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Study Resources (Accounting)

19.4   Learning Objective 4 1) Which statement is correct? A) Cash flows are grouped by operating, investing and financing activities. B) Cash inflows and outflows are netted against each other. C) Net interest received or paid can be offset in the cash flow statement. D) Income tax paid does not need to be presented separately. 2).
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149) Classify each event below as an operating activity, investing activity, or financing activity. a)______________  Owner invested cash into the entity. b)______________  Purchased equipment for cash. c)______________  Paid salaries of employees. d)______________  Collected cash on account and from cash customers. e)______________  Paid utilities for the current period. f)______________  Borrowed money from the bank. g) ______________  Pay for.
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19.5   Learning Objective 5 1) Green Leaf 's activities for the year ended December 31, 2016 included the following: •Comprehensive income totaled $538,000 including $88,000 in other comprehensive income. •Paid a cash dividend of $80,000 that was declared in 2015. •Interest expense for the year was $29,000; the opening and closing balances in the.
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33) The principle that states that assets acquired by the business should be recorded at their exchange price is the: A) objectivity principle B) cost principle of measurement C) revenue-recognition principle D) matching principle 34) The qualitative characteristic that states that accounting records and statements are based on the most reliable data available so they.
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137) Assets and liabilities for Stan's Garage at the beginning and end of the current accounting period are as follows: January 1December 31  Total assets$450,000$690,000 Total liabilities$325,000$440,000 a)  Determine net income or net loss for the current year. The owner did not invest any additional assets during the year and made no withdrawals. b) .
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12) Select transactions of SimBis Accounting Inc. (SAI) are listed below. SAI uses the indirect method to determine cash flows from operating activities. 1. SAI purchases a $200,000, 45-day treasury bill held-for-trading investment. 2. SAI amortizes $32,000 of the discount on bonds payable. 3. At year-end SAI increases its allowance for bad debts.
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53) Purchasing office equipment on account would: A) decrease owner's equity B) increase owner's equity C) have no effect on owner's equity D) decrease liabilities 54) Purchasing a parcel of land for $100,000 by paying $10,000 in cash and signing a promissory note for the remainder would: A) decrease owner's equity by $90,000 B) increase owner's equity.
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8) Which category is used on the cash flow statement? A) Non-current. B) Operating. C) Non-operating. D) Discontinued. 19.2   Learning Objective 2 1) Which statement is correct? A) A security that meets the criteria of cash equivalent must be classified as cash such. B) A security that meets the criteria of cash equivalent can be classified as cash.
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10) Hoboken's activities for the year ended December 31, 2018 included the following: •Sold a held-for-trading investment for $12,000. The book value was $10,000. •Sold an available-for-sale investment for $8,000. The book value was $9,000. How much would be presented as cash flow from operations for the "held for trading" investment? A) Proceeds from.
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8) Financial information for Fesone Inc.'s balance sheet for fiscal 2013 and 2014 follows: 20142013 Cash204,800550,000 Accounts receivable1,150,0001,300,000 Inventory410,000250,000 Investments - held for trading400,000 Investments - held to maturity150,000 Property plant and equipment3,400,0003,400,000 Accumulated depreciation(1,860,000)(1,570,000) Total3,854,8003,930,000 Accounts payable260,00080,000 Bank loan2,226,0002,850,000 Bonds payable187,800185,000 Preferred shares015,000 Common shares597,000450,000 Retained earnings584,000350,000 Total3,854,8003,930,000 Additional information: 1. Preferred shares were converted to common shares during the year at their book value. 2. The face.
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83) The financial statement that presents a summary of the assets, liabilities, and owner's equity as of a specific date is the: A) statement of assets B) balance sheet C) statement of owner's equity D) cash flow statement 84) The statement that presents a summary of the revenues and expenses of an entity is called.
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7) Rusabh Ltd.'s policy is to report all cash flows arising from interest and dividends in the operating section. Rusabh's activities for the year ended December 31, 2018 included the following: •Sold a held-for-trading investment for $16,000. The book value of this investment, which was not designated as a cash equivalent,.
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14) Select transactions of Irene Accounting Inc. (IAI) are listed below. IAI uses the indirect method to determine cash flows from operating activities. 1. IAI sells a held-to-maturity investment for $28,000. The investment's amortized cost is $20,000. 2. IAI's income tax expense totaled $30,000. Its income tax payable account increased $5,000, while.
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Match the following.   A) liability B) revenue C) corporation D) asset E) capital F) transaction 109) A business owned by shareholders 110) Another name for the owner's equity of a proprietorship 111) An event that affects the financial position of a particular entity and can be reliably recorded 112) An increase in owner's equity that is earned by delivering goods.
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142) For each of the following events, indicate the amount by which liabilities increased or decreased. a)  Owner invested cash of $25,000 and equipment valued at $10,500 into the business. b)  Purchased $600 of supplies on account. c)  Borrowed $10,000 from the bank, issuing a note payable. d)  Performed a service for $1,500 and.
