Question 1

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?
A) $400 000
B) $420 000
C) $580 000
D) None of the answers provided

Accepted Answer

The answer of Use the information given below at 30...

Question 2

Use the information given below at 30 June 2016 to answer the following question.

What is the balance of shareholder equity?
A) $200 000
B) $360 000
C) $660 000
D) None of the answers provided

Accepted Answer

The answer of Use the information given below at 30...

Question 3

Given the following information, what is the balance of shareholders' equity?
$
Cash
30 000
Inventory
60 000
Equipment
200 000
Accounts payable
50 000
Taxes payable
40 000
Loans to the company
150 000
A) $40 000
B) $50 000
C) $100 000
D) None of the answers provided

Accepted Answer

The answer of Given the following information, what is the...

Question 4

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?
A) The historical cost assumption
B) The reliability assumption
C) The accounting entity assumption
D) The accounting period assumption

Accepted Answer

The accounting entity assumption requires that the business is treated as a separate entity from its owners or any other organizations. Therefore, the general manager's personal motor vehicle, which is not used in the business, should be excluded from the balance sheet as it is not part of the company's assets.

Question 5

During 2015 a company makes cash sales of $900 000. It pays $300 000 in expenses and owes $90 000 for services it received in 2015 but payable in 2016. It pays $150 000 in dividends. What is the profit for 2015?
A) $360 000
B) $510 000
C) $600 000
D) None of the answers provided

Accepted Answer

The profit for 2015 can be calculated using the formula:

Profit = Revenue - Expenses

Revenue = Cash sales = $900 000
Expenses = $300 000 + $90 000 (services owed but payable in 2016) + $150 000 (dividends) = $540 000

Profit = $900 000 - $540 000 = $360 000

Therefore, the correct answer is B) $510 000.

Question 6

A balance sheet:
A) lists the assets and liabilities at present cash values.
B) shows how the resources of an entity change during a period of time.
C) shows all facts affecting the financial position of the entity.
D) lists the assets, liabilities and owners' equity at a specific point in time.

Accepted Answer

A balance sheet lists the assets, liabilities and owners' equity at a specific point in time, providing a snapshot of the financial position of an entity. It does not show changes over time or all facts affecting the financial position, as those would be covered by other financial statements.

Quiz 1: Introduction to Financial Accounting

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?

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

Given the following information, what is the balance of shareholders' equity? $ Cash 30 000 Inventory 60 000 Equipment 200 000 Accounts payable 50 000 Taxes payable 40 000 Loans to the company 150 000

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?

During 2015 a company makes cash sales of $900 000. It pays $300 000 in expenses and owes $90 000 for services it received in 2015 but payable in 2016. It pays $150 000 in dividends. What is the profit for 2015?

A balance sheet: