B. Accounts receivable, $2,000 increase, liabilities, $2,000 increase.
C. Accounts receivable, $2,000 increase, cash, $2,000 increase.
D. Accounts receivable, $2,000 increase, equity, $2,000 increase.
E. Accounts receivable, $2,000 increase, cash, $2,000 decrease.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Medium
Learning Objective: 01-07 Analyze business transactions by applying the accounting equation.
Topic: 01-22 Transaction Analysis
104. Which of the following items does not appear on the balance sheet?
A. Cash
B. Notes payable
C. Accounts receivable
D. Withdrawals
E. Accounts payable
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-08 Prepare financial statements reflecting business transactions.
Topic: 01-20 Previewing Financial Statements
105. Social responsibility
A. is a code that helps accountants when dealing with confidential information
B. is a concern for the impact of our actions on society as a whole
C. allows Canada Revenue Agency to regulate businesses
D. requires that all businesses conduct social audits
E. requires analysts to report information favourable to their companies
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-04 Identify and explain why ethics and social responsibility are crucial to accounting.
Topic: 01-16 Social Responsibility
106. Ethical behaviour requires
A. accountants to keep business information confidential
B. auditors to invest in businesses they audit
C. analysts to report information favourable to their companies
D. purchasing agents to favour certain suppliers
E. the government to regulate businesses
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-04 Identify and explain why ethics and social responsibility are crucial to accounting.
Topic: 01-15 Understanding Ethics
107. Generally accepted accounting principles are
A. not used in the real world
B. are required to make financial statement information relevant and faithfully represented
C. are only used for internal reporting
D. are only used by auditors
E. are only used for reporting to Canada Revenue Agency
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-05 Identify, explain, and apply accounting principles.
Topic: 01-17 Generally Accepted Accounting Principles (GAAP)
108. The accounting equation can be stated as
A. Assets = non-owner equity + equity
B. Liabilities = assets - equity
C. Assets = liabilities + equity
D. Equity = assets - liabilities
E. All of these
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Hard
Learning Objective: 01-07 Analyze business transactions by applying the accounting equation.
Topic: 01-21 The Accounting Equation
109. Today, Cedar Park Company paid $600 of its accounts payable in cash. What is the effect on the accounting equation?
A. Assets, $600 increase; liabilities, no effect; equity, $600 increase.
B. Assets, $600 decrease; liabilities, $600 decrease; equity, no effect.
C. Assets, $600 decrease; liabilities, $400 increase; equity, $200 decrease.
D. Assets, no effect; liabilities, $600 decrease; equity, $400 increase.
E. There is no effect.
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: Medium
Learning Objective: 01-07 Analyze business transactions by applying the accounting equation.
Topic: 01-22 Transaction Analysis
110. The area of accounting aimed at serving the decision-making needs of internal users is
A. financial accounting
B. managerial accounting
C. auditing
D. internal control
E. marketing
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-03 Identify users and uses of, and opportunities in, accounting.
Topic: 01-08 Internal Information Users
111. The financial statement that describes where a company's cash came from and where it went during the period is the
A. statement of financial position
B. statement of cash flows
C. balance sheet