Question 1

In a classified balance sheet, assets are usually classified as

Accepted Answer

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

Question 2

For accounting purposes, business transactions should be kept separate from the personal transactions of the stockholders of the business.

Accepted Answer

A) True 
 B)False

Question 3

The main difference between intangible assets and property, plant and equipment is the length of the asset's life.

Accepted Answer

A) True 
 B)False

Question 4

Earnings per share is calculated by dividing net income minus preferred stock dividends for the period by the average number of common shares outstanding during the period.

Accepted Answer

A) True 
 B)False

Question 5

Which one of the following is not an enhancing quality of useful information?

Accepted Answer

A) Timeliness 
B) Understandability 
C) Materiality 
D) Comparability 
A) Timeliness 
B) Understandability 
C) Materiality 
D) Comparability

Question 6

The primary accounting standard-setting body in the United States is the Securities and Exchange Commission.

Accepted Answer

A) True 
 B)False

Question 7

Using the following balance sheet and income statement data, what is the earnings per share?   Average common shares outstanding was 15,000.

Accepted Answer

A) $5.20 
B) $8.00 
C) $2.80 
D) $0.36 
A) $5.20 
B) $8.00 
C) $2.80 
D) $0.36

Question 8

For accounting information to have relevance, it must be

Accepted Answer

A) consistent. 
B) timely. 
C) verifiable. 
D) understandable. 
A) consistent. 
B) timely. 
C) verifiable. 
D) understandable.

Question 9

The current ratio takes into account the composition of current assets.

Accepted Answer

A) True 
 B)False

Question 10

Materiality is a company-specific aspect of faithful representation.

Accepted Answer

A) True 
 B)False

Question 11

Accounting information should be neutral in order to enhance

Accepted Answer

A) faithful representation. 
B) consistency. 
C) comparability. 
D) relevance. 
A) faithful representation. 
B) consistency. 
C) comparability. 
D) relevance.

In a classified balance sheet, assets are usually classified as

For accounting purposes, business transactions should be kept separate from the personal transactions of the stockholders of the business.

The main difference between intangible assets and property, plant and equipment is the length of the asset's life.

Earnings per share is calculated by dividing net income minus preferred stock dividends for the period by the average number of common shares outstanding during the period.

Which one of the following is not an enhancing quality of useful information?

The primary accounting standard-setting body in the United States is the Securities and Exchange Commission.

Using the following balance sheet and income statement data, what is the earnings per share? Average common shares outstanding was 15,000.

For accounting information to have relevance, it must be

The current ratio takes into account the composition of current assets.

Materiality is a company-specific aspect of faithful representation.

Accounting information should be neutral in order to enhance

Introduction to Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Understanding Investments in Debt and Equity Securities

Filters

Exam 2: A Further Look at Financial Statements

In a classified balance sheet, assets are usually classified as

For accounting purposes, business transactions should be kept separate from the personal transactions of the stockholders of the business.

The main difference between intangible assets and property, plant and equipment is the length of the asset's life.

Earnings per share is calculated by dividing net income minus preferred stock dividends for the period by the average number of common shares outstanding during the period.

Which one of the following is not an enhancing quality of useful information?

The primary accounting standard-setting body in the United States is the Securities and Exchange Commission.

Using the following balance sheet and income statement data, what is the earnings per share? Average common shares outstanding was 15,000.

For accounting information to have relevance, it must be

The current ratio takes into account the composition of current assets.

Materiality is a company-specific aspect of faithful representation.

Accounting information should be neutral in order to enhance

Introduction to Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Understanding Investments in Debt and Equity Securities

Filters