Question 1

Under IFRS, liabilities and shareholders' equity on the balance sheet usually appear in which order?

Accepted Answer

A)  Equity, noncurrent liabilities, and current liabilities 
B)  Current liabilities, noncurrent liabilities, and equity 
C)  Equity, current liabilities, and noncurrent liabilities 
D)  Noncurrent liabilities, current liabilities, and equity 
A)  Equity, noncurrent liabilities, and current liabilities 
B)  Current liabilities, noncurrent liabilities, and equity 
C)  Equity, current liabilities, and noncurrent liabilities 
D)  Noncurrent liabilities, current liabilities, and equity

Question 2

Activities between affiliated entities such as subsidiaries must be disclosed in the financial statements of a corporation as

Accepted Answer

A)  segment analysis. 
B)  significant events. 
C)  related party transactions.. 
D)  contingent activities. 
A)  segment analysis. 
B)  significant events. 
C)  related party transactions.. 
D)  contingent activities.

Question 3

Which is not a required characteristic for a liability to be recognized?

Accepted Answer

A)  Transfer 
B)  Service potential 
C)  Nonavoidable 
D)  Incurred 
A)  Transfer 
B)  Service potential 
C)  Nonavoidable 
D)  Incurred

Question 4

Selected information from a company's balance sheet follows:   Working capital is

Accepted Answer

A)  $250 
B)  $230 
C)  $220 
D)  $200 
A)  $250 
B)  $230 
C)  $220 
D)  $200

Question 5

A company must make adjustments to the financial statements for certain events that occur after the end of the accounting period.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following account titles are not allowed under GAAP?

Accepted Answer

A)  Revaluation reserves 
B)  Provisions 
C)  Capital 
D)  Revaluation reserves and provisions 
A)  Revaluation reserves 
B)  Provisions 
C)  Capital 
D)  Revaluation reserves and provisions

Question 7

Property, plant, and equipment section of the balance sheet includes all of the following except

Accepted Answer

A)  construction in progress. 
B)  natural resources. 
C)  intangible assets 
D)  leasehold improvements. 
A)  construction in progress. 
B)  natural resources. 
C)  intangible assets 
D)  leasehold improvements.

Question 8

Exhibit 4-1
Given the following information for Blue Bell Company for last year:  
-Refer to Exhibit 4-1. Blue Bell's quick ratio at December 31was

Accepted Answer

A)  3.67 times 
B)  2.33 times 
C)  1.33 times 
D)  0.43 times 
A)  3.67 times 
B)  2.33 times 
C)  1.33 times 
D)  0.43 times

Question 9

Which of the following is not an intangible asset?

Accepted Answer

A)  Computer software 
B)  Deferred tax asset 
C)  Brand name 
D)  Franchise 
A)  Computer software 
B)  Deferred tax asset 
C)  Brand name 
D)  Franchise

Question 10

On January 1, 2015, Marlow Corporation had the following shareholders' equity account balances:      
During 2015, the following events occurred in the order listed and were properly recorded:
? The company issued 3,000 shares of common stock at $25 per share.
? The company earned net income of $126,300.
? The company paid a $1.20 per share dividend on its common stock.
? The company experienced an unrealized decrease in the value of its investment in available- for-sale securities of $9,000.
Required:
Prepare a statement of changes in shareholders' equity for 2015.

Accepted Answer

The answer of On January 1, 2015, Marlow Corporation had...

Question 11

Current assets include cash, accounts receivable, inventory, and prepaid items.

Accepted Answer

A) True 
 B)False

Question 12

What element is a probable future economic benefit controlled and previously acquired by a company?

Accepted Answer

A)  Equity 
B)  Gain 
C)  Revenue 
D)  Asset 
A)  Equity 
B)  Gain 
C)  Revenue 
D)  Asset

Question 13

The following information has been provided by Meyers Company as of December 31, 20XX:

Accepted Answer

The answer of The following information has been provided by...

Question 14

GAAP requires that all derivative financial instruments be reported at their

Accepted Answer

A)  historical cost. 
B)  fair value. 
C)  present value. 
D)  par value. 
A)  historical cost. 
B)  fair value. 
C)  present value. 
D)  par value.

Question 15

ABC Company entered into some relatively large transactions with family members of the chairman of the board of directors. List four types of disclosures required by GAAP about related party transactions.

Accepted Answer

1. Nature of the relationship

Question 16

A negative balance for retained earnings due to cumulative net losses is called an)

Accepted Answer

A)  deficit. 
B)  retained loss. 
C)  retained debit. 
D)  other comprehensive loss. 
A)  deficit. 
B)  retained loss. 
C)  retained debit. 
D)  other comprehensive loss.

Question 17

Certain differences exist between IFRS and U.S. GAAP financial statement reporting. Which of the following is false?

Accepted Answer

A)  IFRS presents a different ordering of the liabilities and shareholders' equity sections. 
B)  IFRS allows the upward revaluation of property, plant, and equipment. 
C)  IFRS does not require a statement of cash flows. 
D)  IFRS financial statements are similar to U.S. GAAP. 
A)  IFRS presents a different ordering of the liabilities and shareholders' equity sections. 
B)  IFRS allows the upward revaluation of property, plant, and equipment. 
C)  IFRS does not require a statement of cash flows. 
D)  IFRS financial statements are similar to U.S. GAAP.

Question 18

The SEC requires listed companies to report changes in shareholder's equity and ending balances as a separate financial statement, but smaller companies may report this information in a supporting schedule or as a note.

Accepted Answer

A) True 
 B)False

Question 19

Distributions to owners include all of the following except

Accepted Answer

A)  paying dividends. 
B)  repurchasing treasury stock. 
C)  giving away fixed assets. 
D)  noncontrolling interests. 
A)  paying dividends. 
B)  repurchasing treasury stock. 
C)  giving away fixed assets. 
D)  noncontrolling interests.

Question 20

Which of the following accounts is not classified as a current asset?

Accepted Answer

A)  Receivables 
B)  Inventory 
C)  Patent 
D)  Prepaid Insurance 
A)  Receivables 
B)  Inventory 
C)  Patent 
D)  Prepaid Insurance

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

Under IFRS, liabilities and shareholders' equity on the balance sheet usually appear in which order?

Activities between affiliated entities such as subsidiaries must be disclosed in the financial statements of a corporation as

Which is not a required characteristic for a liability to be recognized?

Selected information from a company's balance sheet follows: Working capital is

A company must make adjustments to the financial statements for certain events that occur after the end of the accounting period.

Which of the following account titles are not allowed under GAAP?

Property, plant, and equipment section of the balance sheet includes all of the following except

Exhibit 4-1 Given the following information for Blue Bell Company for last year: -Refer to Exhibit 4-1. Blue Bell's quick ratio at December 31was

Which of the following is not an intangible asset?

Current assets include cash, accounts receivable, inventory, and prepaid items.

What element is a probable future economic benefit controlled and previously acquired by a company?

The following information has been provided by Meyers Company as of December 31, 20XX:

GAAP requires that all derivative financial instruments be reported at their

ABC Company entered into some relatively large transactions with family members of the chairman of the board of directors. List four types of disclosures required by GAAP about related party transactions.

A negative balance for retained earnings due to cumulative net losses is called an)

Certain differences exist between IFRS and U.S. GAAP financial statement reporting. Which of the following is false?

The SEC requires listed companies to report changes in shareholder's equity and ending balances as a separate financial statement, but smaller companies may report this information in a supporting schedule or as a note.

Distributions to owners include all of the following except

Which of the following accounts is not classified as a current asset?

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