Question 1

GAAP stands for

Accepted Answer

A)  Generally Accepted Auditing Procedures. 
B)  Generally Accepted Accounting Principles. 
C)  Generally Accepted Auditing Principles. 
D)  Generally Accepted Accounting Procedures. 
A)  Generally Accepted Auditing Procedures. 
B)  Generally Accepted Accounting Principles. 
C)  Generally Accepted Auditing Principles. 
D)  Generally Accepted Accounting Procedures.

Question 2

The following are six questions that users of accounting information might ask about Redpath Auto Towing (Redpath).
Instructions
For each question determine which part of the financial statements (income statement, balance sheet, or cash flow statement) would provide the information required.

Accepted Answer

The answer of The following are six questions that users...

Question 3

Evan Guanzon owns and operates Guanzon's Pizza Express. Evan should record the cost of wages paid to store employees as a (an)

Accepted Answer

A)  revenue. 
B)  expense. 
C)  liability. 
D)  asset. 
A)  revenue. 
B)  expense. 
C)  liability. 
D)  asset.

Question 4

Companies incorporated under provincial legislation report under ASPE and companies incorporated under federal legislation report under IFRS.

Accepted Answer

A) True 
 B)False

Question 5

In a proprietorship, there may be 2 or more owners.

Accepted Answer

A) True 
 B)False

Question 6

Liabilities

Accepted Answer

A)  are future economic benefits. 
B)  are current or long term obligations arising from past events. 
C)  possess service potential. 
D)  are things of value used by the business in its operation. 
A)  are future economic benefits. 
B)  are current or long term obligations arising from past events. 
C)  possess service potential. 
D)  are things of value used by the business in its operation.

Question 7

Shareholders' equity, in a corporation, is increased by

Accepted Answer

A)  an expense. 
B)  shareholder purchase of common shares. 
C)  payment of dividends. 
D)  liabilities. 
A)  an expense. 
B)  shareholder purchase of common shares. 
C)  payment of dividends. 
D)  liabilities.

Question 8

A balance sheet presents the revenues and expenses, and the resulting profit or loss for a specific period of time.

Accepted Answer

A) True 
 B)False

Question 9

Publicly Traded Corporations can choose to report under either ASPE or IFRS.

Accepted Answer

A) True 
 B)False

Question 10

For each of the following, describe a transaction that will have the stated effect on the elements of the accounting equation.
1. Increase one asset and decrease another asset.
2. Increase an asset and increase a liability.
3. Decrease an asset and decrease a liability.
4. Increase an asset and increase owner's equity.
5. Increase one asset, decrease another asset, and increase a liability.

Accepted Answer

1. Receive cash from customers on accoun

Question 11

Calculate the missing amount in each category of the accounting equation.

Accepted Answer

1. $182,000 ($280,000 - $98,00

Question 12

Ken Serratore decides to open a cleaning and laundry service near the local college campus that will operate as a proprietorship. The transactions for the month of June are listed below:
1. Ken Serratore invests $20,000 in cash to start a cleaning and laundry business on June 1.
2. Purchased laundry equipment for $5,000 paying $3,000 in cash and the remainder due in 30 days.
3. Purchased laundry supplies for $1,200 cash.
4. Received a bill from Campus News for $300 for advertising in the campus newspaper.
5. Cash revenue from customers for cleaning and laundry amounted to $1,500.
6. Paid salaries of $200 to student workers.
7. Billed the Tiger Football Team $100 for cleaning and laundry services.
8. Paid $300 to Campus News for advertising that was previously billed in Transaction 4.
9. Ken Serratore withdrew $700 from the business for living expenses.
10. Incurred utility expenses for month on account, $400.
Instructions
Analyze the transactions above in terms of their effect on the basic accounting equation. Record each transaction by increasing (+) or decreasing (-) the dollar amount of each item affected. Total and balance the equation at the end of the month.

Accepted Answer

The answer of Ken Serratore decides to open a cleaning...

Question 13

The partnership form of business organization

Accepted Answer

A)  is a separate legal entity. 
B)  is a common form of organization for service-type businesses. 
C)  enjoys an unlimited life. 
D)  has limited liability. 
A)  is a separate legal entity. 
B)  is a common form of organization for service-type businesses. 
C)  enjoys an unlimited life. 
D)  has limited liability.

Question 14

1.Explain the going concern assumption. How is it relevant in accounting for a business that may be going through temporary financial difficulties?
2. Explain how the economic entity concept applies when a business is owned and operated by a sole proprietor.

Accepted Answer

1. The going concern assumption states t

Question 15

Jackson's Small Engine Repair Shop, a proprietorship, started the year with total assets of $60,000 and total liabilities of $40,000. During the year, the business recorded $100,000 in repair revenues, $55,000 in expenses, and Mike Jackson, the owner, withdrew $10,000. The profit reported by Jackson's Small Engine Repair Shop for the year was

Accepted Answer

A)  $35,000. 
B)  $45,000. 
C)  $20,000. 
D)  $90,000. 
A)  $35,000. 
B)  $45,000. 
C)  $20,000. 
D)  $90,000.

