TEST BANK For Fundamental Financial Accounting Concepts, 11th Edition by Thomas Edmonds, Christopher Edmonds, All Chapters Complete Newest Version (100% Verified)

Test Bank for Fundamental Financial Accounting Concepts
11th Edition
by Thomas Edmonds, Philip Olds, Christopher Edmonds

,Studentdname:
1) Indicatedwhetherdeachdofdthedfollowingdstatementsdaboutdmarketsdisdtruedordfalse.
a)dFinancialdresourcesdcandbedprovideddtodadbusinessdbydinvestors.
b)dResourcedownersdaredthedbusinessesdthatdtransformdresourcesdintodproductsdthat
dsatisfydconsumerddesires.

c)dLabordresourcesdincludedbothdthedphysicaldanddintellectualdlabordofdadbusiness's
demployees.

d)dBusinessesdpurchasedtheirdresourcesdfromdresourcedowners.
e)dConsumersdaredthedmaindprovidersdofdresourcesdindanydmarket.




2) Indicatedwhetherdeachdofdthedfollowingdstatementsdaboutdaccountingdinformationdisdtruedor
dfalse.




a)dFinancialdaccountingdisdprimarilydintendeddtodsatisfydthedinformationdneedsdof
dinternaldstakeholders.

b)dManagerialdaccountingdinformationdincludesdfinancialdanddnonfinancial
dinformation.

c)dThedaccountingdinformationdintendeddtodsatisfydthedneedsdofdadcompany's
demployeesdisdmanagerialdaccountingdinformation.

d)dGAAPdrequiresdthatdcompaniesdadheredtodfinancialdaccountingdstandards.
e)dManagerialdaccountingdinformationdisdusuallydlessddetaileddthandfinancial
daccountingdinformation.




3) Indicatedwhetherdeachdofdthedfollowingdstatementsdaboutdliabilitiesdisdtruedordfalse.

a)dAdnetdlossdondthedincomedstatementddecreasesdliabilities.
b)dThedacquisitiondofdadbankdloandincreasesdbothdassetsdanddliabilities.
c)dThedaccountingdequationdrequiresdthatdliabilitiesdbedequaldtodstockholders’dequity.
d)dThedamountdofdadcompany'sdliabilitiesdisdequaldtodtheddifferencedbetweenditsdassets
dandditsdstockholders’dequity.

e)dLiabilitiesdaredreporteddondthedstatementdofdcashdflowsdofdadbusiness.

,4) Indicatedwhetherdeachdofdthedfollowingdstatementsdaboutdretaineddearningsdisdtruedordfalse.

a)dAddividenddpaiddtodstockholdersddecreasesdretaineddearnings.
b)dIssuingdcommondstockdfordcashdincreasesdretaineddearnings.
c)dThedamountdofdnetdincomedfordadperioddmustdequaldretaineddearnings.
d)dThedpurchasedofdadtruckddecreasesdretaineddearnings.
e)dNetdincomedincreasesdretaineddearnings.


5) Indicatedwhetherdeachdofdthedfollowingdstatementsdaboutdthedtypesdofdtransactionsdisdtrue
dordfalse.




a)dAndassetdsourcedtransactiondincreasesdtotaldassetsdanddincreasesdclaimsdtodassets.
b)dThedissuancedofdstockdtodownersdfordcashdwoulddbedandexampledofdandasset
dexchangedtransaction.

c)dPurchasingdequipmentdfordcashdisdandexampledofdandassetdusedtransaction.
d)dPayingdaddividenddtodstockholdersdisdandexampledofdandassetdusedtransaction.
e)dMakingdadpaymentdondadbankdloandisdandexampledofdandassetdexchangedtransaction.




6) Indicatedwhetherdeachdofdthedfollowingdstatementsdaboutdfinancialdstatementsdisdtruedor
dfalse.




a)dAdcashddividenddpaiddtodstockholdersdisdreporteddindthedinvestingdactivitiesdsection
dofdthedstatementdofdcashdflows.

b)dAdcashddividenddpaiddtodstockholdersdisdreporteddondthedstatementdofdchangesdin
dstockholders'dequity.

c)dAdcashddividenddpaiddtodstockholdersdisdreporteddondthedincomedstatement.
d)dThedbalancedsheetdreportsdthedendingdbalancesdofdpermanentdaccountsdasdofdthedlast
ddaydofdthedaccountingdperiod.

e)dChangesdindretaineddearningsdduringdthedaccountingdperioddaredreporteddondthe
dincomedstatement.

, 7) Indicatedwhetherdeachdofdthedfollowingdstatementsdaboutdstockholders’dequitydisdtruedor
dfalse.




a)dExpensesddecreasedretaineddearnings.
b)dStockholders'dequitydanddliabilitiesdcandbedvieweddeitherdasdsourcesdofdassetsdor
dclaimsdtodassetsdofdthedbusiness.

c)dRetaineddearningsdisdincreaseddbydloansdreceiveddfromdadbank.
d)dDividendsdpaiddtodstockholdersddecreasedcommondstock.
e)dGenerally,dassetsdaredreporteddatdthedactualdpricedpaiddfordthemdwhendpurchased
dregardlessdofdsubsequentdchangesdindmarketdvalue.




8) JessupdCompanydwasdfoundeddindYeard1.dItdacquiredd$45,000dcashdbydissuingdstockdtodin
vestorsdanddandadditionald$15,000dcashdbydborrowingdfromdcreditors.dDuringdYeard1ditdreceived
$25,000dcashdrevenuesdanddpaidd$32,000dindcashdexpenses.dThedcompanydthendwentdoutdofdbu
siness.
Required:
a) Explaindthedterm,d"businessdliquidation."
b) WhatdamountdofdcashdshoulddJessupdCompanydhavedhaddondhanddimmediatelydbeforedgoing
doutdofdbusiness?

c) WhatdamountdofdcashdwilldJessup'sdcreditorsdreceive?
d) WhatdamountdofdcashdwilldJessup'sdstockholdersdreceive?


9) BatesdCompanydentereddintodthedfollowingdtransactionsdduringditsdfirstdyeardindbusiness.
dAssumedthatdalldtransactionsdinvolvedthedreceiptdordpaymentdofdcash.




1) Issueddcommondstockdtodinvestorsdford$25,000dcash.
2) Borrowedd$18,000dfromdthedlocaldbank.
3) Provideddservicesdtodcustomersdford$28,000.
4) Paiddexpensesdamountingdtod$21,400.
5) Purchaseddadplotdofdlanddcostingd$22,000.
6) Paiddaddividenddofd$15,000dtoditsdstockholders.
7) Repaidd$12,000dofdthedloandlisteddinditemd2.
Required:
(a) Filldindthedthreedcolumndheadingsdofdthedaccountingdequationdindthedfirstdrowdofdthedtable
dshowndbelow.

(b) Showdthedeffectsdofdthedabovedtransactionsdondthedaccountingdequation.