A business called Wok and Roll Ltd. is organized as 1 point a sole proprietorship. a partnership a corporation a government agency 1 point The company Wok this Way has the following list of assets. 1. Supplies 2. Accounts Receivable 3. Bank 4. Property and Plant. Which is the correct order of assets on a classified balance sheet? 1,3,2,4 3, 2, 1,4 3,1,2,4 0 4,1,2,3 1 point Which of the following accounts is not closed out at the end of the accounting period? Salaries Expense Accounts Payable Drawings Fees Earned O Before the Income Summary account is closed, a credit balance represents 1 point the total expenses for the accounting period. net loss for the accounting period. net income for the accounting period. 1 point Pow Wok has decided to close down his business, Wok Buddies, and sell off his assets. His 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. He paid the liquidator $1000. After liquidation of his assets and liabilities, what would be Mr. Wok's Capital balance? $19000 $11 000 $25 000 $10000 None of the above On December 31, 20-1, a business had $150 000 in assets and $70 000 in 1 point 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. 20-22 $150 000 $130 000 $170 000 $60 000 5 points Classify each of the following as an asset (A), a liability (L) or Owners Equity - Revenue (r), Expense (e). Drawings (d), Capital (C) of Nin Com Soup Company. (10 x 0.5 marks each = 5 marks) Asset Liability Revenue Expense Drawings Capital HST Recoverable (truest sense) Unpaid cell phone bill O O O O PST Payable Bank loan O O o Fees Earned Unearned Revenue O O O Office furniture A Patent or trademark Accounts payable Cash in bank O If dollar signs are used on a balance sheet, they should appear before 1 point every amount on the balance sheet. the first amount in a column. the first amount beneath a single-ruled line. Both b and c above 3 points What type of balance do the following accounts usually have? (0.5 per each) Debit Credit HST Recoverable An expense account Accumulated Depreciation Prepaid Insurance A debtor account Fees Earned 1 point Which of the following accounts is not closed out at the end of the accounting period? Salaries Expense Accounts Payable Drawings Fees Earned Before the Income Summary account is closed, a credit balance represents 1 point the total expenses for the accounting period. net loss for the accounting period. net income for the accounting period. total assets for the accounting period