Question 16

Owner's equity, in a proprietorship, is increased by

Accepted Answer

A)  drawings. 
B)  revenues. 
C)  expenses. 
D)  liabilities. 
A)  drawings. 
B)  revenues. 
C)  expenses. 
D)  liabilities.

Question 17

ASPE requires less information on the financial statements of private companies than IFRS requires because

Accepted Answer

A)  private companies are smaller than public companies. 
B)  users of private company financial statements have the ability to obtain additional information from the company if required. 
C)  public companies have their information available on the internet. 
D)  public companies may report in different foreign currencies. 
A)  private companies are smaller than public companies. 
B)  users of private company financial statements have the ability to obtain additional information from the company if required. 
C)  public companies have their information available on the internet. 
D)  public companies may report in different foreign currencies.

Question 18

An income statement will give the answer to the question - "where did all the cash get used during this month?"

Accepted Answer

A) True 
 B)False

Question 19

Carrie's Carpet Cleaning has the following balance sheet items:   Instructions
Identify which items are 
a. Assets
b. Liabilities
c. Owner's Equity

Accepted Answer

a. Assets-Van, Cash, Cleaning

Question 20

A partnership must have at least 2 people in the partnership.

Accepted Answer

A) True 
 B)False

GAAP stands for

The following are six questions that users of accounting information might ask about Redpath Auto Towing (Redpath). Instructions For each question determine which part of the financial statements (income statement, balance sheet, or cash flow statement) would provide the information required.

Evan Guanzon owns and operates Guanzon's Pizza Express. Evan should record the cost of wages paid to store employees as a (an)

Companies incorporated under provincial legislation report under ASPE and companies incorporated under federal legislation report under IFRS.

In a proprietorship, there may be 2 or more owners.

Liabilities

Shareholders' equity, in a corporation, is increased by

A balance sheet presents the revenues and expenses, and the resulting profit or loss for a specific period of time.

Publicly Traded Corporations can choose to report under either ASPE or IFRS.

Calculate the missing amount in each category of the accounting equation.

The partnership form of business organization

1.Explain the going concern assumption. How is it relevant in accounting for a business that may be going through temporary financial difficulties? 2. Explain how the economic entity concept applies when a business is owned and operated by a sole proprietor.

Owner's equity, in a proprietorship, is increased by

ASPE requires less information on the financial statements of private companies than IFRS requires because

An income statement will give the answer to the question - "where did all the cash get used during this month?"

Carrie's Carpet Cleaning has the following balance sheet items: Instructions Identify which items are a. Assets b. Liabilities c. Owner's Equity

A partnership must have at least 2 people in the partnership.

The Recording Process

Adjusting the Accounts

Completion of the Accounting Cycle

Accounting for Merchandising Operations

Inventory Costing

Internal Control and Cash

Long-Lived Assets

Current Liabilities

Accounting Principles

Accounting for Partnerships

Introduction to Corporations

Corporations: Additional Topics and Ifrs

Non-Current Liabilities

The Cash Flow Statement

Financial Statement Analysis

Investments

Filters

Exam 1: Accounting in Action

GAAP stands for

The following are six questions that users of accounting information might ask about Redpath Auto Towing (Redpath). Instructions For each question determine which part of the financial statements (income statement, balance sheet, or cash flow statement) would provide the information required.

Evan Guanzon owns and operates Guanzon's Pizza Express. Evan should record the cost of wages paid to store employees as a (an)

Companies incorporated under provincial legislation report under ASPE and companies incorporated under federal legislation report under IFRS.

In a proprietorship, there may be 2 or more owners.

Liabilities

Shareholders' equity, in a corporation, is increased by

A balance sheet presents the revenues and expenses, and the resulting profit or loss for a specific period of time.

Publicly Traded Corporations can choose to report under either ASPE or IFRS.

Calculate the missing amount in each category of the accounting equation.

The partnership form of business organization

1.Explain the going concern assumption. How is it relevant in accounting for a business that may be going through temporary financial difficulties? 2. Explain how the economic entity concept applies when a business is owned and operated by a sole proprietor.

Owner's equity, in a proprietorship, is increased by

ASPE requires less information on the financial statements of private companies than IFRS requires because

An income statement will give the answer to the question - "where did all the cash get used during this month?"

Carrie's Carpet Cleaning has the following balance sheet items: Instructions Identify which items are a. Assets b. Liabilities c. Owner's Equity

A partnership must have at least 2 people in the partnership.

The Recording Process

Adjusting the Accounts

Completion of the Accounting Cycle

Accounting for Merchandising Operations

Inventory Costing

Internal Control and Cash

Long-Lived Assets

Current Liabilities

Accounting Principles

Accounting for Partnerships

Introduction to Corporations

Corporations: Additional Topics and Ifrs

Non-Current Liabilities

The Cash Flow Statement

Financial Statement Analysis

Investments

Filters