Exam 1: Business, Accounting, and You

Ling Li Jewellery business has the following accounts. Identify the assets. Common shares Jewellery Supplies Cash Revenue Salaries Expense Accounts Payable Marketing Expense Accounts Receivable Supplies Expense

A statement of cash flows is usually prepared last.

Liabilities represent:

Simon's Graphic Design Company had the following transactions in the month of April. After analyzing, state the impact on cash. Example: April 5 Completed services for customers who paid cash. Example:

Which of the following financial statements illustrates the accounting equation?

Shareholders' equity includes retained earnings and common shares.

A business pays off a note payable. What effect does this have on the accounting equation?

Name the last financial statement prepared.

The goal of IFRS is to create a global set of accounting standards.

Accountants need to exercise professional judgment.

The accounting profession has several related fields. Identify and discuss the responsibilities of each field.

By taking accounting classes, the student is learning the "language of business."

In the accounting profession there are several areas of expertise. Name the four main areas of expertise.

XYZ Company has liabilities of $23,500 and shareholders' equity of $56,500. Determine the XYZ Company's assets.

Financial statements are prepared primarily for internal company use.

Accounting principles include:

Subway is famous for their subway sandwiches. At the end of 2013, Subway's total assets were $345,000, and total liabilities were $129,500. Calculate Subway's shareholders' equity.

Liabilities are those obligations that are owed to third parties.

Of the financial statements, which is dated as of a specific date?

To ensure that the guidelines for right behaviour are followed, a corporation should follow: