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127.  Dave Ryan is the owner and operator of Ryan's Arcade. At the end of its accounting period, December 31, Ryan’s$450,000 and liabilities of $125,000.  Using the accounting equation, determine the following amounts: (a) owner’s equity as of December 31 of the current year (b) owner’s equity as of December 31 at.
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127.  Martin Blair is the owner and operator of Martin Consultants.  At December 31 of the current year, MartinConsultants has assets of $430,000 and liabilities of $205,000.  Using the accounting equation and considering eachcase independently, determine the following: a.  Martin Blair, capital, as of December 31. b.  Martin Blair, capital, as of.
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41.Assets that are used up during the process of earning revenue are called expenses. a.True b.False 42.The excess of revenue over the expenses incurred in earning the revenue is called capital. a.True b.False 43.The primary financial statements of a proprietorship are the income statement, statement of owner's equity, and thebalance sheet. a.True b.False 44.An income statement is a summary.
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99.The asset created by a business when it makes a sale on account is termed a.accounts payable b.prepaid expense c.unearned revenue d.accounts receivable 100.The debt created by a business when it makes a purchase on account is referred to as an a.account payable b.account receivable c.asset d.expense payable 101.If total assets decreased by $88,000 during a period of time and.
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168.  From the following list of items taken from Lamar’s accounting records, identify those that would appear on theincome statement. (a)          Rent Expense (b)         Land (c)          Capital (d)         Fees Earned (e)          Withdrawal (f)          Wages Expense (g)         Investment 169.  Identify which of the following accounts would appear on a balance sheet. (a)          Cash (b)         Fees Earned (c)          Joe Brown, Capital (d)         Wages Payable (e)         .
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31.If total assets increased by $190,000 during a specific period and liabilities decreased by $10,000 during the sameperiod, the period's change in total owner's equity was a $200,000 increase. a.True b.False 32.If net income for a proprietorship was $50,000, the owner withdrew $20,000 in cash and the owner invested$10,000 in cash, the capital.
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127.  Use the accounting equation to answer each of the independent questions below. a.     At the beginning of the year, Norton Company's assets were $75,000 and its owner’s equity was $38,000.Duringthe year, assets increased by $18,000 and liabilities increased by $4,000.  What was the owner’s equity at theend of the year? b.   .
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127.  Discuss internal and external users of accounting information.  What areas of accounting provide them withinformation?  Give an example of the type of report each type of user might use. 128.  Companies like Enron, WorldCom, and Tyco International, Ltd. have been caught in the midst of ethical lapses thatled to fines,.
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Multiple-choice questions 1.The primary purpose of a statement of cash flows is to provide information about: a.profit. b.long-term financial position. c.gross profit. d.cash inflows and cash outflows. 2. The accounting standard dealing with the statement of cash flows is: a.IAS 7/AASB 107. b.IAS 1/AASB 1001. c.IAS/19/AASB 1019. d.IAS 18/AASB 118. 3.The primary purpose of a statement of cash flows is to.
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168.  A summary of cash flows for Linda's Design Services for the year ended December 31 is shown below. Cash receipts: Cash received from customers $83,990 Cash received from additional investment by owner 25,000 Cash payments: Cash paid for expenses $27,000 Cash paid for land 47,000 Cash paid for supplies 410 Drawing 5,000 The cash balance as of January 1 $40,600 Prepare a statement of cash flows.
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168.  The assets and liabilities of Rocky's Day Spa at December 31 and expenses for the year are listed below. Thecapital of the owner was $68,000 at January 1. The owner invested an additional $10,000 during the year. Netincome for the year is $45,625. Accounts Payable $ 4,375 Spa Operating Expense $23,760 Accounts Receivable 8,490 Office Expense 2,470 Cash 13,980 Spa.
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31.Slimline Ltd reports for 2015: Beginning inventory          $38 000 Ending inventory35 000 Cost of sales 90 000 Determine credit purchases for the year. a.$87 000 b.$90 000 c.$93 000 d.$125 000 32.If credit purchases are $100 000 determine the cash paid for the purchase of inventory               for 2015. Beginning accounts payable            $42 000 Ending accounts payable 36 000 a.$94 000 b.$100 000 c.$106.
