Question

29. If it is likely that a company will lose a lawsuit and the amount can be reliably estimated, then the company must: a) record the asset. b) disclose only in the notes to the financial statements. c) not record or disclose any information. d) record the loss and the liability. 30. An employee receives a bi-weekly gross salary of $ 2,000. The employee's deductions include income tax of $ 218, CPP of $ 92. El of $ 37, and union dues of $ 50. The employer's share of the deductions includes CPP of $ 92 and El of $ 52. What is the total amount of Salaries and Employee Benefits Expense that XYZ Corp would record on its income statement as a result of the employee's bi-weekly salary a) $ 1,653. b) $2,000. c) $ 2,144. d) $ 2,347. 31. A factor which distinguishes the corporate form of organization from a sole proprietorship or partnership is that a: a) corporation is organized for the purpose of making a profit. b) corporation is subject to numerous federal and provincial government regulations c) corporation is an accounting economic entity. d) corporation's temporary accounts are closed at the end of the accounting period. 32. Which of the following statements concerning taxation is accurate? a) Partnerships pay provincial income taxes but not federal income taxes. b) Corporations pay federal income taxes but not provincial income taxes. c) Corporations pay federal and provincial income taxes. d) Income trusts pay federal and provincial income taxes. 33. Peru Corporation has the following shareholders' equity on December 31, 2021 $ 570,000 Shareholders' equity: Share capital $ 10 convertible preferred shares, 10,000 shares authorized, 5,000 shares issued Common shares, no par value, 200,000 shares authorized, 90,000 shares issued Total share capital Retained earnings Total shareholders' equity 1.800.000 2,370,000 450.000 $ 2.820,000 What is the dividend amount payable to preferred shareholders in 2021 assuming no shares are converted? a) $ 50,000. b) $ 900,000. c) $ 100,000. d) $ 500,000. 34. If preferred shares are cumulative, the: a) preferred dividends not declared in a given year are called dividends in arrears. b) preferred shareholders and the common shareholders receive equal dividends. c) preferred shareholders and the common shareholders receive the same total dollar amount of dividends. d) common shareholders will share in the preferred dividends.

Answer 1

29- b) disclose only in the notes to financial statements. If it is more likely that the company will lose the lawsuit, then recognise loss amd the liability.

30- c) 2,144

31- b

32- C

33. a) 50,000

34- a