Summary Financial Statements Study Notes - Accounting (Grade 12)

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Chapterg02


gFinancialgStatementsgandgAccountinggConcepts/Principles



MultiplegChoiceg Questions



1. Whichgofgthegfollowinggisgnotgagtransactiongtogbegrecordedgingthegaccountinggrecordsgofgangentit
y?



A. Investmentgofgcashgbygthegowners.
B. Salegofgproductgtogcustomers.
C. Receiptgofgagplaquegrecognizinggthegfirm'sgencouragementgofgemployeegparticipationgingt
hegUnitedgWaygfundgdrive.
D. Receiptgofgservicesgfromgag"quick-
print"gshopgingexchangegforgthegpromisegtogprovidegadvertisinggdesigngservicesgof
gequivalentgvalue.



2. Thegbalancegsheetgmightgalsogbegcalled:



A. StatementgofgFinancialgPosition.
B. StatementgofgAssets.
C. StatementgofgChangesgingFinancialgPosition.
D. Nonegofgthegabove.


3. Transactionsgaregsummarizedgin:



A. Thegnotesgforgthegfinancialgstatements.
B. Thegindependentgauditor'sgopiniongletter.
C. Thegentity'sgaccounts.
D. Nonegofgthegabove.


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4. Agfiscalgyear:



A. isgalwaysgthegsamegasgthegcalendargyear.
B. isgfrequentlygselectedgbasedgongthegfirm'sgoperatinggcycle.
C. mustgalwaysgendgongthegsamegdategeachgyear.
D. mustgendgongtheglastgdaygofgagmonth.


5. Whichgofgthegfollowinggisgnotgagprincipalgformgofgbusinessgorganization?



A. Partnership.
B. Solegproprietorship.
C. Limitedgunregisteredgbusiness.
D. Corporation.
E. Nonegofgthegabove.


6. Thegtimegframegassociatedgwithgagbalancegsheetgis:



A. agpointgingtimegingthegpast.
B. agone-yeargpastgperiodgofgtime.
C. agsinglegdategingthegfuture.
D. agfunctiongofgtheginformationgincludedgingit.


7. CurrentgU.S.gGenerallygAcceptedgAccountinggPrinciplesgandgauditinggstandardsgrequiregt
hegfinancialgstatementsgofgangentitygforgthegreportinggperiodgtoginclude:



A. Earningsgandggrossgreceiptsgofgcashgforgthegperiod.
B. Projectedgearningsgforgthegsubsequentgperiod.
C. Financialgpositiongatgthegendgofgthegperiod.
D. Currentgfairgvaluesgofgallgassetsgatgthegendgofgthegperiod.




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8. Thegbalancegsheetgequationgcangbegrepresentedgby:



A. Assetsg=gLiabilitiesg+gStockholders'gEquity
B. Assetsg-gLiabilitiesg=gStockholders'gEquity
C. NetgAssetsg=gStockholders'gEquity
D. Allgofgthegabove.


9. Stockholders'gequitygrefersgtogwhichgofgthegfollowing?



A. Aglistinggofgthegorganization'sgassetsgandgliabilities.
B. Thegownershipgrightgofgthegstockholder(s)gofgthegentity.
C. Probablegfuturegsacrificesgofgeconomicgbenefits.
D. Allgofgthegabove.
E. Nonegofgthegabove.


10. Accumulatedgdepreciationgongagbalancegsheet:



A. isgpartgofgstockholders'gequity.
B. representsgthegportiongofgthegcostgofgangassetgthatgisgassumedgtoghavegbeeng"usedgup"gin
gthegprocessgofgoperatinggthegbusiness.

C. representsgcashgthatgwillgbegusedgtogreplacegworngoutgequipment.
D. recognizesgthegeconomicglossgingvaluegofgangassetgbecausegofgitsgagegorguse.


11. Thegdistinctiongbetweengagcurrentgassetgandgothergassets:



A. isgbasedgonghowglonggthegassetghasgbeengowned.
B. isgbasedgongamountsgthatgwillgbegpaidgtogothergentitiesgwithingagyear.
C. isgbasedgongthegabilitygtogdeterminegthegcurrentgfairgvaluegofgthegasset.
D. isgbasedgongwhengthegassetgisgexpectedgtogbegconvertedgtogcash,gorgusedgtogbenefitgthegentit
y.




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HillgEducation.gAllgrightsgreserved.gNogreproductiongorgdistributiongwithoutgthegpriorgwrittengconsentgofg McGraw-
HillgEducation.
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