Question 1

Interim financial statements usually report on a period of time less than one year.

Accepted Answer

A) True 
 B)False

Question 2

The Financial Accounting Standards Board (FASB)maintains and periodically updates a well-defined list of disclosure items that companies must include in their annual reports.

Accepted Answer

A) True 
 B)False

Question 3

A worksheet consists of all of the following except:

Accepted Answer

A) A trial balance. 
B) Adjusting entries. 
C) An adjusted trial balance. 
D) Transaction entries. 
A) A trial balance. 
B) Adjusting entries. 
C) An adjusted trial balance. 
D) Transaction entries.

Question 4

The report form of the balance sheet lists liabilities and owners' equity below assets.

Accepted Answer

A) True 
 B)False

Question 5

Declaring a dividend will:

Accepted Answer

A) Increase net income. 
B) Decrease net income. 
C) Not change net income. 
D) Increase the net worth of a company. 
A) Increase net income. 
B) Decrease net income. 
C) Not change net income. 
D) Increase the net worth of a company.

Question 6

In the notes to financial statements,adequate disclosure would typically not include:

Accepted Answer

A) The accounting methods in use. 
B) Lawsuits pending against the business. 
C) Customers that account for 10 percent or more of the company's revenues. 
D) The optimism of the CFO regarding future profits. 
A) The accounting methods in use. 
B) Lawsuits pending against the business. 
C) Customers that account for 10 percent or more of the company's revenues. 
D) The optimism of the CFO regarding future profits.

Question 7

Closing entries should be made:

Accepted Answer

A) Every year. 
B) Only when an entity goes out of business. 
C) Only if there is a profit. 
D) Only if there is a loss. 
A) Every year. 
B) Only when an entity goes out of business. 
C) Only if there is a profit. 
D) Only if there is a loss.

Question 8

Closing entries
An Adjusted Trial Balance for Tiger Inc.,at December 31 appears below.   Prepare journal entries to close the accounts.Use four entries to: (1)close the revenue account,(2)close the expense accounts,(3)close the Income Summary account,and (4)close the Dividends account.

Accepted Answer

The answer of Closing entries
An Adjusted Trial Balance for Tiger...

Question 9

The amount of net income (or loss)will appear on the debit side of the Income Statement columns in a worksheet if:

Accepted Answer

A) Revenue exceeds total expenses for the period. 
B) The trial balance is out of balance. 
C) Dividends are more than the income or loss for the period. 
D) There is a net loss for the period. 
A) Revenue exceeds total expenses for the period. 
B) The trial balance is out of balance. 
C) Dividends are more than the income or loss for the period. 
D) There is a net loss for the period.

Question 10

The current ratio is a measure of liquidity.

Accepted Answer

A) True 
 B)False

Question 11

All of the following statements are true regarding the Income Statement except?

Accepted Answer

A) The Income Statement may also be called the Earnings Statement. 
B) The measurement of income is not absolutely accurate or precise due to assumptions and estimates. 
C) The Income Statement only includes those events that have been evidenced by actual business transactions. 
D) The net income (or net loss)appears at the bottom of the Income Statement and also in the company's year-end balance sheet. 
A) The Income Statement may also be called the Earnings Statement. 
B) The measurement of income is not absolutely accurate or precise due to assumptions and estimates. 
C) The Income Statement only includes those events that have been evidenced by actual business transactions. 
D) The net income (or net loss)appears at the bottom of the Income Statement and also in the company's year-end balance sheet.

Question 12

IFRS 1 requires that management and auditors should depart from compliance with GAAP if it is necessary to achieve a fair presentation when reporting financial results.

Accepted Answer

A) True 
 B)False

Question 13

The section of the annual report titled "Management Discussion and Analysis" is:

Accepted Answer

A) Required by the SEC. 
B) Not required but may be included by management. 
C) Required by GAAP. 
D) Reported to the SEC but not included in the annual report. 
A) Required by the SEC. 
B) Not required but may be included by management. 
C) Required by GAAP. 
D) Reported to the SEC but not included in the annual report.

Question 14

Given the following information for the Maple Tree Co.for the year ended December 31,2014,prepare a Statement of Retained Earnings.

Accepted Answer

The Statement of Ret

Question 15

Which of the following accounts should not be closed?

