Question 1

In order for information to be relevant, it must be reported on a monthly basis.

Accepted Answer

A) True 
 B)False

Question 2

Use the following data to determine the total dollar amount of assets to be classified as current assets.

Accepted Answer

A)  $534,000 
B)  $224,000 
C)  $364,000 
D)  $304,000 
A)  $534,000 
B)  $224,000 
C)  $364,000 
D)  $304,000

Question 3

Information is _________ if independent measures, using the same methods, obtain similar results.

Accepted Answer

A)  Verifiable 
B)  Consistent 
C)  Understandable 
D)  Relevant 
A)  Verifiable 
B)  Consistent 
C)  Understandable 
D)  Relevant

Question 4

IFRS

Accepted Answer

A)  requires a specific format for the balance sheet (statement of financial position) that is identical to U.S. GAAP. 
B)  requires a specific format for the balance sheet (statement of financial position) that is different from U.S. GAAP. 
C)  requires no specific format for the balance sheet (statement of financial position) but most companies that follow IFRS prepare the statement identical to U.S. GAAP . 
D)  requires no specific format for the balance sheet (statement of financial position) but most companies that follow IFRS prepare the statement in a different format from U.S. GAAP. 
A)  requires a specific format for the balance sheet (statement of financial position) that is identical to U.S. GAAP. 
B)  requires a specific format for the balance sheet (statement of financial position) that is different from U.S. GAAP. 
C)  requires no specific format for the balance sheet (statement of financial position) but most companies that follow IFRS prepare the statement identical to U.S. GAAP . 
D)  requires no specific format for the balance sheet (statement of financial position) but most companies that follow IFRS prepare the statement in a different format from U.S. GAAP.

Question 5

The following items are taken from the financial statements of Grove Company for 2014:   Instructions
(a) Prepare an income statement and a classified balance sheet for Grove Company.
(b) Compute the following ratios and values:
1. Current ratio
2. Debt to assets ratio
3. Working capital
4. Earnings per share (Grove's average number of shares outstanding during the year was 5,000.)

Accepted Answer

The answer of The following items are taken from the...

Question 6

Characteristics associated with relevant accounting information are

Accepted Answer

A)  comparability and timeliness. 
B)  predictive value and confirmatory value. 
C)  neutral and verifiable. 
D)  consistency and understandability. 
A)  comparability and timeliness. 
B)  predictive value and confirmatory value. 
C)  neutral and verifiable. 
D)  consistency and understandability.

Question 7

Earnings per share are calculated by dividing

Accepted Answer

A)  gross profit by average common shares outstanding. 
B)  (net income less preferred dividends) by average common shares outstanding. 
C)  net income by average common shares outstanding. 
D)  net sales by average common shares outstanding. 
A)  gross profit by average common shares outstanding. 
B)  (net income less preferred dividends) by average common shares outstanding. 
C)  net income by average common shares outstanding. 
D)  net sales by average common shares outstanding.

Question 8

The TNT Company has five plants nationwide that cost $300 million. The current fair value of the plants is $500 million. The plants will be reported as assets at

Accepted Answer

A)  $200 million. 
B)  $800 million. 
C)  $300 million. 
D)  $500 million. 
A)  $200 million. 
B)  $800 million. 
C)  $300 million. 
D)  $500 million.

Question 9

GAAP stands for generally accepted accounting procedures.

Accepted Answer

A) True 
 B)False

Question 10

Wilton Corporation had beginning retained earnings of $724,000 and ending retained earnings of $833,000. During the year they issued common stock totaling $47,000. No dividends were paid. What was Wilton's net income for the year?

Accepted Answer

A)  $109,000 
B)  $62,000 
C)  $156,000 
D)  $131,000 
A)  $109,000 
B)  $62,000 
C)  $156,000 
D)  $131,000

Question 11

IFRS requires the use of

Accepted Answer

A)  the term balance sheet. 
B)  the term statement of financial position. 
C)  neither balance sheet nor statement of financial position, but recommends use of the term balance sheet. 
D)  neither balance sheet nor statement of financial position, but recommends use of the term statement of financial position. 
A)  the term balance sheet. 
B)  the term statement of financial position. 
C)  neither balance sheet nor statement of financial position, but recommends use of the term balance sheet. 
D)  neither balance sheet nor statement of financial position, but recommends use of the term statement of financial position.

Question 12

Which of the following is a constraint in accounting?

Accepted Answer

A)  Comparability 
B)  Cost 
C)  Consistency 
D)  Relevance 
A)  Comparability 
B)  Cost 
C)  Consistency 
D)  Relevance

Question 13

Use the following data to determine the total amount of working capital.

