Question 1

is the quality of accounting information that makes it dependable in representing the events that it purports to represent.

Accepted Answer

Reliability

Question 2

Liquidity relates to a company's ability to do which of the following?

Accepted Answer

A) The ability to pay its financial obligations as they become due 
B) The ability to stay in business over the long run 
C) The ability to pay dividends to its stockholders 
D) The ability to collect the amount their customers owe the company 
A) The ability to pay its financial obligations as they become due 
B) The ability to stay in business over the long run 
C) The ability to pay dividends to its stockholders 
D) The ability to collect the amount their customers owe the company A

Question 3

Which of the following categories on a statement of cash flows is used to report the cash flow effects of transactions involving a company's stock?

Accepted Answer

A) Operating Activities 
B) Investing Activities 
C) Financing Activities 
D) Profit Activities 
A) Operating Activities 
B) Investing Activities 
C) Financing Activities 
D) Profit Activities C

Question 4

Which financial statement reports information helpful in assessing working capital?

Accepted Answer

A) Income statement 
B) Balance sheet 
C) Statement of retained earnings 
D) Statement of cash flows 
A) Income statement 
B) Balance sheet 
C) Statement of retained earnings 
D) Statement of cash flows

Question 5

Skyline, Inc.
The balance sheet of Skyline Inc.includes the following items:  
-Read the information about Skyline, Inc.What is Skyline's current ratio?

Accepted Answer

A) 0.8 to 1 
B) 1.6 to 1 
C) 1.2 to 1 
D) 2.5 to 1 
A) 0.8 to 1 
B) 1.6 to 1 
C) 1.2 to 1 
D) 2.5 to 1

Question 6

An independent auditor's CPA's) report is a guarantee that the financial statements are free from fraud or material error

Accepted Answer

A) True 
 B)False

Question 7

Accountants are the main reason financial statements are prepared.

Accepted Answer

A) True 
 B)False

Question 8

Forman, Inc.earned $600,000 profit during 2015.On which financial statements) will you find the dollar amount of the profit earned by the company?

Accepted Answer

A) Balance sheet and income statement 
B) Income statement only 
C) Statement of retained earnings only 
D) Income statement and statement of retained earnings 
A) Balance sheet and income statement 
B) Income statement only 
C) Statement of retained earnings only 
D) Income statement and statement of retained earnings

Question 9

Hopper, Inc.
Use the information from Hopper Inc.to answer the following questions).  
-Read the information about Hopper, Inc.Which ratio are you able to calculate given only the information provided by Hopper?

Accepted Answer

A) Profit margin 
B) Current ratio 
C) Working capital 
D) Gross profit percentage 
A) Profit margin 
B) Current ratio 
C) Working capital 
D) Gross profit percentage

Question 10

Marvel Shoes
Marvel Shoes reported the following items on its statement of cash flows for the current year:  
-Read the information about Marvel Shoes.What was the cash balance for Marvel Shoes at the end of the current year?

Accepted Answer

A) $ 10,000 
B) $ 30,000 
C) $ 40,000 
D) $ 70,000 
A) $ 10,000 
B) $ 30,000 
C) $ 40,000 
D) $ 70,000

Question 11

Which set of items below are current assets?

Accepted Answer

A) Accounts receivable, net income, inventory, and dividends 
B) Cash, accounts receivable, capital stock, and sales 
C) Net income, cash, office supplies, and inventory 
D) Cash, accounts receivable, inventory, and office supplies 
A) Accounts receivable, net income, inventory, and dividends 
B) Cash, accounts receivable, capital stock, and sales 
C) Net income, cash, office supplies, and inventory 
D) Cash, accounts receivable, inventory, and office supplies

Question 12

Current assets, other than cash, are expected to be sold or consumed are during a company's normal operating cycle.

Accepted Answer

A) True 
 B)False

Question 13

Property, plant and equipment is classified as assets on the balance sheet.

Accepted Answer

The answer of Property, plant and equipment is classified as...

Question 14

Business entities generally carry on:

Accepted Answer

A) Operating, investing, and financing activities 
B) Operating activities, but only corporations engage in financing and investing activities 
C) Investing and operating activities, but only corporations engage in financing activities 
D) Either investing or financing activities, but not both 
A) Operating, investing, and financing activities 
B) Operating activities, but only corporations engage in financing and investing activities 
C) Investing and operating activities, but only corporations engage in financing activities 
D) Either investing or financing activities, but not both

Question 15

Carnival Bakery borrowed $500,000 from Front Street Bank.Carnival then hired a contractor to build a new cookie distribution outlet.In which section of Carnival's statement of cash flows would you find information that indicated that Carnival acquired the new cookie distribution outlet?

Accepted Answer

A) Operating Activities 
B) Investing Activities 
C) Financing Activities 
D) Profit Activities 
A) Operating Activities 
B) Investing Activities 
C) Financing Activities 
D) Profit Activities

Question 16

____________________ and ____________________ have claims to an entity's economic resources.

Accepted Answer

Creditors, Investors

Question 17

The ability of a company to pay its debt as it comes due relates to .

Accepted Answer

The answer of The ability of a company to pay...

