Question 1

Read the information about Fasoli, Inc.
Required:
Prepare the Assets section of the classified balance sheet.

Accepted Answer

Assets
Cur

Question 2

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

Accepted Answer

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

Question 3

For which of the following is the current ratio most useful?

Accepted Answer

A)  In evaluating a company's liquidity. 
B)  In evaluating a company's solvency. 
C)  In evaluating a company's profitability. 
D)  In evaluating a company's leverage. 
A)  In evaluating a company's liquidity. 
B)  In evaluating a company's solvency. 
C)  In evaluating a company's profitability. 
D)  In evaluating a company's leverage.

Question 4

Guinther & Sons, Inc.
Guinther & Sons, Inc. a retailer of men's clothing earned a net profit of $77,000 for 2014. The balance sheet for
Guinther & Sons includes the following items:
  
-Read the information for Guinther & Sons, Inc. Calculate the current ratio for Guinther & Sons.

Accepted Answer

A)  2.58 to 1 
B)  2.75 to 1 
C)  3.00 to 1 
D)  2.00 to 1 
A)  2.58 to 1 
B)  2.75 to 1 
C)  3.00 to 1 
D)  2.00 to 1

Question 5

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

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 6

Which one of the following is considered a financing activity?

Accepted Answer

A)  The payment of interest on a note payable to the bank. 
B)  Selling products to customers 
C)  Paying wages to employees 
D)  The payment of a cash dividend. 
A)  The payment of interest on a note payable to the bank. 
B)  Selling products to customers 
C)  Paying wages to employees 
D)  The payment of a cash dividend.

Question 7

Which of the following would not appear on an income statement?

Accepted Answer

A)  Sales revenue 
B)  Cost of goods sold 
C)  Accounts receivable 
D)  Insurance expense 
A)  Sales revenue 
B)  Cost of goods sold 
C)  Accounts receivable 
D)  Insurance expense

Question 8

Which of the following would appear on a multiple-step income statement but not on a single-step income statement?

Accepted Answer

A)  Net income 
B)  Total expenses 
C)  Total revenues 
D)  Income before income taxes 
A)  Net income 
B)  Total expenses 
C)  Total revenues 
D)  Income before income taxes

Question 9

Which set of items below are current assets?

Accepted Answer

A)  Accounts receivable, net income, inventory, and dividends 
B)  Cash, accounts receivable, capital stock, and sales 
C)  Net income, cash, office supplies, and inventory 
D)  Cash, accounts receivable, inventory, and office supplies 
A)  Accounts receivable, net income, inventory, and dividends 
B)  Cash, accounts receivable, capital stock, and sales 
C)  Net income, cash, office supplies, and inventory 
D)  Cash, accounts receivable, inventory, and office supplies

Question 10

Identify whether the following investor questions are associated with a primary or b secondary financial reporting objectives.
-How much has Apple invested in research and development projects?

Accepted Answer

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

Question 11

The current ratio is irrelevant in liquidity analysis for service companies because they do not have inventories among their current assets.

Accepted Answer

A) True 
 B)False

Question 12

Read the information about Crystal, Inc. Has Crystal been profitable since it began operations? How do you know?

Accepted Answer

Retained earnings represents the company

Question 13

Supplementary disclosures required by GAAP that help explain detail behind the accounting treatment of certain items in the financial statements is most likely found in which of the following sections of a corporate annual report?

Accepted Answer

A)  Report of the Independent Accountants 
B)  Notes to the Financial Statements 
C)  Management's Discussion and Analysis 
D)  Balance Sheet 
A)  Report of the Independent Accountants 
B)  Notes to the Financial Statements 
C)  Management's Discussion and Analysis 
D)  Balance Sheet

Question 14

"Claims to economic resources" are known as:

Accepted Answer

A)  assets and liabilities. 
B)  liabilities and stockholders' equity. 
C)  owners' equity and stockholders' equity. 
D)  retained earnings and revenues. 
A)  assets and liabilities. 
B)  liabilities and stockholders' equity. 
C)  owners' equity and stockholders' equity. 
D)  retained earnings and revenues.

Question 15

Obligations related to operating activities that will be paid within the company's operating cycle must be reported as current liabilities on a classified balance sheet.

Accepted Answer

A) True 
 B)False

Question 16

From the following list, select the proper section from the statement of cash flows in which it would be classified.
-Paid suppliers cash for inventory purchased

Accepted Answer

A) Operating Activities 
B) Investing Activities 
C) Financing Activities 
A) Operating Activities 
B) Investing Activities 
C) Financing Activities

Question 17

Skyline, Inc.
The balance sheet of Skyline Inc. includes the following items:  
-Read the information about Skyline, Inc. What is Skyline's current ratio?

