Question 1

What are the two subtotals that distinguish the multi-step income statement from the single-step income statement?

Accepted Answer

A) Income before taxes and income taxes 
B) Total operating revenues and total operating expenses 
C) Income from operations and income before taxes 
D) Total revenues and total expenses 
A) Income before taxes and income taxes 
B) Total operating revenues and total operating expenses 
C) Income from operations and income before taxes 
D) Total revenues and total expenses

Question 2

Which of the following terms characterizes the time period between the investment of cash in merchandise and the collection of cash from the sale of that merchandise?

Accepted Answer

A) Operating cycle 
B) Natural business year 
C) Accounting period 
D) Fiscal period 
A) Operating cycle 
B) Natural business year 
C) Accounting period 
D) Fiscal period

Question 3

The following list contains several items that appear on an income statement.   Select the choice that lists the items in the order they would appear on a multi-step income statement.

Accepted Answer

A) 6, 1, 7, 4, 2, 3, 5 
B) 7, 6, 1, 4, 2, 3, 5 
C) 6, 4, 7, 1, 2, 3, 5 
D) 6, 7, 4, 1, 2, 3, 5 
A) 6, 1, 7, 4, 2, 3, 5 
B) 7, 6, 1, 4, 2, 3, 5 
C) 6, 4, 7, 1, 2, 3, 5 
D) 6, 7, 4, 1, 2, 3, 5

Question 4

Read the information below about Cargo Corporation.
Required:
Calculate the amount of working capital at December 31, 2015 for Cargo Corp.What can you learn from the current ratio that you cannot learn from the amount of working capital?

Accepted Answer

Current Assets = $85,000
$11,000 Cash +

Question 5

Button Transportation purchases many pieces of office furniture with an individual cost below $200 each.Button chooses to account for these expenditures as expenses when acquired rather than reporting them as property, plant, and equipment on its balance sheet.The company's accountant and independent CPA agree that no accounting principle has been violated.What accounting justification allows Button to expense the furniture?

Accepted Answer

A) Conservatism 
B) Matching 
C) Materiality 
D) Verifiability 
A) Conservatism 
B) Matching 
C) Materiality 
D) Verifiability

Question 6

Hopper, Inc.
Use the information from Hopper Inc.to answer the following questions).  
-Read the information about Hopper.Inc.Which statement best represents Hopper's performance?

Accepted Answer

A) Hopper's profit margin ratio decreased. 
B) Hopper has become more profitable. 
C) Hopper's increase in operating revenues increased the company's net income. 
D) Hopper's operating expenses as a percentage of operating revenues remained the same. 
A) Hopper's profit margin ratio decreased. 
B) Hopper has become more profitable. 
C) Hopper's increase in operating revenues increased the company's net income. 
D) Hopper's operating expenses as a percentage of operating revenues remained the same.

Question 7

Which one of the following sections is least likely to be found in a corporate annual report?

Accepted Answer

A) Notes to the Financial Statements 
B) Forecasts of Cash Flows and Earnings 
C) Report of the Independent Accountants 
D) Management's Discussion and Analysis 
A) Notes to the Financial Statements 
B) Forecasts of Cash Flows and Earnings 
C) Report of the Independent Accountants 
D) Management's Discussion and Analysis

Question 8

Which of the following include only current assets?

Accepted Answer

A) Accounts receivable, cash, inventory, office supplies 
B) Cash, accounts payable, inventory, office supplies 
C) Cash, land, accounts receivable, inventory 
D) Accounts receivable, cash, furniture, office supplies 
A) Accounts receivable, cash, inventory, office supplies 
B) Cash, accounts payable, inventory, office supplies 
C) Cash, land, accounts receivable, inventory 
D) Accounts receivable, cash, furniture, office supplies

Question 9

A bank loaned $62 million to Apex Corporation to finance the construction of a new distribution warehouse.In which section of Apex's statement of cash flows would you be able to determine whether the company repaid any portion of the debt during the year?

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 10

An advantage of the current ratio is that it considers the makeup of the current assets.

Accepted Answer

A) True 
 B)False

Question 11

Supplementary disclosures required by GAAP that help explain detail behind the accounting treatment of certain items in the financial statements is most likely found in which of the following sections of a corporate annual report?

Accepted Answer

A) Report of the Independent Accountants 
B) Notes to the Financial Statements 
C) Management's Discussion and Analysis 
D) Balance Sheet 
A) Report of the Independent Accountants 
B) Notes to the Financial Statements 
C) Management's Discussion and Analysis 
D) Balance Sheet

Question 12

A construction company that builds skyscrapers is likely to have an operating cycle longer than one year.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is not an objective of financial reporting?

Accepted Answer

A) To reflect prospective cash receipts to investors and creditors. 
B) To reflect prospective cash flows to an enterprise. 
C) To reflect resources and claim to resources. 
D) To reflect current stock prices and information concerning stock markets. 
A) To reflect prospective cash receipts to investors and creditors. 
B) To reflect prospective cash flows to an enterprise. 
C) To reflect resources and claim to resources. 
D) To reflect current stock prices and information concerning stock markets.

Question 14

is the quality of accounting information that makes it comprehensible to those willing to spend the necessary time.

Accepted Answer

The answer of is the quality of accounting information that...

Question 15

Which of the following represents the correct sequence of the three business activities on the Statement of Cash Flows?

