Question 1

Select the basic assumptions and principles underlying financial statements.
-The economic life of a business can be divided into artificial time periods.

Accepted Answer

A)  Cost principle 
B)  Accounting entity concept 
C)  Full disclosure principle 
D)  Going concern principle 
E)  Monetary principle
F) Accounting period concept 
A)  Cost principle 
B)  Accounting entity concept 
C)  Full disclosure principle 
D)  Going concern principle 
E)  Monetary principle
F) Accounting period concept F

Question 2

Which of the following user groups is an internal user of accounting information for the XYZ Company Ltd?

Accepted Answer

A)  auditors from the Australian Taxation Office. 
B)  management of XYZ Company. 
C)  creditors of XYZ Company. 
D)  customers of XYZ Company. 
A)  auditors from the Australian Taxation Office. 
B)  management of XYZ Company. 
C)  creditors of XYZ Company. 
D)  customers of XYZ Company. B

Question 3

Classify each of these items as :
-Loan Payable

Accepted Answer

A)  Asset (
A)  
B)  Liability (L) 
C)  Equity (
E) . 
A)  Asset (
A)  
B)  Liability (L) 
C)  Equity (
E) . B

Question 4

Complete the following statements:
-If different entities use the same accounting principle, the financial reports of those entities are _________________.

Accepted Answer

The answer of Complete the following statements:
-If different entities use...

Question 5

For the items listed , select the appropriate code letter whether the item is :
-Loan Payable

Accepted Answer

A)  Asset (
A)  
B)  Liability(L) 
C)  Equity item (
E)  
A)  Asset (
A)  
B)  Liability(L) 
C)  Equity item (
E)

Question 6

Match the items by selecting the appropriate code letter :
-Ownership is limited to one person.

Accepted Answer

A)  Internal users 
B)  Directors' report 
C)  Annual report 
D)  Sole trader 
E)  Timeliness
F) Australian Securities Exchange
G) Assets
H) Liabilities
I) Expenses
J) Retained earnings 
A)  Internal users 
B)  Directors' report 
C)  Annual report 
D)  Sole trader 
E)  Timeliness
F) Australian Securities Exchange
G) Assets
H) Liabilities
I) Expenses
J) Retained earnings

Question 7

Liquidity ratios measure:

Accepted Answer

A)  the ability of a company to pay its obligations that are due within the next year or operating cycle. 
B)  the operating success of a company for a period of time. 
C)  the ability of a company to survive over a long time. 
D)  the extent to which a company's assets are financed by debt. 
A)  the ability of a company to pay its obligations that are due within the next year or operating cycle. 
B)  the operating success of a company for a period of time. 
C)  the ability of a company to survive over a long time. 
D)  the extent to which a company's assets are financed by debt.

Question 8

Classify each of these items as :
-Accounts payable

Accepted Answer

A)  Asset (
A)  
B)  Liability (L) 
C)  Equity (
E) . 
A)  Asset (
A)  
B)  Liability (L) 
C)  Equity (
E) .

Question 9

Classify each of these items as :
-Office Supplies

Accepted Answer

A)  Asset (
A)  
B)  Liability (L) 
C)  Equity (
E) . 
A)  Asset (
A)  
B)  Liability (L) 
C)  Equity (
E) .

Question 10

Select whether each item would appear on the statement of cash flows as :
-Cash receipts from customers.

Accepted Answer

A) (O) operating activity 
B) (I) investing activity 
C) (F) financing activity 
A) (O) operating activity 
B) (I) investing activity 
C) (F) financing activity

Question 11

Complete the following statements:
-The claim of owners on the assets of a business is known as ________________.

Accepted Answer

The answer of Complete the following statements:
-The claim of owners...

Question 12

At the beginning of the year, Wise Company Ltd had total assets of $700,000 and total liabilities of $300,000.
1. If total assets increased $225,000 during the year, and total liabilities decreased $100,000, what is the amount of equity at the end of the year?
2. During the year, total liabilities increased $315,000 and Equity decreased $130,000. What is the amount of total assets at the end of the year?
3. If total assets decreased $60,000 and Equity increased $180,000 during the year, what is the amount of total liabilities at the end of the year?

Accepted Answer

The answer of At the beginning of the year, Wise...

Question 13

Match the items by selecting the appropriate code letter :
-A section of the annual report that presents management's views.

Accepted Answer

A)  Internal users 
B)  Directors' report 
C)  Annual report 
D)  Sole trader 
E)  Timeliness
F) Australian Securities Exchange
G) Assets
H) Liabilities
I) Expenses
J) Retained earnings 
A)  Internal users 
B)  Directors' report 
C)  Annual report 
D)  Sole trader 
E)  Timeliness
F) Australian Securities Exchange
G) Assets
H) Liabilities
I) Expenses
J) Retained earnings

Question 14

Categories usually found on the face of a classified statement of financial position include:

Accepted Answer

A)  assets, liabilities, equity. 
B)  revenues, expenses, profit. 
C)  cash receipts, cash payments. 
D)  retained earnings dividends. 
A)  assets, liabilities, equity. 
B)  revenues, expenses, profit. 
C)  cash receipts, cash payments. 
D)  retained earnings dividends.

Question 15

Select whether each item would appear on the statement of cash flows as :
-Issuing shares for cash.

