Answer Key for Self-Test Questions

© 2013 John Wiley & Sons Canada, Ltd.1 Chapter 1 Answer Key for Self-Test Questions S1.1 d S1.2 c S1.3 e S1.4 b S1.5 e S1.6 c S1.7 c S1.8 c S1.9 b Accounting for Managers, 1st Canadian Edition 1e Paul Collier Sandy Kizan Eckhard Schumann (Answer Key For Self-Test Questions, All Chapters, 100% Original Verified, A+ Grade) 1 / 4

Collier, Accounting for Managers, 1ce © 2013 John Wiley & Sons Canada, Ltd. 2 Chapter 2 Answer Key for Self-Test Questions S2.1 a S2.2 b S2.3 b S2.4 d S2.5 d S2.6 a 2 / 4

Collier, Accounting for Managers, 1ce

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Chapter 3 Answer Key for Self-Test Questions

S3.1 c S3.2 d S3.3 d S3.4 c S3.5 a • cash = $15,000 + $25,000 = $40,000 • profit = $50,000 – $35,000 = $15,000 S3.6 b • profit = $150,000 – $80,000 – $30,000 – $12,000 – $8,000 = $20,000 • cash = $100,000 – $90,000 + $150,000 – $30,000 – $12,000 – $8,000 =

$100,000.

• equity = $100,000 S3.7 c assets = liabilities + equity $600,000 = $500,000 + equity Thus, equity = $100,000 S3.8 c S3.9 d S3.10 b • profit = $100,000 – $35,000 – $15,000 – $4,000 – $8,000 = $38,000 • cash = $100,000 – $35,000 – $15,000 – $4,000 – $8,000 + $25,000 –

$30,000 = $33,000

• shareholders’ equity = share capital + retained earnings (which equals profit in first year of business) = $25,000 + $38,000 = $63,000 3 / 4

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S3.11 b Recall that shareholders’ equity = share capital + retained earnings

Using the basic accounting equation:

assets = liabilities + shareholders’ equity assets = liabilities + (share capital + retained earnings) $240,000 = $125,000 + (share capital + ($80,000 – $35,000)) share capital = $70,000 Thus, total capital (equity) = $70,000 + $45,000 = $115,000 S3.12 c

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