Exam 1: Business, Accounting, and You

To manage a business effectively, an owner or manager would benefit greatly from having some knowledge of accounting.

Canadian accounting standards for private enterprises (ASPE) continues to use:

ABC purchased office supplies on account for $50,000. How would this transaction affect ABC's accounting equation?

Which of the following types of organization would probably sell goods?

Market value and historical cost (value) are the same concept.

Barry's Bird House Supplies has the following Balance Sheet items: Wood Supplies Accounts Payable Accounts Receivable Woodwork Equipment Common Shares Identify the classification of each item.

International Financial Reporting Standards (IFRS) are used in every country in the world.

The statement of retained earnings is prepared to determine the final amount of retained earnings to show on the statement of financial position.

Revenues, expenses, and dividends are all a part of:

Prepare an income statement, a statement of retained earnings, and a statement of financial position for Web Application Services Company from the items listed below for the month of December 2013.

Jenny opens her business by investing $12,000. How does this affect the accounting equation?

The accounting equation is Assets = __________+ __________

Revenues would have which of the following effects on the accounting equation?

Marcus is negotiating with friends who may buy some camping equipment in the near future. He records this information as possible sales. What principle is Marcus violating?

Common examples of business organizations include sole proprietorship, partnership, and corporation. Instructions: For each business listed below, indicate the type of business organization.

A Canadian publicly traded enterprise use which reporting standard?

Under IFRS, financial statements are prepared on a modified cost basis, with an emphasis on fair value, which is more useful and relevant for users' decision-making purposes. Businesses may choose one of four recording methods that best reflects their economic activities and reality. List the four approaches.

Accountants are required to use __________ judgment in many situations.

Part 1. A business sells $1,000 of product on account. Identify the effect on the accounting equation. Part 2 A business buys $1,000 of product on account. Identify the effect on the accounting equation.

Financial statements are historical reports of what has taken place financially in a business.