Accepted Answer

A) (O) operating activity 
B) (I) investing activity 
C) (F) financing activity 
A) (O) operating activity 
B) (I) investing activity 
C) (F) financing activity

Question 16

Classify each of these items as :
-Equipment

Accepted Answer

A)  Asset (
A)  
B)  Liability (L) 
C)  Equity (
E) . 
A)  Asset (
A)  
B)  Liability (L) 
C)  Equity (
E) .

Question 17

Select whether each item would appear on :
-Office Supplies

Accepted Answer

A)  Income Statement (IS) 
B) Statement of Financial Position (SFP) 
C) Statement of Changes in Equity (SC
E)  
A)  Income Statement (IS) 
B) Statement of Financial Position (SFP) 
C) Statement of Changes in Equity (SC
E)

Question 18

At 1 September 2018, the Statement of Financial Position for Arnold's Restaurant Ltd contained the following items:
   The following transactions occurred during the next two days: shareholders invested an additional $22,000 cash in the business and accounts payable were paid in full. Prepare a statement of financial position for Arnold's Restaurant Ltd at 3 September 2018.

Accepted Answer

The answer of At 1 September 2018, the Statement of...

Question 19

For the items listed , select the appropriate code letter whether the item is :
-Cash

Accepted Answer

A)  Asset (
A)  
B)  Liability(L) 
C)  Equity item (
E)  
A)  Asset (
A)  
B)  Liability(L) 
C)  Equity item (
E)

Question 20

A debt to total assets ratio of 80%:

Accepted Answer

A)  means that 20% of investment in assets has been provided by lenders. 
B)  is undesirable for creditors . 
C)  is desirable for creditors. 
D)  is likely to be supported by cyclical entities that have fluctuating profits, such as many high-tech companies. 
A)  means that 20% of investment in assets has been provided by lenders. 
B)  is undesirable for creditors . 
C)  is desirable for creditors. 
D)  is likely to be supported by cyclical entities that have fluctuating profits, such as many high-tech companies.

Select the basic assumptions and principles underlying financial statements. -The economic life of a business can be divided into artificial time periods.

Which of the following user groups is an internal user of accounting information for the XYZ Company Ltd?

Classify each of these items as : -Loan Payable

Complete the following statements: -If different entities use the same accounting principle, the financial reports of those entities are _________________.

For the items listed , select the appropriate code letter whether the item is : -Loan Payable

Match the items by selecting the appropriate code letter : -Ownership is limited to one person.

Liquidity ratios measure:

Classify each of these items as : -Accounts payable

Classify each of these items as : -Office Supplies

Select whether each item would appear on the statement of cash flows as : -Cash receipts from customers.

Complete the following statements: -The claim of owners on the assets of a business is known as ________________.

Match the items by selecting the appropriate code letter : -A section of the annual report that presents management's views.

Categories usually found on the face of a classified statement of financial position include:

Select whether each item would appear on the statement of cash flows as : -Issuing shares for cash.

Classify each of these items as : -Equipment

Select whether each item would appear on : -Office Supplies

For the items listed , select the appropriate code letter whether the item is : -Cash

A debt to total assets ratio of 80%:

The Recording Process

Accrual Accounting Concepts

Inventories

Reporting and Analysing Inventory

Accounting Information Systems

Reporting and Analysing Cash and Receivables

Reporting and Analysing Non-Current Assets

Reporting and Analysing Liabilities

Reporting and Analysing Equity

Statement of Cash Flows

Financial Statement Analysis and Decision Making

Analysing and Integrating Gaap

Technology Concepts

Introduction to Management Accounting

Cost Accounting Systems

Costvolumeprofit Relationships

Budgeting

Filters

Exam 1: An Introduction to Accounting

Select the basic assumptions and principles underlying financial statements. -The economic life of a business can be divided into artificial time periods.

Which of the following user groups is an internal user of accounting information for the XYZ Company Ltd?

Classify each of these items as : -Loan Payable

Complete the following statements: -If different entities use the same accounting principle, the financial reports of those entities are _________________.

For the items listed , select the appropriate code letter whether the item is : -Loan Payable

Match the items by selecting the appropriate code letter : -Ownership is limited to one person.

Liquidity ratios measure:

Classify each of these items as : -Accounts payable

Classify each of these items as : -Office Supplies

Select whether each item would appear on the statement of cash flows as : -Cash receipts from customers.

Complete the following statements: -The claim of owners on the assets of a business is known as ________________.

Match the items by selecting the appropriate code letter : -A section of the annual report that presents management's views.

Categories usually found on the face of a classified statement of financial position include:

Select whether each item would appear on the statement of cash flows as : -Issuing shares for cash.

Classify each of these items as : -Equipment

Select whether each item would appear on : -Office Supplies

For the items listed , select the appropriate code letter whether the item is : -Cash

A debt to total assets ratio of 80%:

The Recording Process

Accrual Accounting Concepts

Inventories

Reporting and Analysing Inventory

Accounting Information Systems

Reporting and Analysing Cash and Receivables

Reporting and Analysing Non-Current Assets

Reporting and Analysing Liabilities

Reporting and Analysing Equity

Statement of Cash Flows

Financial Statement Analysis and Decision Making

Analysing and Integrating Gaap

Technology Concepts

Introduction to Management Accounting

Cost Accounting Systems

Costvolumeprofit Relationships

Budgeting

Filters