Exam 3: Operating Decisions and the Accounting System

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According to the periodicity assumption, to measure and report financial information periodically, we assume the long life of the company can be cut into shorter periods.

(True/False)

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Question 101

Which of the following items has no effect on retained earnings?

(Multiple Choice)

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Question 102

Losses are decreases in assets or increases in liabilities from peripheral activities.

(True/False)

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Question 103

The matching principle states that expenses should be matched with revenues because

(Multiple Choice)

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Question 104

The double-entry accounting system records the dual effect of each transaction.

(True/False)

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Question 105

Expenses are recognized when an exchange takes place of productive assets, the earnings process is complete or nearly complete, and collection is likely.

(True/False)

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Question 106

Which of the following businesses would most likely have the shortest operating cycle?

(Multiple Choice)

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Question 107

Cash receipts from interest are classified as

(Multiple Choice)

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Question 108

In a well-run business, creditors expect the total asset turnover ratio to fluctuate due to seasonal upswings and downturns.

(True/False)

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Question 109

Showing 101 - 109 of 109

According to the periodicity assumption, to measure and report financial information periodically, we assume the long life of the company can be cut into shorter periods.

Which of the following items has no effect on retained earnings?

Losses are decreases in assets or increases in liabilities from peripheral activities.

The matching principle states that expenses should be matched with revenues because

The double-entry accounting system records the dual effect of each transaction.

Expenses are recognized when an exchange takes place of productive assets, the earnings process is complete or nearly complete, and collection is likely.

Which of the following businesses would most likely have the shortest operating cycle?

Cash receipts from interest are classified as

In a well-run business, creditors expect the total asset turnover ratio to fluctuate due to seasonal upswings and downturns.

Financial Statements and Business Decisions

Investing and Financing Decisions and the Accounting System

Adjustments, Financial Statements, and the Quality of Earnings

Communicating and Interpreting Accounting Information

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 Bond Securities

Reporting and Interpreting Stockholders Equity

Statement of Cash Flows

Analyzing Financial Statements

Reporting and Interpreting Investments in Other Corporations

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