PLEASE ANSWER

Question 14 (2 points) Lawrence Ltd. started the year with $385000 in total assets and $258000 in total liabilities. During the year, assets increased by $37000 and liabilities decreased by $8000. During the year, the owners contributed $8000, and the company earned $425000 in revenues and incurred $383000 in expenses. How much did the company pay in dividends during the year? A/ Question 15 (1 point) The President of Downsview Ltd. attended a convention in Cozumel, Mexico and stayed an extra week afterwards to play golf. He charged the extra days' hotel bill to Downsview Ltd. Which assumption has been violated? a) unit-of-measure b) time period c) separate entity d) nothing has been violated e) historic cost Question 16 (1 point) Dupont Inc. purchases inventory FOB shipping point on December 29, and the goods are received on January 3. The company records the transaction in January. Which of the following statements about qualitative characteristics or assumptions is correct? a) Unit-of-measure is violated b) Relevant is violated c) Verifiable is followed d) Timely is followed e) Faithful is followed Question 17 (1 point) A company changed its inventory costing formula from FIFO to specific identification this year, and did not disclose the reason and effect of the change on its financial statements. Which of the following is correct? a) going concern - violated b) comparable - followed c) unit-of-measure - violated d) faithful - violated e) timely - followed Question 18 (1 point) Which of the following questions would the human resources (HR) manager of a business be most likely to ask? a) Do the business's financial statement follow GAAP? b) Can the business pay the increased wages that the union is demanding? c) Is each division of the business profitable? d) is the business profitable enough to pay dividends? e) Has the business filed its income tax returns correctly and on time? Question 19 (2 points) A customer whose account receivable was previously written off sent in a cheque. How might a company record this transaction? Select all that apply. a) increase a revenue account and decrease Bad Debt Expense b) increase Cash and a revenue account c) Increase both Accounts Receivable and Allowance for Doubtful Accounts d) increase Cash and decrease Accounts Receivable e) increase Cash and decrease Bad Debt Expense Question 20 (1 point) A company uses a perpetual inventory system. Inventory previously sold to a customer for $400 on account is returned, before it is paid for. Which account(s) would decrease as a result of the return transaction? a) Sales Returns b) Both Cost of Goods Sold and Accounts Receivable c) None c d) Both Cost of Goods Sold and Accounts Payable e) Cost of Goods Sold only Of) Accounts Payable only g) Purchase Returns Oh) Accounts Receivable only Question 21 (2 points) Marlee Limited purchased a machine on March 31 for $78000, paying cash. The company also paid $600 for freight, $500 for installation and testing, $900 for employee training, $800 for supplies to be used in production, and $2400 for a one- year insurance policy. The machine has a residual value of $8000 and a useful life of 6 years. What is this machine's acquisition cost? 4 Question 22 (1 point) Which of the following represents a connection between the statement of retained earnings and the other financial statements? The statement of retained earnings is not connected to any other financial statement. b) The ending cash balance appears on both the statement of retained earnings and the balance sheet. Retained Earnings appears on both the statement of retained earnings and the income statement. d) Retained Earnings appears on both the statement of retained earnings and the balance sheet. e) Net income appears on both the statement of retained earnings and the statement of cash flows. Question 23 (1 point) Glencairn Ltd. has selected, prepared and presented its accounting information to favour its suppliers' interests over other users of its financial statements. Which qualitative characteristic has the company violated? a) Faithful b) Comparable C c) Relevant d) Verifiable e) Understandable Question 24 (3 points) Which of the following transactions does NOT affect bad debt expense? Select all that apply. (3 marks) a) receiving a cheque from a customer whose account receivable was previously written off b) using the aging method to estimate the required Allowance for Doubtful Accounts writing off an account receivable d) giving a cash refund to a customer who returned an item that he had already paid for e) a sales return, where the original sale was on account