Question 1

Level 1 of fair value hierarchy measures originally outlined in SFAS No.are based on:

Accepted Answer

A) Historical cost of similar assets. 
B) Market prices for identical assets. 
C) Market prices for similar assets. 
D) Unobservable inputs. 
A) Historical cost of similar assets. 
B) Market prices for identical assets. 
C) Market prices for similar assets. 
D) Unobservable inputs. B

Question 2

A statement of cash flows should be issued by a profit-oriented business

Accepted Answer

A) As an alternative to the statement of income and retained earnings 
B) Only if the business classifies its assets and liabilities as current and noncurrent 
C) Only when two-year comparative balance sheets are not issued 
D) Whenever a balance sheet and a statement of income and retained earnings are issued 
A) As an alternative to the statement of income and retained earnings 
B) Only if the business classifies its assets and liabilities as current and noncurrent 
C) Only when two-year comparative balance sheets are not issued 
D) Whenever a balance sheet and a statement of income and retained earnings are issued D

Question 3

A measure of a company's financial flexibility is

Accepted Answer

A) Return on assets ratio 
B) Return on sales ratio 
C) Free cash flow 
D) Accounts receivable turnover ratio 
A) Return on assets ratio 
B) Return on sales ratio 
C) Free cash flow 
D) Accounts receivable turnover ratio C

Question 4

The calculation sales/average total assets is the formula for which of the following ratios

Accepted Answer

A) Return on assets 
B) Profit margin 
C) Asset turnover 
D) Asset usage 
A) Return on assets 
B) Profit margin 
C) Asset turnover 
D) Asset usage

Question 5

When preparing a funds statement using the all financial resources concept,the retirement of long-term debt by the issuance of common stock should be presented in a statement of changes in financial position as a Source of Funds Use of Funds

Accepted Answer

A) No No 
B) No Yes 
C) Yes No 
D) Yes Yes 
A) No No 
B) No Yes 
C) Yes No 
D) Yes Yes

Question 6

Investments in equity securities are disclosed as current assets on a company's balance sheet if

Accepted Answer

A) Management intends to sell them within a year and they have a ready market exists. 
B) The fair market value cannot be determined. 
C) Management intends to convert them into common stock within one year. 
D) Management owns less than 50% of the outstanding stock. 
A) Management intends to sell them within a year and they have a ready market exists. 
B) The fair market value cannot be determined. 
C) Management intends to convert them into common stock within one year. 
D) Management owns less than 50% of the outstanding stock.

Question 7

There would probably be a major difference between a statement of source and application of working capital and a cash flow statement in the treatment of

Accepted Answer

A) Dividends declared and paid 
B) Sales of noninventory assets for cash at a loss 
C) Payment of long-term debt 
D) A change during the period in the accounts payable balance 
A) Dividends declared and paid 
B) Sales of noninventory assets for cash at a loss 
C) Payment of long-term debt 
D) A change during the period in the accounts payable balance

Question 8

A basic objective of the statement of cash flows is to

Accepted Answer

A) Supplant the income statement and balance sheet 
B) Disclose changes during the period in all asset and all liability accounts 
C) Disclose the change in working capital during the period 
D) Provide essential information for financial statements users in making economic decisions 
A) Supplant the income statement and balance sheet 
B) Disclose changes during the period in all asset and all liability accounts 
C) Disclose the change in working capital during the period 
D) Provide essential information for financial statements users in making economic decisions

Question 9

A firm's ability to obtain cash for business operations change is the definition of

Accepted Answer

A) Liquidity 
B) Solvency 
C) Financial flexibility 
D) Working capital 
A) Liquidity 
B) Solvency 
C) Financial flexibility 
D) Working capital

Question 10

The valuation basis used in conventional financial statements is

Accepted Answer

A) Replacement cost 
B) Market value 
C) Original cost 
D) A mixture of costs and values 
A) Replacement cost 
B) Market value 
C) Original cost 
D) A mixture of costs and values

Question 11

The SFAS No 157 FASB ASC 820)fair value hierarchy contains

Accepted Answer

A) Two level 
B) Three levels 
C) Four levels 
D) Five levels 
A) Two level 
B) Three levels 
C) Four levels 
D) Five levels

Question 12

Current assets are presented on the balance sheet in

Accepted Answer

A) Descending order of their balances. 
B) Ascending order of their balances. 
C) Order of their liquidity. 
D) Reverse order of their liquidity. 
A) Descending order of their balances. 
B) Ascending order of their balances. 
C) Order of their liquidity. 
D) Reverse order of their liquidity.

