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Study Resources (Accounting)

21) In the journal you will find the total balance for each account. 22) Prepare journal entries in good form for the following transactions for the Calorie Corp. a.Owner invested cash of $12,000 and office equipment valued at $7,500 into the business, receiving common shares in exchange. b.Purchased supplies for cash, $1,000. c.Paid $750.
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41) Expenses increase shareholders equity. That is why they are credits. 42) A dividend account is known as a contra equity account. 43) An expense account is known as a contra equity account. 44) The purchase of office supplies for cash would include a debit to the asset Office Supplies and a credit.
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58) The following alphabetical listing shows the assets, liabilities, and shareholders' equity for Zap Ltd. as of December 31, 2014. Prepare a balance sheet dated December 31, 2014. Accounts payable$12,200Inventory$23,500 Accounts receivable21,000Note payable11,000 Cash21,600Retained earnings17,100 Common shares50,600Salary payable 2,300 Equipment24,600Supplies2,500 59) Following is an alphabetical list of the assets, liabilities, and shareholders' equity accounts of Bliz.
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1. Business valuations are prepared primarily for closely held businesses. 2. A certified business appraiser (CBA) and a certified valuation analyst (CVA) are two common certifications that professional valuation analysts hold. 3. Although engagement letters are important for independent auditors, they are really not necessary for valuation engagements. 4. Business.
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11) The collection of cash from a customer on account would: A) increase net income and shareholders' equity B) increase assets and decrease liabilities C) increase assets and increase net income D) have no effect on net income or shareholders' equity 12) Dividends paid to the shareholders when declared will: A) increase assets and decrease liabilities B).
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21) Common shares appear on the: A) balance sheet B) income statement C) cash flow statement D) retained earnings statement 22) The repayment of a note payable would be classified as a(n): A) investing activity on a cash flow statement B) financing activity on a cash flow statement C) operating activity on a cash flow statement D) current asset.
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42) There are many different stakeholders in Telus Corporation. Explain why the same information may not be suitable or appropriate for all stakeholders. 43) Telus Corporation is a publicly owned corporation. How does it differ from a privately owned corporation? Private corporations are not necessarily small. For instance, The Jim Pattison Group.
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111. “Buy-sell agreements” are most commonly associated with: 112. When preparing to testify in a case, an expert witness would seek advice from his/her attorney about: 113. There are three major valuation approaches. Describe and discuss the Income Approach Method. 114. Discuss what an expert witness should do in preparing.
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11) If liabilities increase $120,000 during a given period and shareholders' equity decreases $25,000 during the same period, assets must: A) decrease $145,000 B) increase $145,000 C) increase $95,000 D) decrease $95,000 12) Expenses are: A) increases in assets resulting from operations B) increases in retained earnings resulting from operations C) increases in liabilities resulting from purchasing assets D).
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25) Analyze the following transactions. Indicate which accounts are affected and whether they will increase or decrease. Transaction (a) is completed as an example. a.Owner investment of cash into the business. b.Payment of a utility bill. c.Purchase of inventory for cash. d.Payment of an accounts payable. e.Performing a service on account. f.Collecting cash from a customer.
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61) Tall Tree Ltd. gathered together the following information regarding the asset, liability, shareholders' equity, revenue, and expense accounts as of the end of its first year in operation, May 31, 2014: Accounts payable$9,600Rent expense$6,500 Accounts receivable3,200Salary expense19,400 Cash13,800Salary payable1,300 Common shares 15,000Service revenue45,500 Dividends8,300Supplies2,500 Interest expense1,200Truck34,600 Note payable21,000Utilities expense5,000 Prepare the Statement of Retained Earnings for Tall.
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1.4   Explain the relationships among the financial statements 1) Which financial statement must be prepared before the others? A) income statement B) balance sheet C) cash flow statement D) retained earnings statement 2) Accounting standards for accountants in Canada are established by: A) the Canadian Institute of Chartered Accountants B) the Society of Management Accountants of Canada C) the.
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41) The payment of the chief financial officer's salary would appear: A) on the cash flow statement with the operating activities B) on the balance sheet with the current liabilities C) on the income statement with the revenues D) on the income statement as part of cost of goods sold 42) Which of the following.
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2.3   Record the impact of business transactions in T-accounts 1) The right side of a T-account is always the: A) increase side B) credit side C) debit side D) decrease side 2) The entry to record the purchase of supplies on account would include a: A) credit to the Accounts Payable account B) debit to the Retained Earnings.
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11. The most commonly accepted method of valuing businesses is the cost approach. 12. When using an income method of valuation, it is logical to weight the older income streams more heavily because they represent more reliable historical data. 13. When performing business valuations, it is essential that the analyst.
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2.4   Record business transactions in the journal and post them to the ledger 1) Which of the following items of information would not normally be included in a journal entry? A) the date the transaction took place B) the dollar amount of the debit C) the title of the account debited D) the location where.
