Question 1

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 2

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. B

Question 3

The calculation net income/sales 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 C

Question 4

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 5

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

Question 6

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 7

The definition of fair value in SFAS No 157FASB ASC 820)is

Accepted Answer

A) Entry price based 
B) Exit price based 
C) Replacement cost based 
D) Historical cost based 
A) Entry price based 
B) Exit price based 
C) Replacement cost based 
D) Historical cost based

Question 8

The firm's ability to use its financial resources to adapt to 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 9

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

Question 10

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 11

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 12

A transaction that would appear as an application of funds on a conventional funds statement using the all-financial-resources concept,but not on a statement using the traditional working capital concept would be the

Accepted Answer

A) Acquisition of property,plant,and equipment for cash 
B) Reacquisition of bonds issued by the reporting entity 
C) Acquisition of property,plant,and equipment with an issue of common stock 
D) Declaration and payment of dividends 
A) Acquisition of property,plant,and equipment for cash 
B) Reacquisition of bonds issued by the reporting entity 
C) Acquisition of property,plant,and equipment with an issue of common stock 
D) Declaration and payment of dividends

Question 13

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 14

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

Question 15

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 16

The firm's ability to convert an asset to cash or to pay a current liability 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 17

Which of the following should be presented nn a statement of cash flows? Conversion of Conversion of
Long-term debt preferred stock
To common stock to common stock

Accepted Answer

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

Question 18

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

Accepted Answer

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

Question 19

List three valuation techniques currently used on the balance sheet and discuss how each are used What accounts?).

Accepted Answer

The answer of List three valuation techniques currently used on...

Question 20

Define and discuss the three major sections of the statement of cash flows.

Accepted Answer

The three sections of the statement of c

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

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

The calculation net income/sales is the formula for which of the following ratios

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

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

The valuation basis used in conventional financial statements is

The definition of fair value in SFAS No 157FASB ASC 820)is

The firm's ability to use its financial resources to adapt to change is the definition of

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

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

What is reported on the statement of cash flows?

A transaction that would appear as an application of funds on a conventional funds statement using the all-financial-resources concept,but not on a statement using the traditional working capital concept would be the

The calculation sales/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

Which of the following is not a balance sheet element?

The firm's ability to convert an asset to cash or to pay a current liability change is the definition of

Which of the following should be presented nn a statement of cash flows? Conversion of Conversion of Long-term debt preferred stock To common stock to common stock

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

List three valuation techniques currently used on the balance sheet and discuss how each are used What accounts?).

Define and discuss the three major sections of the statement of cash flows.

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

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

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

The calculation net income/sales is the formula for which of the following ratios

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

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

The valuation basis used in conventional financial statements is

The definition of fair value in SFAS No 157FASB ASC 820)is

The firm's ability to use its financial resources to adapt to change is the definition of

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

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

What is reported on the statement of cash flows?

A transaction that would appear as an application of funds on a conventional funds statement using the all-financial-resources concept,but not on a statement using the traditional working capital concept would be the

The calculation sales/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

Which of the following is not a balance sheet element?

The firm's ability to convert an asset to cash or to pay a current liability change is the definition of

Which of the following should be presented nn a statement of cash flows? Conversion of Conversion of Long-term debt preferred stock To common stock to common stock

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

List three valuation techniques currently used on the balance sheet and discuss how each are used What accounts?).

Define and discuss the three major sections of the statement of cash flows.

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