Accepted Answer

A)  0.8 to 1 
B)  1.6 to 1 
C)  1.2 to 1 
D)  2.5 to 1 
A)  0.8 to 1 
B)  1.6 to 1 
C)  1.2 to 1 
D)  2.5 to 1

Question 18

Which one of the following is a financing activity of a business?

Accepted Answer

A)  Paying for purchases of inventory 
B)  Issuing stock for cash 
C)  Paying salaries 
D)  Purchasing a manufacturing plant 
A)  Paying for purchases of inventory 
B)  Issuing stock for cash 
C)  Paying salaries 
D)  Purchasing a manufacturing plant

Question 19

Which of the following represents one of the purposes of the notes to financial statements?

Accepted Answer

A)  To provide a place for management to justify questionable items in the statements. 
B)  To provide comparative ratios for the company's financial data. 
C)  To provide the CPA's opinion of the fairness of the financial statements. 
D)  To satisfy the need for full disclosure of all the facts relevant to a company's results and financial position. 
A)  To provide a place for management to justify questionable items in the statements. 
B)  To provide comparative ratios for the company's financial data. 
C)  To provide the CPA's opinion of the fairness of the financial statements. 
D)  To satisfy the need for full disclosure of all the facts relevant to a company's results and financial position.

Question 20

Dividends paid appears on both the income statement and the statement of retained earnings.

Accepted Answer

A) True 
 B)False

Read the information about Fasoli, Inc. Required: Prepare the Assets section of the classified balance sheet.

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

For which of the following is the current ratio most useful?

Guinther & Sons, Inc. Guinther & Sons, Inc. a retailer of men's clothing earned a net profit of $77,000 for 2014. The balance sheet for Guinther & Sons includes the following items: -Read the information for Guinther & Sons, Inc. Calculate the current ratio for Guinther & Sons.

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

Which one of the following is considered a financing activity?

Which of the following would not appear on an income statement?

Which of the following would appear on a multiple-step income statement but not on a single-step income statement?

Which set of items below are current assets?

Identify whether the following investor questions are associated with a primary or b secondary financial reporting objectives. -How much has Apple invested in research and development projects?

The current ratio is irrelevant in liquidity analysis for service companies because they do not have inventories among their current assets.

Read the information about Crystal, Inc. Has Crystal been profitable since it began operations? How do you know?

Supplementary disclosures required by GAAP that help explain detail behind the accounting treatment of certain items in the financial statements is most likely found in which of the following sections of a corporate annual report?

"Claims to economic resources" are known as:

Obligations related to operating activities that will be paid within the company's operating cycle must be reported as current liabilities on a classified balance sheet.

From the following list, select the proper section from the statement of cash flows in which it would be classified. -Paid suppliers cash for inventory purchased

Skyline, Inc. The balance sheet of Skyline Inc. includes the following items: -Read the information about Skyline, Inc. What is Skyline's current ratio?

Which one of the following is a financing activity of a business?

Which of the following represents one of the purposes of the notes to financial statements?

Dividends paid appears on both the income statement and the statement of retained earnings.

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

Exam 2: Financial Statements and the Annual Report

Read the information about Fasoli, Inc. Required: Prepare the Assets section of the classified balance sheet.

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

For which of the following is the current ratio most useful?

Guinther & Sons, Inc. Guinther & Sons, Inc. a retailer of men's clothing earned a net profit of $77,000 for 2014. The balance sheet for Guinther & Sons includes the following items: -Read the information for Guinther & Sons, Inc. Calculate the current ratio for Guinther & Sons.

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

Which one of the following is considered a financing activity?

Which of the following would not appear on an income statement?

Which of the following would appear on a multiple-step income statement but not on a single-step income statement?

Which set of items below are current assets?

Identify whether the following investor questions are associated with a primary or b secondary financial reporting objectives. -How much has Apple invested in research and development projects?

The current ratio is irrelevant in liquidity analysis for service companies because they do not have inventories among their current assets.

Read the information about Crystal, Inc. Has Crystal been profitable since it began operations? How do you know?

Supplementary disclosures required by GAAP that help explain detail behind the accounting treatment of certain items in the financial statements is most likely found in which of the following sections of a corporate annual report?

"Claims to economic resources" are known as:

Obligations related to operating activities that will be paid within the company's operating cycle must be reported as current liabilities on a classified balance sheet.

From the following list, select the proper section from the statement of cash flows in which it would be classified. -Paid suppliers cash for inventory purchased

Skyline, Inc. The balance sheet of Skyline Inc. includes the following items: -Read the information about Skyline, Inc. What is Skyline's current ratio?

Which one of the following is a financing activity of a business?

Which of the following represents one of the purposes of the notes to financial statements?

Dividends paid appears on both the income statement and the statement of retained earnings.

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