ACCOUNTING

Question 1

Balance sheet(3)

Answer 1

Same as
- statement of financial reporting
- statement of financial position

Deals with
- what’s owned an owed
- at a point in time
- assets = liabilities + shareholder equity

For statement

Start with short term Assets
- cash
- everything else
- prepay expenses

Long term assets
- finish with total assets

Current Liability’s
- total

Long term liability’s
- mortgage less mortgage payable in current year
- total liability

Shareholder equity
- shares
- retained earnings
- total shareholder equity

Total all

Question 2

Income statement(1)

Answer 2

Same as
- statement of comprehensive earnings
- statement of earning

Deals with
- what is earned/made and what is spent/lost
- net income = revenue - expenses

For statement
- sales
- expenses
- get income before tax
- subtract income tax expense
- finish with net income

Question 3

Statement of changes in equity (2)

Answer 3

For IFRS

Deals with
- changing equity over period of time

Beginning equity +- changes in equity = ending equity

Question 4

Statement of retained earnings (2)

Answer 4

For ASPE

Cumulative earnings - dividends = retained earning

Retained earnings (opening balance) + net earnings - dividends = retained earnings (closing balance)

For statement
- opening retained earnings
- add net income
- subtract dividends
- finish with closing retained earnings

Question 5

Statement of cash flow (4)

Answer 5

Cash effect

Details all cash in and output
- operating (assets and liability’s)
- investing (long term assets)
-Financing (resisted to shareholder equity, designating shares)

Information provided on a period of time on an ongoing basis

Question 6

Normal Balance Assets

Answer 6

Debit for increase (normal)
Credit for decreasing

Question 7

Normal balance, liabilities

Answer 7

Credit for increase (normal)
Debit for decrease

Question 8

Normal balance, shareholders equity

Answer 8

Credit for increase (normal)
Debit for decrees

Question 9

Normal balance Common shares

Answer 9

Credit for increase (normal)
Debit for decrease

Question 10

Normal balance, retained earnings

Answer 10

Credit for increase (normal)
Debit for the cruise

Question 11

Normal balance revenue

Answer 11

Credit for increase (normal)
Debit for decrease

Question 12

Normal balance expense

Answer 12

Debit for increase (normal)
Credit for degrees

Question 13

Normal balance dividends

Answer 13

Debit for increase (normal)
Credit for degrees