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127.  For each of the following companies, identify whether they are a service, merchandising, or manufacturingbusiness. A. Dillard’s B. Time Warner Cable C. General Motors D. Blockbuster E. Applebee’s F. Sony G. Best Buy H. Banana Republic I. H&R Block 128.  Identify each of the following as either internal or external users of accounting information. A. Payroll Manager B. Bank C. President’s  Secretary D. Internal Revenue Service E. Raw Material Vendors F. Social Security Administration G. Health Insurance Provider H. Managerial Accountant 129.  .
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79.Equipment with an estimated market value of $30,000 is offered for sale at $45,000. The equipment is acquired for$15,000 in cash and a note payable of $20,000 due in 30 days. The amount used in the buyer's accounting recordsto record this acquisition is a. $30,000 b. $35,000 c. $15,000 d. $45,000 80.Which one of the.
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21.The formula for the profit margin ratio is: a.revenue/profit. b.profit after tax/total assets. c.profit after tax/revenues. d.gross profit/net sales. 22.A profit ratio for a retailer of 4.1% in year 2 compared to 5.5% for the previous year                             indicates: a.an improving profit margin. b.a declining profit margin. c.no change in the profit margin. d.impending bankruptcy. 23.All of these are.
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127.  Daniels Company is owned and operated by Thomas Daniels.  The following selected transactions were completedby Daniels Company during May: 1.           Received cash from owner as additional investment, $55,000. 2.           Paid creditors on account, $7,000. 3.           Billed customers for services on account, $2,565. 4.           Received cash from customers on account, $8,450. 5.           Paid cash to.
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109.Whichofthefollowingassetaccountsisincreasedwhenareceivableiscollected? a.Accountsreceivable b.Supplies c.Accountspayable d.Cash 110.Transactions affecting owner's equity include a.owner's investments and payment of liabilities b.owner's investments, owner's withdrawals, earning of revenues, and incurrence of expenses c.owner's investments, earning of revenues, incurrence of expenses, and collection of accounts receivable d.owner's withdrawals, earning of revenues, incurrence of expenses, and purchase of supplies on account 111.Michael Anderson is starting his computer.
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Multiple-choice questions 1.Besides the information in annual reports, how many of these are sources of financial               information about companies that are useful for analysing their performance and               financial position? •The Internet •The Stock Exchange •Financial newspapers and journals •Stock brokers •Information on competitors a.2 b.3 c.4 d.5 2. Which of these are sources of financial information about companies? I. Published.
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1.A corporation is a business that is legally separate and distinct from its owners. a.True b.False 2.The role of accounting is to provide many different users with financial information to make economic decisions. a.True b.False 3.Accounting information users need reports about the economic activities and condition of businesses. a.True b.False 4.Managerial accounting information is used by external and internal.
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49.Profit is the difference between a.assets and liabilities b.the incoming cash and outgoing cash c.the assets purchased with cash contributed by the owner and the cash spent to operate the business d.the amounts received from customers for goods or services and the amounts paid forthe inputs used to provide the goods or services 50.Two common.
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127.  Indicate how the following transactions affect the accounting equation. (a)  The purchase of supplies on account. (b)  The purchase of supplies for cash. (c)  A withdrawal by the owner to pay personal expenses. (d)  Revenues received in cash. (e)  Sale made on account. 128.  a.  A vacant lot acquired for $83,000 cash is sold for.
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51.Buyer Co has ordered goods on credit from Seller Co. Before Seller ships the goods it               would like to be sure that Buyer will be able to pay for them within the normal credit               period. Assuming Seller has access to Buyer's financial statements, in which of the              .
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127.  There are four transactions that affect owner’s equity. (a)  What are the two types of transactions that increase owner’s equity? (b)  What are the two types of transactions that decrease owner’s equity? 128.  Identify each of the following as an (1) increase to owner's equity, or a (2) decrease to owner's equity. (a)         .
