Question 1

Which financial statement reports the sources and uses of an entity's cash resources?

Accepted Answer

A)  Income statement 
B)  Statement of retained earnings 
C)  Balance sheet 
D)  Statement of cash flows 
A)  Income statement 
B)  Statement of retained earnings 
C)  Balance sheet 
D)  Statement of cash flows

Question 2

In the stockholders' equity section of a classified balance sheet, a distinction is made between amounts invested by owners and amounts accumulated from business earnings.

Accepted Answer

A) True 
 B)False

Question 3

The quality of accounting information that makes it comprehensible to those willing to spend the necessary time is consistency.

Accepted Answer

A) True 
 B)False

Question 4

The amount of a transaction may be immaterial by company standards but still be considered significant by financial statement users.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is a noncurrent asset?

Accepted Answer

A)  Inventories 
B)  Office supplies 
C)  Land 
D)  Accounts receivable 
A)  Inventories 
B)  Office supplies 
C)  Land 
D)  Accounts receivable

Question 6

On the statement of cash flows, the section involves the acquisition and sale of long-term assets.

Accepted Answer

Investing

Question 7

A 12% change in sales will result in a 12% change in net income.

Accepted Answer

A) True 
 B)False

Question 8

For each item listed, select the section of the balance sheet in which the item would be reported.
-Computer available for resale

Accepted Answer

A) Current Assets 
B) Property. Plant, and Equipment 
C) Current Liabilities 
D) Long-term Liabilities 
E) Stockholders' Equity 
A) Current Assets 
B) Property. Plant, and Equipment 
C) Current Liabilities 
D) Long-term Liabilities 
E) Stockholders' Equity

Question 9

Identify whether the following investor questions are associated with a primary or b secondary financial reporting objectives.
-Based on the financial information, should I buy shares of Apple?

Accepted Answer

A) primary financial reporting objective 
B) secondary financial reporting objective 
A) primary financial reporting objective 
B) secondary financial reporting objective

Question 10

Hopper, Inc.
Use the information from Hopper Inc. to answer the following questions.
  
-Which one of the following equations represents retained earnings activity?

Accepted Answer

A)  Beginning balance + net income + dividends = profits for the year 
B)  Beginning balance + cash inflows - cash outflows = ending balance 
C)  Beginning balance + dividends - net income = ending balance 
D)  Beginning balance + net income - dividends = ending balance 
A)  Beginning balance + net income + dividends = profits for the year 
B)  Beginning balance + cash inflows - cash outflows = ending balance 
C)  Beginning balance + dividends - net income = ending balance 
D)  Beginning balance + net income - dividends = ending balance

Question 11

What is the correct method for calculating working capital?

Accepted Answer

A)  Total Assets minus Total Liabilities 
B)  Current Assets minus Total Liabilities 
C)  Current Assets minus Current Liabilities 
D)  Current Assets plus Current Liabilities 
A)  Total Assets minus Total Liabilities 
B)  Current Assets minus Total Liabilities 
C)  Current Assets minus Current Liabilities 
D)  Current Assets plus Current Liabilities

Question 12

Read the information about Fasoli, Inc.
Required:
Present the Current Assets section including the total of a classified balance sheet.

Accepted Answer

The answer of Read the information about Fasoli, Inc.
Required:
Present the...

Question 13

Investing activities are needed to provide the funds to start a business.

Accepted Answer

A) True 
 B)False

Question 14

For each item listed, select the section of the balance sheet in which the item would be reported.
-Bonds payable

Accepted Answer

A) Current Assets 
B) Property. Plant, and Equipment 
C) Current Liabilities 
D) Long-term Liabilities 
E) Stockholders' Equity 
A) Current Assets 
B) Property. Plant, and Equipment 
C) Current Liabilities 
D) Long-term Liabilities 
E) Stockholders' Equity

Question 15

Moss Company
Moss Company has provided the following information from its accounting records for the current year:
  
-Read the information for Moss Corporation. What are Moss' current assets?

Accepted Answer

A)  $100,000 
B)  $165,000 
C)  $210,000 
D)  $240,000 
A)  $100,000 
B)  $165,000 
C)  $210,000 
D)  $240,000

Question 16

To determine the source of a company's assets, on which financial statement will you look?

Accepted Answer

A)  Balance sheet only 
B)  Income statement only 
C)  Both the balance sheet and the income statement 
D)  Both the income statement and the statement of retained earnings 
A)  Balance sheet only 
B)  Income statement only 
C)  Both the balance sheet and the income statement 
D)  Both the income statement and the statement of retained earnings

Question 17

If a firm has a current ratio of 2, the subsequent receipt of a 60-day note receivable to settle an open account will cause the ratio to decrease.

