Question 1

The basis for classifying assets as current or noncurrent is conversion to cash within

Accepted Answer

A)  the accounting cycle or one year, whichever is shorter. 
B)  the operating cycle or one year, whichever is longer. 
C)  the accounting cycle or one year, whichever is longer. 
D)  the operating cycle or one year, whichever is shorter. 
A)  the accounting cycle or one year, whichever is shorter. 
B)  the operating cycle or one year, whichever is longer. 
C)  the accounting cycle or one year, whichever is longer. 
D)  the operating cycle or one year, whichever is shorter.

Question 2

Statement of financial position information is useful for all of the following except

Accepted Answer

A)  assessing a company's risk 
B)  evaluating a company's liquidity 
C)  evaluating a company's financial flexibility 
D)  determining free cash flows. 
A)  assessing a company's risk 
B)  evaluating a company's liquidity 
C)  evaluating a company's financial flexibility 
D)  determining free cash flows.

Question 3

Rosalie Corporation is located in London but does business throughout Europe. The company builds and sells equipment used in manufacturing pharmaceuticals. On December 31, 2019, Rosalie has trading securities valued at £63,000; goodwill valued at £450,000; prepaid insurance valued at £36,000; patents valued at £210,000; and a customer list valued at £390,000. On Rosalie Corporation's statement of financial position at December 31, 2019, what amount should be reported as intangible assets?

Accepted Answer

A)  £1,113,000 
B)  £1,149,000 
C)  £1,050,000 
D)  £660,000 
A)  £1,113,000 
B)  £1,149,000 
C)  £1,050,000 
D)  £660,000

Question 4

Which of the following should be reported for share capital?

Accepted Answer

A)  The shares authorized 
B)  The shares issued 
C)  The shares outstanding 
D)  All of these choices are correct. 
A)  The shares authorized 
B)  The shares issued 
C)  The shares outstanding 
D)  All of these choices are correct.

Question 5

Caroline, Inc. had the following transactions during 2019:

Accepted Answer

A)  £600,000 provided by financing activities. 
B)  £48,000 provided by financing activities. 
C)  £48,000 used by financing activities. 
D)  £428,000 used by financing activities. 
A)  £600,000 provided by financing activities. 
B)  £48,000 provided by financing activities. 
C)  £48,000 used by financing activities. 
D)  £428,000 used by financing activities.

Question 6

Collection of a loan is reported as an investing activity in the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 7

Sauder Corporation reports the following information:

Accepted Answer

A)  HK$450,000. 
B)  HK$630,000. 
C)  HK$870,000. 
D)  HK$1,050,000. 
A)  HK$450,000. 
B)  HK$630,000. 
C)  HK$870,000. 
D)  HK$1,050,000.

Question 8

In a statement of cash flows, receipts from sales of property, plant, and equipment and other productive assets should generally be classified as cash inflows from

Accepted Answer

A)  operating activities. 
B)  financing activities. 
C)  investing activities. 
D)  selling activities. 
A)  operating activities. 
B)  financing activities. 
C)  investing activities. 
D)  selling activities.

Question 9

Companies present a "Summary of Significant Accounting Policies" generally as the first note to the financial statements.

Accepted Answer

A) True 
 B)False

Question 10

Caroline, Inc. had the following transactions during 2019:

Accepted Answer

A)  €212,000 used by investing activities. 
B)  €552,000 provided by investing activities. 
C)  €372,000 used by investing activities. 
D)  €392,000 provided by investing activities. 
A)  €212,000 used by investing activities. 
B)  €552,000 provided by investing activities. 
C)  €372,000 used by investing activities. 
D)  €392,000 provided by investing activities.

Question 11

A measure of a company's financial flexibility is

Accepted Answer

A)  cash debt coverage. 
B)  current cash debt coverage. 
C)  free cash flow. 
D)  cash debt coverage and free cash flow. 
A)  cash debt coverage. 
B)  current cash debt coverage. 
C)  free cash flow. 
D)  cash debt coverage and free cash flow.

Question 12

Companies may use parenthetical explanations, notes, cross references, and supporting schedules to disclose pertinent information.

Accepted Answer

A) True 
 B)False

Question 13

The statement of financial position is useful for analyzing all of the following except

Accepted Answer

A)  liquidity. 
B)  solvency. 
C)  profitability. 
D)  financial flexibility. 
A)  liquidity. 
B)  solvency. 
C)  profitability. 
D)  financial flexibility.

Question 14

The statement of cash flows provides answers to all of the following questions except

Accepted Answer

A)  where did the cash come from during the period? 
B)  what was the cash used for during the period? 
C)  what is the impact of inflation on the cash balance at the end of the year? 
D)  what was the change in the cash balance during the period? 
A)  where did the cash come from during the period? 
B)  what was the cash used for during the period? 
C)  what is the impact of inflation on the cash balance at the end of the year? 
D)  what was the change in the cash balance during the period?

Question 15

In a statement of cash flows, proceeds from issuing equity instruments should be classified as cash inflows from

Accepted Answer

A)  lending activities. 
B)  operating activities. 
C)  investing activities. 
D)  financing activities. 
A)  lending activities. 
B)  operating activities. 
C)  investing activities. 
D)  financing activities.

