Answer Key Ready | Accounting Self-Test Solutions & Answers

Accounting for Managers, 1st Canadian Edition 1e
Paul Collier Sandy Kizan Eckhard Schumann
(Answer Key For Self-Test Questions, All Chapters,
100% Original Verified, A+ Grade)

Chapter 1

Answer Key for Self-Test Questions



S1.1 d

S1.2 c

S1.3 e

S1.4 b

S1.5 e

S1.6 c

S1.7 c

S1.8 c

S1.9 b

Chapter 2

Answer Key for Self-Test Questions

,Collier, Accounting for Managers, 1ce
S2.1 a

S2.2 b

S2.3 b

S2.4 d

S2.5 d

S2.6 a

, Collier, Accounting for Managers, 1ce



Chapter

Answer Key for Self-Test Questions
3




S3.1 c
S3.2 d
S3.3 d
S3.4 c
S3.5 a • cash = $15,000 + $25,000 = $40,000
• profit = $50,000 – $35,000 = $15,000
S3.6 b • profit = $150,000 – $80,000 – $30,000 – $12,000 – $8,000 = $20,000
• cash = $100,000 – $90,000 + $150,000 – $30,000 – $12,000 – $8,000 =
$100,000.
• equity = $100,000
S3.7 c assets = liabilities + equity
$600,000 = $500,000 + equity
Thus, equity = $100,000
S3.8 c
S3.9 d
S3.10 b • profit = $100,000 – $35,000 – $15,000 – $4,000 – $8,000 = $38,000
• cash = $100,000 – $35,000 – $15,000 – $4,000 – $8,000 + $25,000 – $30,000 = $33,000

• shareholders’ equity = share capital + retained earnings (which equals profit in first year of business) = $25,000 +
$38,000 = $63,000

, Collier, Accounting for Managers, 1ce
S3.11 b Recall that shareholders’ equity = share capital + retained earnings Using the

basic accounting equation:

assets = liabilities + shareholders’ equity assets =

liabilities + (share capital + retained earnings) $240,000 = $125,000 + (share

capital + ($80,000 – $35,000))

share capital = $70,000

Thus, total capital (equity) = $70,000 + $45,000 = $115,000 S3.12 c