Question 1

In practice,some of the required information in the 10-K is incorporated by reference.

Accepted Answer

A) True 
 B)False

Question 2

Listed below is information related to the accounts of Jasper Company. $\begin{array}{c}
\begin{array}{lll}
\
 \text {Total assets, end of period }\
 \text {Total liabilities, end of period}\  \text {Common stock, end of period }\
 \text {Retained earnings, begining of period}\
 \text { Net income for the period}\ 
 \text {Dividends for the period}
\end{array}
\begin{array}{rrr}
\underline{\text { Case 1 }}  & \underline{\text { Case 2 }}&\underline{\text { Case 3 }} \
\$60,000&\$\underline{\quad\quad}&\$90,000\
\underline{\quad\quad}&20,000& 30,000 \
20,000 & 25,000 & 25,000 \
25,000 & 20,000 & 30,000 \
10,000 & 5,000 & \underline{\quad\quad}\
3,000 & 5,000 & 4,000 
\end{array}
\end{array}$
 
Required:
Fill in the blank with the appropriate dollar amount.

Accepted Answer

The answer of Listed below is information related to the...

Question 3

For consolidating,the FASB recognizes risks,rewards,decision-making ability and the primary beneficiary.

Accepted Answer

A) True 
 B)False

Question 4

For consolidated statements,all transactions between entities being consolidated (i.e. ,intercompany transactions)must be eliminated.

Accepted Answer

A) True 
 B)False

Question 5

Most companies consolidate the parent's and subsidiary's accounts summed.

Accepted Answer

A) True 
 B)False

Question 6

The audit opinion of a public company is similar to an opinion for a private company except for the public company comments will be added as to the effectiveness of internal control over financial reporting.

Accepted Answer

A) True 
 B)False

Question 7

Match the financial statement that goes with each term.
-Shows the financial condition of an accounting entity as of a particular date.

Accepted Answer

A) income statements 
B) notes 
C) balance sheet 
D) statement of cash flows 
E) statement of retained earnings (reconciliation of retained earnings) 
A) income statements 
B) notes 
C) balance sheet 
D) statement of cash flows 
E) statement of retained earnings (reconciliation of retained earnings)

Question 8

The XBRL approach is not unique with the SEC as it is used for many products and many countries.

Accepted Answer

A) True 
 B)False

Question 9

When a subsidiary is not consolidated,it is accounted for as an investment on the parent's balance sheet.

Accepted Answer

A) True 
 B)False

Question 10

In terms of debits and credits,which of the following accounts have the same normal balances?

Accepted Answer

A) Accounts payable,accounts receivable,notes payable 
B) Dividends,accounts receivable,notes payable 
C) Advertising expense,selling expense,accounts receivable 
D) Land,building,accounts payable 
E) Common stock,notes payable,land 
A) Accounts payable,accounts receivable,notes payable 
B) Dividends,accounts receivable,notes payable 
C) Advertising expense,selling expense,accounts receivable 
D) Land,building,accounts payable 
E) Common stock,notes payable,land

Question 11

Transactions must be external to the company.

Accepted Answer

A) True 
 B)False

Question 12

An adverse opinion states that,except for the effects of the matter(s)to which the qualification relates,the financial statements present fairly,in all material respects,the financial position,results of operations,and cash flows of the entity in conformity with generally accepted accounting principles.

Accepted Answer

A) True 
 B)False

Question 13

Financial statements of legally separate entities may be issued to show financial position,income,and cash flow as they would appear if the companies were a single entity.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not a type of audit opinion?

Accepted Answer

A) Unqualified opinion 
B) Qualified opinion 
C) Adverse opinion 
D) Clean opinion 
E) Disclaimer of opinion 
A) Unqualified opinion 
B) Qualified opinion 
C) Adverse opinion 
D) Clean opinion 
E) Disclaimer of opinion

Question 15

The accrual basis needs numerous adjustments at the end of the accounting period.

