TEST BANK FOR
Fundamentals of Financial Accounting
by Fred Phillips, Shana Clor-Proell
7th Edition
Version 1 1
,Test Bank For
Fundamentals Of Financial Accounting 7e Fred Phillips, Robert Libby, Patricia Libby, Brandy
Mackintosh
Chapter 1-12 Answers Are At The End Of Each Chapter
Chapter 1
Student Name:
1) Building A New Warehouse Is An Investing Activity.
⊚ True
⊚ False
2) The Payment Of Dividends Is A Financing Activity.
⊚ True
⊚ False
3) Daily Activities Involved In Running A Business Such As Buying Supplies And Paying
Wages Are Operating Activities.
⊚ True
⊚ False
4) Financing Activities Include Borrowing And Obtaining Money By Issuing Shares Of
Ownership (Called Share Certificates).
⊚ True
⊚ False
5) Shareholders Are Creditors Of A Company.
⊚ True
⊚ False
Version 1 2
,6) All Corporations Acquire Financing By Issuing Shares Of Ownership (Called Share
Certificates) For Sale On Public Stock Exchanges.
⊚ True
⊚ False
7) You Paid $10,000 To Buy 1% Of The Shares In A Corporation That Has Now Gone
Bankrupt. The Company Owes $10 Million Dollars To Creditors. As A Result Of The
Bankruptcy, You Will Lose
$100,000.
⊚ True
⊚ False
8) The Shareholders' Equity In A Company Is The Difference Between Assets And Liabilities.
⊚ True
⊚ False
9) A Company Owes $200,000 On A Bank Loan. If This Loan Is Documented Using A Formal
Written Debt Contract, It Will Be Reported As A Liability Called Notes Payable.
⊚ True
⊚ False
10) The Accounting Decisions That Were Made When Preparing A Company's Financial
Statements Are Explained In The Auditor's Report.
⊚ True
⊚ False
11) Under Both Aspe And Ifrs, A Canadian Company Would Report The Data On The
Financial Statements In Canadian Dollars.
⊚ True
⊚ False
Version 1 3
, 12) Sunflower Company
Balance Sheet September
30, 2020
Assets
Cash $1,568,000
Accounts Receivable 310,500
Inventories 208,200
Property, Plant, And Equipment 391,600
Other Assets 869,400
Total Assets $3,347,700
Liabilities
Accounts Payable $1,439,200
Notes Payable ?
Total Liabilities ?
Shareholders ’ Equity
Contributed Capital 1,263,600
Retained Earnings 207,100
Total Shareholders ’ Equity 1,470,700
Total Liabilities And Shareholders ’ Equity $3,347,700
Notes Payable Would Equal $437,800 And Total Liabilities Would Equal $1,877,000 On The
Balance Sheet.
⊚ True
⊚ False
Version 1 4
Fundamentals of Financial Accounting
by Fred Phillips, Shana Clor-Proell
7th Edition
Version 1 1
,Test Bank For
Fundamentals Of Financial Accounting 7e Fred Phillips, Robert Libby, Patricia Libby, Brandy
Mackintosh
Chapter 1-12 Answers Are At The End Of Each Chapter
Chapter 1
Student Name:
1) Building A New Warehouse Is An Investing Activity.
⊚ True
⊚ False
2) The Payment Of Dividends Is A Financing Activity.
⊚ True
⊚ False
3) Daily Activities Involved In Running A Business Such As Buying Supplies And Paying
Wages Are Operating Activities.
⊚ True
⊚ False
4) Financing Activities Include Borrowing And Obtaining Money By Issuing Shares Of
Ownership (Called Share Certificates).
⊚ True
⊚ False
5) Shareholders Are Creditors Of A Company.
⊚ True
⊚ False
Version 1 2
,6) All Corporations Acquire Financing By Issuing Shares Of Ownership (Called Share
Certificates) For Sale On Public Stock Exchanges.
⊚ True
⊚ False
7) You Paid $10,000 To Buy 1% Of The Shares In A Corporation That Has Now Gone
Bankrupt. The Company Owes $10 Million Dollars To Creditors. As A Result Of The
Bankruptcy, You Will Lose
$100,000.
⊚ True
⊚ False
8) The Shareholders' Equity In A Company Is The Difference Between Assets And Liabilities.
⊚ True
⊚ False
9) A Company Owes $200,000 On A Bank Loan. If This Loan Is Documented Using A Formal
Written Debt Contract, It Will Be Reported As A Liability Called Notes Payable.
⊚ True
⊚ False
10) The Accounting Decisions That Were Made When Preparing A Company's Financial
Statements Are Explained In The Auditor's Report.
⊚ True
⊚ False
11) Under Both Aspe And Ifrs, A Canadian Company Would Report The Data On The
Financial Statements In Canadian Dollars.
⊚ True
⊚ False
Version 1 3
, 12) Sunflower Company
Balance Sheet September
30, 2020
Assets
Cash $1,568,000
Accounts Receivable 310,500
Inventories 208,200
Property, Plant, And Equipment 391,600
Other Assets 869,400
Total Assets $3,347,700
Liabilities
Accounts Payable $1,439,200
Notes Payable ?
Total Liabilities ?
Shareholders ’ Equity
Contributed Capital 1,263,600
Retained Earnings 207,100
Total Shareholders ’ Equity 1,470,700
Total Liabilities And Shareholders ’ Equity $3,347,700
Notes Payable Would Equal $437,800 And Total Liabilities Would Equal $1,877,000 On The
Balance Sheet.
⊚ True
⊚ False
Version 1 4
