BAF3M1-Accounting 11 7e
A. Indicate whether each of the items listed below is an asset (A) or a liability (L) of his business. If the item is neither, put the letter (N) in the space provided. Cash on hand
A
G. The owner's withdrawal of cash for personal use reduces Cash and_____ .
Capital
C. In 2011, public companies in Canada stopped using Canadian GAAP and replaced them with the _____
International Financial Reporting Standards
J. When presenting assets under IFRS, current assets are listed a. after long-term assets. b. before long-term Assets. c. underneath the equity section. d. on the right side of the balance sheet. e. None of the above.
a
E. Which of the following items would not be classified as an asset of a business? a. cash on hand b. the amount of a creditor's claim c. store equipment d. money a customer owes
b
I. Under IFRS, the balance sheet is called a. an income statement. b. a statement of financial position. c. a statement of financial equity. d. a classified balance sheet. e. None of the above.
b
I. In spreadsheet software, A2 is an example of a(n)_____ and =B4+C7 is an example of a(n)_____ .
cell address, formula
A. If, for any reason, a business is closed down, the claims of the_____ are settled first, before the claim of the _____
creditors, owners
F. If dollar signs are used on a balance sheet, they should appear before a. every amount on the balance sheet. b. the first amount in a column. c. the first amount beneath a single-ruled line. d. Both b and c above.
d
2. State the effect the following transactions have on the Owner's Equity. Write increase, decrease, or no change in the space provided. E. The owner withdrew $400 from the business for her personal use.
decrease
2. State the effect the following transactions have on the Owner's Equity. Write increase, decrease, or no change in the space provided. F. The inventory of supplies decreased $350 during the month.
decrease
2. State the effect the following transactions have on the Owner's Equity. Write increase, decrease, or no change in the space provided. A. The owner invested $10 000 cash in her business.
increase
2. State the effect the following transactions have on the Owner's Equity. Write increase, decrease, or no change in the space provided. D. The business received $2000 for providing services.
increase
B. Generally, if a business is better off as a result of a transaction, then Capital has _____
increased
E. Listing assets in order of their ______means ranking them according to how easily they can be converted into_____ .
liquidity, cash
H. A less common term for capital, or equity, is_____ .
net worth
2. State the effect the following transactions have on the Owner's Equity. Write increase, decrease, or no change in the space provided. B. The business bought equipment for $2000 cash.
no change
2. State the effect the following transactions have on the Owner's Equity. Write increase, decrease, or no change in the space provided. C. The business paid one-half of a bill owed to a creditor.
no change
F. The accounting standard that requires transactions to be recorded on the basis of factual evidence is called the_____ .
objectivity principle
E. The accounting department learns of transactions from business papers called _____ .
source documents
A. Indicate whether each of the items listed below is an asset (A) or a liability (L) of his business. If the item is neither, put the letter (N) in the space provided. Delivery Truck
A
A. Indicate whether each of the items listed below is an asset (A) or a liability (L) of his business. If the item is neither, put the letter (N) in the space provided. Money a customer owes
A
A. Indicate whether each of the items listed below is an asset (A) or a liability (L) of his business. If the item is neither, put the letter (N) in the space provided. Store equipment
A
3. Indicate the effect each of the following transactions has on the total assets, the total liabilities, or the owner's equity, by writing I for an increase, D for a decrease, or NC for no change. F. The owner of the business performs a service for a customer who pays $500 cash.
I, NC, I
3. Indicate the effect each of the following transactions has on the total assets, the total liabilities, or the owner's equity, by writing I for an increase, D for a decrease, or NC for no change. H. A $50 refund on car insurance is received.
I, NC, I
A. Indicate whether each of the items listed below is an asset (A) or a liability (L) of his business. If the item is neither, put the letter (N) in the space provided. Money owed to Home Hardware
L
A. Indicate whether each of the items listed below is an asset (A) or a liability (L) of his business. If the item is neither, put the letter (N) in the space provided. Mortage on his service store
L
2. A company's offices are located on property that the company owns. The market value of the property has increased by $15 000. A. Should the balance sheet be updated to include this $15 000 increase in assets? B. Which accounting standard(s) affect this situation?
