11) To ensure that the guidelines for right behaviour are followed, a corporation should follow:
A) ethical principles.
B) accounting law.
C) the corporate culture.
D) the leaders in their category of business.
E) the Enron rules.
12) Accounting principles include:
A) cost, revenue recognition, and going concern.
B) cost, revenue recognition, and timeliness.
C) cost, revenue recognition, and full disclosure.
D) cost, economic entity, and full disclosure.
E) cost, economic entity, and revenue recognition.
13) The main goal of understanding the process of accounting is to help ensure that the business is:
A) profitable.
B) ethical.
C) competitive.
D) admired by the customer.
E) environmentally friendly.
14) A Canadian publicly traded enterprise use which reporting standard?
A) Accounting Standards for Private Enterprises.
B) International Financial Reporting Standards
C) Accounting Standards for Not-for-Profit Organizations
D) Accounting Standards for Pension Plans
E) Accounting Standards for Canadian Accounting
15) Canadian accounting standards for private enterprises (ASPE) continues to use:
A) present value.
B) current cost.
C) realizable value.
D) historical cost approach.
E) net present value.
16) Mathew owns an art supplies store. In the initial accounting records, he included his personal computer and all of his personal art supplies. Mathew is violating what principle of accounting?
A) Going concern
B) Cost
C) Reliability
D) Economic entity
E) Materiality
17) During the life of a business entity, financial statements are prepared at arbitrary points in time. This is according to what assumption?
18) Marcus is negotiating with friends who may buy some camping equipment in the near future. He records this information as possible sales. What principle is Marcus violating?
19) What is the purpose of financial accounting information?
20) When a person combines personal and business accounts, what concept or principle of accounting is being violated?