BAF 3M 🏁 Ch. 2 RETAKE A

1

Which is the best way to express the fundamental accounting equation?

Assets = Liabilities – Owner’s Equity

Assets + Liabilities = Owner’s Equity

Assets = Liabilities + Owner’s Equity

Assets + Owner’s Equity = Liabilities

1

Johnson Storage Solutions has the following list of assets:
1. Supplies
2. Accounts Receivable
3. Cash
4. Building
Which is the correct order of assets on a classified balance sheet?

3, 1, 2, 4

4, 1, 2, 3

3, 2, 1, 4

1, 3, 2, 4

1

If the total assets of a business are $38 400.50 and the total liabilities are $12 595.20, what is the owner’s equity?

None of the above.

$50 995.70

$25 805.30

$38 400.50

1

On December 31, 2020, a business had $150 000 in assets and $70 000 in liabilities. During the next year, assets increased by $70 000 and liabilities decreased by $20 000. What would be the owner’s equity at December 31, 2021?

$170 000

$130 000

$60 000

$150 000

1

Which of the following items would not be classified as an asset of a business?

store equipment

money a customer owes

cash on hand

the amount of a creditor’s claim

1

If dollar signs are used on a balance sheet, they should appear before

a. every amount on the balance sheet.

b. the first amount in a column.

c. the first amount beneath a single-ruled line.

d. Both b and c above.

1

Teresa Sedore has decided to close down her business and sell off her assets. Her Capital balance before liquidation is $30 000. Assets valued at $35 000 were sold for $16 000 in cash. The total liabilities of $5000 were paid in full. She paid the liquidator $1000. After the liquidation of her assets and liabilities, what would be Sedore’s Capital balance?

1

Property is best defined as

1

Under IFRS, the balance sheet is called

1

When presenting assets under IFRS, current assets are listed

A company’s offices are located on property that the company owns. The market value of the property has increased by $15 000.

1

A. Should the balance sheet be updated to include this $15 000 increase in assets? Explain.

1

B. Which accounting standard(s) affect this situation? (hint: 2.4)

1

John Pagoda owns and operates a service store called Kwik Cleaners in Dartmouth, Nova Scotia.

12

Indicate whether each of the items listed below is an asset or a liability of his business by dragging the items to their appropriate titles.
If the item is neither, drag the item to 'neither'.

Mortgage on his service store
$60 000
Delivery truck
$22 000
Money owed to Home Hardware
$2 000
Cash on hand
$1 000
Household furniture
$6 000
Money a customer owes
$3 000
Mortgage on his house
$30 000
Store equipment
$8 000
The land and building where his store is located
$240 000
A coffee dispenser placed in the store by a company that rents out equipment
$2 500
A company automobile leased (rented) from J. Grayson Leasing Company
$18 000
An old display counter that has no further dollar value
$0

Asset
Liability
Neither

Calculate John Pagoda’s equity in Kwik Cleaners. Show calculations for Assets, Liabilities, and Equity. DO NOT make a balance sheet, just a rough calculation. Ex.

Assets: A+B+C=ASSETS

Liabilities: A+B+C=LIABILITIES

Equity: A-L=OE

Items that were 'neither' should not be included in this calculation.

null

1

Calculate Kwik Cleaners ASSETS

1

Calculate Kwik Cleaners LIABILITIES

1

Calculate Kwik Cleaners EQUITY

G. Armstrong is the new owner of Armstrong Hardware Store. He believes that he knows enough about accounting to prepare his first balance sheet, as illustrated below, before starting a business on May 1, 20–.

5

1

Which accounting standard has G. Armstrong violated? Explain.

You are finished here. The last two items tasks are to prepare balance sheets. Go back to Google Classroom and click the link to go to the Balance Sheets. (turn in the balance sheets when you're done.)

BAF 3M 🏁 Ch. 2 RETAKE A

Which is the best way to express the fundamental accounting equation?

Johnson Storage Solutions has the following list of assets:
1. Supplies
2. Accounts Receivable
3. Cash
4. Building
Which is the correct order of assets on a classified balance sheet?

If the total assets of a business are $38 400.50 and the total liabilities are $12 595.20, what is the owner’s equity?

On December 31, 2020, a business had $150 000 in assets and $70 000 in liabilities. During the next year, assets increased by $70 000 and liabilities decreased by $20 000. What would be the owner’s equity at December 31, 2021?

Which of the following items would not be classified as an asset of a business?

If dollar signs are used on a balance sheet, they should appear before

Property is best defined as

Under IFRS, the balance sheet is called

When presenting assets under IFRS, current assets are listed

A. Should the balance sheet be updated to include this $15 000 increase in assets? Explain.

B. Which accounting standard(s) affect this situation? (hint: 2.4)

Indicate whether each of the items listed below is an asset or a liability of his business by dragging the items to their appropriate titles.
If the item is neither, drag the item to 'neither'.

Calculate Kwik Cleaners ASSETS

Calculate Kwik Cleaners LIABILITIES

Calculate Kwik Cleaners EQUITY

Which accounting standard has G. Armstrong violated? Explain.

