Question 1

Which of the following accounts are normally reported as current liabilities on a classified balance sheet?

Accepted Answer

A) Accounts payable and bonds payable 
B) Interest payable and mortgage payable 
C) Income taxes payable and salaries payable 
D) Capital stock and accounts payable 
A) Accounts payable and bonds payable 
B) Interest payable and mortgage payable 
C) Income taxes payable and salaries payable 
D) Capital stock and accounts payable

Question 2

Crystal,Inc.
Crystal,Inc.reported $52,000 of net income for 2014.Crystal's balance sheet at December 31,2014 includes the following amounts:
   Read the information about Crystal,Inc.Which item is most "liquid"? Why is liquidity important?

Accepted Answer

Cash is the most liquid asset.

Question 3

The following information is given for Wagner Company:   What are the company's current assets?

Accepted Answer

A) $220,000 
B) $155,000 
C) $130,000 
D) $ 95,000 
A) $220,000 
B) $155,000 
C) $130,000 
D) $ 95,000

Question 4

Cheile Transportation purchases many pieces of office furniture with an individual cost below $200 each.Cheile chooses to account for these expenditures as expenses when acquired rather than reporting them as property,plant,and equipment on its balance sheet.The company's accountant and independent CPA agree that no accounting principle has been violated.What accounting justification allows Cheile to expense the furniture?

Accepted Answer

A) Conservatism 
B) Matching 
C) Materiality 
D) Verifiability 
A) Conservatism 
B) Matching 
C) Materiality 
D) Verifiability

Question 5

Service-oriented companies have different needs than product-oriented companies when analyzing financial statements.
REQUIRED: Why is this true? Give an example of a financial ratio that is meaningless to a service business.

Accepted Answer

Because service-oriented companies do no

Question 6

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 7

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 8

Which of the following represents the correct sequence of the three business activities on the Statement of Cash Flows?

Accepted Answer

A) Financing - Operating - Investing 
B) Investing - Operating - Financing 
C) Operating - Investing - Financing 
D) Financing - Investing - Operating 
A) Financing - Operating - Investing 
B) Investing - Operating - Financing 
C) Operating - Investing - Financing 
D) Financing - Investing - Operating

Question 9

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.Calculate the total amount of current assets for Guinther & Sons.

Accepted Answer

A) $ 100,000 
B) $ 147,000 
C) $ 150,000 
D) $ 249,000 
A) $ 100,000 
B) $ 147,000 
C) $ 150,000 
D) $ 249,000

Question 10

Companies prepare classified financial statements because they are required by international accounting principles.

Accepted Answer

A) True 
 B)False

Question 11

The statement of ____________________ explains changes in the components of owners' equity during the period.

Accepted Answer

stockholde

Question 12

Garrison Industries Garrison Industries began operations on January 2,2014,with an investment of $50,000 by each of its two stockholders.Net income for its first year of business was $240,000.Garrison Industries paid a total of $100,000 in dividends to its stockholders during the year.
Read the information about Garrison Industries.If the company's revenues were $500,000 for the year ended December 31,2014,how much were total expenses?

Accepted Answer

A) $160,000 
B) $260,000 
C) $640,000 
D) $740,000 
A) $160,000 
B) $260,000 
C) $640,000 
D) $740,000

Question 13

Read the information for Wood Company.What are Wood's current liabilities?

Accepted Answer

A) $ 45,000 
B) $ 120,000 
C) $ 195,000 
D) $ 225,000 
A) $ 45,000 
B) $ 120,000 
C) $ 195,000 
D) $ 225,000

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

Marvel Shoes Marvel Shoes reported the following items on its statement of cash flows for the current year:
  Read the information about Marvel Shoes.What was the amount of net increase or decrease in the cash balance for Marvel Shoes for the current year?

Accepted Answer

A) $ 10,000 increase 
B) $ 30,000 increase 
C) $ 40,000 increase 
D) $ 70,000 increase 
A) $ 10,000 increase 
B) $ 30,000 increase 
C) $ 40,000 increase 
D) $ 70,000 increase

Question 16

Presented below are items from Joplin Shoes statement of cash flows for 2014.
   A)Determine whether Joplin Shoes' cash increased or decreased during the year.
B)How much cash does Joplin Shoes have at the end of 2014?
C)What is the purpose of the statement of cash flows?

Accepted Answer

The answer of Presented below are items from Joplin Shoes...

Question 17

Which of the following statements is true concerning external users of financial information?

Accepted Answer

A) External users need detailed records of the business to make informed decisions. 
B) External users are primarily responsible for the preparation of financial statements. 
C) External users rely on the financial statements to help make informed decisions. 
D) External users rely on management to tell them whether the company is a good investment 
A) External users need detailed records of the business to make informed decisions. 
B) External users are primarily responsible for the preparation of financial statements. 
C) External users rely on the financial statements to help make informed decisions. 
D) External users rely on management to tell them whether the company is a good investment

Question 18

____________________ and ____________________ have claims to an entity's economic resources.

Accepted Answer

Creditors,Investors

Question 19

Which of the following is not an objective of financial reporting?

Accepted Answer

A) To reflect prospective cash receipts to investors and creditors. 
B) To reflect prospective cash flows to an enterprise. 
C) To reflect resources and claim to resources. 
D) To reflect current stock prices and information concerning stock markets. 
A) To reflect prospective cash receipts to investors and creditors. 
B) To reflect prospective cash flows to an enterprise. 
C) To reflect resources and claim to resources. 
D) To reflect current stock prices and information concerning stock markets.

Question 20

A discussion of the financial statements with explanations of certain amounts in the 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

Which of the following accounts are normally reported as current liabilities on a classified balance sheet?

Crystal,Inc. Crystal,Inc.reported $52,000 of net income for 2014.Crystal's balance sheet at December 31,2014 includes the following amounts: Read the information about Crystal,Inc.Which item is most "liquid"? Why is liquidity important?

The following information is given for Wagner Company: What are the company's current assets?

Service-oriented companies have different needs than product-oriented companies when analyzing financial statements. REQUIRED: Why is this true? Give an example of a financial ratio that is meaningless to a service business.

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.

Which of the following is a noncurrent asset?

Which of the following represents the correct sequence of the three business activities on the Statement of Cash Flows?

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.Calculate the total amount of current assets for Guinther & Sons.

Companies prepare classified financial statements because they are required by international accounting principles.

The statement of ____________________ explains changes in the components of owners' equity during the period.

Read the information for Wood Company.What are Wood's current liabilities?

"Claims to economic resources" are known as

Marvel Shoes Marvel Shoes reported the following items on its statement of cash flows for the current year: Read the information about Marvel Shoes.What was the amount of net increase or decrease in the cash balance for Marvel Shoes for the current year?

Presented below are items from Joplin Shoes statement of cash flows for 2014. A)Determine whether Joplin Shoes' cash increased or decreased during the year. B)How much cash does Joplin Shoes have at the end of 2014? C)What is the purpose of the statement of cash flows?

Which of the following statements is true concerning external users of financial information?

and have claims to an entity's economic resources.

Which of the following is not an objective of financial reporting?

A discussion of the financial statements with explanations of certain amounts in the statements is most likely found in which of the following sections of a corporate annual report?

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

Which of the following accounts are normally reported as current liabilities on a classified balance sheet?

Crystal,Inc. Crystal,Inc.reported $52,000 of net income for 2014.Crystal's balance sheet at December 31,2014 includes the following amounts: Read the information about Crystal,Inc.Which item is most "liquid"? Why is liquidity important?

The following information is given for Wagner Company: What are the company's current assets?

Service-oriented companies have different needs than product-oriented companies when analyzing financial statements. REQUIRED: Why is this true? Give an example of a financial ratio that is meaningless to a service business.

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.

Which of the following is a noncurrent asset?

Which of the following represents the correct sequence of the three business activities on the Statement of Cash Flows?

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.Calculate the total amount of current assets for Guinther & Sons.

Companies prepare classified financial statements because they are required by international accounting principles.

The statement of ____________________ explains changes in the components of owners' equity during the period.

Read the information for Wood Company.What are Wood's current liabilities?

"Claims to economic resources" are known as

Marvel Shoes Marvel Shoes reported the following items on its statement of cash flows for the current year: Read the information about Marvel Shoes.What was the amount of net increase or decrease in the cash balance for Marvel Shoes for the current year?

Presented below are items from Joplin Shoes statement of cash flows for 2014. A)Determine whether Joplin Shoes' cash increased or decreased during the year. B)How much cash does Joplin Shoes have at the end of 2014? C)What is the purpose of the statement of cash flows?

Which of the following statements is true concerning external users of financial information?

____________________ and ____________________ have claims to an entity's economic resources.

Which of the following is not an objective of financial reporting?

A discussion of the financial statements with explanations of certain amounts in the statements is most likely found in which of the following sections of a corporate annual report?

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

and have claims to an entity's economic resources.