Question 1

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 B

Question 2

The calculation net income/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 A

Question 3

The working capital format is one possible format for presenting a statement of changes in financial position.Which of the following formats is are)also theoretically acceptable? Cash Quick Assets

Accepted Answer

A) Acceptable Not acceptable 
B) Not acceptable Not acceptable 
C) Not acceptable Acceptable 
D) Acceptable Acceptable 
A) Acceptable Not acceptable 
B) Not acceptable Not acceptable 
C) Not acceptable Acceptable 
D) Acceptable Acceptable D

Question 4

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 5

Which of the following is not a component of equity?

Accepted Answer

A) Common stock 
B) Treasury stock 
C) Retained earnings 
D) Unearned revenue 
A) Common stock 
B) Treasury stock 
C) Retained earnings 
D) Unearned revenue

Question 6

Which of the following is a difference between IAS No.7 and SFAS No.95 FASB ASC 230)?

Accepted Answer

A) IAS No.7 requires the use of the direct method 
B) IAS No.7 required the use of the indirect method 
C) IAS No 7 requires the use of the all financial resources concept of funds 
D) IAS No.7 requires extraordinary items be disclosed separately as operating,investing,or financing activities 
A) IAS No.7 requires the use of the direct method 
B) IAS No.7 required the use of the indirect method 
C) IAS No 7 requires the use of the all financial resources concept of funds 
D) IAS No.7 requires extraordinary items be disclosed separately as operating,investing,or financing activities

Question 7

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 month,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 month,whichever is longer

Question 8

Which of the following is not an important aspects of SFAS No.157FASB 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 9

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 10

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 11

How is fair value defined in SFAS No.157 FASB ASC 820)?

Accepted Answer

Fair value is the price that w

Question 12

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 13

A gain on the sale of plant assets in the ordinary course of business should be presented in a statement of cash flows as a an)

Accepted Answer

A) Source and use of cash 
B) Use of cash 
C) Addition to income from continuing operations 
D) Deduction from income from continuing operations 
A) Source and use of cash 
B) Use of cash 
C) Addition to income from continuing operations 
D) Deduction from income from continuing operations

Question 14

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 15

What is reported on the statement of cash flows?

Accepted Answer

A) Operating,investing,and financing activities of an entity for a period of time 
B) All revenues and expense listed by operating,financing,and operating actitivity 
C) Operating,investing,and financing activities of an entity at the balance sheet date 
D) A detail of all incoming and outgoing cash flows of a business 
A) Operating,investing,and financing activities of an entity for a period of time 
B) All revenues and expense listed by operating,financing,and operating actitivity 
C) Operating,investing,and financing activities of an entity at the balance sheet date 
D) A detail of all incoming and outgoing cash flows of a business

Question 16

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 17

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 18

Net cash provided used)by operating activities − net cash used in acquiring property,plant is the calculation for

Accepted Answer

A) Free cash flow 
B) Cash flow from investing activities 
C) Working capital 
D) Current ratio 
A) Free cash flow 
B) Cash flow from investing activities 
C) Working capital 
D) Current ratio

Question 19

Which of the following should theoretically be presented in a statement of changes in financial position only because of the all-financial-resources concept?

Accepted Answer

A) Conversion of preferred stock to common stock 
B) Purchase of treasury stock 
C) Sale of common stock 
D) Declaration of cash dividend 
A) Conversion of preferred stock to common stock 
B) Purchase of treasury stock 
C) Sale of common stock 
D) Declaration of cash dividend

Question 20

When preparing a statement of changes in financial position using the cash basis for defining funds,an increase in ending inventory over beginning inventory will result in an adjustment to reported net earnings because

Accepted Answer

A) Funds were increased since inventory is a current asset 
B) The net increase in inventory reduced cost of goods sold but represents an assumed use of cash 
C) Inventory is an expense deducted in computing net earnings,but is not a use of funds 
D) All changes in noncash accounts must be disclosed under the all financial resources concept 
A) Funds were increased since inventory is a current asset 
B) The net increase in inventory reduced cost of goods sold but represents an assumed use of cash 
C) Inventory is an expense deducted in computing net earnings,but is not a use of funds 
D) All changes in noncash accounts must be disclosed under the all financial resources concept

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

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

The working capital format is one possible format for presenting a statement of changes in financial position.Which of the following formats is are)also theoretically acceptable? Cash Quick Assets

The valuation basis used in conventional financial statements is

Which of the following is not a component of equity?

Which of the following is a difference between IAS No.7 and SFAS No.95 FASB ASC 230)?

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

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

The balance sheet discloses

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

How is fair value defined in SFAS No.157 FASB ASC 820)?

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

A gain on the sale of plant assets in the ordinary course of business should be presented in a statement of cash flows as a an)

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

What is reported on the statement of cash flows?

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

A basic objective of the statement of cash flows is to

Net cash provided used)by operating activities − net cash used in acquiring property,plant is the calculation for

Which of the following should theoretically be presented in a statement of changes in financial position only because of the all-financial-resources concept?

When preparing a statement of changes in financial position using the cash basis for defining funds,an increase in ending inventory over beginning inventory will result in an adjustment to reported net earnings because

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

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 Requirement and Ethical Responsibilities

Filters

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

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

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

The working capital format is one possible format for presenting a statement of changes in financial position.Which of the following formats is are)also theoretically acceptable? Cash Quick Assets

The valuation basis used in conventional financial statements is

Which of the following is not a component of equity?

Which of the following is a difference between IAS No.7 and SFAS No.95 FASB ASC 230)?

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

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

The balance sheet discloses

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

How is fair value defined in SFAS No.157 FASB ASC 820)?

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

A gain on the sale of plant assets in the ordinary course of business should be presented in a statement of cash flows as a an)

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

What is reported on the statement of cash flows?

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

A basic objective of the statement of cash flows is to

Net cash provided used)by operating activities − net cash used in acquiring property,plant is the calculation for

Which of the following should theoretically be presented in a statement of changes in financial position only because of the all-financial-resources concept?

When preparing a statement of changes in financial position using the cash basis for defining funds,an increase in ending inventory over beginning inventory will result in an adjustment to reported net earnings because

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

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 Requirement and Ethical Responsibilities

Filters