Which is the best way to express the fundamental accounting equation?

Johnson Storage Solutions has the following list of assets:
1. Supplies
2. Accounts Receivable
3. Cash
4. Building
Which is the correct order of assets on a classified balance sheet?

If the total assets of a business are $38 400.50 and the total liabilities are $12 595.20, what is the owner’s equity?

On December 31, 2020, a business had $150 000 in assets and $70 000 in liabilities. During the next year, assets increased by $70 000 and liabilities decreased by $20 000. What would be the owner’s equity at December 31, 2021?

Which of the following items would not be classified as an asset of a business?

If dollar signs are used on a balance sheet, they should appear before

Property is best defined as

Under IFRS, the balance sheet is called

When presenting assets under IFRS, current assets are listed

A. Should the balance sheet be updated to include this $15 000 increase in assets? Explain.

B. Which accounting standard(s) affect this situation? (hint: 2.4)

Indicate whether each of the items listed below is an asset or a liability of his business by dragging the items to their appropriate titles.
If the item is neither, drag the item to 'neither'.

Calculate Kwik Cleaners ASSETS

Calculate Kwik Cleaners LIABILITIES

Calculate Kwik Cleaners EQUITY

Find and select five (5) errors found on Armstrong’s balance sheet. (HINT: there are 11 errors in total, but be aware that incorrect totals count only as one error)

Which accounting standard has G. Armstrong violated? Explain.

Find and select five (5) errors found on Armstrong’s balance sheet. (HINT: there are 11 errors in total, but be aware that incorrect totals count only as one error)

BAF 3M 🏁 Ch. 2 RETAKE A

BAF 3M 🏁 Ch. 2 RETAKE A

Which is the best way to express the fundamental accounting equation?

Johnson Storage Solutions has the following list of assets: 1. Supplies 2. Accounts Receivable 3. Cash 4. BuildingWhich is the correct order of assets on a classified balance sheet?

If the total assets of a business are $38 400.50 and the total liabilities are $12 595.20, what is the owner’s equity?

On December 31, 2020, a business had $150 000 in assets and $70 000 in liabilities. During the next year, assets increased by $70 000 and liabilities decreased by $20 000. What would be the owner’s equity at December 31, 2021?

Which of the following items would not be classified as an asset of a business?

If dollar signs are used on a balance sheet, they should appear before

Property is best defined as

Under IFRS, the balance sheet is called

When presenting assets under IFRS, current assets are listed

A. Should the balance sheet be updated to include this $15 000 increase in assets? Explain.

B. Which accounting standard(s) affect this situation? (hint: 2.4)

Indicate whether each of the items listed below is an asset or a liability of his business by dragging the items to their appropriate titles. If the item is neither, drag the item to 'neither'.

Calculate Kwik Cleaners ASSETS

Calculate Kwik Cleaners LIABILITIES

Calculate Kwik Cleaners EQUITY

Which accounting standard has G. Armstrong violated? Explain.

Which is the best way to express the fundamental accounting equation?

Johnson Storage Solutions has the following list of assets: 1. Supplies 2. Accounts Receivable 3. Cash 4. BuildingWhich is the correct order of assets on a classified balance sheet?

If the total assets of a business are $38 400.50 and the total liabilities are $12 595.20, what is the owner’s equity?

On December 31, 2020, a business had $150 000 in assets and $70 000 in liabilities. During the next year, assets increased by $70 000 and liabilities decreased by $20 000. What would be the owner’s equity at December 31, 2021?

Which of the following items would not be classified as an asset of a business?

If dollar signs are used on a balance sheet, they should appear before

Property is best defined as

Under IFRS, the balance sheet is called

When presenting assets under IFRS, current assets are listed

A. Should the balance sheet be updated to include this $15 000 increase in assets? Explain.

B. Which accounting standard(s) affect this situation? (hint: 2.4)

Indicate whether each of the items listed below is an asset or a liability of his business by dragging the items to their appropriate titles. If the item is neither, drag the item to 'neither'.

Calculate Kwik Cleaners ASSETS

Calculate Kwik Cleaners LIABILITIES

Calculate Kwik Cleaners EQUITY

Find and select five (5) errors found on Armstrong’s balance sheet. (HINT: there are 11 errors in total, but be aware that incorrect totals count only as one error)

Which accounting standard has G. Armstrong violated? Explain.

Find and select five (5) errors found on Armstrong’s balance sheet. (HINT: there are 11 errors in total, but be aware that incorrect totals count only as one error)

Johnson Storage Solutions has the following list of assets:
1. Supplies
2. Accounts Receivable
3. Cash
4. Building
Which is the correct order of assets on a classified balance sheet?

Indicate whether each of the items listed below is an asset or a liability of his business by dragging the items to their appropriate titles.
If the item is neither, drag the item to 'neither'.

Johnson Storage Solutions has the following list of assets:
1. Supplies
2. Accounts Receivable
3. Cash
4. Building
Which is the correct order of assets on a classified balance sheet?

Indicate whether each of the items listed below is an asset or a liability of his business by dragging the items to their appropriate titles.
If the item is neither, drag the item to 'neither'.