Question 13

The balance sheet discloses

Accepted Answer

A) Stocks 
B) Flows 
C) Both stocks and f lows 
D) Neither stocks nor flows 
A) Stocks 
B) Flows 
C) Both stocks and f lows 
D) Neither stocks nor flows

Question 14

Which of the following is not an important aspects of SFAS No.157 FASB ASC 820)?

Accepted Answer

A) A new definition of fair value. 
B) A requirement that all assets and liabilities are to be measured at their fair value. 
C) A fair value hierarchy used to classify the source of information used in fair value measurements for example,market based or nonmarket based). 
D) New disclosures of assets and liabilities measured at fair value based on their level in the hierarchy. 
A) A new definition of fair value. 
B) A requirement that all assets and liabilities are to be measured at their fair value. 
C) A fair value hierarchy used to classify the source of information used in fair value measurements for example,market based or nonmarket based). 
D) New disclosures of assets and liabilities measured at fair value based on their level in the hierarchy.

Question 15

The balance sheet can be used to analyze all of the following except

Accepted Answer

A) Financial flexibility. 
B) Solvency. 
C) Liquidity. 
D) Profitability 
A) Financial flexibility. 
B) Solvency. 
C) Liquidity. 
D) Profitability

Question 16

Which of the following is not a balance sheet element?

Accepted Answer

A) Assets 
B) Liabilities 
C) Gains 
D) Equities 
A) Assets 
B) Liabilities 
C) Gains 
D) Equities

Question 17

The basis for classifying assets as current or noncurrent is the period of time normally elapsed from the time the accounting entity expends cash to the time it converts

Accepted Answer

A) Inventory back to cash or 12 months,whichever is shorter 
B) Receivable s back into cash or 12 months,whichever is longer 
C) Tangible fixed assets back into cash or 12 months,whichever is longer 
D) Inventory back to cash or 12 months,whichever is longer 
A) Inventory back to cash or 12 months,whichever is shorter 
B) Receivable s back into cash or 12 months,whichever is longer 
C) Tangible fixed assets back into cash or 12 months,whichever is longer 
D) Inventory back to cash or 12 months,whichever is longer

Question 18

On a balance sheet,what is the preferable presentation of notes or accounts receivable from officers,employees,or affiliated companies?

Accepted Answer

A) As trade notes and accounts receivable if they otherwise qualify as current assets 
B) As assets but separately from other receivables 
C) As offsets to capital 
D) By means of notes or footnotes 
A) As trade notes and accounts receivable if they otherwise qualify as current assets 
B) As assets but separately from other receivables 
C) As offsets to capital 
D) By means of notes or footnotes

Question 19

Which of the following s the lowest level of the SFAS 157 FASB ASC 820)fair value hierarchy?

Accepted Answer

A) Unobservable inputs that are corroborated by observable market data) 
B) Unobservable inputs that are not corroborated by observable market data) 
C) Observable market-based inputs or unobservable inputs that are corroborated by market data) 
D) Quoted market prices for identical assets or liabilities in active markets 
A) Unobservable inputs that are corroborated by observable market data) 
B) Unobservable inputs that are not corroborated by observable market data) 
C) Observable market-based inputs or unobservable inputs that are corroborated by market data) 
D) Quoted market prices for identical assets or liabilities in active markets

Question 20

Making and collecting loans and disposing of property,plant,and equipment are

Accepted Answer

A) Liquidity activities. 
B) Financing activities. 
C) Investing activities. 
D) Operating activities 
A) Liquidity activities. 
B) Financing activities. 
C) Investing activities. 
D) Operating activities

