ACC100 weekly quizzes review

• which qualitative characteristic or assumption is best represented by the following statement? information is categorized so as to be clear and concise.

  understandable
• which qualitative characteristic or assumption is best represented by the following statement? all financial information is given in the same currency.

  unit-of-measure
• which qualitative characteristic or assumption is best represented by the following statement? all purchases are recorded at the cost incurred.

  historic cost
• which qualitative characteristic or assumption is best represented by the following statement? report all information that might change the minds of the stakeholders who use it.

  full disclosure
• which qualitative characteristic or assumption is best represented by the following statement? information from year to year can be evaluated.

  comparable
• choose the stakeholder that is MOST likely to ask the following question. should we offer terms to our wholesale customers?

  supplier (wholesaler)
• choose the stakeholder that is MOST likely to ask the following question. should we continue to sell all 5 products or should we discontinue the sale of product B?

  management (retailer)
• choose the stakeholder that is MOST likely to ask the following question. how much does the business owe to its current suppliers?

  supplier (wholesaler)
• choose the stakeholder that is MOST likely to ask the following question. does this business pay regular dividends?

  business owner
• what is the effect of the following transaction on the basic accounting equation? purchased a business licence from service Ontario for $60 using a credit card.

  assets increase, liabilities increase.
• what is the effect of the following transaction on the basic accounting equation? customers paid $1400 cash for services provided.

  assets increase, owners' equity increases.
• what is the effect of the following transaction on the basic accounting equation? received cash of $3400 from customers for services provided.

  assets increase, owners' equity increases.
• provide the missing number in the following equation. owners' capital = 74970

  equity = 168683

  retained earnings = ?

  93713
• indicate whether the business activity noted below is an event or a transaction. purchased supplies with a credit card.

  transaction
• indicate whether the business activity noted below is an event or a transaction. purchased a business licence with a credit card.

  transaction
• indicate which financial reporting element the following account belongs in. bank loan payable

  liabilities
• indicate which financial reporting element the following account belongs in. advertising expense

  expenses
• indicate which financial reporting element the following account belongs in. travel and entertainment expense

  expenses
• indicate which financial reporting element the following account belongs in. rent expense

  expenses
• the transaction below affects BOTH the accounts named. purchased equipment for $8000, cash: equipment, accounts payable

  false
• the transaction below affects BOTH the accounts named. paid $800 for advertising that ran on the radio: prepaid advertising, cash

  false
• the transaction below affects BOTH the accounts named. purchased supplies for $750 using a credit card: supplies expense, accounts payable.

  false
• the transaction below affects BOTH the accounts named. purchased equipment for $950 using a credit card: equipment, accounts payable

  true
• calculate the missing numbers.

  A) 10730

  B) 10880

  C) 19730

  D) 2800
• what is the effect of the following business activity on the element indicated? paid cash to your supplier of $2950, less the discount of 2% -- liabilities

  decrease
• what is the effect of the following business activity on the element indicated? signed a contract with a supplier to purchase inventory in the upcoming year --- assets

  no effect
• what is the effect of the following business activity on the element indicated? received inventory worth $6200 from your supplier, purchased with terms 1/5, n/15. --- liabilities

  increase
• what is the effect of the following business activity on the element indicated? a customer ordered products to be delivered next month, on May 28th. --- expenses

  no effect
• what is the effect of the following business activity on the element indicated? as a seller you shipped to your customer FOB destination. shipping costs are $250 cash.

  --- assets

  decrease
• what is the effect of the following business activity on the element indicated? used up one month of rent whihc las month you paid in advance to the landlord.

  increase
• what is the effect of the following business activity on the element indicated? paid your supplier, less the discount of $85, cash of $8500 --- Liabilities

  decrease
• what is the effect of the following business activity on the element indicated? as a buyer you ordered inventory with terms FOB shipping point. Shipping costs are $250 cash.

  --- assets

  increase to one and decrease to another.