Financial Accounting 4th Canadian Edition Test Bank

Preview (16 of 372 Pages)

100%

Purchase to unlock

Financial Accounting 4th Canadian Edition Test Bank - Page 1 preview image

Loading page ...

ExamName___________________________________MULTIPLE CHOICE.Choose the one alternative that best completes the statement oranswers the question.1)Which of the following wouldnotrepresent a financing activity?1)_______A)Paying dividends to shareholders.B)Borrowing money from a bank to finance the purchase ofnew equipment.C)An investment of financial capital by the owners.D)Collecting cash from customers.2)Investing activities:2)_______A)involve day to day events like selling goods and services,which occur when running a business.B)involve the buying or selling of land, buildings, equipment,and other longer-term investments.C)buying the company's office supplies.D)only involve financial exchanges.3)Public corporations:3)_______A)are businesses owned by two or more people, each of whomis personally liable for the debts of the business.B)are setup for non-profit purposes.C)are businesses whose stock is bought and sold privately.D)are businesses whose stock is bought and sold on a stockexchange.4)Which of the following would represent an operating activity?4)_______A)An investment of financial capital by the owners.B)Purchasing equipment with money borrowed from creditors.C)Repaying a loan the company had taken out.D)Buying the company's office supplies.5)The separate entity assumption means:5)_______A)each shareholders' activities must be revealed in the financialstatements.B)a company's financial statements reflect only the businessactivities of that company and not that of the shareholders.C)each separate owner's finances must be revealed in thefinancial statements.D)each separate entity that has a claim on a company's assetsmust be shown in the financial statements.6)Which of the following are thedisadvantagesof setting acorporation?6)_______A)Legal fees can be high and separate tax returns have to befiled for owners and the business.B)Owners must be involved in day to day running of thebusiness.C)Owners are legally responsible for the liabilities of the

Preview Mode

This document has 372 pages. Sign in to access the full document!

Report

Study Now!

Document Details

Related Documents

Financial Accounting 5th Canadian Edition Test Bank

Financial Accounting 6th Canadian Edition Test Bank

Financial Accounting 6th Canadian Edition Solution Manual

Financial Accounting 4th Canadian Edition Solution Manual

Accounting

Master Managerial Accounting Techniques

Controlling and Reporting of Real Assets

Sarbanes Oxley Act, GAAP and IFRS

Accounting Audit Final Exam MCQs 2015

Team A Week 5 Problems

Company

Explore

Study Tools