A.Accountants collect, record and present financial statements under the methods and procedures laid down by:

1. Revenue Canada
2. The Canadian Securities Commission
3. The Canadian Federal Trade Commisson
4. The Canadian Institute of Financial Accounting
5. None of the above.

B.What purpose does the balance sheet serve?

1. it shows investors how much profit the firm made during the last year
2. it shows a firm's financial condition on a particular date in terms of its assets, liabilities, and owners' equity
3. it shows liquidity ratios, profitability ratios, and activity ratios
4. it shows a firm's sources and uses of cash
5. none of the above

C.Which of the following best describes the meaning of the term "asset"?

1. Tangible and intangible property which has been financed by the owners of a business.
2. Something owned or possessed that has financial value, and which could be used to satisfy a debt.
3. Something which belongs to a business which has been financed with owners' equity.
4. Something which belongs to a business which has been financed with debt.
5. A benefit which has yet to be realised

D.Owners' Equity is:

1. a debt owed by a firm to an outside organization or individual.
2. any economic resource expected to benefit a firm or an individual who owns it.
3. the profits earned by the business.
4. the money originally invested in a business by its owners.
5. the money originally invested in a business by its owners, plus the value of profits reinvested into the business as it grows.

E.

Provide the missing information.

Consolidated Metal Bashers

Balance Sheet as at 30 September, 2015

(in $'000)

ASSETS LIABILITIES

Current Assets Current Liabilities

Cash _?_ Accounts Payable 30

Inventory 20 Long Term Liabilities

Accounts Receivable 20 Bank Loan 40

Fixed Assets

Furniture 10 OWNERS' EQUITY

Machinery 45 Common Shares _?_

Retained Earnings 10

TOTAL ASSETS _?__ TOTAL LIABS. + EQUITY 100

The valueof the share capital invested by the owners of Consolidated Metal Bashers was

1. 10
2. 20
3. 40
4. 50
5. We don't have enough information to know.

F.

Consolidated Metal Bashers

Balance Sheet as at 30 September, 2015

(in $'000)

ASSETS LIABILITIES

Current Assets Current Liabilities

Cash _?_ Accounts Payable 30

Inventory 20 Long Term Liabilities

Accounts Receivable 20 Bank Loan 40

Fixed Assets

Furniture 10 OWNERS' EQUITY

Machinery 45 Common Shares _?_

Retained Earnings 10

TOTAL ASSETS _?__ TOTAL LIABS. + EQUITY 100

The valueof the cash held byConsolidated Metal Bashers was:

1. 5
2. 10
3. 20
4. 40
5. We don't have enough information to know.

G.

Consolidated Metal Bashers

Balance Sheet as at 30 September, 2015

(in $'000)

ASSETS LIABILITIES

Current Assets Current Liabilities

Cash _?_ Accounts Payable 30

Inventory 20 Long Term Liabilities

Accounts Receivable 20 Bank Loan 40

Fixed Assets

Furniture 10 OWNERS' EQUITY

Machinery 45 Common Shares _?_

Retained Earnings 10

TOTAL ASSETS _?__ TOTAL LIABS. + EQUITY 100

The valueof Consolidated Metal Bashers' assets on September 30 was:

1. 10
2. 20
3. 40
4. 100
5. We don't have enough information to know.