Level 1 of fair value hierarchy measures originally outlined in SFAS No.are based on:

A statement of cash flows should be issued by a profit-oriented business

A measure of a company's financial flexibility is

The calculation sales/average total assets is the formula for which of the following ratios

When preparing a funds statement using the all financial resources concept,the retirement of long-term debt by the issuance of common stock should be presented in a statement of changes in financial position as a Source of Funds Use of Funds

Investments in equity securities are disclosed as current assets on a company's balance sheet if

There would probably be a major difference between a statement of source and application of working capital and a cash flow statement in the treatment of

A basic objective of the statement of cash flows is to

A firm's ability to obtain cash for business operations change is the definition of

The valuation basis used in conventional financial statements is

The SFAS No 157 FASB ASC 820)fair value hierarchy contains

Current assets are presented on the balance sheet in

The balance sheet discloses

Which of the following is not an important aspects of SFAS No.157 FASB ASC 820)?

The balance sheet can be used to analyze all of the following except

Which of the following is not a balance sheet element?

The basis for classifying assets as current or noncurrent is the period of time normally elapsed from the time the accounting entity expends cash to the time it converts

On a balance sheet,what is the preferable presentation of notes or accounts receivable from officers,employees,or affiliated companies?

Which of the following s the lowest level of the SFAS 157 FASB ASC 820)fair value hierarchy?

Making and collecting loans and disposing of property,plant,and equipment are

The Development of Accounting Theory

The Pursuit of the Conceptual Framework

International Accounting

Research Methodology and Theories on the Uses of Accounting Information

Income Concepts, Revenue Recognition and Matching

Financial Statement I: the Income Statement

Working Capital

Long-Term Assets I: Property, Plant, and Equipment

Long-Term Assets Ii: Investments and Intangibles

Long-Term Liabilities

Accounting for Income Taxes

Leases

Pensions and Other Postretirement Benefits

Equity

Accounting for Multiple Entities

Financial Reporting Disclosure Requirements and Ethical Responsibilities

Filters

Exam 7: Financial Statements Ii: the Balance Sheet and the Statement of Cash Flows

Level 1 of fair value hierarchy measures originally outlined in SFAS No.are based on:

A statement of cash flows should be issued by a profit-oriented business

A measure of a company's financial flexibility is

The calculation sales/average total assets is the formula for which of the following ratios

When preparing a funds statement using the all financial resources concept,the retirement of long-term debt by the issuance of common stock should be presented in a statement of changes in financial position as a Source of Funds Use of Funds

Investments in equity securities are disclosed as current assets on a company's balance sheet if

There would probably be a major difference between a statement of source and application of working capital and a cash flow statement in the treatment of

A basic objective of the statement of cash flows is to

A firm's ability to obtain cash for business operations change is the definition of

The valuation basis used in conventional financial statements is

The SFAS No 157 FASB ASC 820)fair value hierarchy contains

Current assets are presented on the balance sheet in

The balance sheet discloses

Which of the following is not an important aspects of SFAS No.157 FASB ASC 820)?

The balance sheet can be used to analyze all of the following except

Which of the following is not a balance sheet element?

The basis for classifying assets as current or noncurrent is the period of time normally elapsed from the time the accounting entity expends cash to the time it converts

On a balance sheet,what is the preferable presentation of notes or accounts receivable from officers,employees,or affiliated companies?

Which of the following s the lowest level of the SFAS 157 FASB ASC 820)fair value hierarchy?

Making and collecting loans and disposing of property,plant,and equipment are

The Development of Accounting Theory

The Pursuit of the Conceptual Framework

International Accounting

Research Methodology and Theories on the Uses of Accounting Information

Income Concepts, Revenue Recognition and Matching

Financial Statement I: the Income Statement

Working Capital

Long-Term Assets I: Property, Plant, and Equipment

Long-Term Assets Ii: Investments and Intangibles

Long-Term Liabilities

Accounting for Income Taxes

Leases

Pensions and Other Postretirement Benefits

Equity

Accounting for Multiple Entities

Financial Reporting Disclosure Requirements and Ethical Responsibilities

Filters