Chapter 8 Financial Statement Flashcards
Which of the following is a liability on a financial statement?
(1) depreciation expense
(2) accumulated depreciation
(3) salaries payable
(4) both (1) and (3)
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Ambleside Productions Ltd.
as at March 31, 20xx
Assets
Current Assets Liabilities
Current Liabilities
Cash in bank $3,000 Accounts Payable $4,500
Term Deposits 25,000 Property Taxes Payable 2,200
Rent Receivable 7,500 Income Tax Payable 19,500
Inventory 22,200 Current Portion of Mortgage Payable 28,300
Prepaid Expenses 13,500
Total Current Assets 71,200 Total Current Liabilities 54,500
Fixed Assets Long Term Liabilities
Land Buildings
(net of accumulated
depreciation) 280,000
145,000 Mortgage Payable (net of current portion) 294,000
Equipment
(net of accumulated depreciation)
27,000 Shareholders’ Equity
Common Stock
100,000
Total Fixed Assets 452,000 Retained Earnings 74,700
Total Assets:
$523,200 Total Liabilities and Shareholders’ Equity:
$523,200
This financial statement of Ambleside Productions Ltd. is known as:
(1) a statement of profit and loss.
(2) an income statement.
(3) a balance sheet.
(4) a corporate statement of holdings.
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Current assets on the financial statements of a business include:
(1) the owner’s initial investment.
(2) rents payable.
(3) real property at its historic cost.
(4) None of the above
4
Retained earnings on a company’s financial statements is best defined as the:
(1) company’s profit for current year.
(2) company’s profit for the current year which was retained for future investment.
(3) accumulated total of the company’s profits (less losses) less dividends since incorporation.
(4) accumulated profits since incorporation used for investing in fixed assets.
4
Current assets on the financial statements of a business include:
(1) land.
(2) rents receivable.
(3) real property at its historic cost.
(4) accounts payable.
2
which one of the following is a liability on a financial statement?
(1) accumulated depreciation
(2) mortgages payable
(3) wages paid
(4) prepaid expense
2
Which of the following is NOT a commonly used financial statement?
(1) a statement of profit and loss
(2) an income statement
(3) a balance sheet
(4) a corporate statement of holdings
4
Which of the following is a liability on a financial statement?
(1) accumulated depreciation
(2) inventory
(3) rents receivable
(4) none of the above
4
Current assets on the financial statements of a business include:
(1) owner’s initial investment.
(2) rents payable.
(3) marketable securities.
(4) all of the above.
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