Test Bank for Fundamentals Of Financial Accounting 6th Canadian Edition Fred Phillips, Robert Libby, Patricia Libby

TEST BANK FOR
k k


FundamentalskOfkFinancialkAccountingk6CEkFredkPhillips,kRobertkLibby,kPatriciakLibby,kBrandyk
Mackintosh
Chapter 1- k




12 Answers are at the End of Each ChapterChapter 1
k k k k k k k k k k




Student name:
k k


1) Buildingkaknewkwarehousekiskankinvestingkactivity.
⊚k true
⊚k false



2) Thekpaymentkofkdividendskiskakfinancingkactivity.
⊚k true
⊚k false



3) Dailykactivitieskinvolvedkinkrunningkakbusinessksuchkaskbuyingksupplieskandkpayingkwageskareko
peratingkactivities.
⊚k true
⊚k false



4) Financingkactivitieskincludekborrowingkandkobtainingkmoneykbykissuingkshareskofkownershipk(
calledksharekcertificates).
⊚k true
⊚k false



5) Shareholderskarekcreditorskofkakcompany.
⊚k true
⊚k false




Versionk1 1

,6) Allkcorporationskacquirekfinancingkbykissuingkshareskofkownershipk(calledksharekcertificates)kf
orksalekonkpublickstockkexchanges.
⊚k true
⊚k false



7) Youkpaidk$10,000ktokbuyk1%kofkthekshareskinkakcorporationkthatkhasknowkgonekbankrupt.kThekc
ompanykowesk$10kmillionkdollarsktokcreditors.kAskakresultkofkthekbankruptcy,kyoukwillklose
$100,000.
⊚k true
⊚k false



8) Thekshareholders'kequitykinkakcompanykiskthekdifferencekbetweenkassetskandkliabilities.
⊚k true
⊚k false



9) Akcompanykowesk$200,000konkakbankkloan.kIfkthiskloankiskdocumentedkusingkakformalkwrittenkd
ebtkcontract,kitkwillkbekreportedkaskakliabilitykcalledkNoteskPayable.
⊚k true
⊚k false



10) Thekaccountingkdecisionskthatkwerekmadekwhenkpreparingkakcompany'skfinancialkstatementska
rekexplainedkinkthekauditor'skreport.
⊚k true
⊚k false



11) UnderkbothkASPEkandkIFRS,kakCanadiankcompanykwouldkreportkthekdatakonkthekfinancialks
tatementskinkCanadiankdollars.
⊚k true
⊚k false




Versionk1 2

,12) SUNFLOWERkCOMPANYk
BALANCEkSHEETkSEPT
EMBERk30,k2020
Assets

Cash $1,568,000
AccountskReceivable 310,500
Inventories 208,200
Property,kPlant,kandkEquipment 391,600
OtherkAssets 869,400
TotalkAssets $3,347,700
Liabilities

AccountskPayable $1,439,200
NoteskPayable ?
TotalkLiabilities ?
Shareholdersk ’kEquity

ContributedkCapital 1,263,600
RetainedkEarnings 207,100
TotalkShareholdersk ’kEquity 1,470,700
TotalkLiabilitieskandkshareholdersk ’kEquity $3,347,700


NoteskPayablekwouldkequalk$437,800kandkTotalkLiabilitieskwouldkequalk$1,877,000konkthek
BalancekSheet.
⊚k true
⊚k false




Versionk1 3

, 13) CACTUSkCOMPANYk
BALANCEkSHEETkSE
PTEMBERk30,k2020
Assets

Cash $1,568,000
AccountskReceivable 310,500
Inventories 208,200
Property,kPlant,kandkEquipment 391,600
OtherkAssets 869,400
TotalkAssets $3,347,700
Liabilities

AccountskPayable $1,439,200
NoteskPayable ?
TotalkLiabilities ?
Shareholdersk ’kEquity

ContributedkCapital 1,263,600
RetainedkEarnings 207,100
TotalkShareholdersk ’kEquity 1,470,700
TotalkLiabilitieskandkshareholdersk ’kEquity $3,347,700


Thek$207,100kshownkonkthekBalancekSheetkhaskbeenkdistributedktokshareholderskaskdividends.
⊚k true
⊚k false




Versionk1 4