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119.Liabilities are reported on the a.income statement b.statement of owner's equity c.statement of cash flows d.balance sheet 120.Cash investments made by the owner to the business are reported on the statement of cash flows in the a.financing activities section b.investing activities section c.operating activities section d.supplemental statement 121.The year-end balance of the owner's capital account appears in a.both the statement of.
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168.  The assets and liabilities of Rocky's Day Spa at December 31, and its revenue and expenses for the year are listedbelow.  The capital of the owner is $68,000 at January 1.  The owner invested an additional $10,000 during theyear. Accounts Payable $ 4,375 Spa Operating Expense $23,760 Accounts Receivable 8,490 Office Expense 2,470 Cash 13,980 Spa Supplies 9,230 Fees Earned 98,435 Wages Expense 26,580 Spa Furniture.
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41.When preparing the note reconciling profit/loss and cash flow from operations, depreciation is: a.subtracted from a profit. b.does not appear in the reconciliation. c.added back to a loss. d.added back to a profit. 42.Given the following information for a recent financial period determine the net cash flow               from operating activities. Use the indirect approach. Accounts.
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69.Which of the following is truein regards to a limited liability company? a.Makes up 10% of business organizations in the United States. b.Combines the attributes of a partnership and a corporation. c.Provides tax and liability advantages to the owners. d.All are correct. 70.On May 20, White Repair Service extended an offer of $108,000 for land.
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168.  Name and describe the four primary financial statements for a proprietorship. 169.  A summary of cash flows for Evelyn's Event Planning for the year ended December 31 is shown below. Cash receipts: Cash received from customers$57,360 Cash received from bank loan15,000 Cash payments: Cash paid for operating expenses$12,120 Cash paid for equipment18,070 Cash paid for party supplies9,480 Drawing12,000 The.
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59.The following are examples of external users of accounting information except a.government entities b.customers c.creditors d.managers 60.Which of the following is the bestdescription of accounting’s role in business? a.Accounting provides stockholders with information regarding the market value of the company’s stocks. b.Accounting provides information to managers to operate the business and to other users to make decisionsregarding.
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127.  Selected transactions completed by a proprietorship are described below.  Indicate the effects of each transactionon assets, liabilities, and owner's equity by inserting "+" for increase and "−" for decrease in the appropriate columnsat the right.  If appropriate, you may insert more than one symbol in a column. A L OE (a) Received cash from.
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127.  The accountant for Flagger Company prepared the following list of account balances from the company’s recordsfor the year ended December 31: Fees Earned $165,000 Cash $30,000 Accounts Receivable 14,000 Selling Expenses 44,000 Equipment 42,000 Flagger, Capital 36,000 Accounts Payable 12,000 Interest Income 3,000 Salaries & Wages Expense 40,000 Rent Expense 51,000 Income Taxes Payable 5,000 Prepaid Rent 2,000 Notes Payable 20,000 Income Taxes Expense 18,000 Prepare an income statement for Flagger Company in good form. The assets and liabilities.
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21.The unit of measurement concept requires that economic data be recorded in dollars. a.True b.False 22.If a building is appraised for $85,000, offered for sale at $90,000, and the buyer pays $80,000 cash for it, the buyerwould record the building at $85,000. a.True b.False 23.The financial statements of a proprietorship should include the owner's personal assets.
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51.What is the correct heading on a statement of financial position made up to 30 June 2014? a.As at 30 June 2014 b.For the year ended 30 June 2014 c.For the period ended 30 June 2014 d.30th June 2014 52.Under IAS 1/AASB 101, which format is subscribed for the statement of financial position? a.No one format.
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21.If cost of sales is $500 000, inventory has increased by $8000 and creditors have                             decreased by $15 000 what is the amount of cash paid for the purchase of goods for                             resale? a.$500 000 b.$507 000 c.$523 000 d.$493 000 22.From the following information, determine the amount of cash received.
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41.The approach contained in IAS 1/AASB 101, requiring all income and expenses to be included in the determination of profit, is known as: a.the reporting method approach. b.the all-inclusive profit approach. c.the operating approach. d.the complete profit approach. 42.Under the accounting standards, which of these is not included in the calculation of a company’s profit.
