Hi Travis, I have just uploaded the file containing my


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Hi Travis, I have just uploaded the file containing my homework as advised. Thanks, Nice Homework CH.doc Homework CGA-CANADA FINANCIAL ACCOUNTING FUNDAMENTALS [FA1] ASSIGNMENT #3 (Updated to the 2014/2015 Module Notes) Time: 3 Hours Note: This assignment is similar in form, length, and difficulty to the actual FA1 final examination; however, because of its placement in the course, it will cover content in Modules 1 through 9 inclusive. The emphasis of each module in this assignment is based on the weightings in the examination blueprint, adjusted for the absence of Module 10 material. The FA1 final examination will cover all 10 modules, as indicated in the examination blueprint. This assignment will allow you to gauge your readiness for the final examination and to better target your exam study, based on the performance feedback you receive from your marker. To get the most benefit from the assignment, complete it under exam conditions within the three-hour time limit. The total marks for this assignment are 50, and it is worth 5% of your final grade. The total marks for the final examination are 100 and it will be worth 70% of your final grade. Marks 7.5 Question 1 Select the best answer for each of the following unrelated items. Answer each of these items in your examination booklet by giving the number of your choice. For example, if the best answer for item (a) is (1), write (a)(1) in your examination booklet. If more than one answer is given for an item, that item will not be marked. Incorrect answers will be marked as zero. Marks will not be awarded for explanations. Note: 1/2 mark each a. What type of account is prepaid expense? 1) Asset 2) Liability 3) Expense 4) Owners’ equity b. How would a transaction that increases an expense and decreases an asset be recorded? 1) Debit the asset and credit the expense 2) Debit the asset and debit the expense 3) Debit the expense and credit the asset 4) Credit the expense and credit the asset c. The following T-accounts reflect the correct posting of a journal entry on May 12 by Lennox Ltd.: Cash Accounts Payable 24,000 24,000 What transaction is represented by the posting? 1) A purchase of supplies by Lennox for $24,000 on credit 2) A purchase of supplies by Lennox for $24,000 cash 3) A payment made to a supplier by Lennox of $24,000 on account 4) A sale of goods by Lennox for $24,000 on credit FA1 Page 2 of 9 d. Which method of depreciation provides a constant expense over the life of an asset? 1) Specific identification 2) Units-of-production 3) Straight-line 4) Declining-balance e. A $4,650 debit to utilities expense was incorrectly posted as a $465 debit. What is the effect of this error on the trial balance and the utilities expense account? 1) The debit column of the trial balance would be $4,185 too low and utilities expense would be understated by $4,185. 2) The debit column of the trial balance would be $4,185 too high and utilities expense would be understated by $4,185. 3) The debit column of the trial balance would be $4,185 too low and utilities expense would be overstated by $4,185. 4) The debit column of the trial balance would be $4,185 too high and utilities expense would be overstated by $4,185. f. At March 31, 2015, JBL Company had assets of $500,000 and liabilities of $400,000. What percentage of the assets held by JBL at March 31, 2015, is financed by equity? 1) 0% 2) 20% 3) 45% 4) 80% g. On February 1, 2015, Barnes Ltd. purchased a new building for $400,000, paying $300,000 cash and signing a one-year note payable for the balance of $100,000. What is the effect of this business transaction on the accounting equation of Barnes? 1) Assets increase by $100,000, liabilities increase by $100,000, and equity increases by $100,000. 2) Assets increase by $400,000, liabilities increase by $100,000, and equity increases by $300,000. 3) Assets increase by $100,000, liabilities increase by $100,000, and equity does not change. 4) As

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