Exam 2: Analysing Transactions and Preparing Year End Financial Statements

A hotel purchased a new vending machine for $14,000. Half of the cost was paid in cash and the other half was financed through a bank loan. To record this transaction which of the following statements is correct?

Retained earnings at the end of a financial year are:

Which of the following statements regarding owner's equity is false?

Net profit in the profit and loss statement is determined by:

If a hotel buys $800 of wine on 30 days credit in July, the following would occur:

The Mosaic hotel hosts an afternoon seminar for Brief Conventions Ltd. Brief Conventions has received an invoice from Mosaic for $1,200 to cover the event. Following the event, but prior to receiving Brief Conventions' payment, Mosaic would report the amount owing on its balance sheet as:

Accountants refer to a reduction in owner's equity following the consumption of resources in connection with making sales as:

Imagine you are reviewing a financial report which has the following words in its heading "As at 30^th June 2009". This signifies that the report:

On the 2nd January an events company received an invoice for $2,500 from an employment agency for the hire of casual staff in December. On the 31^st January the invoice was paid. How would the balance sheet accounts be affected by the 31^st January transaction?

Which of the following statements is correct?

With respect to owners' equity, which of the following statements is true?

With respect to cash, which of the following statements is true?

Inventory should be listed on the balance sheet under what heading?

A balance sheet:

Which of the following statements regarding business expenses is correct?

Which of the following statements regarding revenue is correct?

Identify which of the following statements is untrue.