Question 1

The residual interest in a company's assets after deducting liabilities is

Accepted Answer

A)  net income. 
B)  equity. 
C)  noncontrolling interest 
D)  earned capital 
A)  net income. 
B)  equity. 
C)  noncontrolling interest 
D)  earned capital

Question 2

What is FASB's definition of fair value?

Accepted Answer

1) Assets
a. Current assets
b. Long-term

Question 3

What three characteristics must an economic resource have in order be considered an asset?

Accepted Answer

1. Probable future e

Question 4

Current liabilities are defined as obligations that will be paid

Accepted Answer

A)  by refinancing through issuing new long-term liabilities 
B)  by using existing resources properly classified as current assets 
C)  out of a fund classified as a long-term investment 
D)  by using existing resources, regardless of their classification 
A)  by refinancing through issuing new long-term liabilities 
B)  by using existing resources properly classified as current assets 
C)  out of a fund classified as a long-term investment 
D)  by using existing resources, regardless of their classification

Question 5

What is meant by liquidity? Rank the following items according to their liquidity from most to least): Goodwill
Inventory
Short-term investment Building
Accounts receivable

Accepted Answer

Liquidity refers to a company'

Question 6

The expected exit value is also referred to as the

Accepted Answer

A)  fair value. 
B)  present value. 
C)  input value. 
D)  current replacement cost. 
A)  fair value. 
B)  present value. 
C)  input value. 
D)  current replacement cost.

Question 7

Which of the following is not a general category of shareholders' equity?

Accepted Answer

A)  Net income 
B)  Contributed capital 
C)  Noncontrolling interest 
D)  Earned capital 
A)  Net income 
B)  Contributed capital 
C)  Noncontrolling interest 
D)  Earned capital

Question 8

A reader might find information about gain contingencies in an annual report by examining

Accepted Answer

A)  a contingent account receivable. 
B)  an accrued revenue. 
C)  a deferred revenue. 
D)  footnote disclosures. 
A)  a contingent account receivable. 
B)  an accrued revenue. 
C)  a deferred revenue. 
D)  footnote disclosures.

Question 9

What is FASB's Statement of Financial Accounting Concepts No. 6 definition of investments by owners and distributions to owners?

Accepted Answer

Investment by owners: the transfer of so

Question 10

With all of the turmoil in the financial markets in 2008, one of your friends has emailed you because she has been wondering about the financial disclosure requirements for the banks and brokerage firms affected by the market turbulence. Explain the general accounting requirements for financial instruments to your friend.

Accepted Answer

Generally, GAAP requires the disclosure

Question 11

A balance sheet account that is usually reported at fair value is

Accepted Answer

A)  Marketable Securities. 
B)  Land. 
C)  Accounts Payable. 
D)  Inventory. 
A)  Marketable Securities. 
B)  Land. 
C)  Accounts Payable. 
D)  Inventory.

Question 12

Long-term investments include all of the following except

Accepted Answer

A)  sinking funds. 
B)  cash surrender value of life insurance policies. 
C)  a building held for rental activity. 
D)  bonds payable. 
A)  sinking funds. 
B)  cash surrender value of life insurance policies. 
C)  a building held for rental activity. 
D)  bonds payable.

Question 13

Financial flexibility is assessed by evaluating

Accepted Answer

A)  profitability. 
B)  leverage. 
C)  liquidity. 
D)  efficiency 
A)  profitability. 
B)  leverage. 
C)  liquidity. 
D)  efficiency

Question 14

Cross-sectional analysis involves intercompany comparisons.

Accepted Answer

A) True 
 B)False

Question 15

What are the three categories of intangible assets?

Accepted Answer

1) Intangible assets with fini

Question 16

Equity is defined as a residual claim such that assets plus liabilities equals equity.

Accepted Answer

A) True 
 B)False

Question 17

A friend of the family has just received her first set of financial statements from her accountant. When she finds out that you are an accounting major, she asks you, "Why aren't my employees listed as an asset on my company's balance sheet?"
Required:
Write an explanation describing the characteristics that an economic resource must possess in order to be considered an asset. Include in your discussion the primary reason why "human resources" are not recognized as assets.

Accepted Answer

Assets are the probable future economic

Question 18

Match between columns
                        Premises: The amount of cash into which an asset is expected to be converted, less any expected conversion costs.
The amount of cash that would be required to obtain the same asset on the date of the balance sheet.
The net amount of discounted expected cash flows relating to the asset.
The amount of cash that could be obtained on the balance sheet date if the asset were sold in its present condition in an orderly liquidation.
The amount of cash paid for the asset when it was originally acquired.

