Exam 2: Financial Statements: a Window on an Entity

During the past year Ascot Company made credit sales of $450,000, cash sales of $275,000, and collected $50,000 of deposits on future orders.What amount should they report as revenue on their income statement?

Which of the following can you find in the notes to the financial statements?

Financial information is relevant for all of the following reasons except:

The bookkeeper at Walin Ltd.has prepared a list of all the property, plant and equipment the company owns, including their original cost to the company and how much has been depreciated to date.Where will this information most likely be included in the company's general purpose financial statements?

Which of the following statements about current liabilities is true?

Which of the following statements about the payment of dividends is true?

Which of the following statements best describes the statement of comprehensive income?

Which of the following correctly describes an expense?

The following is a partial list of accounts and balances for Hatley Hotels Ltd.for the year ended June 30, 2013. Capital stock \ 1,480,000 Other comprehensive income for the year \ 20,000 Dividends declared during the year \ 60,000 Net income for the year \ 600,000 Retained earnings balance July 1, 2012 \ 2,505,400 Accumulated other comprehensive income balance July 1, 2012 \ 250,000 A) Prepare a Statement of Changes in Equity for Hatley for the year ended June 30, 2013. B) Briefly explain the purpose of Other Comprehensive Income

Sam's Snow Removal received $500 at the beginning of the winter to cover the fees for the entire winter for cleaning a customer's driveway while they went to Florida for the season.What is the effect of this transaction on the accounting equation?

Classify each of the following balance sheet items as a current asset, non-current asset, current liability or non-current liability. A) cash B) a 10-year loan owing to a bank C) an amount owing to a supplier due in 30 days D) land purchased for immediate resale by a real estate developer E) a delivery truck

General purpose financial statements include which of the following sets of statements?

Classify each of the following balance sheet items as a current asset, non-current asset, current liability, or non-current liability. A) Dividends declared but not yet paid to shareholders B) Wages owing to employees C) A loan owing to a shareholder that will be repaid in two years D) Land purchased for expansion by a retailer E) An amount owing from a customer due in 15 months

Which of the following is an indirect investment by a shareholder?

Which of the following statements best describes the income statement?

Gifts Galore is a souvenir shop.They have just paid $2,000 for the exclusive rights to sell the latest hot fad "Talking Toads".They estimate the fad should last about six months.They also paid $250,000 to be the exclusive carrier of Olympic souvenirs for the next four years.How would each of these intangible assets be reported on the balance sheet? Talking Olympic Toads Souvenirs A. Current asset Current asset B. Current asset Non-current asset C. Non-current asset Current asset D. Non-current asset Non-current asset

Massawippi Inc.owes a supplier $10,000.They have signed a note payable for the amount, promising to repay it in six months with interest.They also have a loan outstanding that, starting next year, they will repay in annual instalments over the next five years.How would the note payable and the loan be reported on the balance sheet? Note Payable Loan A. Current liability Current liability B. Current liability Non-current liability C. Non-current liability Current liability D. Non-current liability Non-current liability

Wasago is in its first year of operation, and the bookkeeper has prepared the following summary of all of their accounts and balances as at August 31, 2012.Prepare a proper balance sheet for Wasago Corporation. Accounts payable 26,000 Investment by Accounts receivable 36,000 shareholders 25,000 Bank loan, short-term 12,000 Loans made to company Cash 2,000 by shareholders Income tax expense 7,500 Operating expenses 182,500 Income taxes payable 7,500 Office equipment 45,000 Insurance paid in advance 5,000 Sales revenues 212,500 Inventory 30,000

For which of the following ratios would a decrease in the ratio normally imply an improvement in the company's performance?

Financial information does not demonstrate comparability when: