Exam 5: Communicating and Interpreting Accounting Information

The audit committee of the board of directors is responsible for maintaining the integrity of a company's financial statements and financial reporting.

(True/False)

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Question 21

The return on assets ratio is calculated by dividing income from continuing operations by average total assets.

(True/False)

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Question 22

Which of the following would not be classified as a current asset?

(Multiple Choice)

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Question 23

The indirect method of reporting operating activities on the statement of cash flow begins with net income and adjusts for cash items.

(True/False)

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Question 24

Which of the following transactions results in a decrease in the return on assets ratio?

(Multiple Choice)

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Question 25

Which of the following statements is false when a company sells inventory costing $900 for $1,500 cash?

(Multiple Choice)

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Question 26

Corporate governance refers to the procedures designed to ensure that the company is managed in the interest of the board of directors who oversee management.

(True/False)

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Question 27

Complete the following balance sheet by entering the appropriate amounts in the blanks provided.

(Essay)

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Question 28

Which of the following is not a responsibility of the chief executive officer (CEO) and the chief financial officer (CFO)?

(Multiple Choice)

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Question 29

Which of the following is true?

(Multiple Choice)

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Question 30

Which of the following best describes income from operations?

(Multiple Choice)

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Question 31

The mission of the Securities & Exchange Commission (SEC) is to develop generally accepted accounting principles.

(True/False)

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Question 32

Which of the following statements is false?

(Multiple Choice)

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Question 33

Polk Company suffered a loss from earthquake damage at its plant in Nebraska. The loss meets the criteria for an extraordinary item. Where will the company present the extraordinary item on the income statement?

(Multiple Choice)

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Question 34

The form 10-Q contains an unaudited set of quarterly financial statements.

(True/False)

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Question 35

Which of the following results in an increase in the return on assets ratio?

(Multiple Choice)

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Question 36

Which of the following statements regarding international financial reporting standards (IFRS) is false?

(Multiple Choice)

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Question 37

Preparers of the statement of cash flow must choose the direct or indirect method for each activity section of the statement.

(True/False)

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Question 38

Which of the following statements regarding international financial reporting standards (IFRS) is false?

(Multiple Choice)

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Question 39

Which of the following is not included as a primary part of the financial disclosure in Form 10-K?

(Multiple Choice)

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Question 40

Showing 21 - 40 of 111

The audit committee of the board of directors is responsible for maintaining the integrity of a company's financial statements and financial reporting.

The return on assets ratio is calculated by dividing income from continuing operations by average total assets.

Which of the following would not be classified as a current asset?

The indirect method of reporting operating activities on the statement of cash flow begins with net income and adjusts for cash items.

Which of the following transactions results in a decrease in the return on assets ratio?

Which of the following statements is false when a company sells inventory costing $900 for $1,500 cash?

Corporate governance refers to the procedures designed to ensure that the company is managed in the interest of the board of directors who oversee management.

Complete the following balance sheet by entering the appropriate amounts in the blanks provided.

Which of the following is not a responsibility of the chief executive officer (CEO) and the chief financial officer (CFO)?

Which of the following is true?

Which of the following best describes income from operations?

The mission of the Securities & Exchange Commission (SEC) is to develop generally accepted accounting principles.

Which of the following statements is false?

Polk Company suffered a loss from earthquake damage at its plant in Nebraska. The loss meets the criteria for an extraordinary item. Where will the company present the extraordinary item on the income statement?

The form 10-Q contains an unaudited set of quarterly financial statements.

Which of the following results in an increase in the return on assets ratio?

Which of the following statements regarding international financial reporting standards (IFRS) is false?

Preparers of the statement of cash flow must choose the direct or indirect method for each activity section of the statement.

Which of the following statements regarding international financial reporting standards (IFRS) is false?

Which of the following is not included as a primary part of the financial disclosure in Form 10-K?

Financial Statements and Business Decisions

Investing and Financing Decisions and the Accounting System

Operating Decisions and the Accounting System

Adjustments, Financial Statements, and the Quality of Earnings

Reporting and Interpreting Sales Revenue, Receivables, and Cash

Reporting and Interpreting Cost of Goods Sold and Inventory

Reporting and Interpreting Property, Plant, and Equipment; Intangibles; and Natural Resources

Reporting and Interpreting Liabilities

Reporting and Interpreting Bonds

Reporting and Interpreting Owners Equity

Statement of Cash Flows

Analyzing Financial Statements

Reporting and Interpreting Investments in Other Corporations

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