Yes, The Revaluation Model
C. After analyzing each transaction, the fundamental accounting equation must still _____ .
balance
D. On December 31, 20-1, a business had $150 000 in assets and $70 000 in liabilities. During the next year, assets increased by $70 000 and liabilities decreased by $20 000. What would be the owner's equity at December 31, 20-2? a. $150 000 b. $130 000 c. $170 000 d. $60 000
c
H. Property is best defined as a. a current asset. b. a current liability. c. a long-term asset. d. a long-term liability. e. equity.
c
D. When transactions occur, a minimum of_____ balance sheet item(s) must change.
two
B. The governing body for accounting standards in Canada is called the _____ .
Accounting Standards Board
3. Indicate the effect each of the following transactions has on the total assets, the total liabilities, or the owner's equity, by writing I for an increase, D for a decrease, or NC for no change. A. $400 of supplies are purchased from Paper Servicentre, but not paid for.
I, I, NC
G. Customers' accounts are listed in the_____ section of the balance sheet.
assets
F. The _____ concept assumes that a business will continue to operate, unless it is known that such is not the case.
the continuing concern
A. Indicate whether each of the items listed below is an asset (A) or a liability (L) of his business. If the item is neither, put the letter (N) in the space provided. The land and building where his store is located
A
3. Indicate the effect each of the following transactions has on the total assets, the total liabilities, or the owner's equity, by writing I for an increase, D for a decrease, or NC for no change. D. $750 paid to Vacation Inns in payment of the amount owed to them.
D, D, NC
3. Indicate the effect each of the following transactions has on the total assets, the total liabilities, or the owner's equity, by writing I for an increase, D for a decrease, or NC for no change. E. The owner of the business withdraws $500 cash from the business funds for his personal use.
D, NC, D
3. Indicate the effect each of the following transactions has on the total assets, the total liabilities, or the owner's equity, by writing I for an increase, D for a decrease, or NC for no change. G. $300 is paid to an employee for wages.
D, NC, D
3. Indicate the effect each of the following transactions has on the total assets, the total liabilities, or the owner's equity, by writing I for an increase, D for a decrease, or NC for no change. B. A new truck is purchased from Modern Motors at a cost of $7500 with a $2500 down payment.
I, I, NC
A. Indicate whether each of the items listed below is an asset (A) or a liability (L) of his business. If the item is neither, put the letter (N) in the space provided. A cofee dispenser placed in the store by a company that rents out equipment
N
A. Indicate whether each of the items listed below is an asset (A) or a liability (L) of his business. If the item is neither, put the letter (N) in the space provided. A company automobile leased (rented) from J.Grayson Leasing Company
N
A. Indicate whether each of the items listed below is an asset (A) or a liability (L) of his business. If the item is neither, put the letter (N) in the space provided. An old display counter that has no further dollar value
N
A. Indicate whether each of the items listed below is an asset (A) or a liability (L) of his business. If the item is neither, put the letter (N) in the space provided. Household furniture
N
A. Indicate whether each of the items listed below is an asset (A) or a liability (L) of his business. If the item is neither, put the letter (N) in the space provided. Mortage on his house
N
3. Indicate the effect each of the following transactions has on the total assets, the total liabilities, or the owner's equity, by writing I for an increase, D for a decrease, or NC for no change. C. $880 cash is received from H. Vernon in part payment of the amount owed by him.
NC, NC, NC
A. Which is the best way to express the fundamental accounting equation? a. Assets + Owner's Equity = Liabilities b. Assets = Liabilities + Owner's Equity c. Assets = Liabilities - Owner's Equity d. Assets + Liabilities = Owner's Equity
b
B. Johnson Storage Solutions has the following list of assets. 1. Supplies 2. Accounts Receivable 3. Cash 4. Building Which is the correct order of assets on a classified balance sheet? a. 1, 3, 2, 4 b. 3, 2, 1, 4 c. 3, 1, 2, 4 d. 4, 1, 2, 3
b
C. If the total assets of a business are $38 400.50 and the total liabilities are $12 595.20, what is the owner's equity? a. $50 995.70 b. $25 805.30 c. $38 400.50 d. None of the above.
b
D. The __________ concept keeps the accounting for a business separate from the personal affairs of its owner.
business entity
A. A financial event changing the value of items on the balance sheet is called a _____
business transaction
G. Teresa Sedore has decided to close down her business and sell off her assets. Her Capital balance before liquidation is $30 000. Assets valued at $35 000 were sold for $16 000 in cash. The total liabilities of $5000 were paid in full. She paid the liquidator $1000. After liquidation of her assets and liabilities, what would be Sedore's Capital balance? a. $19 000 b. $11 000 c. $25 000 d. $10 000 e. None of the above.
d