1. The objective of financial reporting is to

Select one:

a. create meaningful employment for accountants

b. create a conceptual framework

c. provide the taxation authorities with their only source of data they can use to assess income taxes

d. provide financial information for decision making to investors, creditors and other users

e. comply with IFRS, if a private company

2. A Credit is the normal balance for which account listed below?

Select one:

a. Service Revenue

b. Prepaid Rent

c. Accumulated Revenue

d. Cash

e. Salaries Expense

3. Which of these statements about users of a companys financial statements is not correct?

Select one:

a. Stockholders in a public company are internal users.

b. The first two responses are both incorrect.

4. A trial balance:

Select one:

a. is a list of a companys accounts with their balances at a specific point in time.

b. will not balance if a correct journal entry is posted twice.

c. must be prepared prior to the general ledger

d. All of the other four responses are correct

e. proves that all journal entries were made correctly

c. Human resource staff planning for future hiring are internal users.

d. Tax officials such as the Canada Revenue Agency are external users.

e. Bankers and other creditors are external users

5. An increase in the Dividends Declared account will result in . . .

Select one:

a. an increase in Cash

b. an increase in prepaid expenses

c. there is insufficient information to answer this question

d. an increase in the Retained Earnings account.

e. a decrease in the Retained Earnings account