Exam (elaborations)
Solution Manual for Financial Accounting for Managers
- Course
- Institution
- Book
Solution Manual for Financial Accounting for Managers
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
Solution manual for financial accounting 13th edition by thomas tietz
-
Solution Manual for Financial Accounting for Managers
-
Solution Manual for Financial Accounting for Managers
Seller
Follow
kushboopatel6867
Reviews received
Content preview
Solution Manual for Financial Accounting for Managers1st Edition By Thomas, Spiceland, Nelson
What statement is true:?
a. The Statement of Cash Flows shows the profitability of the entity.
b. The Statement of Changes in Equity presents changes in the ownership interest of
an entity from the start to the end of the period.
c. The Statement of Profit or Loss presents the cash inflow and cash outflows of an
entity during the period.
d. The Statement of Financial Position presents the financial position of the entity
during the period. - ANSWER: b
Define share capital - ANSWER: Name given to the total amount of cash which the
shareholders have contributed to the company
Define share premium - ANSWER: The claim which owners have on the assets of a
company as shares have been purchased from the company at a price greater than
the nominal value.
Define trade payable - ANSWER: Amounts due to suppliers
Define trade receivables - ANSWER: Amounts due from customers
What is the main objective of financial statements, according to the Conceptual
Framework?
a. To provide information to calculate the dividend payment.
b. To provide information to calculate the corporation tax charge.
c. To provide information to help users make economic decisions
d. To provide information to help managers make business decisions. - ANSWER: c
Which of these statements is correct?
a. Verifiability refers to the ability to agree numbers back to evidence.
b. Comparability means that users can make sense of the information given in the
financial statements.
c. Understandability refers to using standard layouts for the statement of profit or
loss and statement of financial position.
d. Timeliness involves waiting until all information in financial statements can be
verified before they are released. - ANSWER: a
Which of these is not one of the primary statements?
Select one:
a. Statement of Profit or Loss
,b. Statement of Cash Flows
c. Accounting policies
d. Statement of Financial Position - ANSWER: c
What economic decision is a bank likely to take on the basis of financial information?
Select one:
a. Whether to sell the shares they hold in the business.
b. Whether to lend money to the business.
c. Whether to buy shares in the business.
d. Whether to sell goods to the business on credit. - ANSWER: b
Which of these is not part of the financial statements?
a. The Chairman's Statement
b. The notes to the financial statements
c. The accounting policies
d. The primary statements - ANSWER: a
The use of standard layouts for the primary financial statements, such as the
statement of profit or loss, is an example of applying the principle of:
a. Prudence.
b. Comparability.
c. Accruals.
d. Timeliness. - ANSWER: b
What is the missing word?_________ is a characteristic of faithful representation
and means that the financial statements are free from bias.
a. Completeness.
b. Prudence.
c. Neutrality.
d. Relevance. - ANSWER: c
How do you account for trade receivables? - ANSWER: Asset
How do you account for trade payables? - ANSWER: Liability
How do you account for tax? - ANSWER: Liability and an Expense
How do you account for share capital? - ANSWER: Equity
How do you account for a bank loan? - ANSWER: Liability
How do you account for a computer? - ANSWER: Asset
How do you account for patents? - ANSWER: Asset
How do you account for employees? - ANSWER: None
, How do you account for a customer deposit? - ANSWER: Liability
How do you account for goods purchased but not invoiced yet? - ANSWER: Liability
How do you account for rent paid in advance? - ANSWER: Asset
How do you account for a purchase order? - ANSWER: None
What is the accounting equation?
a. Assets = Liabilities + Owners Equity
b. Liabilities = Assets + Owners Equity
c. Assets = Liabilities - Owners Equity
d. Owners Equity = Assets + Liabilities - ANSWER: a
If Assets = £50,000, Liabilities = £30,000 and assuming the business has no reserves,
what is the amount of capital?
a. £80,000
b. - £20,000
c. £20,000
d. Information missing, can't calculate the figure - ANSWER: c
Which accounts are affected when an owner invests money into the business?
a. Income and cash
b. Cash and capital
c. Cash and Investments
d. Accounts payable and capital - ANSWER: b
How will accounts be affected when owner invests cash into the business?
a. Cash increases and capital increases
b. Cash increases and capital decreases
c. Cash decreases and capital decreases
d. Cash decreases and capital increases - ANSWER: a
How will accounts be affected when the business pays its rent?
a. Cash increases and rent expense increases
b. Cash increases and rent expense decreases
c. Cash decreases and rent expense decreases
d. Cash decreases and rent expense increases - ANSWER: d
The business paid 400 pounds cash to suppliers for amount previously owed
a. Debit cash; credit trade payables
b. Debit cash; credit trade receivables
c. Debit trade payables; credit cash
d. Debit trade receivables; credit cash - ANSWER: c
The business received 800 pounds in cash from customers who previously purchased
on credit
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller kushboopatel6867. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $17.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
80364 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now