Question 1

The current assets of most companies are usually made up of:

Accepted Answer

A)  assets that are currently used in the operations of the company. 
B)  cash and assets expected to be converted to cash within a year. 
C)  a very small proportion (less than 10%) of the total assets of the entity. 
D)  cash, marketable securities, and accounts and notes receivable. 
A)  assets that are currently used in the operations of the company. 
B)  cash and assets expected to be converted to cash within a year. 
C)  a very small proportion (less than 10%) of the total assets of the entity. 
D)  cash, marketable securities, and accounts and notes receivable.

Question 2

Regardless of the inventory cost flow assumption used, inventories on the balance sheet are stated at:

Accepted Answer

A)  original cost. 
B)  realizable value. 
C)  replacement cost. 
D)  the lower of cost or market. 
A)  original cost. 
B)  realizable value. 
C)  replacement cost. 
D)  the lower of cost or market.

Question 3

The accrual of interest on short-term marketable securities results in:

Accepted Answer

A)  an increase in current assets and a decrease in net income. 
B)  an increase in current assets and an increase in net income. 
C)  an increase in noncurrent assets and an increase in liabilities. 
D)  an increase in current liabilities and an increase in net income. 
A)  an increase in current assets and a decrease in net income. 
B)  an increase in current assets and an increase in net income. 
C)  an increase in noncurrent assets and an increase in liabilities. 
D)  an increase in current liabilities and an increase in net income.

Question 4

The balance sheet valuation of inventories is:

Accepted Answer

A)  lower of cost or market. 
B)  lower of selling price or cost. 
C)  lower of realizable value or selling price. 
D)  cost, regardless of the cost of replacing the inventory. 
A)  lower of cost or market. 
B)  lower of selling price or cost. 
C)  lower of realizable value or selling price. 
D)  cost, regardless of the cost of replacing the inventory.

Question 5

Accounts receivable are reported at:

Accepted Answer

A)  net realizable value. 
B)  historical cost. 
C)  weighted average cost. 
D)  market value. 
A)  net realizable value. 
B)  historical cost. 
C)  weighted average cost. 
D)  market value.

Question 6

The amount of cash related to a particular bank checking account that is shown on the balance sheet at December 31 is:

Accepted Answer

A)  the cash balance shown on the bank's records at the close of business on December 31, without further adjustments. 
B)  the cash balance shown in the company's general ledger account for this checking account at the close of business on December 31, without further adjustments. 
C)  the cash balance shown in the general ledger account for this checking account as of the close of business on December 31, after recognizing any outstanding checks and/or deposits in transit from the December 31 bank account reconciliation. 
D)  the cash balance shown in the general ledger account for this checking account as of the close of business on December 31, after recognizing any bank service charges and/or interest income from the December 31 bank account reconciliation. 
A)  the cash balance shown on the bank's records at the close of business on December 31, without further adjustments. 
B)  the cash balance shown in the company's general ledger account for this checking account at the close of business on December 31, without further adjustments. 
C)  the cash balance shown in the general ledger account for this checking account as of the close of business on December 31, after recognizing any outstanding checks and/or deposits in transit from the December 31 bank account reconciliation. 
D)  the cash balance shown in the general ledger account for this checking account as of the close of business on December 31, after recognizing any bank service charges and/or interest income from the December 31 bank account reconciliation.

Question 7

An accounts receivable results from the sale of:

Accepted Answer

A)  property, plant, and equipment for cash. 
B)  goods and services to customers on account. 
C)  goods and services to customers for cash. 
D)  the firm's common stock. 
A)  property, plant, and equipment for cash. 
B)  goods and services to customers on account. 
C)  goods and services to customers for cash. 
D)  the firm's common stock.

Question 8

One inventory cost flow assumption will result in different cost of goods sold from another inventory cost flow assumption only if:

Accepted Answer

A)  inventory quantities change from the beginning to end of the year. 
B)  a new product is added to inventory during the year. 
C)  the cost of inventory items changes during the year. 
D)  price levels do not change during the year. 
A)  inventory quantities change from the beginning to end of the year. 
B)  a new product is added to inventory during the year. 
C)  the cost of inventory items changes during the year. 
D)  price levels do not change during the year.

The current assets of most companies are usually made up of:

Regardless of the inventory cost flow assumption used, inventories on the balance sheet are stated at:

The accrual of interest on short-term marketable securities results in:

The balance sheet valuation of inventories is:

Accounts receivable are reported at:

The amount of cash related to a particular bank checking account that is shown on the balance sheet at December 31 is:

An accounts receivable results from the sale of:

One inventory cost flow assumption will result in different cost of goods sold from another inventory cost flow assumption only if:

Accountingpresent and Past

Financial Statements and Accounting Conceptsprinciples

Fundamental Interpretations Made From Financial Statement Data

The Bookkeeping Process and Transaction Analysis

Accounting for and Presentation of Property, Plant and Equipment,and Other Noncurrent Assets

Accounting for and Presentation of Liabilities

Accounting for and Presentation of Stockholders Equity

The Income Statement and the Statement of Cash Flows

Corporate Governance, Notes to the Financial Statements and Other Disclosures

Financial Statement Analysis

Managerial Accounting and Costvolumeprofit Analysis

Cost Accounting and Reporting

Cost Planning

Cost Control

Costs for Decision Making

Filters

Exam 5: Accounting for and Presentation of Current Assets

The current assets of most companies are usually made up of:

Regardless of the inventory cost flow assumption used, inventories on the balance sheet are stated at:

The accrual of interest on short-term marketable securities results in:

The balance sheet valuation of inventories is:

Accounts receivable are reported at:

The amount of cash related to a particular bank checking account that is shown on the balance sheet at December 31 is:

An accounts receivable results from the sale of:

One inventory cost flow assumption will result in different cost of goods sold from another inventory cost flow assumption only if:

Accountingpresent and Past

Financial Statements and Accounting Conceptsprinciples

Fundamental Interpretations Made From Financial Statement Data

The Bookkeeping Process and Transaction Analysis

Accounting for and Presentation of Property, Plant and Equipment,and Other Noncurrent Assets

Accounting for and Presentation of Liabilities

Accounting for and Presentation of Stockholders Equity

The Income Statement and the Statement of Cash Flows

Corporate Governance, Notes to the Financial Statements and Other Disclosures

Financial Statement Analysis

Managerial Accounting and Costvolumeprofit Analysis

Cost Accounting and Reporting

Cost Planning

Cost Control

Costs for Decision Making

Filters