Question 1

Current liabilities includes all of the following except

Accepted Answer

A)  income tax payable. 
B)  mortgage due to be paid this year. 
C)  notes receivable. 
D)  advance payments from customers. 
A)  income tax payable. 
B)  mortgage due to be paid this year. 
C)  notes receivable. 
D)  advance payments from customers.

Question 2

Which of the following is not a component of contributed capital?

Accepted Answer

A)  Preferred stock 
B)  Treasury stock 
C)  Earned capital 
D)  Additional paid-in capital 
A)  Preferred stock 
B)  Treasury stock 
C)  Earned capital 
D)  Additional paid-in capital

Question 3

Exhibit 4-1
Given the following information for Blue Bell Company for last year:  
-Refer to Exhibit 4-1. Blue Bell's inventory turnover for the year was

Accepted Answer

A)  9.0 times 
B)  8.3 times 
C)  12.0% 
D)  11.1% 
A)  9.0 times 
B)  8.3 times 
C)  12.0% 
D)  11.1%

Question 4

The primary attribute of all assets is

Accepted Answer

A)  service potential. 
B)  productive capacity. 
C)  historical cost. 
D)  service contribution. 
A)  service potential. 
B)  productive capacity. 
C)  historical cost. 
D)  service contribution.

Question 5

Trademarks or acquired brand names are not amortized but are reviewed annually for impairment.

Accepted Answer

A) True 
 B)False

Question 6

The amount a company would pay to acquire an asset it now holds is the asset's

Accepted Answer

A)  historical cost. 
B)  current replacement cost. 
C)  current exit value. 
D)  present value. 
A)  historical cost. 
B)  current replacement cost. 
C)  current exit value. 
D)  present value.

Question 7

A component of equity that arises when a parent company owns a majority of the common shares of a subsidiary company is known as

Accepted Answer

A)  majority interest. 
B)  noncontrolling interest. 
C)  earned capital. 
D)  unearned capital. 
A)  majority interest. 
B)  noncontrolling interest. 
C)  earned capital. 
D)  unearned capital.

Question 8

Net realizable value is the amount a company would have to pay currently to acquire an asset it now holds.

Accepted Answer

A) True 
 B)False

Question 9

The SEC requires disclosure of quarterly high and low market prices for

Accepted Answer

A)  two years. 
B)  three years. 
C)  four years. 
D)  The SEC does not require disclosure of quarterly high and low market prices. 
A)  two years. 
B)  three years. 
C)  four years. 
D)  The SEC does not require disclosure of quarterly high and low market prices.

Question 10

What is working capital and how does it relate to the company's operating cycle?

Accepted Answer

Working capital is the excess of total c

Question 11

Which of the following elements is not recognized on the balance sheet?

Accepted Answer

A)  Equity 
B)  Expense 
C)  Liability 
D)  Asset 
A)  Equity 
B)  Expense 
C)  Liability 
D)  Asset

Question 12

Financial leverage is measured by the debt-to-assets ratio.

Accepted Answer

A) True 
 B)False

Question 13

What is the term for the systematic allocation of the costs of intangible assets to expense?

Accepted Answer

A)  Amortization 
B)  Depreciation 
C)  Impairment 
D)  Depletion 
A)  Amortization 
B)  Depreciation 
C)  Impairment 
D)  Depletion

Question 14

The systematic allocation of the costs of natural assets to expense is called

Accepted Answer

A)  amortization. 
B)  depreciation. 
C)  impairment. 
D)  depletion. 
A)  amortization. 
B)  depreciation. 
C)  impairment. 
D)  depletion.

Question 15

Time-series analysis is the same as rate of change analysis.

Accepted Answer

A) True 
 B)False

Question 16

The ability of a company to adapt its resources to create change and react to change is called

Accepted Answer

A)  financial flexibility. 
B)  return on investment . 
C)  operating capability. 
D)  risk . 
A)  financial flexibility. 
B)  return on investment . 
C)  operating capability. 
D)  risk .

Question 17

Derivative financial instruments must be reported as either assets or liabilities on the balance sheet and be measured at their net realizable value.

Accepted Answer

A) True 
 B)False

Question 18

A comparison of a company's performance with that of its competitors is known as

Accepted Answer

A)  common-size analysis. 
B)  intercompany comparison. 
C)  ratio analysis. 
D)  intracompany comparison. 
A)  common-size analysis. 
B)  intercompany comparison. 
C)  ratio analysis. 
D)  intracompany comparison.

Question 19

Information about a company's operating capability may be helpful to external users in

Accepted Answer

A)  assessing the uncertainty of its future cash flows. 
B)  evaluating the timing of cash flows in the near future. 
C)  evaluating the efficiency with which the company uses its resources to generate revenue. 
D)  assessing a return of investment as well as a return on investment. 
A)  assessing the uncertainty of its future cash flows. 
B)  evaluating the timing of cash flows in the near future. 
C)  evaluating the efficiency with which the company uses its resources to generate revenue. 
D)  assessing a return of investment as well as a return on investment.

Question 20

A balance sheet account that is usually reported at present value is

Accepted Answer

A)  Land. 
B)  Note Payable. 
C)  Accounts Payable. 
D)  Inventory. 
A)  Land. 
B)  Note Payable. 
C)  Accounts Payable. 
D)  Inventory.

Exam 4: The Balance Sheet and the Statement of Shareholders Equity

Current liabilities includes all of the following except

Which of the following is not a component of contributed capital?

Exhibit 4-1 Given the following information for Blue Bell Company for last year: -Refer to Exhibit 4-1. Blue Bell's inventory turnover for the year was

The primary attribute of all assets is

Trademarks or acquired brand names are not amortized but are reviewed annually for impairment.

The amount a company would pay to acquire an asset it now holds is the asset's

A component of equity that arises when a parent company owns a majority of the common shares of a subsidiary company is known as

Net realizable value is the amount a company would have to pay currently to acquire an asset it now holds.

The SEC requires disclosure of quarterly high and low market prices for

What is working capital and how does it relate to the company's operating cycle?

Which of the following elements is not recognized on the balance sheet?

Financial leverage is measured by the debt-to-assets ratio.

What is the term for the systematic allocation of the costs of intangible assets to expense?

The systematic allocation of the costs of natural assets to expense is called

Time-series analysis is the same as rate of change analysis.

The ability of a company to adapt its resources to create change and react to change is called

Derivative financial instruments must be reported as either assets or liabilities on the balance sheet and be measured at their net realizable value.

A comparison of a company's performance with that of its competitors is known as

Information about a company's operating capability may be helpful to external users in

A balance sheet account that is usually reported at present value is

The Demand for and Supply of Financial Accounting Information

Financial Reporting: Its Conceptual Framework

Review of a Company S Accounting System

The Income Statement and the Statement of Cash Flows Time Value of Money Module

Cash and Receivables

Inventories: Cost Measurement and Flow Assumptions

Inventories: Special Valuation Issues

Current Liabilities and Contingent Obligations

Property, Plant, and Equipment: Acquisition and Subsequent Investments

Depreciation, Depletion, Impairment, and Disposal

Intangibles

Investments and Long-Term Receivables

Financing Liabilities: Bonds and Long-Term Notes Payable

Contributed Capital

Retained Earnings and Earnings Per Share

Advanced Issues in Revenue Recognition

Accounting for Income Taxes

Accounting for Post-Retirement Benefits

Accounting for Leases

The Statement of Cash Flows

Accounting for Changes and Errors

Understanding Time Value of Money Formulas and Concepts

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