rsm219 2012 term test2 Essay

University of Toronto

Joseph L. Rotman School of Management

October twenty-five, 2012


Financial Accounting

Period: 1 hour 60 minutes

Supports allowed: Non-programmable calculator


Please print out your name, pupil number day time and time of your training in the space provided.

You will find 10 multiple choice and 8 complications. Please utilize the space presented below to your answer to the multiple choice questions.

You must make use of a pen. Usually do not use WHITEOUT.

Clearly demonstrate all calculations in the evaluation paper to be able to obtain total marks pertaining to the problems.

Tests written with pencil will not be considered for remarking.

______________________________________________________________ LAST NAMEFIRST IDENTITY (registered name)

______________________________________________________________ Student numberTutorial Section

Marks: Answers to the Mcq

Part A (10 marks)1. ______ _ 6. _______

Part N (3 marks)2. _______ six. _______

Part C (11 marks)3. _______ 8. _______

Part G (6 marks)4. _______ being unfaithful. _______

Component E (10 marks) a few. _______ twelve. _______

Component F (6 marks)

Portion G (4 marks)

Part H (10 marks)

Portion I (5 marks)

Total (65 marks)

Component A (10 marks)

1 ) What does the common setters use for deductively warrant new accounting standards?

a) The notes to the economic statements.

b) The audit report

c) The conceptual framework

d) The CICA Handbook

installment payments on your On the statement of cash runs, the repayment of long-term obligations would be considered:

a) A financing activity

b) A great investing activity

c) A great operating activity

d) A reduction in a liability

3. Which in turn of the next statements about accumulated retirement is Not the case?

a) That involves significant use of quotes by managers

b) That records the portion or how much of the asset has become used up. c) It is mirrored on the "balance sheet".

d) It will help determine how very much an asset can be sold for.

4. FONEM Inc. paid cash returns of $250, 000 during the year. How will these returns be upon the Assertion of Cash Runs using the indirect method of display?

a) Cash output $500, 000 in trading activities.

b) Money outflows $500, 000 in financing activities.

c) Deduct 500 usd, 000 from net income in operating activities. d) Nothing should be documented.

your five. Which from the following is proper regarding Additional Comprehensive Profits (OCI).

a) Personal companies confirming under ASPE recognize OCI.

b) Items a part of OCI happen to be gains and losses in relation to certain foreign exchange transactions. c) If a organization has items that are recorded in OCI, the causing amount will be deducted coming from profit to look for the comprehensive salary or total comprehensive profits. d) non-e of the above are correct.

6th. If Loblaw Companies Limited has debts outstanding and does not inform traders and lenders about the terms of the debt, it is violating the

a) cost theory.

b) period of time assumption.

c) going concern assumption.

d) full disclosure principle.

six. Which of the following is actually a temporary accounts?

a) Unearned Revenue

b) Salary Price

c) Inventory

d) Maintained Earnings

eight. The conceptual framework of accounting ensures that00:

a) users with no accounting or business knowledge will certainly understand financial statements. b) a rule will be in position for every likely situation.

c) there are regular standards prescribing the nature, capabilities and limitations of financial claims. d) every countries get their own exclusive accounting criteria.

on the lookout for. The primary target of financial confirming is to:

a) provide info to the Canada Revenue Company.

b) give financial info that is helpful to existing and potential shareholders, lenders and other creditors. c) comply with Accounting Standards intended for Private Enterprises. d) comply with International...

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