Chapter 9, Problem 22DQ

The audited accounts of Lindsay Co. for year-end August 31, 2014 show a profit of $3,115,000 after charging the following:  Depreciation      430,000   Rent        175,000Legal fees   1,350,000Audit fees       88,000       Donations       119,000Bad debts       242,000Foreign Travel      395,750Interest payments      62,375  Other Information:    a. Legal fees are as follows:  Expenses in respect of recovery of debts, $585,000  Expenses related to the increase private share capital, $765,000  b. Lindsay Co. donated $65,500 to UTECH University and $53,500 to HELP, a private charity registered under the Charities Act.  c. Bad debts are as follows: • A loan of $76,130 to Derek Stan who failed to repayit. • $63,017, owed by Simplicity Ltd. which was declared bankrupt. • The balance is a percentage of receivables at year end which is deemed to be bad. d. Foreign travel expense included $268,210 for a vacation package for the marketing manager’s and his family plane tickets. The remaining…

What does the accounting equation (Assets = Liabilities + Equity) represent?a) The relationship between revenues and expensesb) The relationship between assets and liabilitiesc) The relationship between debits and creditsd) The relationship between resources and claims to those resources

Which financial statement shows the inflows and outflows of cash during a specific period?a) Balance sheetb) Income statementc) Cash flow statementd) Statement of changes in equity

Choose the right option

What does GAAP stand for in financial accounting?a) Generally Accepted Accounting Principlesb) Generally Applied Accounting Proceduresc) General Accounting and Auditing Practicesd) Generally Acknowledged Accounting Policies

Provide step by step explanation general accounting question

What accounting principle requires using the same accounting methods and principles from one period to another?a) Materiality principleb) Consistency principlec) Matching principled) Revenue recognition principle

Q: The double-entry bookkeeping system ensures that:a) Revenues are recorded on the left side of the accounting equationb) Expenses are recorded on the right side of the accounting equationc) Assets always equal liabilitiesd) Every transaction is recorded with equal debits and credits

Answer? ? Financial accounting