Accepted Answer

A) Financing - Operating - Investing 
B) Investing - Operating - Financing 
C) Operating - Investing - Financing 
D) Financing - Investing - Operating 
A) Financing - Operating - Investing 
B) Investing - Operating - Financing 
C) Operating - Investing - Financing 
D) Financing - Investing - Operating

Question 16

The primary responsibility for the preparation and integrity of the financial statements in an annual report belongs to the company's independent accountants CPAs).

Accepted Answer

A) True 
 B)False

Question 17

Which of the following would not appear on an income statement?

Accepted Answer

A) Sales revenue 
B) Cost of goods sold 
C) Accounts receivable 
D) Insurance expense 
A) Sales revenue 
B) Cost of goods sold 
C) Accounts receivable 
D) Insurance expense

Question 18

The statement of explains changes in the components of owners' equity during the period.

Accepted Answer

stockholde

Question 19

Which one of the following categories on a statement of cash flows is used to report the cash flow effects of buying and selling property, plant, and equipment?

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 20

Which one of the following statements is true?

Accepted Answer

A) The two primary sources of financing available to corporations are borrowed funds and funds invested by owners. 
B) Financing activities involve the acquisition of property, plant and equipment. 
C) Borrowed funds are a more permanent source of financing than funds invested by owners. 
D) Investing activities involve the selling of products or services and the incurring of expenses related to selling these products and services. 
A) The two primary sources of financing available to corporations are borrowed funds and funds invested by owners. 
B) Financing activities involve the acquisition of property, plant and equipment. 
C) Borrowed funds are a more permanent source of financing than funds invested by owners. 
D) Investing activities involve the selling of products or services and the incurring of expenses related to selling these products and services.

What are the two subtotals that distinguish the multi-step income statement from the single-step income statement?

Which of the following terms characterizes the time period between the investment of cash in merchandise and the collection of cash from the sale of that merchandise?

The following list contains several items that appear on an income statement. Select the choice that lists the items in the order they would appear on a multi-step income statement.

Read the information below about Cargo Corporation. Required: Calculate the amount of working capital at December 31, 2015 for Cargo Corp.What can you learn from the current ratio that you cannot learn from the amount of working capital?

Hopper, Inc. Use the information from Hopper Inc.to answer the following questions). -Read the information about Hopper.Inc.Which statement best represents Hopper's performance?

Which one of the following sections is least likely to be found in a corporate annual report?

Which of the following include only current assets?

A bank loaned $62 million to Apex Corporation to finance the construction of a new distribution warehouse.In which section of Apex's statement of cash flows would you be able to determine whether the company repaid any portion of the debt during the year?

An advantage of the current ratio is that it considers the makeup of the current assets.

Supplementary disclosures required by GAAP that help explain detail behind the accounting treatment of certain items in the financial statements is most likely found in which of the following sections of a corporate annual report?

A construction company that builds skyscrapers is likely to have an operating cycle longer than one year.

Which of the following is not an objective of financial reporting?

is the quality of accounting information that makes it comprehensible to those willing to spend the necessary time.

Which of the following represents the correct sequence of the three business activities on the Statement of Cash Flows?

The primary responsibility for the preparation and integrity of the financial statements in an annual report belongs to the company's independent accountants CPAs).

Which of the following would not appear on an income statement?

The statement of explains changes in the components of owners' equity during the period.

Which one of the following categories on a statement of cash flows is used to report the cash flow effects of buying and selling property, plant, and equipment?

Which one of the following statements is true?

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

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Exam 2: Financial Statements and the Annual Report

What are the two subtotals that distinguish the multi-step income statement from the single-step income statement?

Which of the following terms characterizes the time period between the investment of cash in merchandise and the collection of cash from the sale of that merchandise?

The following list contains several items that appear on an income statement. Select the choice that lists the items in the order they would appear on a multi-step income statement.

Read the information below about Cargo Corporation. Required: Calculate the amount of working capital at December 31, 2015 for Cargo Corp.What can you learn from the current ratio that you cannot learn from the amount of working capital?

Hopper, Inc. Use the information from Hopper Inc.to answer the following questions). -Read the information about Hopper.Inc.Which statement best represents Hopper's performance?

Which one of the following sections is least likely to be found in a corporate annual report?

Which of the following include only current assets?

A bank loaned $62 million to Apex Corporation to finance the construction of a new distribution warehouse.In which section of Apex's statement of cash flows would you be able to determine whether the company repaid any portion of the debt during the year?

An advantage of the current ratio is that it considers the makeup of the current assets.

Supplementary disclosures required by GAAP that help explain detail behind the accounting treatment of certain items in the financial statements is most likely found in which of the following sections of a corporate annual report?

A construction company that builds skyscrapers is likely to have an operating cycle longer than one year.

Which of the following is not an objective of financial reporting?

is the quality of accounting information that makes it comprehensible to those willing to spend the necessary time.

Which of the following represents the correct sequence of the three business activities on the Statement of Cash Flows?

The primary responsibility for the preparation and integrity of the financial statements in an annual report belongs to the company's independent accountants CPAs).

Which of the following would not appear on an income statement?

The statement of explains changes in the components of owners' equity during the period.

Which one of the following categories on a statement of cash flows is used to report the cash flow effects of buying and selling property, plant, and equipment?

Which one of the following statements is true?

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

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