,ACCESS Test Bank for Financial Accounting 8th Canadian Edition Libby
c c c c c c c c c
Financial Accounting Edition 8 by Libby
c c c c c
CORRECT ANSWERS ARE LOCATED IN THE 2ND HALF OF THIS DOC.
c c c c c c c c c c
TRUE/FALSE c-cWritec'T'cif cthecstatementcisctruecandc'F'cif cthecstatementciscfalse.
1) Accountingciscacsystemcthat ccollectscand cprocessescfinancialcinformationcabout canco
rganizationcand creportscthat cinformationctocdecisioncmakers.
⊚c true
⊚c false
2) Externalcuserscof caccountingcinformationcincludecthecmanagerscwhocplan,corganize,cand cruncacb
usiness.
⊚c true
⊚c false
3) Incaccountingcand creportingcforcacbusinesscentity,cthecaccountingcand creportingcforcthecb
usinesscmust cbeckept cseparatecfromcotherceconomiccaffairscof citscowners.
⊚c true
⊚c false
4) Accountingccommunicatescfinancialcinformationcabout cacbusinessctocbothcinternalcand ce
xternalcusers.
⊚c true
⊚c false
5) A cstatement cof cfinancialcpositioncshould cbecdatedcforcacperiod c(suchcasc"Forcthecyearcended cD
ecemberc31,c20X1"),cwhereascacstatement cof cearningscshould cbecdated cat cacpoint cinctimec(suc
hcasc"At cDecemberc31,c20X1").
⊚c true
⊚c false
6) Expensescarectheccost cof cassetscconsumed corcservicescused cincthecprocesscof cgeneratingcre
venue.
⊚c true
⊚c false
7) Generallycspeaking,cacfinanciallycsuccessfulcbusinesscwillchavecpositiveccashcflowscfromco
peratingcactivities.
⊚c true
⊚c false
Versionc1 1
mynursytest.store
,ACCESS Test Bank for Financial Accounting 8th Canadian Edition Libby
c c c c c c c c c
Financial Accounting Edition 8 by Libby
c c c c c
8) Thecissuancecof cadditionalccommoncsharesciscacfinancingcactivitycthat cgeneratescpositiveccashcfl
owctocthecfirm.
⊚c true
⊚c false
9) Borrowingcmoneycand cissuingcsharescarecexamplescof cfinancingcactivities
⊚c true
⊚c false
10) Totalcassetscarec$60,000,ctotalcliabilities,c$30,000,cand cshareccapitalcisc$20,000;ctherefore,cre
tained cearningscisc$5,000.
⊚c true
⊚c false
11) Investingcactivitiescinvolveccollectingcthecnecessarycfundsctocoperatecthecbusiness.
⊚c true
⊚c false
12) Thecpurchasecof cequipment ciscancexamplecof cacfinancingcactivity.
⊚c true
⊚c false
13) Thecreasonscforcacdecreasecinccashccancbecdetermined cbycexaminingcthecstatement cof cearnings.
⊚c true
⊚c false
14) Economiccresourcescthat carecowned cbycacbusinesscareccalled cshareholders'cequity.
⊚c true
⊚c false
15) Thecaccountingcmodelcforcthecstatement cof cfinancialcpositioncis:cAssetsc+cLiabilitiesc-
Shareholders'cEquity.
c
⊚c true
⊚c false
16) Assetscarecresourcescowned cbycacbusinesscthat cprovideccurrent cservicescorcbenefitsctocthecb
usiness.
⊚c true
⊚c false
Versionc1 2
mynursytest.store
, ACCESS Test Bank for Financial Accounting 8th Canadian Edition Libby
c c c c c c c c c
Financial Accounting Edition 8 by Libby
c c c c c
17) Profit ciscthecexcesscof ctotalcrevenuescoverctotalcexpensescincurred ctocgeneratecrevenuecduringcac
specificcperiod.
⊚c true
⊚c false
18) Thecfinancialcstatementscprepared cbycaccorporationcincludecacstatement cof cfinancialcposition,cst
atement cof cearnings,cstatement cof ccashcflows,cand cstatement cof cmoney.
⊚c true
⊚c false
19) A cbankercwhociscconsideringcmakingcacloanctocaccorporationcwould cbeconecof cthecco
rporation'scinternalcdecisioncmakers.
⊚c true
⊚c false
20) Assetscarececonomiccresourcesccontrolled cbycthecentitycascacresult cof cpast ctransactionscorce
ventscand cfromcwhichcfuturececonomiccbenefitsccancbecobtained.
⊚c true
⊚c false
21) Thecfinancialcstatement cthat cshowscancentity'sceconomiccresourcescand citscliabilitiesciscthecst
atement cof cretained cearnings.
⊚c true
⊚c false
22) Thecstatement cof ccomprehensivecincomecreportscthecchangecincshareholders'cequitycduringcacp
eriod cfromcbusinesscactivitiescothercthancinvestmentscbycshareholderscorcdistributionsctocshare
holders.
⊚c true
⊚c false
23) A cnotecpayableciscacborrowingcinstrument cthat cgenerallycdoescnot cinvolvecthecpayment cof cin
terest.
⊚c true
⊚c false
24) If caccorporationcdoescnot cpaycitscobligationscwhenctheycarecdue,citsccreditorscmaycbecablectocfo
rcecthecsalecof cthecbusiness'scassetsctocpayctheircclaims.
