TEST BANK FOR
m m
FundamentalsmOf mFinancialmAccountingm6CEmFred mPhillips,mRobert mLibby,mPatriciamLibby,mBrandym
Mackintosh
Chapter 1- m
12 Answers are at the End of Each Chapter Chapter 1
m m m m m m m m m m
Student name:
m
1) Buildingmamnew mwarehousemismanminvestingmactivity.
⊚m true
⊚m false
2) Thempayment mof mdividendsmismamfinancingmactivity.
⊚m true
⊚m false
3) Dailymactivitiesminvolved minmrunningmambusinessmsuchmasmbuyingmsuppliesmand mpayingmwagesm
aremoperatingmactivities.
⊚m true
⊚m false
4) Financingmactivitiesmincludemborrowingmand mobtainingmmoneymbymissuingmsharesmof mownersh
ipm(called msharemcertificates).
⊚m true
⊚m false
5) Shareholdersmaremcreditorsmof mamcompany.
⊚m true
⊚m false
Versionm1 1
,6) Allmcorporationsmacquiremfinancingmbymissuingmsharesmof mownershipm(called msharemcertificate
s)mformsalemonmpublicmstockmexchanges.
⊚m true
⊚m false
7) Youmpaid m$10,000mtombuym1%mof mthemsharesminmamcorporationmthat mhasmnow mgonembankrupt.m
Themcompanymowesm$10mmillionmdollarsmtomcreditors.mAsmamresult mof mthembankruptcy,myoumw
illmlose
$100,000.
⊚m true
⊚m false
8) Themshareholders'mequityminmamcompanymismthemdifferencembetweenmassetsmand mliabilities.
⊚m true
⊚m false
9) A mcompanymowesm$200,000monmambankmloan.mIf mthismloanmismdocumented musingmamformalmwrit
tenmdebt mcontract,mit mwillmbemreported masmamliabilitymcalled mNotesmPayable.
⊚m true
⊚m false
10) Themaccountingmdecisionsmthat mweremmademwhenmpreparingmamcompany'smfinancialmstatemen
tsmaremexplained minmthemauditor'smreport.
⊚m true
⊚m false
11) UndermbothmASPEmand mIFRS,mamCanadianmcompanymwould mreport mthemdatamonmthemfinanc
ialmstatementsminmCanadianmdollars.
⊚m true
⊚m false
Versionm1 2
,12) SUNFLOWER mCOMPAN
YmBALANCE mSHEETmSE
PTEMBER m30,m2020
Assets
Cash $1,568,000
AccountsmReceivable 310,500
Inventories 208,200
Property,mPlant,mand mEquipment 391,600
OthermAssets 869,400
TotalmAssets $3,347,700
Liabilities
AccountsmPayable $1,439,200
NotesmPayable ?
TotalmLiabilities ?
Shareholdersm ’mEquity
Contributed mCapital 1,263,600
Retained mEarnings 207,100
TotalmShareholdersm ’mEquity 1,470,700
TotalmLiabilitiesmandmshareholdersm ’mEquity $3,347,700
NotesmPayablemwould mequalm$437,800mand mTotalmLiabilitiesmwould mequalm$1,877,000monmthemBal
ancemSheet.
⊚m true
⊚m false
Versionm1 3
, 13) CACTUSmCOMPANY m
BALANCE mSHEETmS
EPTEMBER m30,m2020
Assets
Cash $1,568,000
AccountsmReceivable 310,500
Inventories 208,200
Property,mPlant,mand mEquipment 391,600
OthermAssets 869,400
TotalmAssets $3,347,700
Liabilities
AccountsmPayable $1,439,200
NotesmPayable ?
TotalmLiabilities ?
Shareholdersm ’mEquity
Contributed mCapital 1,263,600
Retained mEarnings 207,100
TotalmShareholdersm ’mEquity 1,470,700
TotalmLiabilitiesmandmshareholdersm ’mEquity $3,347,700
Them$207,100mshownmonmthemBalancemSheet mhasmbeenmdistributed mtomshareholdersmasmdividends.