Question 18

A company is not required to prepare both an)

Accepted Answer

A) Income statement and statement of stockholders' equity. 
B) Income statement and statement of retained earnings. 
C) Statement of stockholders' equity and statement of retained earnings. 
D) Statement of cash flows and statement of retained earnings. 
A) Income statement and statement of stockholders' equity. 
B) Income statement and statement of retained earnings. 
C) Statement of stockholders' equity and statement of retained earnings. 
D) Statement of cash flows and statement of retained earnings.

Question 19

During its fifth year of operations, Bright Creations Company reports a beginning cash balance of $132,000, cash inflows from investing activities of $210,000, cash outflows for financing activities of $79,000, and cash outflows for operating activities of $13,000.What was Bright Creations' cash balance at the end of the fifth year?

Accepted Answer

A) $ 250,000 
B) $ 434,000 
C) $ 276,000 
D) $ 132,000 
A) $ 250,000 
B) $ 434,000 
C) $ 276,000 
D) $ 132,000

Question 20

Harrison Company calculated the following amounts concerning its financial information for the years ending December 31, 2015 and 2014:   
Required:
Examine Harrison's ratios.Is the change in the current ratio favorable or not? Explain.

Accepted Answer

The current ratio increased from 2.0 to

is the quality of accounting information that makes it dependable in representing the events that it purports to represent.

Liquidity relates to a company's ability to do which of the following?

Which of the following categories on a statement of cash flows is used to report the cash flow effects of transactions involving a company's stock?

Which financial statement reports information helpful in assessing working capital?

Skyline, Inc. The balance sheet of Skyline Inc.includes the following items: -Read the information about Skyline, Inc.What is Skyline's current ratio?

An independent auditor's CPA's) report is a guarantee that the financial statements are free from fraud or material error

Accountants are the main reason financial statements are prepared.

Forman, Inc.earned $600,000 profit during 2015.On which financial statements) will you find the dollar amount of the profit earned by the company?

Hopper, Inc. Use the information from Hopper Inc.to answer the following questions). -Read the information about Hopper, Inc.Which ratio are you able to calculate given only the information provided by Hopper?

Marvel Shoes Marvel Shoes reported the following items on its statement of cash flows for the current year: -Read the information about Marvel Shoes.What was the cash balance for Marvel Shoes at the end of the current year?

Which set of items below are current assets?

Current assets, other than cash, are expected to be sold or consumed are during a company's normal operating cycle.

Property, plant and equipment is classified as assets on the balance sheet.

Business entities generally carry on:

Carnival Bakery borrowed $500,000 from Front Street Bank.Carnival then hired a contractor to build a new cookie distribution outlet.In which section of Carnival's statement of cash flows would you find information that indicated that Carnival acquired the new cookie distribution outlet?

and have claims to an entity's economic resources.

The ability of a company to pay its debt as it comes due relates to .

A company is not required to prepare both an)

Harrison Company calculated the following amounts concerning its financial information for the years ending December 31, 2015 and 2014: Required: Examine Harrison's ratios.Is the change in the current ratio favorable or not? Explain.

Accounting As a Form of Communication

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, Plant, and Equipment, and Intangibles

Current Liabilities, Contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

Filters

Exam 2: Financial Statements and the Annual Report

is the quality of accounting information that makes it dependable in representing the events that it purports to represent.

Liquidity relates to a company's ability to do which of the following?

Which of the following categories on a statement of cash flows is used to report the cash flow effects of transactions involving a company's stock?

Which financial statement reports information helpful in assessing working capital?

Skyline, Inc. The balance sheet of Skyline Inc.includes the following items: -Read the information about Skyline, Inc.What is Skyline's current ratio?

An independent auditor's CPA's) report is a guarantee that the financial statements are free from fraud or material error

Accountants are the main reason financial statements are prepared.

Forman, Inc.earned $600,000 profit during 2015.On which financial statements) will you find the dollar amount of the profit earned by the company?

Hopper, Inc. Use the information from Hopper Inc.to answer the following questions). -Read the information about Hopper, Inc.Which ratio are you able to calculate given only the information provided by Hopper?

Marvel Shoes Marvel Shoes reported the following items on its statement of cash flows for the current year: -Read the information about Marvel Shoes.What was the cash balance for Marvel Shoes at the end of the current year?

Which set of items below are current assets?

Current assets, other than cash, are expected to be sold or consumed are during a company's normal operating cycle.

Property, plant and equipment is classified as assets on the balance sheet.

Business entities generally carry on:

Carnival Bakery borrowed $500,000 from Front Street Bank.Carnival then hired a contractor to build a new cookie distribution outlet.In which section of Carnival's statement of cash flows would you find information that indicated that Carnival acquired the new cookie distribution outlet?

____________________ and ____________________ have claims to an entity's economic resources.

The ability of a company to pay its debt as it comes due relates to .

A company is not required to prepare both an)

Harrison Company calculated the following amounts concerning its financial information for the years ending December 31, 2015 and 2014: Required: Examine Harrison's ratios.Is the change in the current ratio favorable or not? Explain.

Accounting As a Form of Communication

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, Plant, and Equipment, and Intangibles

Current Liabilities, Contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

Filters

and have claims to an entity's economic resources.