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1.2   Explain accounting's conceptual framework and underlying assumptions 1) The accounting concept that maintains that each organization or section of an organization stands apart from other organizations and individuals is known as the: A) reliability principle B) going-concern assumption C) entity assumption D) monetary unit assumption 2) The ________ assumption assumes that the organization will continue.
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11) Common shares is a component of: A) total assets B) total liabilities C) share capital D) retained earnings 12) Cost of goods sold is: A) added to sales on the income statement B) deducted from sales on the balance sheet C) deducted from sales on the income statement D) added to sales on the retained earnings statement 13) Suppose.
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11) Generally accepted accounting principles, or GAAP, are the rules and procedures established by the Canadian Institute of Chartered Accountants (CICA Handbook). 12) All corporations have to follow the same sections of the CICA Handbook. 13) The reliability principle states that assets and services should be recorded at their actual cost, since.
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39) Accounting is often referred to as "the language of business." Why is accounting described this way? How is accounting different from bookkeeping? Bookkeeping is simply the procedural element of accounting that processes the accounting data. Accounting is an information system, of which bookkeeping is a component. 40) There are several types.
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21) Since they are both the same activities, the terms "accounting" and "bookkeeping" are synonymous and can be used interchangeably. 22) The three forms of business organizations are sole proprietorships, partnerships, and non-profit organizations. 23) Accounting is called an information system since it measures business activities, processes data into reports, and communicates.
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121. Which income approach involves projecting the possible future income streams (e.g., earnings, cash flow) on a year-by-year basis, usually for five or seven years? ____________________ 122. ___________________________ is not really a valuation method. 123. Which would not be considered an example of intangible assets? 124. _____________________________ means that each.
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31) Cash would appear on the: A) income statement with the revenues B) retained earnings statement with the net income C) balance sheet with the current assets D) balance sheet with the current liabilities 32) Accounts payable would appear on the: A) income statement with the expenses B) retained earnings statement with the dividends C) balance sheet with.
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2.5   Prepare a trial balance 1) This summarizes all the account balances for the financial statements and shows whether total debits equals total credits: A) ledger B) trial balance C) journal D) accounting equation 2) The normal balance of Accounts Receivable is a ________ because it is a(n) ________ account. A) credit, liability B) debit, expense C) credit, shareholders'.
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41. Preparing common-sized financial statements and performing ratio analyses of financial statements are examples of "customizing" financial statements. 42. Preparing common-sized financial statements and performing ratio analyses of financial statements are examples of "spreading" financial statements. 43. Probably the most comprehensive source of information on financial statements and credit analysis.
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2.2   Record the impact f business transactions on the accounting equation 1) All of the following accounts would be considered assets except for: A) Cash B) Common Shares C) Prepaid Expenses D) Notes Receivable 2) The payment of an amount owed to a creditor would: A) increase assets B) increase liabilities C) decrease net income D) decrease liabilities 3) When a.
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31) A credit decreases the balance of which types of accounts? A) expenses and assets B) liabilities and expenses C) assets and liabilities D) assets and shareholders' equity 32) A credit increases the balance of which types of accounts? A) revenue and assets B) liabilities and assets C) liabilities and expenses D) shareholders' equity and liabilities 33) Which type of.
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1.3   Describe the purpose of each financial statement and explain the elements of each one 1) Which of the following financial statements would a potential investor most likely use to evaluate a company's financial performance for the current period? A) balance sheet B) income statement C) cash flow statement D) retained earnings statement 2) Dividends appear.
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1) Which of the following persons or groups have the ultimate control of a corporation? A) the chief executive officer B) the board of directors C) the audit committee D) the shareholders 2) Financial statements are: A) reports issued by outside consultants who are hired to analyze key operations of the business B) reports created by management.
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11) The entry to record an owner investment of $500 into the business would be: A) Dividends500 Cash500 B) Cash500 Dividends500 C) Cash500 Service Revenue500 D) Cash500 Common Shares500 12) The entry to record an owner investment of $1500 into the business including a $500 piece of equipment would be: A) Dividends1500 Equipment500 Cash1000 B) Cash1500 Dividends1500 C) Cash1500 Service Revenue1000 Equipment500 D) Cash1000 Equipment500 Common Shares1500 13) The entry to.
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11. Accounting and sales transactions supervised by the same manager are not internal control weaknesses. 12. Higher than expected sales growth is an anomaly that could constitute a "red flag." 13. Being approached midway through an audit to take on an additional engagement for suspected fraud at the same company.
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31) For business purposes, dividend payments are classified as expenses. 32) Revenues less cash outflow equals net income (or net loss). 33) The owners' equity of proprietorships and partnerships is different. 34) Dividends are a form of expenses. 35) Net earnings are calculated by taking a company's earnings less their dividends paid out. 36) Financial.
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61. The Statement of Financial Accounting Standards No. 157 deals primarily with: 62. The conclusions presented in FASB No. 157 support which FASB Conceptual Framework? 63. According to FASB No. 157, the changes made to the Statement will improve financial reporting by: 64. The major business valuation organization that has.
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