Question 16

Kohler Company owns the following investments:

Accepted Answer

A)  exactly £105,000. 
B)  exactly £117,000. 
C)  exactly £162,000. 
D)  £102,000 or an amount less than £102,000, depending on the circumstances. 
A)  exactly £105,000. 
B)  exactly £117,000. 
C)  exactly £162,000. 
D)  £102,000 or an amount less than £102,000, depending on the circumstances.

Question 17

The financial statement which summarizes operating, investing, and financing activities of an entity for a period of time is the

Accepted Answer

A)  retained earnings statement. 
B)  income statement. 
C)  statement of cash flows. 
D)  statement of financial position. 
A)  retained earnings statement. 
B)  income statement. 
C)  statement of cash flows. 
D)  statement of financial position.

Question 18

In preparing a statement of cash flows, cash flows from operating activities

Accepted Answer

A)  are always equal to accrual accounting income. 
B)  are calculated as the difference between revenues and expenses. 
C)  can be calculated by appropriately adding to or deducting from net income those items in the income statement that do not affect cash. 
D)  can be calculated by appropriately adding to or deducting from net income those items in the income statement that do affect cash. 
A)  are always equal to accrual accounting income. 
B)  are calculated as the difference between revenues and expenses. 
C)  can be calculated by appropriately adding to or deducting from net income those items in the income statement that do not affect cash. 
D)  can be calculated by appropriately adding to or deducting from net income those items in the income statement that do affect cash.

Question 19

Which of the following should be excluded from long-term liabilities?

Accepted Answer

A)  Obligations payable at some date beyond the operating cycle 
B)  Most pension obligations 
C)  Non-current liabilities that mature within the operating cycle and will be paid from a sinking fund 
D)  None of these choices are correct. 
A)  Obligations payable at some date beyond the operating cycle 
B)  Most pension obligations 
C)  Non-current liabilities that mature within the operating cycle and will be paid from a sinking fund 
D)  None of these choices are correct.

Question 20

Under IFRS the payment of dividends may be reported as either an investing activity or a financing activity.

Accepted Answer

A) True 
 B)False

The basis for classifying assets as current or noncurrent is conversion to cash within

Statement of financial position information is useful for all of the following except

Which of the following should be reported for share capital?

Caroline, Inc. had the following transactions during 2019:

Collection of a loan is reported as an investing activity in the statement of cash flows.

Sauder Corporation reports the following information:

In a statement of cash flows, receipts from sales of property, plant, and equipment and other productive assets should generally be classified as cash inflows from

Companies present a "Summary of Significant Accounting Policies" generally as the first note to the financial statements.

Caroline, Inc. had the following transactions during 2019:

A measure of a company's financial flexibility is

Companies may use parenthetical explanations, notes, cross references, and supporting schedules to disclose pertinent information.

The statement of financial position is useful for analyzing all of the following except

The statement of cash flows provides answers to all of the following questions except

In a statement of cash flows, proceeds from issuing equity instruments should be classified as cash inflows from

Kohler Company owns the following investments:

The financial statement which summarizes operating, investing, and financing activities of an entity for a period of time is the

In preparing a statement of cash flows, cash flows from operating activities

Which of the following should be excluded from long-term liabilities?

Under IFRS the payment of dividends may be reported as either an investing activity or a financing activity.

Financial Reporting and Accounting Standards

Conceptual Framework for Financial Reporting

The Accounting Information System

Income Statement and Related Information

Accounting and the Time Value of Money

Cash and Receivables

Valuation of Inventories: a Cost-Basis Approach

Inventories: Additional Valuation Issues

Acquisition and Disposition of Property, Plant, and Equipment

Depreciation, Impairments, and Depletion

Intangible Assets

Filters

Exam 5: Statement of Financial Position and Statement of Cash Flows

The basis for classifying assets as current or noncurrent is conversion to cash within

Statement of financial position information is useful for all of the following except

Which of the following should be reported for share capital?

Caroline, Inc. had the following transactions during 2019:

Collection of a loan is reported as an investing activity in the statement of cash flows.

Sauder Corporation reports the following information:

In a statement of cash flows, receipts from sales of property, plant, and equipment and other productive assets should generally be classified as cash inflows from

Companies present a "Summary of Significant Accounting Policies" generally as the first note to the financial statements.

Caroline, Inc. had the following transactions during 2019:

A measure of a company's financial flexibility is

Companies may use parenthetical explanations, notes, cross references, and supporting schedules to disclose pertinent information.

The statement of financial position is useful for analyzing all of the following except

The statement of cash flows provides answers to all of the following questions except

In a statement of cash flows, proceeds from issuing equity instruments should be classified as cash inflows from

Kohler Company owns the following investments:

The financial statement which summarizes operating, investing, and financing activities of an entity for a period of time is the

In preparing a statement of cash flows, cash flows from operating activities

Which of the following should be excluded from long-term liabilities?

Under IFRS the payment of dividends may be reported as either an investing activity or a financing activity.

Financial Reporting and Accounting Standards

Conceptual Framework for Financial Reporting

The Accounting Information System

Income Statement and Related Information

Accounting and the Time Value of Money

Cash and Receivables

Valuation of Inventories: a Cost-Basis Approach

Inventories: Additional Valuation Issues

Acquisition and Disposition of Property, Plant, and Equipment

Depreciation, Impairments, and Depletion

Intangible Assets

Filters