Question 1

Equity or debt securities held to finance future construction of additional plants should be classified on a balance sheet as

Accepted Answer

A)  current assets. 
B)  property, plant, and equipment. 
C)  intangible assets. 
D)  long-term investments. 
A)  current assets. 
B)  property, plant, and equipment. 
C)  intangible assets. 
D)  long-term investments.

Question 2

Non-current liabilities include

Accepted Answer

A)  obligations not expected to be liquidated within the next year or operating cycle. 
B)  obligations payable at some date beyond the next year or operating cycle. 
C)  deferred income taxes and most lease obligations. 
D)  All of these choices are correct. 
A)  obligations not expected to be liquidated within the next year or operating cycle. 
B)  obligations payable at some date beyond the next year or operating cycle. 
C)  deferred income taxes and most lease obligations. 
D)  All of these choices are correct.

Question 3

Current cash debt coverage is often used to assess

Accepted Answer

A)  financial flexibility. 
B)  liquidity. 
C)  profitability. 
D)  solvency. 
A)  financial flexibility. 
B)  liquidity. 
C)  profitability. 
D)  solvency.

Question 4

Lohmeyer Corporation reports:

Accepted Answer

A)  €330,000. 
B)  €400,000. 
C)  €550,000. 
D)  €620,000. 
A)  €330,000. 
B)  €400,000. 
C)  €550,000. 
D)  €620,000.

Question 5

Packard Corporation reports the following information:
Net cash provided by operating activities €275,000
Average current liabilities 150,000
Average non-current liabilities 100,000
Dividends declared 60,000
Capital expenditures 110,000
Payments of debt 35,000
Packard's cash debt coverage is

Accepted Answer

A)  1.10. 
B)  1.83. 
C)  2.75. 
D)  6.11. 
A)  1.10. 
B)  1.83. 
C)  2.75. 
D)  6.11.

Question 6

Companies determine cash provided by operating activities by converting net income on an accrual basis to a cash basis.

Accepted Answer

A) True 
 B)False

Question 7

Financial statement readers often assess liquidity by using current cash debt coverage.

Accepted Answer

A) True 
 B)False

Question 8

Stine Corp.'s trial balance reflected the following account balances at December 31, 2019:

Accepted Answer

A)  R$101,000. 
B)  R$92,000. 
C)  R$87,000. 
D)  R$83,000. 
A)  R$101,000. 
B)  R$92,000. 
C)  R$87,000. 
D)  R$83,000.

Question 9

The statement of cash flows reports all of the following except

Accepted Answer

A)  the net change in cash for the period. 
B)  the cash effects of operations during the period. 
C)  the free cash flows generated during the period. 
D)  investing transactions. 
A)  the net change in cash for the period. 
B)  the cash effects of operations during the period. 
C)  the free cash flows generated during the period. 
D)  investing transactions.

Question 10

Liquidity refers to the ability of an enterprise to pay its debts as they mature.

Accepted Answer

A) True 
 B)False

Question 11

Keisler Corporation reports:
)

Accepted Answer

A)  TL250,000. 
B)  TL320,000. 
C)  TL470,000. 
D)  TL540,000. 
A)  TL250,000. 
B)  TL320,000. 
C)  TL470,000. 
D)  TL540,000.

Question 12

In a statement of cash flows, payments to acquire debt instruments of other entities (other than cash equivalents) should be classified as cash outflows for

Accepted Answer

A)  operating activities. 
B)  investing activities. 
C)  financing activities. 
D)  lending activities. 
A)  operating activities. 
B)  investing activities. 
C)  financing activities. 
D)  lending activities.

Question 13

The statement of financial position

Accepted Answer

A)  Omits many items that are of financial value. 
B)  Makes very limited use of judgments and estimates. 
C)  Uses fair value for most assets and liabilities. 
D)  All of the choices are correct regarding the statement of financial position. 
A)  Omits many items that are of financial value. 
B)  Makes very limited use of judgments and estimates. 
C)  Uses fair value for most assets and liabilities. 
D)  All of the choices are correct regarding the statement of financial position.

Question 14

Which of the following is not an acceptable major asset classification?

Accepted Answer

A)  Current assets 
B)  Investments 
C)  Property, plant, and equipment 
D)  Deferred charges 
A)  Current assets 
B)  Investments 
C)  Property, plant, and equipment 
D)  Deferred charges

Question 15

The statement of financial position can help assess all of the following except

Accepted Answer

A)  Solvency. 
B)  Financial flexibility. 
C)  Profitability. 
D)  Liquidity. 
A)  Solvency. 
B)  Financial flexibility. 
C)  Profitability. 
D)  Liquidity.

Question 16

Financial flexibility is a company's ability to respond and adapt to financial adversity and unexpected needs and opportunities.

Accepted Answer

A) True 
 B)False

Question 17

The accounting profession has recommended that companies use the word reserve only to describe amounts deducted from assets.

Accepted Answer

A) True 
 B)False

Question 18

Free cash flow is net income less capital expenditures and dividends.

Accepted Answer

A) True 
 B)False

Question 19

Pedigo Corporation reports the following information:

Accepted Answer

A)  0.90. 
B)  1.50. 
C)  2.25. 
D)  4.09. 
A)  0.90. 
B)  1.50. 
C)  2.25. 
D)  4.09.

Question 20

Cash debt coverage is computed by dividing net cash provided by operating activities by

Accepted Answer

A)  average non-current liabilities. 
B)  average total liabilities. 
C)  ending non-current liabilities. 
D)  ending total liabilities. 
A)  average non-current liabilities. 
B)  average total liabilities. 
C)  ending non-current liabilities. 
D)  ending total liabilities.

Equity or debt securities held to finance future construction of additional plants should be classified on a balance sheet as

Non-current liabilities include

Current cash debt coverage is often used to assess

Lohmeyer Corporation reports:

Packard Corporation reports the following information: Net cash provided by operating activities €275,000 Average current liabilities 150,000 Average non-current liabilities 100,000 Dividends declared 60,000 Capital expenditures 110,000 Payments of debt 35,000 Packard's cash debt coverage is

Companies determine cash provided by operating activities by converting net income on an accrual basis to a cash basis.

Financial statement readers often assess liquidity by using current cash debt coverage.

Stine Corp.'s trial balance reflected the following account balances at December 31, 2019:

The statement of cash flows reports all of the following except

Liquidity refers to the ability of an enterprise to pay its debts as they mature.

Keisler Corporation reports: )

In a statement of cash flows, payments to acquire debt instruments of other entities (other than cash equivalents) should be classified as cash outflows for

The statement of financial position

Which of the following is not an acceptable major asset classification?

The statement of financial position can help assess all of the following except

Financial flexibility is a company's ability to respond and adapt to financial adversity and unexpected needs and opportunities.

The accounting profession has recommended that companies use the word reserve only to describe amounts deducted from assets.

Free cash flow is net income less capital expenditures and dividends.

Pedigo Corporation reports the following information:

Cash debt coverage is computed by dividing net cash provided by operating activities by

Financial Reporting and Accounting Standards

Conceptual Framework for Financial Reporting

The Accounting Information System

Income Statement and Related Information

Accounting and the Time Value of Money

Cash and Receivables

Valuation of Inventories: a Cost-Basis Approach

Inventories: Additional Valuation Issues

Acquisition and Disposition of Property, Plant, and Equipment

Depreciation, Impairments, and Depletion

Intangible Assets

Filters

Exam 5: Statement of Financial Position and Statement of Cash Flows

Equity or debt securities held to finance future construction of additional plants should be classified on a balance sheet as

Non-current liabilities include

Current cash debt coverage is often used to assess

Lohmeyer Corporation reports:

Packard Corporation reports the following information: Net cash provided by operating activities €275,000 Average current liabilities 150,000 Average non-current liabilities 100,000 Dividends declared 60,000 Capital expenditures 110,000 Payments of debt 35,000 Packard's cash debt coverage is

Companies determine cash provided by operating activities by converting net income on an accrual basis to a cash basis.

Financial statement readers often assess liquidity by using current cash debt coverage.

Stine Corp.'s trial balance reflected the following account balances at December 31, 2019:

The statement of cash flows reports all of the following except

Liquidity refers to the ability of an enterprise to pay its debts as they mature.

Keisler Corporation reports: )

In a statement of cash flows, payments to acquire debt instruments of other entities (other than cash equivalents) should be classified as cash outflows for

The statement of financial position

Which of the following is not an acceptable major asset classification?

The statement of financial position can help assess all of the following except

Financial flexibility is a company's ability to respond and adapt to financial adversity and unexpected needs and opportunities.

The accounting profession has recommended that companies use the word reserve only to describe amounts deducted from assets.

Free cash flow is net income less capital expenditures and dividends.

Pedigo Corporation reports the following information:

Cash debt coverage is computed by dividing net cash provided by operating activities by

Financial Reporting and Accounting Standards

Conceptual Framework for Financial Reporting

The Accounting Information System

Income Statement and Related Information

Accounting and the Time Value of Money

Cash and Receivables

Valuation of Inventories: a Cost-Basis Approach

Inventories: Additional Valuation Issues

Acquisition and Disposition of Property, Plant, and Equipment

Depreciation, Impairments, and Depletion

Intangible Assets

Filters