Question 1

Harding Corporation reports the following information:

Accepted Answer

A)  R$600,000. 
B)  R$840,000. 
C)  R$1,160,000. 
D)  R$1,400,000. 
A)  R$600,000. 
B)  R$840,000. 
C)  R$1,160,000. 
D)  R$1,400,000.

Question 2

Financial flexibility measures the ability of an enterprise to take effective actions to alter the amounts and timing of cash flows.

Accepted Answer

A) True 
 B)False

Question 3

For Grimmett Company, the following information is available:

Accepted Answer

A)  ¥ 55,000. 
B)  ¥ 75,000. 
C)  ¥255,000. 
D)  ¥275,000. 
A)  ¥ 55,000. 
B)  ¥ 75,000. 
C)  ¥255,000. 
D)  ¥275,000.

Question 4

Olmsted Company has the following items: share capital-ordinary, €920,000; treasury shares, €85,000; deferred taxes, €100,000 and retained earnings, €363,000. What amount should Olmsted Company report as total equity?

Accepted Answer

A)  €1,098,000. 
B)  €1,198,000. 
C)  €1,298,000. 
D)  €1,398,000. 
A)  €1,098,000. 
B)  €1,198,000. 
C)  €1,298,000. 
D)  €1,398,000.

Question 5

Free cash flow is calculated as net cash provided by operating activities less

Accepted Answer

A)  capital expenditures. 
B)  dividends. 
C)  capital expenditures and dividends. 
D)  capital expenditures and depreciation. 
A)  capital expenditures. 
B)  dividends. 
C)  capital expenditures and dividends. 
D)  capital expenditures and depreciation.

Question 6

The current assets section of the statement of financial position should include

Accepted Answer

A)  machinery. 
B)  patents. 
C)  goodwill. 
D)  inventory. 
A)  machinery. 
B)  patents. 
C)  goodwill. 
D)  inventory.

Question 7

The statement of cash flows reports only the cash effects of operations during a period and financing transactions.

Accepted Answer

A) True 
 B)False

Question 8

Net cash provided by operating activities divided by average total liabilities equals

Accepted Answer

A)  current cash debt coverage. 
B)  cash debt coverage. 
C)  free cash flow. 
D)  the current ratio. 
A)  current cash debt coverage. 
B)  cash debt coverage. 
C)  free cash flow. 
D)  the current ratio.

Question 9

Making and collecting loans and disposing of property, plant, and equipment are

Accepted Answer

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

Question 10

On the statement of financial position the non-controlling interest account is reported as a long-term investment.

Accepted Answer

A) True 
 B)False

Question 11

Within the statement of financial position where should the account non-controlling interest (minority interest) be reported?

Accepted Answer

A)  Non-current assets. 
B)  Non-current liabilities. 
C)  Equity. 
D)  Current liabilities. 
A)  Non-current assets. 
B)  Non-current liabilities. 
C)  Equity. 
D)  Current liabilities.

Question 12

Statement of financial position information is useful for all of the following except to

Accepted Answer

A)  compute rates of return 
B)  analyze cash inflows and outflows for the period 
C)  evaluate capital structure 
D)  assess future cash flows 
A)  compute rates of return 
B)  analyze cash inflows and outflows for the period 
C)  evaluate capital structure 
D)  assess future cash flows

Question 13

Which of the following is a limitation of the statement of financial position?

Accepted Answer

A)  Many items that are of financial value are omitted. 
B)  Judgments and estimates are used. 
C)  Current fair value is not reported. 
D)  All of these choices are correct. 
A)  Many items that are of financial value are omitted. 
B)  Judgments and estimates are used. 
C)  Current fair value is not reported. 
D)  All of these choices are correct.

Question 14

Packard Corporation reports the following information:

Accepted Answer

A)  €70,000. 
B)  €105,000. 
C)  €165,000. 
D)  €215,000. 
A)  €70,000. 
B)  €105,000. 
C)  €165,000. 
D)  €215,000.

Question 15

Which of the following statement of financial position classifications would normally require the greatest amount of supplementary disclosure?

Accepted Answer

A)  Current assets 
B)  Current liabilities 
C)  Plant assets 
D)  Long-term liabilities 
A)  Current assets 
B)  Current liabilities 
C)  Plant assets 
D)  Long-term liabilities

Question 16

Using IFRS, which of the following items is matched correctly with its basis of valuation for purposes of reporting on the statement of financial position?

Accepted Answer

A)  I and A 
B)  II and C 
C)  III and B 
D)  II and B 
A)  I and A 
B)  II and C 
C)  III and B 
D)  II and B

Question 17

During 2019 the DLD Company had a net income of W200,000. In addition, selected accounts showed the following changes:

Accepted Answer

A)  W198,000 
B)  W200,000 
C)  W206,000 
D)  W238,000 
A)  W198,000 
B)  W200,000 
C)  W206,000 
D)  W238,000

Question 18

Which of the following is a current asset?

Accepted Answer

A)  Cash surrender value of a life insurance policy of which the company is the bene-ficiary. 
B)  Investment in equity securities for the purpose of controlling the issuing company. 
C)  Cash designated for the purchase of tangible fixed assets. 
D)  Trade installment receivables normally collectible in 18 months. 
A)  Cash surrender value of a life insurance policy of which the company is the bene-ficiary. 
B)  Investment in equity securities for the purpose of controlling the issuing company. 
C)  Cash designated for the purchase of tangible fixed assets. 
D)  Trade installment receivables normally collectible in 18 months.

Question 19

Significant financing and investing activities that do not affect cash are not reported in the statement of cash flows or any other place.

Accepted Answer

A) True 
 B)False

Question 20

Within the statement of financial position companies should separately report all of the following except

Accepted Answer

A)  Assets and liabilities with different general liquidity characteristics. 
B)  Assets and liabilities that have been financed with different types of instruments. 
C)  Assets that differ in their expected function in the company's central operations. 
D)  Liabilities that differ in their amounts, timing, and nature. 
A)  Assets and liabilities with different general liquidity characteristics. 
B)  Assets and liabilities that have been financed with different types of instruments. 
C)  Assets that differ in their expected function in the company's central operations. 
D)  Liabilities that differ in their amounts, timing, and nature.

Harding Corporation reports the following information:

Financial flexibility measures the ability of an enterprise to take effective actions to alter the amounts and timing of cash flows.

For Grimmett Company, the following information is available:

Olmsted Company has the following items: share capital-ordinary, €920,000; treasury shares, €85,000; deferred taxes, €100,000 and retained earnings, €363,000. What amount should Olmsted Company report as total equity?

Free cash flow is calculated as net cash provided by operating activities less

The current assets section of the statement of financial position should include

The statement of cash flows reports only the cash effects of operations during a period and financing transactions.

Net cash provided by operating activities divided by average total liabilities equals

Making and collecting loans and disposing of property, plant, and equipment are

On the statement of financial position the non-controlling interest account is reported as a long-term investment.

Within the statement of financial position where should the account non-controlling interest (minority interest) be reported?

Statement of financial position information is useful for all of the following except to

Which of the following is a limitation of the statement of financial position?

Packard Corporation reports the following information:

Which of the following statement of financial position classifications would normally require the greatest amount of supplementary disclosure?

Using IFRS, which of the following items is matched correctly with its basis of valuation for purposes of reporting on the statement of financial position?

During 2019 the DLD Company had a net income of W200,000. In addition, selected accounts showed the following changes:

Which of the following is a current asset?

Significant financing and investing activities that do not affect cash are not reported in the statement of cash flows or any other place.

Within the statement of financial position companies should separately report all of the following except

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

Harding Corporation reports the following information:

Financial flexibility measures the ability of an enterprise to take effective actions to alter the amounts and timing of cash flows.

For Grimmett Company, the following information is available:

Olmsted Company has the following items: share capital-ordinary, €920,000; treasury shares, €85,000; deferred taxes, €100,000 and retained earnings, €363,000. What amount should Olmsted Company report as total equity?

Free cash flow is calculated as net cash provided by operating activities less

The current assets section of the statement of financial position should include

The statement of cash flows reports only the cash effects of operations during a period and financing transactions.

Net cash provided by operating activities divided by average total liabilities equals

Making and collecting loans and disposing of property, plant, and equipment are

On the statement of financial position the non-controlling interest account is reported as a long-term investment.

Within the statement of financial position where should the account non-controlling interest (minority interest) be reported?

Statement of financial position information is useful for all of the following except to

Which of the following is a limitation of the statement of financial position?

Packard Corporation reports the following information:

Which of the following statement of financial position classifications would normally require the greatest amount of supplementary disclosure?

Using IFRS, which of the following items is matched correctly with its basis of valuation for purposes of reporting on the statement of financial position?

During 2019 the DLD Company had a net income of W200,000. In addition, selected accounts showed the following changes:

Which of the following is a current asset?

Significant financing and investing activities that do not affect cash are not reported in the statement of cash flows or any other place.

Within the statement of financial position companies should separately report all of the following except

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