Accepted Answer

A) True 
 B)False

Question 16

A review has substantially less scope than an examination in accordance with generally accepted auditing standards.

Accepted Answer

A) True 
 B)False

Question 17

The following are selected accounts and account balances of Gorr Company on December 31:
 $\begin{array}{lccc}
&  \text {  Permanent ( $ P $ )} &  \text { Normal Balance }  \
& \underline{\text { or Temporary(T) }} &\underline{ \text { Dr. (Cr.) } }\ 
 \text { Inventory } &\underline{\quad\quad\quad\quad}&\underline{\quad\quad\quad\quad}\
 \text { Land } &\underline{\quad\quad\quad\quad}&\underline{\quad\quad\quad\quad}\
 \text { Wages Payable } &\underline{\quad\quad\quad\quad}&\underline{\quad\quad\quad\quad}\
 \text { Capital Stock } &\underline{\quad\quad\quad\quad}&\underline{\quad\quad\quad\quad}\
 \text { Retained Earnings } &\underline{\quad\quad\quad\quad}&\underline{\quad\quad\quad\quad}\
 \text {  Revenues} &\underline{\quad\quad\quad\quad}&\underline{\quad\quad\quad\quad}\
 \text { Dividends } &\underline{\quad\quad\quad\quad}&\underline{\quad\quad\quad\quad}\
 \text { Advertising Expense } &\underline{\quad\quad\quad\quad}&\underline{\quad\quad\quad\quad}
\end{array}$
 
Required: 
a.Indicate whether the account is a permanent (P)or temporary (T)account.
b.Indicate the normal balance in terms of debit (Dr. )or credit (Cr. ).

Accepted Answer

The answer of The following are selected accounts and account...

Question 18

It is generally recognized that the market is more efficient when dealing with small firms that are not trading on large organized stock markets.

Accepted Answer

A) True 
 B)False

Question 19

Listed below are several accounts or statement categories. \(\begin{array}{c}
\begin{array}{lll}
\
\
\underline{\text {Account or Statement Category}}\
  \text { Accounts Receivable}\
  \text { Inventory}\
  \text { Prepaid Insurance}\
  \text { Sales}\
  \text { Cost of Goods Sold}\
  \text { Cash Flow from Investing Activities}\
  \text { Notes Payable}\
  \text { Interest Expense}\
  \text { Tax Expense}\
  \text { Taxes Payable}\
  \text { Administrative Expense}\
  \text { Current Assets}\
  \text { Advertising Expense}\
  \text { Cash Flow from Financing Activities}
\end{array}
\begin{array}{c}
 \text {Balance Sheet (BS)}\
 \text {Income Statement (IS)}\
\underline{\text {Statement of Cash Flows (SCF)}}\
\underline{\quad\quad\quad\quad}\
\underline{\quad\quad\quad\quad}\
\underline{\quad\quad\quad\quad}\
\underline{\quad\quad\quad\quad}\
\underline{\quad\quad\quad\quad}\
\underline{\quad\quad\quad\quad}\
\underline{\quad\quad\quad\quad}\
\underline{\quad\quad\quad\quad}\
\underline{\quad\quad\quad\quad}\
\underline{\quad\quad\quad\quad}\
\underline{\quad\quad\quad\quad}\
\underline{\quad\quad\quad\quad}\
\underline{\quad\quad\quad\quad}\
\underline{\quad\quad\quad\quad}\
\end{array}
\end{array}\)
 
Required:
In the space provided,indicate the financial statement as balance sheet (BS),income statement (IS),or statement of cash flows (SCF).

Accepted Answer

The answer of Listed below are several accounts or statement...

