Exam 2: Financial Statements for Decision Making

On 2 January 2014 Fife Corp buys goods from O'Brien and agrees to pay for them within 60 days.On the balance sheet for Fife Corp at 2 January 2014 the amount owing to O'Brien would be reported as:

Which of the following statements is true?

On 1 March Speedy Window Cleaning pays $1200 in cash for the March rent of its business premises.Which of the following is the effect on the accounting equation?

Speedy Window Cleaning paid Southern Cleaning Supplies $1500 which was owed for cleaning supplies previously purchased.Which of the following represents the effect on the accounting equation?

On 31 July 2014 Comfy Heaters sells goods to Barker who agrees to pay for them within 45 days.On the balance sheet of Comfy Heaters at 31 July 2014 the amount owing by Barker would be reported as the asset:

Jane is an accountant operating as a sole proprietor.On 1 February she does some work for a client on credit who she invoices for $120.Which of the following represents the effect of this transaction on the accounting equation?

The statement that explains the changes in equity and serves as a link between the balance sheet and the income statement is which of the following?

The assumption which assumes that the entity will not be liquidated in the near future is the:

Which statement is not true?

Speedy Window Cleaning received $600 for window cleaning services provided.Which of the following represents the effect on the accounting equation?

Speedy Window Cleaning purchased 12 months worth of cleaning supplies on credit from Southern Cleaning Supplies for $1500.Which of the following represents the effect on the accounting equation?

Which of the following statements concerning the cash flow statement is correct?

Assume you are examining a financial statement headed 'As at the 31 December 2014'.The heading indicates the statement is the:

Which of these is not an alternative name for the income statement?

The statement that measures an entity's financial position is the:

Liz,after qualifying at university and having several years' experience decides to set up her own dental practice.On 1 March she deposits $25 000 into a bank account she has opened for the practice.Which of the following represents the effect of this transaction on the accounting equation?

Which of these is not a liability?

If the loss for the period is $15 000 and total income is $115 000,total expenses for the period are:

Jane is an accountant operating as a sole proprietor.In January she purchases for $540 some new furniture for her office.The purchase is made on credit.Which of the following represents the effect of this transaction on the accounting equation?

A balance sheet would normally balance at: