Accounting Question

financial accounting question

Content
Question 1
Consider the following information for Orlando Brown
Cash
Contents of Home
Automobile
House
Credit Card
Bank Loan
Mortgage
$20,000
15,000
25,000
100,000
5,000
8,000
80,000
What is the amount for Orlando’s Total Assets?
$253,000
$160,000
$93,000
$67,000
Question 2
Consider the following information for Orlando Brown
Cash
Contents of Home
Automobile
House
Credit Card
Bank Loan
Mortgage
What is the amount for Orlando’s Net Worth?
$253,000
$160,000
$93,000
$67,000
$20,000
15,000
25,000
100,000
5,000
8,000
80,000
Question 3
The following information was taken from
the personal records of John Brown
Cash
Contents of Home
Personal Artwork
House
Credit Card
Mortgage
Net Worth
$120,000
54,000
45,000
220,000
15,000
180,000
244,000
The following transactions occurred during
the month of April 2023.
1
2
3
4
5
6
Earned monthly salary of $17,500
Paid $1,500 cash for food
Purchased a personal artwork for
$20,000 charging to the credit card
Paid $800 cash for gas
Paid $1,000 interest on the credit card
Earned $500 from the bank for
Interest
How much was total revenue?
$18,000
$17,500
$500
$3,300
1.
Question 4
The following information was taken from
the personal records of John Brown
Cash
Contents of Home
Personal Artwork
House
Credit Card
Mortgage
$120,000
54,000
45,000
220,000
15,000
180,000
Net Worth
244,000
The following transactions occurred during
the month of April 2023.
1
2
Earned monthly salary of $17,500
Paid $1,500 cash for food
Purchased a personal artwork for
$20,000 charging to the credit card
Paid $800 cash for gas
Paid $1,000 interest on the credit card
Earned $500 from the bank for Interest
3
4
5
6
How much was the surplus or deficit?
$14,200
$10,000
$20,000
$14,700
2.
Question 5
Carpet Inc. had the following
transactions during the
month.
Assets = Liabilities +
1
2
3
4
5
6
The owner invested
$10,000 into the business
Paid $12,000 cash for
twelve months of insurance
Borrowed $10,000 from the
bank
Purchased equipment for
$12,000 on account
paid $600 cash for office
expenses
Provided services of $2,500
which will be received next
month
Owner’s
Equity
Paid $1,000 for the
equipment purchased
earlier
Provided services of $3,000
8
and received cash
The owner withdrew $3,000
9
cash for personal use
Used up one month of
10
insurance
For transaction 3, which is correct?
Assets increase by $10,000 and Liabilities increase by $10,000
Assets increase by $10,000 and Owner’s Equity increase by $10,000
Assets decrease by $10,000 and Liabilities decrease by $10,000
Liabilities increase by $10,000 and Owner’s Equity decrease by $10,000
7
3.
Question 6
Carpet Inc. had the following
transactions during the
month.
Assets = Liabilities +
1
2
3
4
5
6
7
8
The owner invested $10,000
into the business
Paid $12,000 cash for twelve
months of insurance
Borrowed $10,000 from the
bank
Purchased equipment for
$12,000 on account
paid $600 cash for office
expenses
Provided services of $2,500
which will be received next
month
Paid $1,000 for the
equipment purchased earlier
Provided services of $3,000
and received cash
Owner’s
Equity
9
10
The owner withdrew $3,000
cash for personal use
Used up one month of
insurance
For transaction 1, which is correct?
Liabilities increase by $10,000 and Owner’s Equity Increase by $10,000
Assets increase by $10,000 and Liabilities increase by $10,000
Assets increase by $10,000 and Owner’s Equity increase by $10,000
Assets decrease by $10,000 and Owner’s Equity increase by $10,000
4.
Question 7
Carpet Inc. had the following
transactions during the
month.
Assets = Liabilities +
The owner invested $10,000
into the business
Paid $12,000 cash for twelve
2
months of insurance
Borrowed $10,000 from the
3
bank
Purchased equipment for
4
$12,000 on account
paid $600 cash for office
5
expenses
Provided services of $2,500
6
which will be received next
month
Paid $1,000 for the
7
equipment purchased earlier
Provided services of $3,000
8
and received cash
The owner withdrew $3,000
9
cash for personal use
Used up one month of
10
insurance
For transaction 4, which is correct?
1
Owner’s
Equity
Assets decrease by $12,000 and Liabilities decrease by $12,000
Assets increase by $12,000 and Owner’s Equity increase by $12,000
Assets increase by $12,000 and liabilities increase by $12,000
Assets decrease by $12,000 and Owner’s Equity decrease by $12,000
5.
Question 8
Carpet Inc. had the following
transactions during the
month.
Assets = Liabilities +
The owner invested $10,000
into the business
Paid $12,000 cash for twelve
2
months of insurance
Borrowed $10,000 from the
3
bank
Purchased equipment for
4
$12,000 on account
paid $600 cash for office
5
expenses
Provided services of $2,500
6
which will be received next
month
Paid $1,000 for the
7
equipment purchased the
previous month
Provided services of $3,000
8
and received cash
The owner withdrew $3,000
9
cash for personal use
Used up one month of
10
insurance
For transaction 7, which is correct?
Assets decrease by $1,000 and liabilities decrease by $1,000
Assets decrease by $1,000 and Assets increase by $1,000
Assets increase by $1,000 and liabilities decrease by $1,000
Liabilities decrease by $1,000 and Owner’s Equity increase by $1,000
1
6.
Owner’s
Equity
Question 9
Some numbers are missing from the following
Balance Sheet of Drake Inc.
Drake Inc.
Balance Sheet
As at May 31, 2023
Assets
Cash
Accounts Receivable
Prepaid Insurance
Equipment
Total Assets
Liabilities
$50,000 Accounts Payable
Bank Loan
6,000
Total Liabilities
15,000
Owner’s Equity
Capital
$91,000
$13,000
73,000
Total Liabilities +
Owner’s Equity
The amount for Accounts Receivable is
$50,000
$20,000
$25,000
$91,000
7.
Question 10
Some numbers are missing from the following
Balance Sheet of Drake Inc.
Drake Inc.
Balance Sheet
As at May 31, 2023
Assets
Cash
Accounts Receivable
Prepaid Insurance
Equipment
Liabilities
$50,000 Accounts Payable
Bank Loan
6,000
Total Liabilities
15,000
Owner’s Equity
$13,000
Capital
Total Assets
$91,000
73,000
Total Liabilities +
Owner’s Equity
The amount for Total Liabilities + Owner’s Equity is
$5,000
$18,000
$73,000
$91,000
8.
Question 11
Some numbers are missing from the following income statement of
Drake Inc.
Drake Inc.
Income Statement
For the Year Ended May 31, 2023
Revenue
Service Revenue
Sales Revenue
Total Revenue
Expenses
Salaries and Wages Expense
Rent Expense
Insurance Expense
Maintenance Expense
Telephone Expense
Interest Expense
Total Expense
Net Income
The amount for Sales Revenue is
$100,000
$150,000
$50,000
$20,000
9.
Question 12
$100,000
$150,000
30,000
24,000
3,000
1,500
800
$78,700
Some numbers are missing from the following
Balance Sheet of Drake Inc.
Drake Inc.
Balance Sheet
As at May 31, 2023
Assets
Cash
Accounts Receivable
Prepaid Insurance
Equipment
Total Assets
Liabilities
$50,000 Accounts Payable
Bank Loan
6,000
Total Liabilities
15,000
Owner’s Equity
Capital
$91,000
$13,000
73,000
Total Liabilities +
Owner’s Equity
The amount for Total Liabilities is
$5,000
$18,000
$73,000
$91,000
10.
Question 13
Michael Plus owns a dental business called Plus Dental. He has
recorded all the transactions for the month of April 2023. The
balances of the accounts are shown below.
Accounts
Accounts
Payable
Accounts
Receivable
Bank Loan
Cash
Equipment
Land
Maintenance
Expense
Plus, Capital
Balance
$3,000
800
6,000
2,500
8,000
12,000
300
11,600
Plus,
1,200
Withdrawals
Prepaid
1,500
Insurance
Rent Expense 600
Salaries
2,500
Expense
Service
8,900
Revenue
Telephone
200
Expense
Travel Expense 400
Unearned
500
Revenue
Net Income is
$4,900
$5,400
$8,900
$10,000
11.
Question 14
Michael Plus owns a dental business called Plus Dental. He has
recorded all the transactions for the month of April 2023. The
balances of the accounts are shown below.
Accounts
Accounts
Payable
Accounts
Receivable
Bank Loan
Cash
Equipment
Land
Maintenance
Expense
Plus, Capital
Balance
$3,000
800
6,000
2,500
8,000
12,000
300
11,600
Plus,
1,200
Withdrawals
Prepaid
1,500
Insurance
Rent Expense 600
Salaries
2,500
Expense
Service
8,900
Revenue
Telephone
200
Expense
Travel Expense 400
Unearned
500
Revenue
Total Assets is
$23,300
$20,000
$24,800
$25,000
12.
Question 15
Michael Plus owns a dental business called Plus Dental. He has
recorded all the transactions for the month of April 2023. The
balances of the accounts are shown below.
Accounts
Accounts
Payable
Accounts
Receivable
Bank Loan
Cash
Equipment
Land
Maintenance
Expense
Plus, Capital
Balance
$3,000
800
6,000
2,500
8,000
12,000
300
11,600
Plus,
1,200
Withdrawals
Prepaid
1,500
Insurance
Rent Expense 600
Salaries
2,500
Expense
Service
8,900
Revenue
Telephone
200
Expense
Travel Expense 400
Unearned
500
Revenue
Total Expenses are
$3,100
$4,000
$5,500
$10,000
Question 16
Mercurial Ltd. prepaid cash for its annual insurance policy. The amount was
expensed on a monthly basis as it was used up. Which qualitative characteristic of
financial statement foundation best describes this?
Revenue Recognition
Expense Recognition
Comparability
Measurement
Question 17
Battery Surge Inc. reported all financial information that could have an impact on
the decisions of the users of the financial statements. Which qualitative
characteristic of financial statement foundation best describes this?
Verifiability
Comparability
Understandability
Relevance
Question 18
Duplicate Ways Ltd. included references to source documents to explain where
certain financial figures originated from. Which qualitative characteristic of financial
statement foundation best describes this?
Verifiability
Understandability
Expense Recognition
Revenue Recognition
Question 19
Western Ltd. recorded revenue for a five-year construction contract evenly over the
five years. Which qualitative characteristic of financial statement foundation best
describes this?
Expense Recognition
Revenue Recognition
Verifiability
Measurement
Question 20
Western Corp. had its land appraised at $100,000. The land was listed on the
balance sheet at $80,000, which was the price originally paid for it. Which
qualitative characteristic of financial statement foundation best describes this?
Revenue Recognition
Measurement
Expense Recognition
Understandability
Question 21
Mark Twain has committed to opening a second location in the next eight months.
Details regarding this expansion were included in the financial information. Which
qualitative characteristic of financial statement foundation best describes this?
Revenue Recognition
Comparability
Disclosure
Expense Recognition