Question 1

The statement of financial position can help assess all of the following except

Accepted Answer

A) Solvency. 
B) Financial flexibility. 
C) Profitability. 
D) Liquidity. 
A) Solvency. 
B) Financial flexibility. 
C) Profitability. 
D) Liquidity.

Question 2

The basis for classifying assets as current or noncurrent is the period of time normally required by the accounting entity to convert cash invested in

Accepted Answer

A) inventory back into cash, or 12 months, whichever is shorter. 
B) receivables back into cash, or 12 months, whichever is longer. 
C) tangible fixed assets back into cash, or 12 months, whichever is longer. 
D) inventory back into cash, or 12 months, whichever is longer. 
A) inventory back into cash, or 12 months, whichever is shorter. 
B) receivables back into cash, or 12 months, whichever is longer. 
C) tangible fixed assets back into cash, or 12 months, whichever is longer. 
D) inventory back into cash, or 12 months, whichever is longer.

Question 3

Under IFRS the statement of financial position is often referred to as the statement of changes in equity.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is not a method of disclosing pertinent information?

Accepted Answer

A) Supporting schedules 
B) Parenthetical explanations 
C) Cross reference and contra items 
D) All of these are methods of disclosing pertinent information. 
A) Supporting schedules 
B) Parenthetical explanations 
C) Cross reference and contra items 
D) All of these are methods of disclosing pertinent information.

Question 5

Financial statement readers often assess liquidity by using current cash debt coverage.

Accepted Answer

A) True 
 B)False

Question 6

The correct order to present current assets is

Accepted Answer

A) cash, accounts receivable, prepaid items, inventories. 
B) inventories, receivables, prepaid items, cash. 
C) cash, inventories, accounts receivable, prepaid items. 
D) inventories, prepaid items, accounts receivable, cash. 
A) cash, accounts receivable, prepaid items, inventories. 
B) inventories, receivables, prepaid items, cash. 
C) cash, inventories, accounts receivable, prepaid items. 
D) inventories, prepaid items, accounts receivable, cash.

Question 7

In preparing a statement of cash flows, which of the following transactions would be considered an investing activity?

Accepted Answer

A) Sale of equipment at book value 
B) Sale of merchandise on credit 
C) Declaration of a cash dividend 
D) Issuance of bonds payable at a discount 
A) Sale of equipment at book value 
B) Sale of merchandise on credit 
C) Declaration of a cash dividend 
D) Issuance of bonds payable at a discount

Question 8

On the statement of financial position, an adjunct account reduces either an asset, a liability, or an equity account.

Accepted Answer

A) True 
 B)False

Question 9

One of the benefits of the statement of cash flows is that it helps users evaluate financial flexibility.Which of the following explanations is a description of financial flexibility?

Accepted Answer

A) The nearness to cash of assets and liabilities. 
B) The firm's ability to respond and adapt to financial adversity and unexpected needs and opportunities. 
C) The firm's ability to pay its debts as they mature. 
D) The firm's ability to invest in a number of projects with different objectives and costs. 
A) The nearness to cash of assets and liabilities. 
B) The firm's ability to respond and adapt to financial adversity and unexpected needs and opportunities. 
C) The firm's ability to pay its debts as they mature. 
D) The firm's ability to invest in a number of projects with different objectives and costs.

Question 10

Liquidity refers to the ability of an enterprise to pay its debts as they mature.

Accepted Answer

A) True 
 B)False

Question 11

Fulton Company owns the following investments:   Fulton will report investments in its current assets section of

Accepted Answer

A) $0. 
B) exactly $70,000. 
C) $70,000 or an amount greater than $70,000, depending on the circumstances. 
D) exactly $105,000. 
A) $0. 
B) exactly $70,000. 
C) $70,000 or an amount greater than $70,000, depending on the circumstances. 
D) exactly $105,000.

Question 12

The statement of financial position is useful for analyzing all of the following except

Accepted Answer

A) liquidity. 
B) solvency. 
C) profitability. 
D) financial flexibility. 
A) liquidity. 
B) solvency. 
C) profitability. 
D) financial flexibility.

