Reference no: EM131565363

Accounting Assignment

Question 1: Stewardship is an important concept because of: The importance of the quality of decisions by small business owners
The need to increase shareholder wealth
The separation of ownership from management
The need to recognize the importance of all stakeholders

Question 2: Accounting is traditionally seen as fulfilling three functions:
Scorekeeping, attention-directing and problem-solving
Planning, decision-making and control
Financial accounting, management accounting and corporate finance
Income Statement, Balance Sheet and Statement of Cash Flows

Question 3: Financial statements are regulated by:
Legislation and accounting standards
Accounting standards and audit
Legislation, accounting standards and audit
The accounting profession

Question 4: It is most correct to say that management accounting:
Provides managers with information to improve the organization's performance through better decisions
Has little relevance to modern business practices
Is predominantly concerned with product costing
Is predominantly concerned with improving productivity and production processes

Question 5: Value-based management emphasizes shareholder value, because this is the:
Primary goal of every business
Required under Corporations legislation
Necessary for economic growth
Function of accounting processes

Question 6: Shareholders in a company have the right to:
Participate in the management of the company
Visit the company to observe its practices
Obtain additional information to that shown in the annual financial statements
Receive an Annual Report and attend an Annual General Meeting

Question 7: An audit is best defined as:
A thorough checking of financial transactions to ensure they are recorded correctly
A certification by an independent accountant that the financial statements are true and correct
The production of financial statements that comply with legislation, accounting standards and present a true and fair view (or present fairly)
An examination of accounting records of a company carried out by an independent accountant to ensure that the financial statements present a true and fair view (or present fairly)

Question 8: The Income Statement comprises the following groups of accounts:
Income, Expenses and Equity
Assets, Liabilities and Equity
Income and Expenses
Assets and Liabilities

Question 9: The Statement of Financial Position comprises the following groups of accounts:
Income, Expenses and Equity
Assets, Liabilities and Equity
Income and Expenses
Assets and Liabilities

Question 10: The purchase of goods on credit for later resale would affect the following accounts:
Bank, Cost of sales
Inventory, Bank
Payables, Inventory
Cost of sales, Payables

Question 11: Paying cash for a computer system for business use would affect the following types of account:
Assets only
Both assets and liabilities
Liabilities only
Both assets and expenses

Question 12: Use the following information to answer Questions 3-4 to 3-8 (12-16). Kochyo purchases an inventory of spare parts on credit from its suppliers for $15,000. During the month Kochyo pays its suppliers $10,000 and sells spare parts (which cost the business $8,000) to its customers on credit for $20,000. Customers pay Kochyo $12,000 during the month.

Inventory increases by:
$2,000
$5,000
$7,000
$8,000
$12,000

Question 13: Use the following information to answer Questions 3-4 to 3-8 (12-16). Kochyo purchases an inventory of spare parts on credit from its suppliers for $15,000. During the month Kochyo pays its suppliers $10,000 and sells spare parts (which cost the business $8,000) to its customers on credit for $20,000. Customers pay Kochyo $12,000 during the month.

Payables increases by:
$2,000
$5,000
$7,000
$8,000
$12,000

Question 14: Use the following information to answer Questions 3-4 to 3-8 (12-16). Kochyo purchases an inventory of spare parts on credit from its suppliers for $15,000. During the month Kochyo pays its suppliers $10,000 and sells spare parts (which cost the business $8,000) to its customers on credit for $20,000. Customers pay Kochyo $12,000 during the month.

Receivables increases by:
$2,000
$5,000
$7,000
$8,000
$12,000

Question 15: Use the following information to answer Questions 3-4 to 3-8 (12-16). Kochyo purchases an inventory of spare parts on credit from its suppliers for $15,000. During the month Kochyo pays its suppliers $10,000 and sells spare parts (which cost the business $8,000) to its customers on credit for $20,000. Customers pay Kochyo $12,000 during the month.

Profit increases by:
$2,000
$5,000
$7,000
$8,000
$12,000

Question 16: Use the following information to answer Questions 3-4 to 3-8 (12-16). Kochyo purchases an inventory of spare parts on credit from its suppliers for $15,000. During the month Kochyo pays its suppliers $10,000 and sells spare parts (which cost the business $8,000) to its customers on credit for $20,000. Customers pay Kochyo $12,000 during the month.

The bank account increases by:
$2,000
$5,000
$7,000
$8,000
$12,000.