Question 1

Presented below are data for Antwerp Corp.   Shareholders' Equity at January 1, 2011 is

Accepted Answer

A) € 504. 
B) € 560. 
C) €1,120. 
D) €1,624. 
A) € 504. 
B) € 560. 
C) €1,120. 
D) €1,624. C

Question 2

Fulton Company owns the following investments:   Fulton will report investments in its current assets section of

Accepted Answer

A) $0. 
B) exactly $60,000. 
C) $60,000 or an amount greater than $60,000, depending on the circumstances. 
D) exactly $95,000. 
A) $0. 
B) exactly $60,000. 
C) $60,000 or an amount greater than $60,000, depending on the circumstances. 
D) exactly $95,000. C

Question 3

Because of the cost principle, fair values may not be disclosed in the statement of financial position.

Accepted Answer

A) True 
 B)False  False

Question 4

When a portion of inventories has been pledged as security on a loan,

Accepted Answer

A) the value of the portion pledged should be subtracted from the debt. 
B) an equal amount of retained earnings should be appropriated. 
C) the fact should be disclosed but the amount of current assets should not be affected. 
D) the cost of the pledged inventories should be transferred from current assets to noncurrent assets. 
A) the value of the portion pledged should be subtracted from the debt. 
B) an equal amount of retained earnings should be appropriated. 
C) the fact should be disclosed but the amount of current assets should not be affected. 
D) the cost of the pledged inventories should be transferred from current assets to noncurrent assets.

Question 5

Stine Corp.'s trial balance reflected the following account balances at December 31, 2010:   In Stine's December 31, 2011 statement of financial position, the current assets total is

Accepted Answer

A) R$90,000. 
B) R$82,000. 
C) R$77,000. 
D) R$73,000. 
A) R$90,000. 
B) R$82,000. 
C) R$77,000. 
D) R$73,000.

Question 6

For Randolph Company, the following information is available:   In Randolph's statement of financial position, intangible assets should be reported at

Accepted Answer

A) R 90,000. 
B) R105,000. 
C) R370,000. 
D) R385,000. 
A) R 90,000. 
B) R105,000. 
C) R370,000. 
D) R385,000.

Question 7

The statement of financial position omits many items that are of financial value to the business but cannot be recorded objectively.

Accepted Answer

A) True 
 B)False

Question 8

In a statement of cash flows, receipts from sales of property, plant, and equipment and other productive assets should generally be classified as cash inflows from

Accepted Answer

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

Question 9

The financial statement which summarizes operating, investing, and financing activities of an entity for a period of time is the

Accepted Answer

A) retained earnings statement. 
B) income statement. 
C) statement of cash flows. 
D) statement of financial position. 
A) retained earnings statement. 
B) income statement. 
C) statement of cash flows. 
D) statement of financial position.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Typical contractual situations that are disclosed in the notes to the statement of financial position include all of the following except

Accepted Answer

A) debt covenants 
B) lease obligations 
C) advertising contracts 
D) pension obligations 
A) debt covenants 
B) lease obligations 
C) advertising contracts 
D) pension obligations

Question 12

The shareholders' equity section is usually divided into how many parts?

Accepted Answer

A) 6 
B) 5 
C) 4 
D) 3 
A) 6 
B) 5 
C) 4 
D) 3

Question 13

Which of the following is not a long-term investment?

Accepted Answer

A) Cash surrender value of life insurance 
B) Franchise 
C) Land held for speculation 
D) A sinking fund 
A) Cash surrender value of life insurance 
B) Franchise 
C) Land held for speculation 
D) A sinking fund

Question 14

Under IFRS, companies may offset assets and liabilities; for example, accounts payable may be offset against cash to report net cash available for other expenses.

Accepted Answer

A) True 
 B)False

Question 15

Under IFRS non-cash activities are reported as either investing or financing activities in the body of the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 16

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 17

Land held for speculation is reported in the property, plant, and equipment section of the statement of financial position.

Accepted Answer

A) True 
 B)False

Question 18

The current cash debt coverage ratio 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 19

Caroline, Inc.had the following transactions during 2011:   What is Caroline, Inc.'s net cash provided (used) by investing activities?

Accepted Answer

A) $106,000 used by investing activities. 
B) $276,000 provided by investing activities. 
C) $186,000 used by investing activities. 
D) $196,000 provided by investing activities. 
A) $106,000 used by investing activities. 
B) $276,000 provided by investing activities. 
C) $186,000 used by investing activities. 
D) $196,000 provided by investing activities.

Question 20

Lohmeyer Corporation reports:   What is Lohmeyer's ending cash balance?

Accepted Answer

A) $280,000. 
B) $350,000. 
C) $500,000. 
D) $570,000. 
A) $280,000. 
B) $350,000. 
C) $500,000. 
D) $570,000.

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

Presented below are data for Antwerp Corp. Shareholders' Equity at January 1, 2011 is

Fulton Company owns the following investments: Fulton will report investments in its current assets section of

Because of the cost principle, fair values may not be disclosed in the statement of financial position.

When a portion of inventories has been pledged as security on a loan,

Stine Corp.'s trial balance reflected the following account balances at December 31, 2010: In Stine's December 31, 2011 statement of financial position, the current assets total is

For Randolph Company, the following information is available: In Randolph's statement of financial position, intangible assets should be reported at

The statement of financial position omits many items that are of financial value to the business but cannot be recorded objectively.

In a statement of cash flows, receipts from sales of property, plant, and equipment and other productive assets should generally be classified as cash inflows from

The financial statement which summarizes operating, investing, and financing activities of an entity for a period of time is the

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

Typical contractual situations that are disclosed in the notes to the statement of financial position include all of the following except

The shareholders' equity section is usually divided into how many parts?

Which of the following is not a long-term investment?

Under IFRS, companies may offset assets and liabilities; for example, accounts payable may be offset against cash to report net cash available for other expenses.

Under IFRS non-cash activities are reported as either investing or financing activities in the body of the statement of cash flows.

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

Land held for speculation is reported in the property, plant, and equipment section of the statement of financial position.

The current cash debt coverage ratio is often used to assess

Caroline, Inc.had the following transactions during 2011: What is Caroline, Inc.'s net cash provided (used) by investing activities?

Lohmeyer Corporation reports: What is Lohmeyer's ending cash balance?

Financial Accounting and Accounting Standards

Conceptual Framework Underlying Financial Accounting

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

Current Liabilities, Provisions, and Contingencies

Non-Current Liabilities

Equity

Dilutive Securities and Earnings Per Share

Investments

Revenue

Accounting for Income Taxes

Accounting for Pensions and Postretirement Benefits

Accounting for Leases

Accounting Changes and Error Analysis

Statement of Cash Flows

Presentation and Disclosure in Financial Reporting

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