Question 1

Most annual reports begin with the letter to the shareholders.

Accepted Answer

A) True 
 B)False  True

Question 2

Accumulated other comprehensive income appears on an entity's income statement.

Accepted Answer

A) True 
 B)False  False

Question 3

Which of the following information is found in the Summary of Significant Accounting Policies?

Accepted Answer

A) methods of revenue recognition 
B) composition of Cash and Cash Equivalents 
C) composition of Inventory 
D) maturity dates of long-term debt 
A) methods of revenue recognition 
B) composition of Cash and Cash Equivalents 
C) composition of Inventory 
D) maturity dates of long-term debt A

Question 4

IFRS specifies that biological assets be reported on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 5

What is ending retained earnings for San Marcos Corporation?

Accepted Answer

A) $108 
B) $173 
C) $353 
D) $413 
A) $108 
B) $173 
C) $353 
D) $413

Question 6

The statement of cash flows summarizes a firm's cash flows and outflows over a period of time.

Accepted Answer

A) True 
 B)False

Question 7

The statement of income is the first financial statement prepared.

Accepted Answer

A) True 
 B)False

Question 8

When preparing the operating section of the statement of cash flows using the direct method,which of the following statements is true?

Accepted Answer

A) An increase in accounts payable is added to expenses. 
B) An increase in accounts receivable is added to sales. 
C) Depreciation expense is added to cash flows. 
D) Gains on sales of long term assets are subtracted from cash flows. 
A) An increase in accounts payable is added to expenses. 
B) An increase in accounts receivable is added to sales. 
C) Depreciation expense is added to cash flows. 
D) Gains on sales of long term assets are subtracted from cash flows.

Question 9

Prepare a classified balance sheet using the report format for San Pedro Industries.

Accepted Answer

The answer of Prepare a classified balance sheet using the...

Question 10

Which of the following is not a current liability?

Accepted Answer

A) income tax payable 
B) accounts payable 
C) subscriptions collected one year in advance 
D) bond sinking fund 
A) income tax payable 
B) accounts payable 
C) subscriptions collected one year in advance 
D) bond sinking fund

Question 11

Working capital for Matthews Corporation is ________.

Accepted Answer

A) $1,473 
B) $5,000 
C) $3,952 
D) $7,479 
A) $1,473 
B) $5,000 
C) $3,952 
D) $7,479

Question 12

Which of the following is a not a component of shareholders' equity?

Accepted Answer

A) Common Stock 
B) Other Comprehensive Income 
C) Additional Paid in Capital 
D) Treasury Stock 
A) Common Stock 
B) Other Comprehensive Income 
C) Additional Paid in Capital 
D) Treasury Stock

Question 13

Anderson Corporation's trial balance for December 31,the end of its fiscal year,included the following accounts:   The bond payable is a serial bond with equal amounts of principal maturing each year.The note payable due in 5 years has equal principal payments due each year.
The amount that should be classified as current liabilities on Anderson's December 31 balance sheet is ________.

Accepted Answer

A) $92,000 
B) $111,000 
C) $117,000 
D) $162,000 
A) $92,000 
B) $111,000 
C) $117,000 
D) $162,000

Question 14

The only difference between the statement of cash flows under the indirect method and the direct method is in the reporting of cash flows from operating activities.

Accepted Answer

A) True 
 B)False

Question 15

Which financial is the first to be prepared?

Accepted Answer

A) balance sheet 
B) statement of income 
C) statement of shareholders' equity 
D) statement of comprehensive income 
A) balance sheet 
B) statement of income 
C) statement of shareholders' equity 
D) statement of comprehensive income

Question 16

Presented below are the comparative December 31 financial statements for Martin Industries,Inc.(in $ Millions).Prepare a statement of cash flows for December 31,Year 2 using the indirect method.
   (6)Net income was $62,500.

Accepted Answer

The answer of Presented below are the comparative December 31...

Question 17

All of the following activities are classified as investing activities on a statement of cash flows except ________.

Accepted Answer

A) purchase of land 
B) sale of long-term investments 
C) purchase of copyright 
D) gain on sale of securities 
A) purchase of land 
B) sale of long-term investments 
C) purchase of copyright 
D) gain on sale of securities

Question 18

Liquidity measures a company's ability to meet its long-term obligations as they become due.

Accepted Answer

A) True 
 B)False

Question 19

Glover Corporation's trial balance for December 31,the end of its fiscal year,included the following accounts:   The amount that should be classified as current liabilities on Glover's December 31 balance sheet is ________.

