Question 1

Which of the following is not a true statement relating to the Treadway Commission?

Accepted Answer

A) The Treadway Commission is the popular name for the National Commission on Fraudulent Reporting. 
B) The Treadway Commission has released reports detailing internal control systems. 
C) Management's Report on Internal Control over Financial Reporting and the independent public accounting from report to the shareholders and board of directors often refer to criteria established on internal control by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). 
D) The Treadway Commission has issued a number of recommendations for the prevention of fraud on financial reports, ethics, and effective internal controls. 
E) The Treadway Commission is a voluntary-sector organization formed to support the Sarbones-Oxley Act. 
A) The Treadway Commission is the popular name for the National Commission on Fraudulent Reporting. 
B) The Treadway Commission has released reports detailing internal control systems. 
C) Management's Report on Internal Control over Financial Reporting and the independent public accounting from report to the shareholders and board of directors often refer to criteria established on internal control by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). 
D) The Treadway Commission has issued a number of recommendations for the prevention of fraud on financial reports, ethics, and effective internal controls. 
E) The Treadway Commission is a voluntary-sector organization formed to support the Sarbones-Oxley Act.

Question 2

For consolidating, the FASB recognizes risks, rewards, decision-making ability and the primary beneficiary.

Accepted Answer

A) True 
 B)False

Question 3

Tiffin Company had retained earnings of $50,000 at the end of last year.For the current year, income was $20,000 and dividends $15,000.What is the balance in retained earnings at the end of the current year?

Accepted Answer

A) $85,000 
B) $45,000 
C) $55,000 
D) $60,000 
E) none of the answers are correct 
A) $85,000 
B) $45,000 
C) $55,000 
D) $60,000 
E) none of the answers are correct

Question 4

In terms of debits and credits, which of the following accounts have the same normal balances?

Accepted Answer

A) Accounts payable, accounts receivable, notes payable 
B) Dividends, accounts receivable, notes payable 
C) Advertising expense, selling expense, accounts receivable 
D) Land, building, accounts payable 
E) Common stock, notes payable, land 
A) Accounts payable, accounts receivable, notes payable 
B) Dividends, accounts receivable, notes payable 
C) Advertising expense, selling expense, accounts receivable 
D) Land, building, accounts payable 
E) Common stock, notes payable, land

Question 5

The sequence of accounting procedures completed during each accounting period is called the accounting cycle.

Accepted Answer

A) True 
 B)False

Question 6

Accepted accounting principles leave ample room for arriving at different results in the short run.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is a permanent account?

Accepted Answer

A) Dividends 
B) Advertising expense 
C) Building 
D) Selling expense 
E) Insurance expense 
A) Dividends 
B) Advertising expense 
C) Building 
D) Selling expense 
E) Insurance expense

Question 8

It is generally recognized that the market is more efficient when dealing with small firms that are not trading on large organized stock markets.

Accepted Answer

A) True 
 B)False

Question 9

Not all reports to the SEC are made available on EDGAR.

Accepted Answer

A) True 
 B)False

Question 10

The income statement is a summary of revenues and expenses and gains and losses, ending with net income, for a particular period of time.

Accepted Answer

A) True 
 B)False

Question 11

The statement of retained earnings reconciles the beginning retained earnings balance to the retained earnings balance at the end of the current period.

Accepted Answer

A) True 
 B)False

Which of the following is not a true statement relating to the Treadway Commission?

For consolidating, the FASB recognizes risks, rewards, decision-making ability and the primary beneficiary.

Tiffin Company had retained earnings of $50,000 at the end of last year.For the current year, income was $20,000 and dividends $15,000.What is the balance in retained earnings at the end of the current year?

In terms of debits and credits, which of the following accounts have the same normal balances?

The sequence of accounting procedures completed during each accounting period is called the accounting cycle.

Accepted accounting principles leave ample room for arriving at different results in the short run.

Which of the following is a permanent account?

It is generally recognized that the market is more efficient when dealing with small firms that are not trading on large organized stock markets.

Not all reports to the SEC are made available on EDGAR.

The income statement is a summary of revenues and expenses and gains and losses, ending with net income, for a particular period of time.

The statement of retained earnings reconciles the beginning retained earnings balance to the retained earnings balance at the end of the current period.

Introduction to Financial Reporting

Balance Sheet

Income Statement

Basics of Analysis

Liquidity of Short-Term Assets; Related Debt-Paying Ability

Long-Term Debt-Paying Ability

Profitability

For the Investor

Statement of Cash Flows

Expanded Analysis

Special Industries: Banks, Utilities, Oil and Gas, Transportation, Insurance, Real Estate Companies

Personal Financial Statements and Accounting for Governments and Not-For-Profit Organizations

Filters

Exam 2: Introduction to Financial Statements and Other Financial Reporting Topics

Which of the following is not a true statement relating to the Treadway Commission?

For consolidating, the FASB recognizes risks, rewards, decision-making ability and the primary beneficiary.

Tiffin Company had retained earnings of $50,000 at the end of last year.For the current year, income was $20,000 and dividends $15,000.What is the balance in retained earnings at the end of the current year?

In terms of debits and credits, which of the following accounts have the same normal balances?

The sequence of accounting procedures completed during each accounting period is called the accounting cycle.

Accepted accounting principles leave ample room for arriving at different results in the short run.

Which of the following is a permanent account?

It is generally recognized that the market is more efficient when dealing with small firms that are not trading on large organized stock markets.

Not all reports to the SEC are made available on EDGAR.

The income statement is a summary of revenues and expenses and gains and losses, ending with net income, for a particular period of time.

The statement of retained earnings reconciles the beginning retained earnings balance to the retained earnings balance at the end of the current period.

Introduction to Financial Reporting

Balance Sheet

Income Statement

Basics of Analysis

Liquidity of Short-Term Assets; Related Debt-Paying Ability

Long-Term Debt-Paying Ability

Profitability

For the Investor

Statement of Cash Flows

Expanded Analysis

Special Industries: Banks, Utilities, Oil and Gas, Transportation, Insurance, Real Estate Companies

Personal Financial Statements and Accounting for Governments and Not-For-Profit Organizations

Filters