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College Accounting

John Price, University of North Texas
M. David Haddock, Chattanooga State Technical Comm. College
Horace Brock, University of North Texas
Connie Hahn, Southern Alberta Institute of Technology
Traven Reed, Canadore College

The Language of Business

Multiple Choice Questions


1	What are the principles that govern the accounting standards that must be followed in Canada?
		A)	Securities and Exchange Commission
		B)	Generally Accepted Accounting Principles
		C)	Financial Accounting Standards Board
		D)	Federal Government


2	What is the type of business called when two or more people start a business?
		A)	Sole Proprietorship
		B)	Corporation
		C)	Partnership
		D)	Entry


3	Who reviews the financial statement of an organization and states an objective opinion on the financial statements?
		A)	Managerial Accountant
		B)	General Accountant
		C)	Bookkeeper
		D)	Auditor


4	When an individual or company invests in a corporation, what are they buying?
		A)	Stock
		B)	Bonds
		C)	Loan
		D)	Asset


5	What business has limited liability exposure?
		A)	Sole Proprietorship
		B)	Corporation
		C)	Partnership
		D)	Company


6	Who is not an external user of financial information?
		A)	Bank
		B)	Insurance Company
		C)	Manager
		D)	Shareholder


7	Which one is not a function performed by an accountant?
		A)	Tax preparation
		B)	Auditing
		C)	Managerial accounting
		D)	Banking


8	What system is designed to accumulate data about a firm's financial affairs in a meaningful way?
		A)	Accounting System
		B)	Production System
		C)	Computer System
		D)	Management System


9	A partnership
		A)	Enables owners to limit their liability exposure
		B)	Required one or more owners
		C)	Is taxed on the partners' individual income tax rate
		D)	Is easier to obtain governmental funding


10	The area of accounting that deals with the controlling of cost associated with production is called?
		A)	Cost accounting
		B)	Managerial accounting
		C)	Auditing
		D)	Governmental accounting

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