Accepted Answer

A) $63,000 
B) $73,000 
C) $93,000 
D) $153,000 
A) $63,000 
B) $73,000 
C) $93,000 
D) $153,000

Question 20

The accounting staff of Brooks and Dunn Corporation is preparing the annual report for the current fiscal year.The staff member in charge of developing the footnotes has requested assistance with classifying the following information:
   Required:
Indicate whether the above items should be disclosed in (a)the summary of significant accounting policies note,(b)in a separate disclosure note,or (c)on the face of the balance sheet.

Accepted Answer

1.a
 2.b

Most annual reports begin with the letter to the shareholders.

Accumulated other comprehensive income appears on an entity's income statement.

Which of the following information is found in the Summary of Significant Accounting Policies?

IFRS specifies that biological assets be reported on the balance sheet.

What is ending retained earnings for San Marcos Corporation?

The statement of cash flows summarizes a firm's cash flows and outflows over a period of time.

The statement of income is the first financial statement prepared.

When preparing the operating section of the statement of cash flows using the direct method,which of the following statements is true?

Prepare a classified balance sheet using the report format for San Pedro Industries.

Which of the following is not a current liability?

Working capital for Matthews Corporation is ________.

Which of the following is a not a component of shareholders' equity?

The only difference between the statement of cash flows under the indirect method and the direct method is in the reporting of cash flows from operating activities.

Which financial is the first to be prepared?

Presented below are the comparative December 31 financial statements for Martin Industries,Inc.(in $ Millions).Prepare a statement of cash flows for December 31,Year 2 using the indirect method. (6)Net income was $62,500.

All of the following activities are classified as investing activities on a statement of cash flows except ________.

Liquidity measures a company's ability to meet its long-term obligations as they become due.

Glover Corporation's trial balance for December 31,the end of its fiscal year,included the following accounts: The amount that should be classified as current liabilities on Glover's December 31 balance sheet is ________.

The Financial Reporting Environment

Financial Reporting Theory

Judgment and Applied Financial Accounting Research

Review of the Accounting Cycle

Statements of Net Income and Comprehensive Net Income

Accounting and the Time Value of Money

Revenue Recognition

OL: Revenue Recognition

Short-Term Operating Assets: Cash and Receivables

Short-Term Operating Assets: Inventory

Long-Term Operating Assets: Acquisition, cost Allocation, and Derecognition

Long-Term Operating Assets: Departures From Historical Cost

Operating Liabilities and Contingencies

OL: Operating Liabilities and Contingencies

Financing Liabilities

Accounting for Stockholders Equity

Investing Assets

Accounting for Income Taxes

Accounting for Employee Compensation and Benefits

Earnings Per Share

Accounting Corrections and Error Analysis

Filters

Exam 6: Statements of Financial Position and Cash Flows and the Annual Report

Most annual reports begin with the letter to the shareholders.

Accumulated other comprehensive income appears on an entity's income statement.

Which of the following information is found in the Summary of Significant Accounting Policies?

IFRS specifies that biological assets be reported on the balance sheet.

What is ending retained earnings for San Marcos Corporation?

The statement of cash flows summarizes a firm's cash flows and outflows over a period of time.

The statement of income is the first financial statement prepared.

When preparing the operating section of the statement of cash flows using the direct method,which of the following statements is true?

Prepare a classified balance sheet using the report format for San Pedro Industries.

Which of the following is not a current liability?

Working capital for Matthews Corporation is ________.

Which of the following is a not a component of shareholders' equity?

The only difference between the statement of cash flows under the indirect method and the direct method is in the reporting of cash flows from operating activities.

Which financial is the first to be prepared?

Presented below are the comparative December 31 financial statements for Martin Industries,Inc.(in $ Millions).Prepare a statement of cash flows for December 31,Year 2 using the indirect method. (6)Net income was $62,500.

All of the following activities are classified as investing activities on a statement of cash flows except ________.

Liquidity measures a company's ability to meet its long-term obligations as they become due.

Glover Corporation's trial balance for December 31,the end of its fiscal year,included the following accounts: The amount that should be classified as current liabilities on Glover's December 31 balance sheet is ________.

The Financial Reporting Environment

Financial Reporting Theory

Judgment and Applied Financial Accounting Research

Review of the Accounting Cycle

Statements of Net Income and Comprehensive Net Income

Accounting and the Time Value of Money

Revenue Recognition

OL: Revenue Recognition

Short-Term Operating Assets: Cash and Receivables

Short-Term Operating Assets: Inventory

Long-Term Operating Assets: Acquisition, cost Allocation, and Derecognition

Long-Term Operating Assets: Departures From Historical Cost

Operating Liabilities and Contingencies

OL: Operating Liabilities and Contingencies

Financing Liabilities

Accounting for Stockholders Equity

Investing Assets

Accounting for Income Taxes

Accounting for Employee Compensation and Benefits

Earnings Per Share

Accounting Corrections and Error Analysis

Filters