Question 1

Which financial statement shows the assets, liabilities and stockholders' equity of the firm on a particular date?

Accepted Answer

A) Statement of stockholders' equity. 
B) Statement of cash flows. 
C) Earnings statement. 
D) Balance sheet. 
A) Statement of stockholders' equity. 
B) Statement of cash flows. 
C) Earnings statement. 
D) Balance sheet.

Question 2

The _________was passed in 2002 and was one of the most sweeping corporate reforms since the Securities Act of 1934.

Accepted Answer

The answer of The _________was passed in 2002 and was...

Question 3

Management exercises control over the budget level and timing of------expenditures.

Accepted Answer

The answer of Management exercises control over the budget level...

Question 4

One of the generally accepted accounting principles that provide the foundation for preparing financial statements is the _________principle.

Accepted Answer

The answer of One of the generally accepted accounting principles...

Question 5

Define internal and external sources of liquidity.What is a material deficiency in liquidity? If a firm has a material deficiency in liquidity what should be reported in the management discussion and analysis?

Accepted Answer

Internal sources of liquidity include th

Question 6

Which of the following is an internal source of liquidity?

Accepted Answer

A) Borrowing. 
B) Sales of stock. 
C) Gifts and donations. 
D) Sales of products or services. 
A) Borrowing. 
B) Sales of stock. 
C) Gifts and donations. 
D) Sales of products or services.

Question 7

The Management Discussion and Analysis is of potential interest to the analyst because it contains information that cannot be found in the financial data.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements is false with regard to quality of financial reporting?

Accepted Answer

A) Financial statements should reflect an accurate picture of a company's financial condition and performance. 
B) It is unlikely that management can manipulate the bottom line due to the regulations in place to enforce GAAP. 
C) Financial information should be useful both to assess the past and predict the future. 
D) The closer that the picture presented through the financial data is to reality, the higher the quality of financial reporting. 
A) Financial statements should reflect an accurate picture of a company's financial condition and performance. 
B) It is unlikely that management can manipulate the bottom line due to the regulations in place to enforce GAAP. 
C) Financial information should be useful both to assess the past and predict the future. 
D) The closer that the picture presented through the financial data is to reality, the higher the quality of financial reporting.

Question 9

A corporate annual report contains_________financial statements.

Accepted Answer

The answer of A corporate annual report contains_________financial statements....

Question 10

The time period assumption assumes a two year time frame with interim reporting occurring daily and weekly.

Accepted Answer

A) True 
 B)False

Question 11

In what industry would it be expected that companies would spend a significant amount on research and development activities?

Accepted Answer

A) Pharmaceutical. 
B) Clothes retailer. 
C) Groceries. 
D) Wholesale distributor of computer parts. 
A) Pharmaceutical. 
B) Clothes retailer. 
C) Groceries. 
D) Wholesale distributor of computer parts.

Question 12

Write a short essay explaining the following statement: "Unfortunately, there are mazelike interferences in financial statement data that hinder understanding the valuable information they contain."

Accepted Answer

The following items make it more difficu

Question 13

Discuss the impact that the Sarbanes-Oxley Act of 2002 had on internal auditing.

Accepted Answer

Section 404 of SOX requires companies to

Question 14

What information can be found on a statement of stockholders' equity?

Accepted Answer

A) A reconciliation of the cash account and the retained earnings account. 
B) A reconciliation of the beginning and ending balances of all accounts that appears in the stockholders' equity section of the balance sheet. 
C) A reconciliation of the operating, investing and financing activities of a firm. 
D) A reconciliation of net profit or loss and the cash account. 
A) A reconciliation of the cash account and the retained earnings account. 
B) A reconciliation of the beginning and ending balances of all accounts that appears in the stockholders' equity section of the balance sheet. 
C) A reconciliation of the operating, investing and financing activities of a firm. 
D) A reconciliation of net profit or loss and the cash account.

Question 15

Which of the following is an external source of liquidity?

Accepted Answer

A) Sales of services. 
B) Repurchase of stock. 
C) Borrowing. 
D) Sales of products. 
A) Sales of services. 
B) Repurchase of stock. 
C) Borrowing. 
D) Sales of products.

Question 16

Which agency requires the filing of Form 10-Ks, Form 10-Qs and Form 8-Ks?

Accepted Answer

A) FASB. 
B) IASB. 
C) SEC. 
D) GAAP. 
A) FASB. 
B) IASB. 
C) SEC. 
D) GAAP.

Question 17

Which of the following is not a condition that must be met for an item to be recorded as revenue?

Accepted Answer

A) Revenues must be earned. 
B) The amount of the revenue must be measurable. 
C) The revenue must be received in cash. 
D) The costs of generating the revenue can be determined. 
A) Revenues must be earned. 
B) The amount of the revenue must be measurable. 
C) The revenue must be received in cash. 
D) The costs of generating the revenue can be determined.

Question 18

The SEC regulates U.S.companies that issue securities to the public and requires the issuance of a prospectus for any new security offering.

Accepted Answer

A) True 
 B)False

Question 19

A firm's annual report contains only two pieces of information: the financial statements and the notes to the financial statements.

Accepted Answer

A) True 
 B)False

Question 20

_________is responsible for the preparation of the financial statements, including the notes, and the_________ attests to the fairness of the presentation.

Accepted Answer

Management

Which financial statement shows the assets, liabilities and stockholders' equity of the firm on a particular date?

The _________was passed in 2002 and was one of the most sweeping corporate reforms since the Securities Act of 1934.

Management exercises control over the budget level and timing of------expenditures.

One of the generally accepted accounting principles that provide the foundation for preparing financial statements is the _________principle.

Define internal and external sources of liquidity.What is a material deficiency in liquidity? If a firm has a material deficiency in liquidity what should be reported in the management discussion and analysis?

Which of the following is an internal source of liquidity?

The Management Discussion and Analysis is of potential interest to the analyst because it contains information that cannot be found in the financial data.

Which of the following statements is false with regard to quality of financial reporting?

A corporate annual report contains_________financial statements.

The time period assumption assumes a two year time frame with interim reporting occurring daily and weekly.

In what industry would it be expected that companies would spend a significant amount on research and development activities?

Write a short essay explaining the following statement: "Unfortunately, there are mazelike interferences in financial statement data that hinder understanding the valuable information they contain."

Discuss the impact that the Sarbanes-Oxley Act of 2002 had on internal auditing.

What information can be found on a statement of stockholders' equity?

Which of the following is an external source of liquidity?

Which agency requires the filing of Form 10-Ks, Form 10-Qs and Form 8-Ks?

Which of the following is not a condition that must be met for an item to be recorded as revenue?

The SEC regulates U.S.companies that issue securities to the public and requires the issuance of a prospectus for any new security offering.

A firm's annual report contains only two pieces of information: the financial statements and the notes to the financial statements.

_is responsible for the preparation of the financial statements, including the notes, and the_ attests to the fairness of the presentation.

The Balance Sheet

Income Statement and Statement of Stockholders Equity

Statement of Cash Flows

The Analysis of Financial Statements

Filters

Exam 1: Financial Statements: an Overview

Which financial statement shows the assets, liabilities and stockholders' equity of the firm on a particular date?

The _________was passed in 2002 and was one of the most sweeping corporate reforms since the Securities Act of 1934.

Management exercises control over the budget level and timing of------expenditures.

One of the generally accepted accounting principles that provide the foundation for preparing financial statements is the _________principle.

Define internal and external sources of liquidity.What is a material deficiency in liquidity? If a firm has a material deficiency in liquidity what should be reported in the management discussion and analysis?

Which of the following is an internal source of liquidity?

The Management Discussion and Analysis is of potential interest to the analyst because it contains information that cannot be found in the financial data.

Which of the following statements is false with regard to quality of financial reporting?

A corporate annual report contains_________financial statements.

The time period assumption assumes a two year time frame with interim reporting occurring daily and weekly.

In what industry would it be expected that companies would spend a significant amount on research and development activities?

Write a short essay explaining the following statement: "Unfortunately, there are mazelike interferences in financial statement data that hinder understanding the valuable information they contain."

Discuss the impact that the Sarbanes-Oxley Act of 2002 had on internal auditing.

What information can be found on a statement of stockholders' equity?

Which of the following is an external source of liquidity?

Which agency requires the filing of Form 10-Ks, Form 10-Qs and Form 8-Ks?

Which of the following is not a condition that must be met for an item to be recorded as revenue?

The SEC regulates U.S.companies that issue securities to the public and requires the issuance of a prospectus for any new security offering.

A firm's annual report contains only two pieces of information: the financial statements and the notes to the financial statements.

_________is responsible for the preparation of the financial statements, including the notes, and the_________ attests to the fairness of the presentation.

The Balance Sheet

Income Statement and Statement of Stockholders Equity

Statement of Cash Flows

The Analysis of Financial Statements

Filters

_is responsible for the preparation of the financial statements, including the notes, and the_ attests to the fairness of the presentation.