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
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