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13) Select transactions of June Bowen Inc. (JBI) are listed below. JBI uses the indirect method to determine cash flows from operating activities. 1. JBI amortizes $12,000 of the discount on bonds payable. 2. At year-end JBI increases its allowance for bad debts by $18,000. 3. JBI's income tax expense totaled $50,000. Its.
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18.6   Learning Objective 6 1) On January 1, 2011, Teddy Company sold a building to Breezy Bank for $40,000,000 and immediately leased it back under a 25-year non-cancellable lease at $3,208,000 per year, payable at the beginning of each year. Breezy used an implicit rate of 7% to determine the lease.
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6) Complete the following: a. List the three primary sources of information required to prepare a statement of cash flows. b. A company may report its accounts receivable at the gross amount less an allowance for bad debts. Contrast the direct and indirect methods of adjusting for accounts receivable reported at the.
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1) The basic summary device of accounting is the account. 2) Notes receivable is a liability account. 3) A transaction always involves exactly two accounts. 4) The right-hand side of an account is called the increase side. 5) Assets, revenues, and withdrawals are all increased by debits. 6) Total debits must always equal total credits. 7).
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140) Following is a list of events for Manning Cleaning for the month of April. Show the effects of these events on the accounting equation by completing the table below. April 1Owner invested $10,000 cash and equipment valued at $25,000 into the business. 3Purchased $5,500 of equipment on account. 5Purchased $400 of supplies for.
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10) Sherya Inc.'s policy is to report all cash flows arising from interest and dividends in the operating section. Sherya's activities for the year ended December 31, 2018 included the following: •Interest expense for the period was $10,000. The interest payable account decreased $4,000. •Made a $110,000 principal payment on a bank.
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Match the following. A) generally accepted accounting principles B) accounting C) proprietorship D) expense 125) The system that measures business activities and processes information into reports 126) An entity with a single owner 127) Guidelines that govern how businesses report their financial statements to the public 128) A decrease in owner's equity that occurs in the course of.
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7) Financial information for Fesone Inc.'s balance sheet for fiscal 2013 and 2014 follows: 20142013 Cash204,800550,000 Accounts receivable1,150,0001,300,000 Inventory410,000250,000 Investments - held for trading400,000 Investments - held to maturity150,000 Property plant and equipment3,400,0003,400,000 Accumulated depreciation(1,860,000)(1,570,000) Total3,854,8003,930,000 Accounts payable260,00080,000 Bank loan2,226,0002,850,000 Bonds payable187,800185,000 Preferred shares015,000 Common shares597,000450,000 Retained earnings584,000350,000 Total3,854,8003,930,000 Additional information: 1. Preferred shares were converted to common shares during the year at their book value. 2. The face.
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144) For each of the following events, indicate the amount by which owner's equity increased or decreased. a)  Owner invested cash of $25,000 and equipment valued at $10,500 into the business. b)  Purchased $600 of supplies on account. c)  Borrowed $10,000 from the bank, issuing a note payable. d)  Performed a service for $1,500.
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63) A cash investment into the business by the owner would: A) increase liabilities and increase owner's equity B) increase total assets and decrease owner's equity C) increase owner's equity and increase total assets D) increase total assets and decrease liabilities 64) An owner investment of office furniture into the business would: A) decrease owner's equity.
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6) Mamie K. Ltd.'s policy is to report all cash flows arising from interest and dividends in the operating section. Mamie's activities for the year ended December 31, 2018 included the following: •Income tax expense for the year was $36,000. •Sales for the year were $730,000. •Accounts payable decreased $20,000 in 2018. •Selling and.
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19.3   Learning Objective 3 1) Which of the following is a financing activity? A) Collection of accounts receivable. B) Collection of loans receivable C) Receipt of bank loan. D) Sale of a machine. 2) Which of the following is an operating activity? A) Receipt of customer deposit. B) Proceeds from mortgage issue. C) Purchase of land. D) Redemption of preferred.
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23) Which of the following users of accounting information seek to assess the organization's ability to make scheduled payments? A) creditors B) taxing authorities C) government regulatory agencies D) employees 24) The Accounting Standards Board is responsible for establishing: A) the Canadian Institute of Chartered Accountants B) generally accepted accounting principles C) the code of professional conduct for.
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1) Financial statements provide information about business activities to decision makers. 2) Investors provide money to a business to begin operations. 3) Not-for-profit organizations need accounting information, as do profit-oriented organizations. 4) The designation CA stands for Certified Public Accountant. 5) A proprietorship can have two owners, so long as they are husband and.
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73) Receiving cash for services performed the same day would: A) increase owner's equity and decrease total assets B) decrease total assets and decrease liabilities C) increase liabilities and increase total assets D) increase owner's equity and have no effect on liabilities 74) A business receives its bill for utilities for the current month that.
