Question 1

The following entry was recorded by Woodrow Inc.:

What is the effect on Woodrow's financial statements?

Accepted Answer

The given entry is a reference number, and without additional context, it is impossible to determine the effect it has on Woodrow's financial statements. Therefore, none of the provided options are correct.

Question 2

Mandel Corp.retired bonds payable with a carrying value of $980,000.What effect does this transaction have on these accounts?

Accepted Answer

Retiring bonds payable means paying off the debt. Therefore, the bonds payable account will decrease by the full amount of $980,000. The corresponding effect will be a decrease in the total liabilities of Mandel Corp. There will be no impact on the assets or equity of the company.

Question 3

Information on the income statement is categorized into

Accepted Answer

Information on the income statement is categorized into continuing and discontinued activities, reflecting ongoing operations and those segments of the business that have been sold or are no longer in operation.

Question 4

Which statement is correct about the difference between IFRS and ASPE?

Accepted Answer

The answer of Which statement is correct about the difference...

Question 5

The following entry was recorded by Hollow Inc.:

What is the effect on Hollow's financial statements?

Accepted Answer

The entry appears to be a reference number, so it does not provide enough information to determine the effect on Hollow's financial statements. Therefore, none of the options can be selected.

Question 6

General Limited's income statement reported the following for last year:

Which of the following statements is correct about the income statement?

Accepted Answer

A)(881 - 573)/881 = 34.96%

Question 7

Which financial statement provides information about the transactions in a company's financing,investing,and operating cycle?

Accepted Answer

The statement of cash flows provides information about the transactions in a company's financing, investing, and operating cycle. It shows the cash inflows and outflows from each of these activities and provides insight into how the company is generating and using its cash. The statement of comprehensive income shows the revenues and expenses of a company and the resulting profit or loss. The statement of financial position shows the assets, liabilities, and equity of a company at a specific point in time. The statement of changes in equity shows the changes in equity during a specific period, including the effects of share issuances, dividends, and other transactions.

Question 8

The following information was provided from the records of Nimble Limited,which began operations in the current year:

What was the company's pre-tax income for the year?

Accepted Answer

B)Sales - (COGS + expenses - prepaids)
325,000 - (187,000 + 22,000 - 5,000)= $121,000

Question 9

Windmere Corporation had total shareholders' equity of $765,000 at the beginning of the year and $873,000 at the end of the year.Shareholders invested an additional $75,000 in common shares and $15,000 in preferred shares during the year.Net income was $43,000.Calculate the dividends paid for the year.

Accepted Answer

A)Open SE + New Share + NI - DIV = Close SE
765,000 + 75,000 + 15,000 + 43,000 - DIV = 873,000
→ $25,000 div

Question 10

The following information was provided from the records of Konstruct Inc,which began operations in the current year:

What were the company's expenses for the year?

Accepted Answer

B)(207,000 + 30,000 - 15,000)= $222,000

Question 11

General Limited's income statement reported the following for last year:

Which of the following statements is correct about the income statement?

Accepted Answer

C)179 / 881 = 20.32%

Question 12

The following entry was recorded by Hollow Inc.:

What is the effect on Hollow's financial statements?

Accepted Answer

The answer of The following entry was recorded by Hollow...

Question 13

The following entry was recorded by Hollow Inc.:

What is the effect on Hollow's financial statements?

Accepted Answer

The answer of The following entry was recorded by Hollow...

Question 14

During the past year,Easy Supplies Ltd.'s assets decreased $33,000,its liabilities decreased $41,000,its share capital increased $5,000,and the company recorded net income of $12,000.What was the amount of dividends declared?

Accepted Answer

B)41,000 - 5,000 - 12,000 - 33,000 = $9,000

Question 15

Handy Corp.retired bonds payable with a carrying value of $980,000.What effect does this transaction have on total assets and shareholders' equity?

Accepted Answer

The answer of Handy Corp.retired bonds payable with a carrying...

Question 16

Winder Corporation had total shareholders' equity of $665,000 at the beginning of the year and $773,000 at the end of the year.Shareholders invested an additional $75,000 during the year.Also during the year,cash dividends of $20,000 were declared and paid.Calculate the net income or loss for the year.

Accepted Answer

B)Open SE + New Share + NI - DIV = Close SE
665,000 + 75,000 - 20,000 = 720,000 - 773,000 = $53,000 net income

Question 17

Sally Corp.received payment on a long-term receivable for $980,000.What effect does this transaction have on these accounts?

Accepted Answer

The answer of Sally Corp.received payment on a long-term receivable...

Question 18

Information on the cash flow statement is categorized into

Accepted Answer

The information on the cash flow statement is categorized into operating, investing, and financing activities, as these are the three main categories that represent the sources and uses of funds in a company. The cash flow statement shows how a company generates and uses cash over a particular period and helps investors and analysts understand the cash inflows and outflows from different activities. The other options (B, C, and D) are not the correct classifications for cash flow statement information.

Question 19

Information on the balance sheet is categorized into

Accepted Answer

The information on the balance sheet is categorized into current and non-current elements. Operating, investing, and financing activities are categories typically used in the cash flow statement. Continuing and discontinued activities are used to report on the income statement. Profit or loss and other comprehensive income are types of income statements.

Question 20

Mandel Corp.repaid a bank loan for $980,000.What effect does this transaction have on these accounts?

Accepted Answer

The bank loan account will decrease by $980,000, and the company's cash account will decrease by the same amount as they made a payment. Therefore, option B is the correct choice. Option A is incorrect because it suggests that the bank loan account increases instead of decreases. Option C is incorrect because it suggests that the company's accounts payable account is affected, which is not related to this transaction. Option D is incorrect because it suggests an increase in the company's equity account, which is not accurate.

Quiz 3: Accrual Accounting

The following entry was recorded by Woodrow Inc.: What is the effect on Woodrow's financial statements?

Mandel Corp.retired bonds payable with a carrying value of $980,000.What effect does this transaction have on these accounts?

Information on the income statement is categorized into

Which statement is correct about the difference between IFRS and ASPE?

The following entry was recorded by Hollow Inc.: What is the effect on Hollow's financial statements?

General Limited's income statement reported the following for last year: Which of the following statements is correct about the income statement?

Which financial statement provides information about the transactions in a company's financing,investing,and operating cycle?

The following information was provided from the records of Nimble Limited,which began operations in the current year: What was the company's pre-tax income for the year?

The following information was provided from the records of Konstruct Inc,which began operations in the current year: What were the company's expenses for the year?

General Limited's income statement reported the following for last year: Which of the following statements is correct about the income statement?

The following entry was recorded by Hollow Inc.: What is the effect on Hollow's financial statements?

The following entry was recorded by Hollow Inc.: What is the effect on Hollow's financial statements?

During the past year,Easy Supplies Ltd.'s assets decreased $33,000,its liabilities decreased $41,000,its share capital increased $5,000,and the company recorded net income of $12,000.What was the amount of dividends declared?

Handy Corp.retired bonds payable with a carrying value of $980,000.What effect does this transaction have on total assets and shareholders' equity?

Sally Corp.received payment on a long-term receivable for $980,000.What effect does this transaction have on these accounts?

Information on the cash flow statement is categorized into

Information on the balance sheet is categorized into

Mandel Corp.repaid a bank loan for $980,000.What effect does this transaction have on these accounts?