1. Which of the following solvency positions would a company consider most favourable? Select one: a. a low debt to total assets ratio and a low times interest earned ratio b. a low debt to total assets ratio and a high times interest earned ratio c. a high debt to total assets ratio and a low times interest earned ratio d. a high debt to total assets ratio and a high times interest earned ratio e. The answer depends on many factors, chief of which is whether the company is using IFRS rules or ASPE rules

2. Which of the following would not be included in the determination of cash equivalents? Select one: a. money market funds b. bank overdrafts c. petty cash in the lockbox d. 90 day Treasury bills e. posted dates cheques stored in the safe until the date is reached

3. Joe is warehouse custodian and also maintains the accounting records of the inventory held at the warehouse. Which control activity is violated? Select one: a. FIFO b. documentation c. segregation of duties d. assignment of responsibility e. review and reconciliation

4. The sale of common shares should be recorded as a Select one: a. debit to Common Shares and a credit to Other Comprehensive Income b. debit to Cash and a credit to Retained Earnings. c. debit to Common Shares and a credit to Cash. d. debit to Cash and a credit to Common Shares. e. debit to Retained Earnings and a credit to Cash.

5. To find the balance due from an individual customer, the accountant would refer to the Select one: a. Accounting equation b. General Journal. c. Accounts Receivable account in the general ledger. d. Accounts Receivable subsidiary ledger. e. Sales account in the general ledger.