Accepted Answer

A) Expenses and revenues. 
B) Dividends. 
C) Income summary. 
D) Accumulated depreciation. 
A) Expenses and revenues. 
B) Dividends. 
C) Income summary. 
D) Accumulated depreciation.

Question 16

The following information is available:   What is the return on equity? (round to the nearest number)

Accepted Answer

A) 5%. 
B) 15%. 
C) 20%. 
D) 25%. 
A) 5%. 
B) 15%. 
C) 20%. 
D) 25%.

Question 17

Of the following,which is not an alternative title for the income statement?

Accepted Answer

A) Earnings statement. 
B) Statement of Operations. 
C) Profit and Loss Statement. 
D) Statement of Financial Position. 
A) Earnings statement. 
B) Statement of Operations. 
C) Profit and Loss Statement. 
D) Statement of Financial Position.

Question 18

A statement of retained earnings shows:

Accepted Answer

A) The changes in the Cash account occurring during the accounting period. 
B) The revenue,expense,and dividends of the period. 
C) The types of assets which have been purchased with the earnings retained during the accounting period. 
D) The changes in the Retained Earnings account occurring during the accounting period. 
A) The changes in the Cash account occurring during the accounting period. 
B) The revenue,expense,and dividends of the period. 
C) The types of assets which have been purchased with the earnings retained during the accounting period. 
D) The changes in the Retained Earnings account occurring during the accounting period.

Question 19

Adjustments and closing process-basic entries
Selected ledger accounts used by Speedy Truck Rentals Inc.,are listed along with identifying numbers.Following this list of account numbers and titles in a series of transactions,you are required to indicate the proper accounts to be debited and credited for each transaction.

Accepted Answer

The answer of Adjustments and closing process-basic entries
Selected ledger accounts...

Question 20

Income Summary appears on which financial statement:

Accepted Answer

A) Income statement. 
B) Balance sheet. 
C) Retained Earnings statement. 
D) Income summary does not appear on any financial statement. 
A) Income statement. 
B) Balance sheet. 
C) Retained Earnings statement. 
D) Income summary does not appear on any financial statement.

Exam 5: The Accounting Cycle: Reporting Financial Results

Interim financial statements usually report on a period of time less than one year.

The Financial Accounting Standards Board (FASB)maintains and periodically updates a well-defined list of disclosure items that companies must include in their annual reports.

A worksheet consists of all of the following except:

The report form of the balance sheet lists liabilities and owners' equity below assets.

Declaring a dividend will:

In the notes to financial statements,adequate disclosure would typically not include:

Closing entries should be made:

Closing entries An Adjusted Trial Balance for Tiger Inc.,at December 31 appears below. Prepare journal entries to close the accounts.Use four entries to: (1)close the revenue account,(2)close the expense accounts,(3)close the Income Summary account,and (4)close the Dividends account.

The amount of net income (or loss)will appear on the debit side of the Income Statement columns in a worksheet if:

The current ratio is a measure of liquidity.

All of the following statements are true regarding the Income Statement except?

IFRS 1 requires that management and auditors should depart from compliance with GAAP if it is necessary to achieve a fair presentation when reporting financial results.

The section of the annual report titled "Management Discussion and Analysis" is:

Given the following information for the Maple Tree Co.for the year ended December 31,2014,prepare a Statement of Retained Earnings.

Which of the following accounts should not be closed?

The following information is available: What is the return on equity? (round to the nearest number)

Of the following,which is not an alternative title for the income statement?

A statement of retained earnings shows:

Income Summary appears on which financial statement:

Accounting: Information for Decision Making

Basic Financial Statements

The Accounting Cycle: Capturing Economic Events

The Accounting Cycle: Accruals and Deferrals

Merchandising Activities

Financial Assets

Inventories and the Cost of Goods Sold

Plant and Intangible Assets

Liabilities

Stockholders Equity: Paid-In Capital

Income and Changes in Retained Earnings

Statement of Cash Flows

Financial Statement Analysis

Global Business and Accounting

Management Accounting: a Business Partner

Job Order Cost Systems and Overhead Allocations

Process Costing

Costing and the Value Chain

Cost-Volume-Profit Analysis

Incremental Analysis

Responsibility Accounting and Transfer Pricing

Operational Budgeting

Standard Cost Systems

Rewarding Business Performance

Capital Budgeting

Forms of Business Organization

The Time Value of Money: Future Amounts and Present Values

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