ADMS 2500 All Chapters Sample questions

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York University *

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2500

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Finance

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Feb 20, 2024

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Introduction to Financial Accounting in the 21st Century, 5th Canadian Edition By Gaber, Porporato (Test Bank all Chapters, Answer at the end of each Chapter)

Version 1 1 Chapter 1 Student name:__________ MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 1) Which of these transactions of Corley Limited is not a use of cash? A) Purchased a tract of land B) Paid dividends to shareholders C) Reacquired some of the company's common shares D) Long-term debt was issued E) None of the other alternatives are correct 2) Which of these financial statements provides information about sources and uses of cash? A) Income statement B) Balance sheet C) Cash flow statement D) Income Statement and Balance Sheet E) None of the other alternatives are correct 3) Which of these equations is incorrect? A) Shareholders' Equity = Contributed Capital + Retained Earnings B) Revenues − Expenses = Net Income C) Assets = Liabilities + Shareholders' Equity D) All of the equations included in the other alternatives are correct E) None of the other alternatives are correct 4) Which one of these assets is not a current asset?

Version 1 2 A) Cash B) Land C) Merchandise inventory D) Accounts receivable E) None of the other alternatives are correct 5) Which of these transactions of Fort Ltd is not a source of cash? A) Additional common shares were issued B) Additional equipment was acquired C) A long-term note was issued D) A tract of land was sold E) None of the other alternatives are correct 6) Which of these persons would be least likely to receive a firm's managerial accounting reports? A) A creditor of the firm B) One of the firm's production supervisors C) One of the firm's vice-presidents D) One of the firm's salespeople E) None of the other alternatives are correct 7) Which of these financial statements provides information about economic resources and claims on those resources? A) Income statement B) Balance sheet C) Cash flow statement D) Income Statement and Balance Sheet E) None of the other alternatives are correct

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Version 1 3 8) Which equation does not represent an acceptable presentation of the balance sheet equation? A) Assets + Liabilities = Owners' Equity B) Assets = Liabilities + Capital stock + Contributed Surplus + Retained Earnings C) Assets = Claim on Assets D) All of the equations included in the other alternatives are correct E) None of the other alternatives are correct 9) From the following list of accounts, determine the amount that would be properly classified as Capital Assets (property, plant, and equipment). Land Used in Business $ 100,000 Machinery Leased from Others (no liability has been recorded) 60,000 Accumulated Depreciation (80,000 ) Inventories 124,000 Land Held for Future Plant Site 40,000 Building 200,000 Investment in Shares of Construction Co. Inc. 50,000 A) $320,000 B) $360,000 C) $260,000 D) $280,000 E) None of the other alternatives are correct

Version 1 4 10) Which of the following would cause an imbalance in the accounting equation? A) Recording a purchase on account at the wrong amount B) Recording a 20X1 purchase in 20X2 instead C) Posting the credit for a cash purchase at the wrong amount D) All of the statements included in the other alternatives are correct E) None of the other alternatives are correct 11) All of the following assets are nonmonetary, except one. Which one? A) accounts receivable B) land C) inventory D) patent E) None of the other alternatives are correct 12) From this list of selected account balances/ determine the total for the Shareholders' Equity section of the balance sheet for Cabbage Company Ltd. Investment in Shares of Rutabaga Limited $ 2,500 Retained Earnings 5,000 Cash (in special bank account for a payment of dividends) 3,000 Note Payable to Suppliers 2,000 Common Stock 10,000 8% Preferred Stock 7,500

Version 1 5 A) $20,500 B) $22,500 C) $24,500 D) $25,500 E) None of the other alternatives are correct 13) What account would not be found on the balance sheet of a corporation? A) Contributed Surplus B) Retained Earnings C) Investment n Smith Ltd. Shares D) Keith, Capital E) None of the other alternatives are correct 14) Identify the generally accepted accounting concept principle, assumption, or constraint violated in the following situation: A business that prepares financial statements monthly, recorded revenue on July 10th when a customer paid for the goods sold to them on account on June 15th. A) Revenue recognition B) Going Concern C) Separate Entity D) Matching E) None of the other alternatives are correct 15) Identify the generally accepted accounting concept principle, assumption, or constraint violated in the following situation: A company which expects to discontinue operations next month, records an equipment purchase as an increase in capital assets and plans to amortize the cost over the next ten years.

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