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31.Which statement concerning earnings per share is incorrect? a.It represents a conversion of the absolute dollar amount of profit to a per share basis. b.Even if profits increase earnings per share could decrease if share capital increases at a greater rate than profits. c.Earnings per share is regarded as one of the least.
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21.Under the Corporations Act 2001, the financial statements included in the annual report are specified as: a.a balance sheet, profit and loss statement, statement of cash flows and note 1 to the statements. b.those required by the accounting standards. c.a balance sheet, profit and loss statement, statement of cash flows and a director’s.
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11.How many of these would be classified as investing activities on a statement of cash               flows? •Purchase of a computer •Issue of debentures •Sale of land •Payment of dividends a.One b.Two c.Three d.Four 12.How would the purchase of government bonds by a golf club be reported in the                             statement of cash flows? a.Investing outflow b.Investing inflow c.Financing outflow d.Financing inflow 13.Which.
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31.According to AASB 1039, in order to provide clear information to shareholders the concise financial report must disclose how many of the following? • Details of any events occurring after the end of the reporting period • That the report is an extract only from the full financial report • The amount of.
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11.Making Moves has the following data available. Sales                                             $800 000 Selling expenses                                160 000 Profit                                                  320 000 Using vertical analysis, express selling expenses as a percentage of the base amount. a.60% b.50% c.20% d.15% 12.How many of these ratios measure the adequacy of profits? •Profit before interest and finance costs/ finance costs •Profit compared to total assets •Profit compared to sales •Profit compared.
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51.According to AASB’s Interpretation 1031, how many of these statements relating to               the treatment of GST in the statement of cash flows are true? •All GST outlays and GST collections are regarded as effecting operating activities. •Cash flows from operating activities are reported at gross amounts inclusive of GST. •Cash flows from.
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127.  Shiny Kar Company had the following transactions.  For each transaction, show the effect on the accountingequation by putting the amount and direction (plus, minus, or NC for no change) in each box of the table below. Assets Liabilities Owner’s Equity a.  Shiny Kar withdrew $500 cash for food. b.  ShinyKar Company sold 2 cars for.
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41.Which P/E ratios and earnings yields do not match? a.P/E ratio 5; earnings yield 20% b.P/E ratio 8; earnings yield 12.5% c.P/E ratio 9; earnings yield 12 % d.P/E ratio 10; earnings yield 10% 42.If the average market price of Silver Bling Ltd’s shares is $3.50 and earnings per ordinary share are 70c the P/E.
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127.  Bob Johnson is the sole owner of Johnson’s Carpet Cleaning Service.  Bob purchased a personal automobile for$10,000 cash plus he took out a loan for $20,000 in his name. Describe how this transaction is related to thebusiness entity concept. 128.  Discuss the characteristics of a limited liability company (LLC). 129.  Explain.
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11.An example of a general-purpose financial statement would be a report about projected price increases related totransportation costs. a.True b.False 12.The Sarbanes-Oxley Act established standards for corporate responsibility and disclosure. a.True b.False 13.The main objective for all business is to maximize unrealized profits. a.True b.False 14.The primary role of accounting is to determine the amount of taxes a business.
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127.  What is the major difference between the objective of financial accounting and the objective of managerialaccounting? 128.  Give the major disadvantage of disregarding the cost concept and constantly revaluing assets based on appraisalsand opinions. 129.  On May 7, Carpet Barn Company offered to pay $83,000 for land that had a selling.
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89.Which of the following is notan asset? a.investments b.cash c.inventory d.owner’s equity 90.The assets and liabilities of the company are $128,000 and $84,000, respectively.  Owner’s equity should equal a. $212,000 b. $44,000 c. $128,000 d. $84,000 91.If total liabilities decreased by $46,000 during a period of time and owner's equity increased by $60,000 during thesame period, the amount and direction.
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168.  What are the three sections of the statement of cash flows? 169.  Match the following items to the financial statement where they can be found. (Hint: Some of the items canbe found on more than one financial statement.) A.  Balance Sheet B.  Income Statement C.  Statement of Cash Flows D. Statement of Owner’s Equity # Item 1. Withdrawals 2. Revenues 3. Supplies 4. Land 5. Accounts.
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