Question 1 (1 point) What does a balance sheet show? ( a) The market value of a business. b) All of the owner's personal assets and liabilities. O c) A financial picture of the business on a certain date. ( d) The progress of the business over a period of time.Question 2 l1 paint] Haw are assets listed en the Balance Sheet\"? 0 a] By their useful life 0 bl By their size 0 c} Alphabetical order 0 a} By liquidity Question 3 (1 point) Which of the following is a temporary account? O a) Merchandise inventory O b) Supplies expense O c) Reginald Dwightm Capital O d) HST payableQuestion 4 (1 point) What is an asset that is expected to last longer than one year called? O a) Fixed Asset O b) All answers are correct O c) Long Term Asset O d) Capital AssetQuestion 5 (1 point) Which GAAP requires accountants to record the value of an asset at the original purchase price? (a) Matching Principle (b) Materiality Principle O c) Cost Principle O d) Purchase PrincipleQuestion 6 [1 point] What is the purpose of closing entries? 0 a} To prepare financial statements. 0 bl To reset all assets, liabilities, and owner's capital accounts to zero balance in preparation fer the next account period. 0 c} To transfer net incomefloss and owner's drawings to the owner's capital account. 0 cl} To terminate the business as an operating entity. Question 7 (1 point) What happens when an item subject to HST is sold by a business? ()a) The seller includes the HST in the price of the item and credits the Revenue account. b) The purchaser with credit HST Recoverable. O c) The seller will credit HST Payable. O d) The business will debit HST Payable.Question 3 {1 point] Which of the following is NOT a centre ledger account\"? 0 a] Accumulated Ammertizaticin O b] Freight - in O c} Purchase Returns 0 cl] Drawings Question 9 {1 point] What does a debit balance in the Income Summary account indicate? 0 a] The firm had a net loss during the fiscal period. 0 b] The firm had more liabilities than assets. 0 c) The owner withdrew funds during the fiscal period. 0 d} The firm had a net income during the fiscal period. Question 10 (1 point) Generally speaking, which of the statements regarding dollar signs is true? (a) Dollar signs are not used on worksheets. O b) Dollar signs are not used on a trial balance. ( c) Dollar signs appear on the first values for each column for each section, and on the total values for each section. O d) All answers are correct.Question 11 (1 point) Generally speaking, what is the purpose of underlining? O a) To indicate final balances. Ob) To indicate that numbers are not account balances but totals and subtotals. c) To indicate a mathematical calculation. ( d) All answers are correct.Question 12 (1 point) Purchase Accumulated Book Amortization Year Rate Price Amortization Value Expense 1 $150,000 10% 2 ? Using the information from Figure 1, what is the amortization for the first year? O a) $1,500 O b) $15,000 O c) The amount cannot be calculated O d) $1,250Question 13 (1 point} Using the information from Figure 1, what is the amortization for the second year? 0 $13,500 0 $12,000 0 $15,000 0 $1,125 Question 14 (1 point) If current assets are $15,000 and current liabilities are $10,000, what is the current ratio? O a) 1.5 to 1 O b) $5,000 O c) -$5,000 O d) . 7 to 1Question 15 [1 point] The following figures are found on an income statement: Sales $3DD Total Expenses 5240 Net Income $50 Which of the following statements is correct when performing a vertical analysis on this income statement? 0 a} Net income is expressed as 2D%. 0 bl Total Expenses is expressed as 85%. O c] Sales is expressed as 50%. Q d] Net Income is expressed as 109%. Question 16 (1 point) At the beginning of Year 1, the Supplies account had a debit balance of $1,350. During the year, the business purchased $1,150 of supplies. An inventory count at the end of the year revealed that $750 of supplies remained. What is the adjusting entry as a result of this information? (a) Debit Supplies Expense $1,750, Credit Supplies $1,750. b) Debit Supplies Expense $750, credit Accumulated Depreciation: Supplies $750. O c) Debit Supplies Expense $750, Credit Supplies $750. Od) Debit Supplies Expense$1,150, Credit Supplies $1,150.Question 17 (1 point) A business had the following balances on the day it was to remit HST to the government? HST Recoverable $2,278 HST Payable: $4,728. What is the type and amount of the cheque? (O a) The refund from the government should be $2,450. O b) The cheque to the government should be for $2,450. O c) The cheque to the government should be $4,728. O d) The refund from the government should be $2,278.Question 18 (1 point) The total assets figure on a balance sheet is $375,000. The total liabilities figure is $106,250. What is the owner's equity? ( a) 72% of the assets. ( b) It is impossible to determine the owner's equity from the data given. O c) 28% of the assets. O d) $268,750.Question 19 (1 point) A business purchased a one-year insurance policy costing $480 on April 15 of the current year. What is the amount of insurance expense to be recorded in the adjusting entry for the year ended December 31? O a) $280 ( b) $340 O c) $320 O d) $480Question 20 (1 point) A business purchased a box of paper for $8.95 and paid cash. The HST was $1.16. What is the journal entry to record this purchase? ( a) Debit Supplies $8.95, credit