Accepted Answer

The Answer of historical cost and current replacement cost and is...

Question 19

Which of the following is not a component of shareholders' equity?

Accepted Answer

A)  Noncontrolling interest 
B)  Residual capital 
C)  Earned capital 
D)  Contributed capital 
A)  Noncontrolling interest 
B)  Residual capital 
C)  Earned capital 
D)  Contributed capital

Question 20

Match between columns
                        Premises: Receivables net of allowance for doubtful accounts
Prepaid expenses
Investment securities available for sale
Patents
Raw materials inventory adjusted downward to lower of cost or market
Capital lease obligations
Financial instruments
Property, plant, and equipment
Bonds payable
Trading securities

Accepted Answer

The Answer of historical cost and current replacement cost and is...

The residual interest in a company's assets after deducting liabilities is

What is FASB's definition of fair value?

What three characteristics must an economic resource have in order be considered an asset?

Current liabilities are defined as obligations that will be paid

What is meant by liquidity? Rank the following items according to their liquidity from most to least): Goodwill Inventory Short-term investment Building Accounts receivable

The expected exit value is also referred to as the

Which of the following is not a general category of shareholders' equity?

A reader might find information about gain contingencies in an annual report by examining

What is FASB's Statement of Financial Accounting Concepts No. 6 definition of investments by owners and distributions to owners?

A balance sheet account that is usually reported at fair value is

Long-term investments include all of the following except

Financial flexibility is assessed by evaluating

Cross-sectional analysis involves intercompany comparisons.

What are the three categories of intangible assets?

Equity is defined as a residual claim such that assets plus liabilities equals equity.

Which of the following is not a component of shareholders' equity?

The Demand for and Supply of Financial Accounting Information

Financial Reporting: Its Conceptual Framework

Review of a Company S Accounting System

The Income Statement and the Statement of Cash Flows Time Value of Money Module

Cash and Receivables

Inventories: Cost Measurement and Flow Assumptions

Inventories: Special Valuation Issues

Current Liabilities and Contingent Obligations

Property, Plant, and Equipment: Acquisition and Subsequent Investments

Depreciation, Depletion, Impairment, and Disposal

Intangibles

Investments and Long-Term Receivables

Financing Liabilities: Bonds and Long-Term Notes Payable

Contributed Capital

Retained Earnings and Earnings Per Share

Advanced Issues in Revenue Recognition

Accounting for Income Taxes

Accounting for Post-Retirement Benefits

Accounting for Leases

The Statement of Cash Flows

Accounting for Changes and Errors

Understanding Time Value of Money Formulas and Concepts

Filters

Exam 4: The Balance Sheet and the Statement of Shareholders Equity

The residual interest in a company's assets after deducting liabilities is

What is FASB's definition of fair value?

What three characteristics must an economic resource have in order be considered an asset?

Current liabilities are defined as obligations that will be paid

What is meant by liquidity? Rank the following items according to their liquidity from most to least): Goodwill Inventory Short-term investment Building Accounts receivable

The expected exit value is also referred to as the

Which of the following is not a general category of shareholders' equity?

A reader might find information about gain contingencies in an annual report by examining

What is FASB's Statement of Financial Accounting Concepts No. 6 definition of investments by owners and distributions to owners?

A balance sheet account that is usually reported at fair value is

Long-term investments include all of the following except

Financial flexibility is assessed by evaluating

Cross-sectional analysis involves intercompany comparisons.

What are the three categories of intangible assets?

Equity is defined as a residual claim such that assets plus liabilities equals equity.

Which of the following is not a component of shareholders' equity?

The Demand for and Supply of Financial Accounting Information

Financial Reporting: Its Conceptual Framework

Review of a Company S Accounting System

The Income Statement and the Statement of Cash Flows Time Value of Money Module

Cash and Receivables

Inventories: Cost Measurement and Flow Assumptions

Inventories: Special Valuation Issues

Current Liabilities and Contingent Obligations

Property, Plant, and Equipment: Acquisition and Subsequent Investments

Depreciation, Depletion, Impairment, and Disposal

Intangibles

Investments and Long-Term Receivables

Financing Liabilities: Bonds and Long-Term Notes Payable

Contributed Capital

Retained Earnings and Earnings Per Share

Advanced Issues in Revenue Recognition

Accounting for Income Taxes

Accounting for Post-Retirement Benefits

Accounting for Leases

The Statement of Cash Flows

Accounting for Changes and Errors

Understanding Time Value of Money Formulas and Concepts

Filters