Accepted Answer

A) True 
 B)False

Question 18

From the following choices, select the answer that describes the effect on working capital as a result of the transaction.
-Paid cash for supplies

Accepted Answer

A) Working capital will increase 
B) Working capital will decrease 
C) Working capital will not change 
A) Working capital will increase 
B) Working capital will decrease 
C) Working capital will not change

Question 19

Match the selected items from a classified balance sheet and multiple-step income statement to the section in which they would appear on the classified balance sheet or the income statement.
-Wages payable

Accepted Answer

A) Current Assets balance sheet 
B) Property, Plant, & Equipment balance sheet 
C) Current Liabilities balance sheet 
D) Long-term Liabilities balance sheet 
E) Stockholders' Equity balance sheet
F)Operating Revenue income statement
G)Operating Expenses income statement
H)Other Revenue & Expenses income statement
I)Income Taxes income statement 
A) Current Assets balance sheet 
B) Property, Plant, & Equipment balance sheet 
C) Current Liabilities balance sheet 
D) Long-term Liabilities balance sheet 
E) Stockholders' Equity balance sheet
F)Operating Revenue income statement
G)Operating Expenses income statement
H)Other Revenue & Expenses income statement
I)Income Taxes income statement

Which financial statement reports the sources and uses of an entity's cash resources?

In the stockholders' equity section of a classified balance sheet, a distinction is made between amounts invested by owners and amounts accumulated from business earnings.

The quality of accounting information that makes it comprehensible to those willing to spend the necessary time is consistency.

The amount of a transaction may be immaterial by company standards but still be considered significant by financial statement users.

Which of the following is a noncurrent asset?

On the statement of cash flows, the section involves the acquisition and sale of long-term assets.

A 12% change in sales will result in a 12% change in net income.

For each item listed, select the section of the balance sheet in which the item would be reported. -Computer available for resale

Identify whether the following investor questions are associated with a primary or b secondary financial reporting objectives. -Based on the financial information, should I buy shares of Apple?

Hopper, Inc. Use the information from Hopper Inc. to answer the following questions. -Which one of the following equations represents retained earnings activity?

What is the correct method for calculating working capital?

Read the information about Fasoli, Inc. Required: Present the Current Assets section including the total of a classified balance sheet.

Investing activities are needed to provide the funds to start a business.

For each item listed, select the section of the balance sheet in which the item would be reported. -Bonds payable

Moss Company Moss Company has provided the following information from its accounting records for the current year: -Read the information for Moss Corporation. What are Moss' current assets?

To determine the source of a company's assets, on which financial statement will you look?

If a firm has a current ratio of 2, the subsequent receipt of a 60-day note receivable to settle an open account will cause the ratio to decrease.

From the following choices, select the answer that describes the effect on working capital as a result of the transaction. -Paid cash for supplies

Match the selected items from a classified balance sheet and multiple-step income statement to the section in which they would appear on the classified balance sheet or the income statement. -Wages payable

Accounting As a Form of Communication

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, Plant, and Equipment, and Intangibles

Current Liabilities, Contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International-Financial-Reporting-Standards

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Exam 2: Financial Statements and the Annual Report

Which financial statement reports the sources and uses of an entity's cash resources?

In the stockholders' equity section of a classified balance sheet, a distinction is made between amounts invested by owners and amounts accumulated from business earnings.

The quality of accounting information that makes it comprehensible to those willing to spend the necessary time is consistency.

The amount of a transaction may be immaterial by company standards but still be considered significant by financial statement users.

Which of the following is a noncurrent asset?

On the statement of cash flows, the section involves the acquisition and sale of long-term assets.

A 12% change in sales will result in a 12% change in net income.

For each item listed, select the section of the balance sheet in which the item would be reported. -Computer available for resale

Identify whether the following investor questions are associated with a primary or b secondary financial reporting objectives. -Based on the financial information, should I buy shares of Apple?

Hopper, Inc. Use the information from Hopper Inc. to answer the following questions. -Which one of the following equations represents retained earnings activity?

What is the correct method for calculating working capital?

Read the information about Fasoli, Inc. Required: Present the Current Assets section including the total of a classified balance sheet.

Investing activities are needed to provide the funds to start a business.

For each item listed, select the section of the balance sheet in which the item would be reported. -Bonds payable

Moss Company Moss Company has provided the following information from its accounting records for the current year: -Read the information for Moss Corporation. What are Moss' current assets?

To determine the source of a company's assets, on which financial statement will you look?

If a firm has a current ratio of 2, the subsequent receipt of a 60-day note receivable to settle an open account will cause the ratio to decrease.

From the following choices, select the answer that describes the effect on working capital as a result of the transaction. -Paid cash for supplies

Match the selected items from a classified balance sheet and multiple-step income statement to the section in which they would appear on the classified balance sheet or the income statement. -Wages payable

Accounting As a Form of Communication

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, Plant, and Equipment, and Intangibles

Current Liabilities, Contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International-Financial-Reporting-Standards

Filters