Question 20

Monroe Company recorded these transactions during the year.Monroe Company has an accounting year-end of December 31. 1. An insurance policy was recorded on Juy l in the amount of $5,000, recorded as prepaid insurance. The policy provides liability protection for a one-year period.
2. Monroe Company rents property for $\$ 1,000$ per month. Rent revenue has not been received for Decermber.
3. Income taxes of $8,000 need to be recorded for December.
4. A pramis5ary nate payable of $\$ 10,000$ was recorded on October 1. At December 31, interest payable of $200 was owed.
5. At December 31, salary expense of $800 was payable. 
Required:
Record the adjusting entries at December 31 using T accounts.Use the number of the transaction in lieu of a date for identification purposes.

Accepted Answer

@#IMG-DLM&_TB2094_00 
 @#IMG-DLM&_TB2094

In practice,some of the required information in the 10-K is incorporated by reference.

For consolidating,the FASB recognizes risks,rewards,decision-making ability and the primary beneficiary.

For consolidated statements,all transactions between entities being consolidated (i.e. ,intercompany transactions)must be eliminated.

Most companies consolidate the parent's and subsidiary's accounts summed.

The audit opinion of a public company is similar to an opinion for a private company except for the public company comments will be added as to the effectiveness of internal control over financial reporting.

Match the financial statement that goes with each term. -Shows the financial condition of an accounting entity as of a particular date.

The XBRL approach is not unique with the SEC as it is used for many products and many countries.

When a subsidiary is not consolidated,it is accounted for as an investment on the parent's balance sheet.

In terms of debits and credits,which of the following accounts have the same normal balances?

Transactions must be external to the company.

Financial statements of legally separate entities may be issued to show financial position,income,and cash flow as they would appear if the companies were a single entity.

Which of the following is not a type of audit opinion?

The accrual basis needs numerous adjustments at the end of the accounting period.

A review has substantially less scope than an examination in accordance with generally accepted auditing standards.

It is generally recognized that the market is more efficient when dealing with small firms that are not trading on large organized stock markets.

Introduction to Financial Reporting

Balance Sheet

Income Statement

Basics of Analysis

Liquidity of Short-Term Assets;related Debt-Paying Ability

Long-Term Debt-Paying Ability

Profitability

For the Investor

Statement of Cash Flows

Expanded Analysis

Special Industries: Banks, utilities, oil and Gas, transportation, insurance, real Estate Companies

Personal Financial Statements and Accounting for Governments and Not-For-Profit Organizations

Filters

Exam 2: Introduction to Financial Statements and Other Financial Reporting Topics

In practice,some of the required information in the 10-K is incorporated by reference.

For consolidating,the FASB recognizes risks,rewards,decision-making ability and the primary beneficiary.

For consolidated statements,all transactions between entities being consolidated (i.e. ,intercompany transactions)must be eliminated.

Most companies consolidate the parent's and subsidiary's accounts summed.

The audit opinion of a public company is similar to an opinion for a private company except for the public company comments will be added as to the effectiveness of internal control over financial reporting.

Match the financial statement that goes with each term. -Shows the financial condition of an accounting entity as of a particular date.

The XBRL approach is not unique with the SEC as it is used for many products and many countries.

When a subsidiary is not consolidated,it is accounted for as an investment on the parent's balance sheet.

In terms of debits and credits,which of the following accounts have the same normal balances?

Transactions must be external to the company.

Financial statements of legally separate entities may be issued to show financial position,income,and cash flow as they would appear if the companies were a single entity.

Which of the following is not a type of audit opinion?

The accrual basis needs numerous adjustments at the end of the accounting period.

A review has substantially less scope than an examination in accordance with generally accepted auditing standards.

It is generally recognized that the market is more efficient when dealing with small firms that are not trading on large organized stock markets.

Introduction to Financial Reporting

Balance Sheet

Income Statement

Basics of Analysis

Liquidity of Short-Term Assets;related Debt-Paying Ability

Long-Term Debt-Paying Ability

Profitability

For the Investor

Statement of Cash Flows

Expanded Analysis

Special Industries: Banks, utilities, oil and Gas, transportation, insurance, real Estate Companies

Personal Financial Statements and Accounting for Governments and Not-For-Profit Organizations

Filters