Question 13

Caroline, Inc.had the following transactions during 2015:   What is Caroline, Inc.'s net cash provided (used) by financing activities?

Accepted Answer

A) £600,000 provided by financing activities. 
B) £48,000 provided by financing activities. 
C) £48,000 used by financing activities. 
D) £428,000 used by financing activities. 
A) £600,000 provided by financing activities. 
B) £48,000 provided by financing activities. 
C) £48,000 used by financing activities. 
D) £428,000 used by financing activities.

The statement of financial position can help assess all of the following except

The basis for classifying assets as current or noncurrent is the period of time normally required by the accounting entity to convert cash invested in

Under IFRS the statement of financial position is often referred to as the statement of changes in equity.

Which of the following is not a method of disclosing pertinent information?

Financial statement readers often assess liquidity by using current cash debt coverage.

The correct order to present current assets is

In preparing a statement of cash flows, which of the following transactions would be considered an investing activity?

On the statement of financial position, an adjunct account reduces either an asset, a liability, or an equity account.

One of the benefits of the statement of cash flows is that it helps users evaluate financial flexibility.Which of the following explanations is a description of financial flexibility?

Liquidity refers to the ability of an enterprise to pay its debts as they mature.

Fulton Company owns the following investments: Fulton will report investments in its current assets section of

The statement of financial position is useful for analyzing all of the following except

Caroline, Inc.had the following transactions during 2015: What is Caroline, Inc.'s net cash provided (used) by financing activities?

Financial Reporting and Accounting Standards

Conceptual Framework for Financial Reporting

The Accounting Information System

Income Statement and Related Information

Accounting and the Time Value of Money

Cash and Receivables

Valuation of Inventories: a Cost-Basis Approach

Inventories: Additional Valuation Issues

Acquisition and Disposition of Property, Plant, and Equipment

Depreciation, Impairments, and Depletion

Intangible Assets

Current Liabilities, Provisions, and Contingencies

Non-Current Liabilities

Equity

Dilutive Securities and Earnings Per Share

Investments

Revenue Recognition

Accounting for Income Taxes

Accounting for Pensions and Postretirement Benefits

Accounting for Leases

Accounting Changes and Error Analysis

Statement of Cash Flows

Presentation and Disclosure in Financialreporting

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Exam 5: Statement of Financial Position and Statement of Cash Flows

The statement of financial position can help assess all of the following except

The basis for classifying assets as current or noncurrent is the period of time normally required by the accounting entity to convert cash invested in

Under IFRS the statement of financial position is often referred to as the statement of changes in equity.

Which of the following is not a method of disclosing pertinent information?

Financial statement readers often assess liquidity by using current cash debt coverage.

The correct order to present current assets is

In preparing a statement of cash flows, which of the following transactions would be considered an investing activity?

On the statement of financial position, an adjunct account reduces either an asset, a liability, or an equity account.

One of the benefits of the statement of cash flows is that it helps users evaluate financial flexibility.Which of the following explanations is a description of financial flexibility?

Liquidity refers to the ability of an enterprise to pay its debts as they mature.

Fulton Company owns the following investments: Fulton will report investments in its current assets section of

The statement of financial position is useful for analyzing all of the following except

Caroline, Inc.had the following transactions during 2015: What is Caroline, Inc.'s net cash provided (used) by financing activities?

Financial Reporting and Accounting Standards

Conceptual Framework for Financial Reporting

The Accounting Information System

Income Statement and Related Information

Accounting and the Time Value of Money

Cash and Receivables

Valuation of Inventories: a Cost-Basis Approach

Inventories: Additional Valuation Issues

Acquisition and Disposition of Property, Plant, and Equipment

Depreciation, Impairments, and Depletion

Intangible Assets

Current Liabilities, Provisions, and Contingencies

Non-Current Liabilities

Equity

Dilutive Securities and Earnings Per Share

Investments

Revenue Recognition

Accounting for Income Taxes

Accounting for Pensions and Postretirement Benefits

Accounting for Leases

Accounting Changes and Error Analysis

Statement of Cash Flows

Presentation and Disclosure in Financialreporting

Filters