1. A company started the year with $1,000 of supplies on hand. It purchased supplies costing $4,250 on March 15 and debited Supplies for the full amount. At the end of the accounting period, a physical count of supplies revealed $2,100 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be

Select one:

a. It depends upon whether the company was following IFRS or ASPE

b. debit Supplies Expense, $3,150; credit Supplies, $3,150.

c. debit Supplies Expense, $2,100; credit Supplies, $2,100.

d. debit Supplies, $5,250; credit Supplies Expense, $4,250, Credit Accounts Payable $1,000

e. debit Supplies, $4,250; credit Supplies Expense, $4,250.

2. a company has assets of $5500 and shareholders equity of $4000. What are the liabilities of this Company?

Select one:

a. $9,500

b. $5,500

c. $1,500

d. $3,500

e. It is impossible to determine unless you are provided with the breakdown between Current Assets and Non-Current Assets

3. A company purchased $10,000 of office supplies inventory. They paid $1500 in cash and charged the rest to their account with the supplier. The credit (CR) side of the entry would be:

Select one:

a. CR Cash $1500 AND CR Accounts Payable $8500

b. Cr Cash $1500 AND CR Accounts Receivable $8500

c. DR Office Supplies $10,000

d. All the responses written on this list are correct; the bookkeeper can choose depending on the circumstances

e. CR Office Supplies $10,000

4. A trial balance will be out of balance if:

Select one:

a. There is a DR to Cash and a CR to Accounts Payable of $1500 to record a cheque to a supplier

b. The same journal entry is posted twice

c. The bookkeeper posted a $1000 dividend as DEBIT (DR) Dividends $500; CREDIT (CR) Cash $500

d. The bookkeeper posted a $1000 dividend declared as Debit (DR) Dividends $100; Credit (CR)Cash $1000

e. All of the responses in this question would cause the Trial Balance to not balance.

5. A business organized as a corporation . . .

Select one:

a. cannot use IFRS rules unless its stock is traded publicly

b. is not a separate legal entity in most provinces but is if it is incorporated under federal legislation.

c. mean that shareholders are personally liable for the debts of the business unless they choose ASPE accounting.

d. has no income tax advantages over a proprietorship or a limited partnership

e. is owned by its shareholders.