Question 1

Licences, patents, trademarks, and copyrights are all examples of

Accepted Answer

Licences, patents, trademarks, and copyrights are considered intangible assets because they are non-physical assets that provide value to a company.

Question 2

The following data was taken from the books of Peanut Inc. as of December 31, 2020:
Cost of goods sold $ 15,300 Selling & administrative expense $3,500
Income tax expense 6,120 Accounts payable 12,000
Cash 3,500 Common shares, (3,250 shares) 20,000
Retained earnings (Jan 1) 8,000 Dividends 6,000
Other income 1,500 Interest expense 900
Sales revenue 35,000 Depreciation expense 1,500
Equipment 39,680
Instructions
a) Calculate total assets.
b) Calculate total revenue and expenses.
c) Calculate total liabilities.

Accepted Answer

The answer of The following data was taken from the...

Question 3

Match each of the following financial statement lines to the correct financial statement by placing the appropriate letter in the space provided.

Accepted Answer

The answer of Match each of the following financial statement...

Question 4

Identify and describe the three primary financial statements prepared by accountants. How do these statements differ?

Accepted Answer

The answer of Identify and describe the three primary financial...

Question 5

Goods held for resale to customers are called

Accepted Answer

Goods held for resale to customers are classified as Inventory, which represents items a company intends to sell as part of its business operations.

Question 6

The following data was taken from the books as at December 31, 2020 of Jericho Inc.:  Instructions 
a) Determine the gross profit and net income.
b) Calculate the balance in the retained earnings account as of December 31, 2020.
c) Calculate the working capital.

Accepted Answer

The answer of The following data was taken from the...

Question 7

The working capital equation is

Accepted Answer

Working capital is calculated as the difference between current assets and current liabilities, which is represented by option A.

Question 8

The following data was taken from the books of Polo, Inc. as of December 31, 2020:  Instructions 
a) Calculate total assets.
b) Calculate total revenue, expenses and net income.
c) Calculate total liabilities.
d) Calculate earnings per share.

Accepted Answer

The answer of The following data was taken from the...

Question 9

The following data was taken from the books of Debrose Enterprises Ltd. as of December 31, 2020:  Instructions
From the list above determine which items should not be reported on the Statement of Financial Position.

Accepted Answer

The answer of The following data was taken from the...

Question 10

Identify and describe the two main types of corporate structure. What impact, if any, does the structure have on management and financial reporting requirements?

Accepted Answer

The answer of Identify and describe the two main types...

Question 11

The accounting equation is

Accepted Answer

The accounting equation is Assets = Liabilities + Shareholders' Equity, which represents the relationship between a company's resources and the claims on those resources.

Question 12

What are consolidated statements? Do they provide useful information to their users?

Accepted Answer

The answer of What are consolidated statements? Do they provide...

Question 13

Identify the three types of business activities a firm engages in. Provide an example of an inflow and outflow for each type of activity. Which type of activity is most critical to the company's success and why?

Accepted Answer

The answer of Identify the three types of business activities...

Question 14

A characteristic of an asset is

Accepted Answer

An asset is a resource controlled by an entity as a result of past events and from which future economic benefits are expected to flow to the entity.

Question 15

Amounts owed to customers for advance payments until the related goods or services have been provided are called

Accepted Answer

Deferred Revenue refers to the money received by a company for goods or services yet to be delivered or performed. It is a liability because it represents an obligation to the customer.

Question 16

How do internal users differ from external users of financial statements? Identify two internal and two external users of annual reports.

Accepted Answer

The answer of How do internal users differ from external...

Question 17

Briefly explain the relationship between the management, the board of directors, and the shareholders in a public company.

Accepted Answer

The answer of Briefly explain the relationship between the management,...

Question 18

Match each of the following activities to the transactions listed below by placing the appropriate letter in the space provided.

Accepted Answer

The answer of Match each of the following activities to...

Question 19

List the three types of business activities that are measured and reflected on the cash flow statement and provide three examples of transactions found within each activity.

Accepted Answer

The answer of List the three types of business activities...

Question 20

Measures the resources controlled by a company and the claims on resources at a given point in time.

Accepted Answer

The Statement of Financial Position, also known as the Balance Sheet, measures the resources controlled by a company (assets) and the claims on those resources (liabilities and equity) at a specific point in time.

Quiz 1: Overview of Corporate Financial Reporting

Licences, patents, trademarks, and copyrights are all examples of

Match each of the following financial statement lines to the correct financial statement by placing the appropriate letter in the space provided.

Identify and describe the three primary financial statements prepared by accountants. How do these statements differ?

Goods held for resale to customers are called

The following data was taken from the books as at December 31, 2020 of Jericho Inc.: Instructions a) Determine the gross profit and net income. b) Calculate the balance in the retained earnings account as of December 31, 2020. c) Calculate the working capital.

The working capital equation is

The following data was taken from the books of Polo, Inc. as of December 31, 2020: Instructions a) Calculate total assets. b) Calculate total revenue, expenses and net income. c) Calculate total liabilities. d) Calculate earnings per share.

The following data was taken from the books of Debrose Enterprises Ltd. as of December 31, 2020: Instructions From the list above determine which items should not be reported on the Statement of Financial Position.

Identify and describe the two main types of corporate structure. What impact, if any, does the structure have on management and financial reporting requirements?

The accounting equation is

What are consolidated statements? Do they provide useful information to their users?

Identify the three types of business activities a firm engages in. Provide an example of an inflow and outflow for each type of activity. Which type of activity is most critical to the company's success and why?

A characteristic of an asset is

Amounts owed to customers for advance payments until the related goods or services have been provided are called

How do internal users differ from external users of financial statements? Identify two internal and two external users of annual reports.

Briefly explain the relationship between the management, the board of directors, and the shareholders in a public company.

Match each of the following activities to the transactions listed below by placing the appropriate letter in the space provided.

List the three types of business activities that are measured and reflected on the cash flow statement and provide three examples of transactions found within each activity.

Measures the resources controlled by a company and the claims on resources at a given point in time.