⊚c true
⊚c false
Versionc1 3
mynursytest.store
c c c c c c c c c
Financial Accounting Edition 8 by Libby
c c c c c
CORRECT ANSWERS ARE LOCATED IN THE 2ND HALF OF THIS DOC.
c c c c c c c c c c
TRUE/FALSE c-cWritec'T'cif cthecstatementcisctruecandc'F'cif cthecstatementciscfalse.
1) Accountingciscacsystemcthat ccollectscand cprocessescfinancialcinformationcabout canco
rganizationcand creportscthat cinformationctocdecisioncmakers.
⊚c true
⊚c false
2) Externalcuserscof caccountingcinformationcincludecthecmanagerscwhocplan,corganize,cand cruncacb
usiness.
⊚c true
⊚c false
3) Incaccountingcand creportingcforcacbusinesscentity,cthecaccountingcand creportingcforcthecb
usinesscmust cbeckept cseparatecfromcotherceconomiccaffairscof citscowners.
⊚c true
⊚c false
4) Accountingccommunicatescfinancialcinformationcabout cacbusinessctocbothcinternalcand ce
xternalcusers.
⊚c true
⊚c false
5) A cstatement cof cfinancialcpositioncshould cbecdatedcforcacperiod c(suchcasc"Forcthecyearcended cD
ecemberc31,c20X1"),cwhereascacstatement cof cearningscshould cbecdated cat cacpoint cinctimec(suc
hcasc"At cDecemberc31,c20X1").
⊚c true
⊚c false
6) Expensescarectheccost cof cassetscconsumed corcservicescused cincthecprocesscof cgeneratingcre
venue.
⊚c true
⊚c false
7) Generallycspeaking,cacfinanciallycsuccessfulcbusinesscwillchavecpositiveccashcflowscfromco
peratingcactivities.
⊚c true
⊚c false
Versionc1 1
mynursytest.store
,ACCESS Test Bank for Financial Accounting 8th Canadian Edition Libby
c c c c c c c c c
Financial Accounting Edition 8 by Libby
c c c c c
8) Thecissuancecof cadditionalccommoncsharesciscacfinancingcactivitycthat cgeneratescpositiveccashcfl
owctocthecfirm.
⊚c true
⊚c false
9) Borrowingcmoneycand cissuingcsharescarecexamplescof cfinancingcactivities
⊚c true
⊚c false
10) Totalcassetscarec$60,000,ctotalcliabilities,c$30,000,cand cshareccapitalcisc$20,000;ctherefore,cre
tained cearningscisc$5,000.
⊚c true
⊚c false
11) Investingcactivitiescinvolveccollectingcthecnecessarycfundsctocoperatecthecbusiness.
⊚c true
⊚c false
12) Thecpurchasecof cequipment ciscancexamplecof cacfinancingcactivity.
⊚c true
⊚c false
13) Thecreasonscforcacdecreasecinccashccancbecdetermined cbycexaminingcthecstatement cof cearnings.
⊚c true
⊚c false
14) Economiccresourcescthat carecowned cbycacbusinesscareccalled cshareholders'cequity.
⊚c true
⊚c false
15) Thecaccountingcmodelcforcthecstatement cof cfinancialcpositioncis:cAssetsc+cLiabilitiesc-
Shareholders'cEquity.
c
⊚c true
⊚c false
16) Assetscarecresourcescowned cbycacbusinesscthat cprovideccurrent cservicescorcbenefitsctocthecb
usiness.
⊚c true
⊚c false
Versionc1 2
mynursytest.store
, ACCESS Test Bank for Financial Accounting 8th Canadian Edition Libby
c c c c c c c c c
Financial Accounting Edition 8 by Libby
c c c c c
17) Profit ciscthecexcesscof ctotalcrevenuescoverctotalcexpensescincurred ctocgeneratecrevenuecduringcac
specificcperiod.
⊚c true
⊚c false
18) Thecfinancialcstatementscprepared cbycaccorporationcincludecacstatement cof cfinancialcposition,cst
atement cof cearnings,cstatement cof ccashcflows,cand cstatement cof cmoney.
⊚c true
⊚c false
19) A cbankercwhociscconsideringcmakingcacloanctocaccorporationcwould cbeconecof cthecco
rporation'scinternalcdecisioncmakers.
⊚c true
⊚c false
20) Assetscarececonomiccresourcesccontrolled cbycthecentitycascacresult cof cpast ctransactionscorce
ventscand cfromcwhichcfuturececonomiccbenefitsccancbecobtained.
⊚c true
⊚c false
21) Thecfinancialcstatement cthat cshowscancentity'sceconomiccresourcescand citscliabilitiesciscthecst
atement cof cretained cearnings.
⊚c true
⊚c false
22) Thecstatement cof ccomprehensivecincomecreportscthecchangecincshareholders'cequitycduringcacp
eriod cfromcbusinesscactivitiescothercthancinvestmentscbycshareholderscorcdistributionsctocshare
holders.
⊚c true
⊚c false
23) A cnotecpayableciscacborrowingcinstrument cthat cgenerallycdoescnot cinvolvecthecpayment cof cin
terest.
⊚c true
⊚c false
24) If caccorporationcdoescnot cpaycitscobligationscwhenctheycarecdue,citsccreditorscmaycbecablectocfo
rcecthecsalecof cthecbusiness'scassetsctocpayctheircclaims.
⊚c true
⊚c false
Versionc1 3
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