Accepted Answer

A)  $130,000 
B)  $120,000 
C)  $80,000 
D)  $210,000 
A)  $130,000 
B)  $120,000 
C)  $80,000 
D)  $210,000

Question 14

Which of the following is a measure of liquidity?

Accepted Answer

A)  Working capital 
B)  Profit margin 
C)  Earnings per share 
D)  Debt to assets ratio 
A)  Working capital 
B)  Profit margin 
C)  Earnings per share 
D)  Debt to assets ratio

Question 15

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.

Question 16

Free cash flow is Net cash provided by operating activities less dividends.

Accepted Answer

A) True 
 B)False

Question 17

The following lettered items represent a classification scheme for a balance sheet, and the numbered items represent data found on balance sheets. In the blank next to each account, write the letter indicating to which category it belongs.
A. Current assets
B. Investments
C. Property, plant, and equipment
D. Intangible assets
E. Current liabilities
F. Long-term liabilities
G. Stockholders' equity
H. Not on the balance sheet

Accepted Answer

The answer of The following lettered items represent a classification...

Question 18

Use the following data to determine the total amount of working capital.

Accepted Answer

A)  $404,000 
B)  $234,000 
C)  $254,000 
D)  $174,000 
A)  $404,000 
B)  $234,000 
C)  $254,000 
D)  $174,000

Question 19

Which of the following statements is true?

Accepted Answer

A)  Earnings per share is an internal measure and is not used by stockholders. 
B)  The denominator used in computing earnings per share represents the shares of common stock outstanding on the last day of the accounting period. 
C)  Net income is not adjusted when computing earnings per share. 
D)  By comparing earnings per share of a single corporation over time, a stockholder can evaluate the corporation's relative earnings performance. 
A)  Earnings per share is an internal measure and is not used by stockholders. 
B)  The denominator used in computing earnings per share represents the shares of common stock outstanding on the last day of the accounting period. 
C)  Net income is not adjusted when computing earnings per share. 
D)  By comparing earnings per share of a single corporation over time, a stockholder can evaluate the corporation's relative earnings performance.

Question 20

For each of the ratios listed below, indicate by the appropriate code letter, whether it is a liquidity ratio, a profitability ratio, or a solvency ratio.

Accepted Answer

The answer of For each of the ratios listed below,...

In order for information to be relevant, it must be reported on a monthly basis.

Use the following data to determine the total dollar amount of assets to be classified as current assets.

Information is _________ if independent measures, using the same methods, obtain similar results.

IFRS

Characteristics associated with relevant accounting information are

Earnings per share are calculated by dividing

The TNT Company has five plants nationwide that cost $300 million. The current fair value of the plants is $500 million. The plants will be reported as assets at

GAAP stands for generally accepted accounting procedures.

Wilton Corporation had beginning retained earnings of $724,000 and ending retained earnings of $833,000. During the year they issued common stock totaling $47,000. No dividends were paid. What was Wilton's net income for the year?

IFRS requires the use of

Which of the following is a constraint in accounting?

Use the following data to determine the total amount of working capital.

Which of the following is a measure of liquidity?

Accounting information should be neutral in order to enhance

Free cash flow is Net cash provided by operating activities less dividends.

Use the following data to determine the total amount of working capital.

Which of the following statements is true?

For each of the ratios listed below, indicate by the appropriate code letter, whether it is a liquidity ratio, a profitability ratio, or a solvency ratio.

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

Time Value of Money

Filters

Exam 2: A Further Look at Financial Statements

In order for information to be relevant, it must be reported on a monthly basis.

Use the following data to determine the total dollar amount of assets to be classified as current assets.

Information is _________ if independent measures, using the same methods, obtain similar results.

IFRS

Characteristics associated with relevant accounting information are

Earnings per share are calculated by dividing

The TNT Company has five plants nationwide that cost $300 million. The current fair value of the plants is $500 million. The plants will be reported as assets at

GAAP stands for generally accepted accounting procedures.

Wilton Corporation had beginning retained earnings of $724,000 and ending retained earnings of $833,000. During the year they issued common stock totaling $47,000. No dividends were paid. What was Wilton's net income for the year?

IFRS requires the use of

Which of the following is a constraint in accounting?

Use the following data to determine the total amount of working capital.

Which of the following is a measure of liquidity?

Accounting information should be neutral in order to enhance

Free cash flow is Net cash provided by operating activities less dividends.

Use the following data to determine the total amount of working capital.

Which of the following statements is true?

For each of the ratios listed below, indicate by the appropriate code letter, whether it is a liquidity ratio, a profitability ratio, or a solvency ratio.

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

Time Value of Money

Filters