Accounting Review Continued

Preparing your income tax return is made easier with knowledge of accounting.

• True

• False

Computers will soon make accounting skills unnecessary.

• False

• True

In Canada, all corporations must use IFRS.

• True

• False

Bookkeepers are regulated, just like accountants.

• False

• True

Only corporations have to keep their business accounting separate from personal affairs.

• False

• True

A good accounting system should provide adequate information for the use of:

• the management of the firm

• the general public

• the government

• lenders

• all of the above

Auditing may be described as:

• serving the general public

• the accounting procedures of a large company

• testing a firm’s records and procedures for accuracy

• keeping accounting records for the government

The first item under “Current Assets” on a balance sheet will always be:

• Accounts Receivable

• Inventory

• Cash / Bank

• Accounts Payable

Which of the following is not true?

• A + L = E

• A – L = E

• L + E = A

• A – E = L

Which of the following is true?

• Every country in the world uses IFRS.

• In many countries using IFRS, the liquidity order of assets is inverted.

• Private corporations have to release their financial statements to the public.

• Ethics are not important in the world of accounting.