1. Accounting 30S Chapter 3 Review Questions

2. A financial event that causes a change in financial position

3. What is a business transaction?

4. Evidence that a transaction has occurred e.g. bill, cheque copy, cash register summary

5. What is a source document?

6. They are kept on file for reference purposes and are proof of transactions

7. What happens to source documents after the accounting entries have been completed?

8. Requires that a business’s accounting be recorded on the basis of clear, verifiable evidence

9. objectivity principle

10. A group of accounts

11. ledger

12. Which financial statement shows the financial position of a business?

13. Balance Sheet

14. Where does the name of a business appear in the heading of a balance sheet (on which line)?

15. First line

16. Which side of a balance sheet are the assets listed on?

17. Left side

18. Which side of a balance sheet does a creditor appear on?

19. Right side

20. What does a single ruled line beneath a column of figures indicate?

21. Numbers above the line have been totaled (added or subtracted)

22. When is a double line drawn beneath a total?

23. When it is a final total

24. What is the most liquid asset?

25. Cash

26. In what order are liabilities listed on a balance sheet?

27. Maturity date or the order of the date they will be paid

28. Debts of customers or customers who owe money to the business (debtors)

29. What are Accounts Receivable?

30. Debts owed by the business to suppliers or creditors

31. What are accounts payable?

32. Who has first claim against the assets of a business?

33. Creditors

34. Who benefits from gains made in closing down a business?

35. The owner

36. Who suffers most from losses incurred in closing down a business?

37. The owner

38. What does GAAP stand for?

39. Generally Accepted Accounting Principles

40. What does IFRS stand for?

41. International Financial Reporting Standards

42. A business’s financial information is kept separate from personal financial information

43. What does the Business Entity Concept say?

44. Assets are recorded at their cost price

45. What does the Cost Principle say?

46. It is assumed that the business will continue to operate in the future

47. What does the Continuing Concern Concept say?

48. Give an example of a current asset

49. Cash, Accounts Receivable, Supplies

50. Give an example of a long-term asset

51. Land, building, equipment, automobile

52. Give an example of a current liability

53. Accounts Payable, Bank Loan due within a year

54. Give an example of a long-term liability

55. Bank Loan due in more than a year, Mortgage

56. What is the name of the balance sheet under IFRS?

57. Statement of Financial Position

58. In a spreadsheet what is formed by the intersection of columns and rows?

59. Cells

60. What would you call a cell in row 52 and in column C?

61. C52

62. What is the spreadsheet term for words and titles?

63. Labels

64. What is the spreadsheet term for numbers?

65. Values

66. What symbol tells a spreadsheet program you are using a formula?

67. = sign

68. What does =SUM(B3:B50) telling a spreadsheet to do?

69. To add all the values from cells b3 to b50

70. What does =A7-A5 telling a spreadsheet to do?

71. Subtract the number in cell a5 from the number in cell a7