Exam 1: An Introduction to Accounting

Classify each of these items as : -Share capital

Use the following accounts and information to prepare an income statement, a statement of changes in equity, and a statement of financial position for Lazares Services Ltd for the month ended 31 July 2018.

Which of the following statements is false?

The directors of Tomas Sanchez Ltd were reviewing the company business activities at the end of the year (2018) and decided to prepare a Statement of Changes in Equity. At the beginning of the year company assets were $500,000, liabilities were $150,000, and share capital was $100,000. Profit for the year was $420,000. Dividends paid of $220,000 were paid during the year. Prepare a Statement of Changes in Equity for Tomas Sanchez Ltd.

Select whether each item would appear on : -Accounts Receivable

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

Select whether each item would appear on : -Share Capital

What are the qualitative characteristics that enhance the decision usefulness of relevant information faithfully represented in financial statements?

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

Prepare an income statement, statement of changes in equity, and a statement of financial position for the dental practice of Jerry Cole, from the items listed below for the month of October 2018.

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

Johnny's Car Repairs had total assets of $60,000 and total liabilities of $40,000 at the beginning of the year. During the year the business recorded $100,000 in revenues, $55,000 in expenses, and dividends of $10,000 were distributed. Profit reported by Johnny's Car Repairs for the year was:

Select whether each item would appear on : -Cash

Select whether each item would appear on : -Service Revenue

A company's reviews of operations, dividend details and information about important events after the date of the financial statements are all found in the:

On 1 June 2018, Lewis Company Ltd prepared a Statement of Financial Position that shows the following: Shortly thereafter, all of the assets were sold for cash. How would the statement of financial position appear immediately after the sale of the assets for cash for each of the following cases?

Select the basic assumptions and principles underlying financial statements. -Assets should be recorded at their cost.

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

The purpose of financial reports is to:

Presented below are the qualitative characteristics of information contained in general-purpose financial reports. a. relevance b. reliability c. comparability d. understandability Identify the qualitative characteristic that fits the statement below: -Information that can be depended on and without undue error is said to be _________.