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43) If owner's equity is $135,000 and total liabilities are $90,000, then total assets would be: A) $45,000 B) $225,000 C) $90,000 D) $135,000 44) Owner's equity and total assets were $32,000 and $79,000 respectively at the beginning of the period. Assets increased 50% and liabilities decreased 60% during the period. What is owner's equity.
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9) Boboto Inc.'s policy is to report all cash flows arising from interest and dividends in the operating section. Boboto's activities for the year ended December 31, 2018 included the following: •Declared and issued a stock dividend valued at $50,000. •Paid $46,000 to repurchase ordinary shares and cancelled them. The book value.
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132) List and define three generally accepted accounting concepts/principles discussed in Chapter 1. 133) Determine the expenses for the current period based on the following data: 134) Determine the expenses for the current period based on the following data: .
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For the items listed below, choose the appropriate code letter to indicate whether the item is an asset, liability, or owner's equity item: AssetA LiabilityL Owner's EquityOE A) A B) OE C) L 115) Accounts receivable 116) Office supplies 117) Truck 118) Don Smith, Capital 119) Salary payable 120) Note payable 121) Cash 122) Land 123) Accounts payable 124) Office furniture   .
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3) Reuse It Inc.'s (RII) policy is to report all cash flows arising from interest and dividends in the operating section. The company's activities for the year ended December 31, 2016 included the following: •Comprehensive income totaled $468,000 including $88,000 in other comprehensive income. •Paid a cash dividend of $30,000 that was.
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19.1   Learning Objective 1 1) Which statement is correct? A) Net income equals the cash generated by the company's operations. B) Net income seldom reflects the change in cash during the period. C) Net income is the most important metric to measure the financial performance of a company. D) Cash flow is the most important.
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16) The opening balance in the computer account for Adara Corp for fiscal 2017 was $100,000; the closing balance was $107,000. The corresponding balances in the accumulated depreciation accounts were $63,000 and $67,500. During the year Adara scrapped a computer originally costing $13,000 having a remaining net book value of.
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5) ABC Inc.'s policy is to report all cash flows arising from interest and dividends in the operating activities section. Tub Time's activities for the year ended December 31, 2017 included the following: •Net income after taxes totaled $400,000. •The company recorded a $4000 goodwill impairment loss during the year. •Depreciation expense for.
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11) Reuse It Inc.'s activities for the year ended December 31, 2016 included the following: •Comprehensive income totaled $468,000 including $88,000 in other comprehensive income. •Paid a cash dividend of $30,000 that was declared in 2015. •Interest expense for the year was $14,000; the opening and closing balances in the interest payable account.
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135) Selected transactions for Sarah's Kitchen are shown below. State the effect on the accounting equation of each transaction. a)  Sarah Cook invests $20,000 cash into a business known as Sarah's Kitchen. b)  Sarah purchases kitchen supplies on account for $500. c)  Sarah purchases a new oven for $6,500 cash. d)  Sarah receives and.
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10) Which statement about "cash and cash equivalents" is correct? A) Exchanges of "cash and cash equivalents" for items that are not "cash and cash equivalents" result in cash flows for the cash flow statement. B) Changes in the composition of "cash and cash equivalents" is considered a cash flow for purposes.
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4) Financial information for Fesone Inc.'s balance sheet for fiscal 2013 and 2014 follows: 20142013 Cash204,800550,000 Accounts receivable1,150,0001,300,000 Inventory410,000250,000 Investments - held for trading400,000 Investments - held to maturity150,000 Property plant and equipment3,400,0003,400,000 Accumulated depreciation(1,860,000)(1,570,000) Total3,854,8003,930,000 Accounts payable260,00080,000 Bank loan2,226,0002,850,000 Bonds payable187,800185,000 Preferred shares015,000 Common shares597,000450,000 Retained earnings584,000350,000 Total3,854,8003,930,000 Additional information: 1. Preferred shares were converted to common shares during the year at their book value. 2. The face.
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Table 1-2   Following is a random list showing the account balances of various assets, liabilities, revenues and expenses for Tim's Landscaping at December 31, 2010, the end of its first year of operations. Accounts receivable$30,000 Accounts payable 7,000 Salary expense9,000 Repairs expense  1,600 Truck  17,000 Equipment12,600 Notes payable16,400 Cash13,600 Supplies expense3,200 Service revenue25,600 Gasoline expense1,600 Salary payable4,400 The owner, Tim Brown, invested $45,200 at.
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147) On January 1, 2010, Brad Thomas invested $30,000 in Thomas Repairs. During 2010, Brad withdrew$17,000 for personal use. Thomas Repairs reports the following balances on December 31, 2010: Accounts receivable$  9,000 Accounts payable4,200 Service revenue25,550 Land4,000 Rent expense4,500 Note payable3,800 Supplies900 Brad Thomas, Capital, Jan. 1, 201030,000 Salary expense9,650 Cash18,500 Brad Thomas, Withdrawals17,000 Prepare an income statement for the year ended.
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