Exam 1: Introduction to Financial Accounting

During 2016,a company makes credit sales of $600 000,of which $350 000 is collected at year-end.It pays $220 000 in expenses and owes $20 000 for electricity used during 2016.What would the profit be if cash accounting rather than accrual accounting were used?

The owner of a corner store keeps separate private and business transactions.To which financial statement assumption does this relate?

Which financial statement assumption relates to the procedure where a $200 paper shredder with a five-year useful life is treated as an expense?

Use the information given below at 30 June 2016 to answer the following question. -What is the balance of shareholder equity?

Which of the following use accounting information? 1)Shareholders 2)Banks 3)Trade unions

Use the information given below at 30 June 2016 to answer the following question. - What is the balance of total assets at 30 June 2016?

Which of the following is NOT an asset?

Which type of information would be of most interest to shareholders?

ABC is a company that commenced business on 1 January 2016.Below are the balances in the 30 June 2016 financial statements. - What is the balance of liabilities?

A company's assets are differentiated from the senior manager's.What assumption/concept underlies this procedure?

Financial performance means:

Which of the following is NOT shown in the heading of the balance sheet?

Which type of information would be of most interest to trade creditors?

During 2016,a company makes credit sales of $500 000,of which $375 000 is collected at year-end.It pays $200 000 in expenses and owes $25 000 for electricity used during 2016.What would the profit be if cash accounting rather than accrual accounting was used?

Which of the following statements about shareholders' equity is NOT true?

Which of the following statements about external company auditors is NOT true?

Which of the following statements about an income statement is NOT true?

What is the net profit for 2016 given the following information?

The Great Drink Company,in preparing its balance sheet,excludes the general manager's personal motor vehicle (not used in the business)because of which of the following accounting assumption?

The life of a business is divided into equal periods to determine profit or loss for that period.What assumption/concept underlies this procedure?