highly liquid investments purchased within 6 months of maturity.
A)True
B)False
Q3) If a company's records show a different cash balance from that shown on the company's bank statement,either the company or the bank has made an error.
A)True
B)False
Q4) Deposits in transit:
A)have been recorded by the company but not yet by the bank.
B)have been recorded by the bank but not yet by the company.
C)have not been recorded by the bank or the company.
D)are customers' cheques that have not yet been received by the company.
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Merchandising Operations and the Multi-Step
Income Statement
Available Study Resources on Quizplus for this Chatper
111 Verified Questions
111 Flashcards
Source URL: https://quizplus.com/quiz/68807
Sample Questions
Q1) Which of the following is not an advantage of perpetual inventory system?
A)It helps reduce expenses and costs.
B)It helps increase productivity of the economy.
C)It is simple and less costly to maintain.
D)It provides up to date information on inventory and cost of goods sold instantly.
Q2) OakHart,Inc.,the maker of widgets and whatnots,made merchandise costing $145,500 and sold it on credit to MapleHeart for $405,000 with terms 2/10,n/30.Some of the merchandise differed from what MapleHeart had ordered,so OakHart agreed to give an allowance of $10,000.MapleHeart satisfied the remaining balance by paying within the discount period.What is OakHart's gross profit percentage?
Q3) The Sales Returns and Allowances account balance should be reported as a reduction of Sales account balance because it is a contra revenue account.
A)True
B)False
Q4) A company sells $10,000 of goods.The gross profit percentage is 32%.Net income would be $3,200.
A)True
B)False
Page 8
To view all questions and flashcards with answers, click on the resource link above.
Chapter 7: Inventory and Cost of Goods Sold
Available Study Resources on Quizplus for this Chatper
127 Verified Questions
127 Flashcards
Source URL: https://quizplus.com/quiz/68806
Sample Questions
Q1) Merchandisers have inventories of finished goods only; manufacturers have inventories of raw materials only.
A)True B)False
Q2) The inventory costing method chosen to by a company method must correspond to the physical flow of goods.
A)True B)False
Q3) In making comparisons of financial statements,it is desirable to compare data calculated using the same inventory costing methods.
A)True
B)False
Q4) The lower the inventory turnover ratio,the more efficiently the company manages its inventory,all other things equal.
A)True B)False
Q5) Goods available for sale minus the ending inventory equals cost of goods sold. A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Receivables, bad Debt Expense, and Interest
Revenue
Available Study Resources on Quizplus for this Chatper
127 Verified Questions
127 Flashcards
Source URL: https://quizplus.com/quiz/68805
Sample Questions
Q1) If a company attempts to artificially inflate current sales and net income by shipping goods that have not been ordered,we would expect that the receivables turnover ratio will:
A)rise and the days-to-collect will rise,all other things equal.
B)rise and the days-to-collect will fall,all other things equal.
C)fall and the days-to-collect will fall,all other things equal.
D)fall and the days-to-collect will rise,all other things equal.
Q2) An Allowance for Doubtful Accounts is a contra-account paired with: A)expenses.
B)cash.
C)net income.
D)accounts receivable.
Q3) The collection of a note receivable is accounted for like the collection of an account receivable.
A)True
B)False
Q4) Allowance for Doubtful Accounts is a temporary account.
A)True
B)False
Page 10
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Long-Lived Tangible and Intangible Assets
Available Study Resources on Quizplus for this Chatper
124 Verified Questions
124 Flashcards
Source URL: https://quizplus.com/quiz/68804
Sample Questions
Q1) A company bought a piece of equipment for $40,000,expecting to use it for eight years.The company then plans to sell it for $3,500.The company has already recorded depreciation of $35,995.Using the double-declining-balance method,the company's annual depreciation expense for the upcoming year would be:
A)$1,001.
B)$9,125.
C)$505.
D)$10,000.
Q2) A declining fixed asset turnover ratio can actually be caused by acquiring additional assets in the current period in preparation for greater future sales.
A)True
B)False
Q3) If a fully depreciated asset with no residual value is retired without receiving any cash on retirement:
A)a gain on disposal will be recorded.
B)depreciation must be recorded as though the asset were still on the books.
C)a loss on disposal will be recorded.
D)no gain or loss on disposal will be recorded.
To view all questions and flashcards with answers, click on the resource link above.
11
Chapter 10: Liabilities
Available Study Resources on Quizplus for this Chatper
122 Verified Questions
122 Flashcards
Source URL: https://quizplus.com/quiz/68803
Sample Questions
Q1) Bond retirement is an investing decision.
A)True
B)False
Q2) The market interest rate on a bond is also known as the effective interest rate or yield.
A)True
B)False
Q3) Loan covenants are the collateral provided by a borrower to a lender as security on a loan.
A)True
B)False
Q4) Operating cycles are generally longer than a year.
A)True
B)False
Q5) Some bonds mature in instalments.Bonds containing such feature are called:
A)Secured Bonds
B)Callable Bonds
C)Serial Bonds
D)Convertible Bonds
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Shareholders Equity
Available Study Resources on Quizplus for this Chatper
122 Verified Questions
122 Flashcards
Source URL: https://quizplus.com/quiz/68802
Sample Questions
Q1) Under IFRS changes in capital accounts are disclosed in the notes to the financial statements.
A)True
B)False
Q2) At the beginning of each accounting period,the capital account starts with a zero balance.
A)True B)False
Q3) Which of the following statements accurately explains why the board of directors of a company that is facing financial difficulties might issue a 2-for-1 stock split rather than declare a 100% stock dividend?
A)A stock split would not reduce the market price per share,whereas a stock dividend would.
B)A stock split would reduce the market price per share,whereas a stock dividend would not.
C)A stock split would increase total shareholders' equity,whereas a stock dividend would not.
D)A stock split would not reduce retained earnings,whereas a stock dividend would.
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Statement of Cash Flows
Available Study Resources on Quizplus for this Chatper
112 Verified Questions
112 Flashcards
Source URL: https://quizplus.com/quiz/68801
Sample Questions
Q1) Fill in the table below using a "+" or "-" to indicate whether the respective balance sheet changes are added to or subtracted from the statement of cash flows,respectively.
\[\begin{array} { | l | l | l | }
\hline & \text { Current Assetr } & \text { Current Liabilities } \\
\hline \text { Increase } & & \\
\hline \text { Decrease } & & \\
\hline \end{array}\]
Q2) When the indirect method is used,details from which of the following balance sheet accounts are used in calculating both operating and financing cash flows?
A)Bonds payable.
B)Taxes payable.
C)Retained earnings.
D)Contributed capital.
Q3) Purchase of equipment is a financing activity.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
14
Chapter 13: Measuring and Evaluating Financial Performance
Available Study Resources on Quizplus for this Chatper
115 Verified Questions
115 Flashcards
Source URL: https://quizplus.com/quiz/68800
Sample Questions
Q1) The fixed asset turnover ratio indicates the amount of sales revenue generated for each dollar invested in current assets during the period:
A)True
B)False
Q2) A company that has a current ratio less than one cannot cover:
A)current liabilities with its current cash flow.
B)current expenses with its current sales revenue.
C)expenses with its current revenues.
D)current liabilities with its current assets.
Q3) A company's comparative balance sheets show total assets for 2018 and 2017 as $990,000 and $900,000,respectively.What is the percentage change to be reported in the horizontal analysis?
A)Increase of 10%
B)Decrease of 10%
C)Increase of 9%
D)Decrease of 9%
Q4) Horizontal analysis is identical to trend analysis.
A)True
B)False
15
To view all questions and flashcards with answers, click on the resource link above.