⊚m true
⊚m false
Versionm1 4
m m
FundamentalsmOf mFinancialmAccountingm6CEmFred mPhillips,mRobert mLibby,mPatriciamLibby,mBrandym
Mackintosh
Chapter 1- m
12 Answers are at the End of Each Chapter Chapter 1
m m m m m m m m m m
Student name:
m
1) Buildingmamnew mwarehousemismanminvestingmactivity.
⊚m true
⊚m false
2) Thempayment mof mdividendsmismamfinancingmactivity.
⊚m true
⊚m false
3) Dailymactivitiesminvolved minmrunningmambusinessmsuchmasmbuyingmsuppliesmand mpayingmwagesm
aremoperatingmactivities.
⊚m true
⊚m false
4) Financingmactivitiesmincludemborrowingmand mobtainingmmoneymbymissuingmsharesmof mownersh
ipm(called msharemcertificates).
⊚m true
⊚m false
5) Shareholdersmaremcreditorsmof mamcompany.
⊚m true
⊚m false
Versionm1 1
,6) Allmcorporationsmacquiremfinancingmbymissuingmsharesmof mownershipm(called msharemcertificate
s)mformsalemonmpublicmstockmexchanges.
⊚m true
⊚m false
7) Youmpaid m$10,000mtombuym1%mof mthemsharesminmamcorporationmthat mhasmnow mgonembankrupt.m
Themcompanymowesm$10mmillionmdollarsmtomcreditors.mAsmamresult mof mthembankruptcy,myoumw
illmlose
$100,000.
⊚m true
⊚m false
8) Themshareholders'mequityminmamcompanymismthemdifferencembetweenmassetsmand mliabilities.
⊚m true
⊚m false
9) A mcompanymowesm$200,000monmambankmloan.mIf mthismloanmismdocumented musingmamformalmwrit
tenmdebt mcontract,mit mwillmbemreported masmamliabilitymcalled mNotesmPayable.
⊚m true
⊚m false
10) Themaccountingmdecisionsmthat mweremmademwhenmpreparingmamcompany'smfinancialmstatemen
tsmaremexplained minmthemauditor'smreport.
⊚m true
⊚m false
11) UndermbothmASPEmand mIFRS,mamCanadianmcompanymwould mreport mthemdatamonmthemfinanc
ialmstatementsminmCanadianmdollars.
⊚m true
⊚m false
Versionm1 2
,12) SUNFLOWER mCOMPAN
YmBALANCE mSHEETmSE
PTEMBER m30,m2020
Assets
Cash $1,568,000
AccountsmReceivable 310,500
Inventories 208,200
Property,mPlant,mand mEquipment 391,600
OthermAssets 869,400
TotalmAssets $3,347,700
Liabilities
AccountsmPayable $1,439,200
NotesmPayable ?
TotalmLiabilities ?
Shareholdersm ’mEquity
Contributed mCapital 1,263,600
Retained mEarnings 207,100
TotalmShareholdersm ’mEquity 1,470,700
TotalmLiabilitiesmandmshareholdersm ’mEquity $3,347,700
NotesmPayablemwould mequalm$437,800mand mTotalmLiabilitiesmwould mequalm$1,877,000monmthemBal
ancemSheet.
⊚m true
⊚m false
Versionm1 3
, 13) CACTUSmCOMPANY m
BALANCE mSHEETmS
EPTEMBER m30,m2020
Assets
Cash $1,568,000
AccountsmReceivable 310,500
Inventories 208,200
Property,mPlant,mand mEquipment 391,600
OthermAssets 869,400
TotalmAssets $3,347,700
Liabilities
AccountsmPayable $1,439,200
NotesmPayable ?
TotalmLiabilities ?
Shareholdersm ’mEquity
Contributed mCapital 1,263,600
Retained mEarnings 207,100
TotalmShareholdersm ’mEquity 1,470,700
TotalmLiabilitiesmandmshareholdersm ’mEquity $3,347,700
Them$207,100mshownmonmthemBalancemSheet mhasmbeenmdistributed mtomshareholdersmasmdividends.
⊚m true
⊚m false
Versionm1 4