HST Payable $1.16, credit cash $10.11. ()b) Debit Supplies expense $8.95, debit HST Recoverable $1.16, credit cash $10.11. c) Debit Supplies expense $10.11, credit cash $10.11. ()d) Debit Supplies $8.95, debit HST Recoverable $1.16, credit cash $10.11.Question 21 (1 point) The accountant for Mrs. Sleekly has claimed a deduction on her taxes which was cancelled in the previous year's federal budget. Revenue Canada has reassessed her return. Mrs. Sleekly questions the accountant about the reassessment and the accountant replies, "Wow. I did not know that deduction had been cancelled." Which of the following Code of Ethical Principles and Rules of Conduct has the account breached? a) Confidentiality Ob) Deceptive Information O c) Due Care and Professional Judgement () d) There is no breach - everyone makes mistakes.Question 22 (1 point) In an effort to get feedback on an accounting issue, an Accounting Manager was discussing Tektroix balance figures and accounting ratios with a trusted college friend who is also an Accounting Manager for a competitor. Which of the following Code of Ethical Principles and Rules of Conduct has the account breached? O a) Confidentiality ()b) There was no breach - everyone needs to consult at times O c) Due Care and Professional Judgement O d) Deceptive InformationQuestion 23 (1 point) Which of the following statements about the journal is incorrect? ( i) It provides a chronological record of business transactions. () in) It presents the financial position of the business. O iii) It is the book of original entry. () iv) It can be used as a reference to verify information in the ledger.Question 24 [1 pain t] WhiCh of the following questions is not answered by The income statement? 0 a} How much money was spent on advertising? 0 b] How much do clients owe the company? 0 cl How much money.r did the firm earn in the period? 0 d} How much ITIOI'IE'f was spent on wages? Question 25 [1 point] 1ll'llhat is the best meaning for a chart of accounts? 0 a} A list of the ledger accounts and their numbers arranged in ledger order. 0 h] A table resembling the equation analysis sheet. 0 cl A list of errors made in the accounting records for the period. 0 cl] A chart demonstrating the net income or net loss of the company. Question 26 (1 point) A Balance Sheet can be prepared from information in the ledger. a) True ( b) False Question 27 (1 point) A double underline indicates a final total. a) True b) False Question 28 (1 point) A truck that cost $10,000 and for which $6,000 is owed is listed on the Balance Sheet as $4,400 a) True b) FalseQuestion 29 (1 point) An asset account cannot have a credit balance. a) True O b) False Question 30 (1 point) Assets are listed in alphabetical order. ( a) True O b) False Question 31 (1 point) Capital decreases on the credit side. O a) True Ob) FalseQuestion 32 (1 point) Decimals and commas are necessary when working in a spreadsheet software program. a) True ( b) False Question 33 (1 point) Personal assets have no place on the business Balance Sheet. O a) True ( b) False Question 34 (1 point) The heading of a Balance Sheet shows the date on which is was prepared. ( a) True ( b) FalseQuestion 35 (1 point) When revenue accounts are closed, the Income Summary account is debited. O a) True ( b) False Question 36 (1 point) A group or file of accounts that shows the account balance is called a Question 37 (1 point) A Ay is prepared to check the accuracy of a ledger. Question 38 (1 point) Accounting entries are first recorded in the general A/Question 39 (1 point) Even though an asset has increases significantly in value, the A principle will generally prevent a company from reporting its current value. Question 40 (1 point) Sales revenues minus the Cost of Goods Sold equals A Question 41 (1 point) The accrual-basis of accounting, which requires companies to report expenses in the period that it helped earn revenue, is the principle.Question 42 {1 point] The amount a sole proprietorship gives to its owner for the owner's personal consumption is recorded as a debit to '/ and a credit to Cash. Question 43 [1 point] The inventoryr system that is updated whenever an item is sold or new stock Question 44 [1 point] The listing of all the accounts available for use in the accounting system is referred to Question 45 [1 point] The name of the financial statement that is also known as the Statement of Financial Question 46 {1 point] The term used to describe the amount entered on the left-side of an account is 4.! Question 4? [1 point] The word to describe the systematic allocation of the value of a fixed asset from the Balance Sheet to an Expense on the Income Statement is 4.! Question 43 [1 point] 1When a company's accounting year ends on December 31, the company's accounting year is referred to as a calendar year. When a company's accounting year ends on a date other than December 31, the company's accounting year is referred to as a 4.! Question 49 [1 point] 1When a customer purchases an item on account, the accounting clerk for the seller will debit Accounts *1? Question 50 (1 point) When an accountant is faced with two acceptable alternatives for reporting an amount, the accounting guideline/principle/constraint that directs the accountant to select and report the amount that will result in less profit, less assets, or less liabilities is the principle