Question 1

Accepted accounting principles leave ample room for arriving at different results in the short run.

Accepted Answer

A) True 
 B)False  True

Question 2

Tiffin Company had retained earnings of $50,000 at the end of last year.For the current year, income was $20,000 and dividends $15,000.What is the balance in retained earnings at the end of the current year?

Accepted Answer

A)  $85,000 
B)  $45,000 
C)  $55,000 
D)  $60,000 
E)  none of the answers are correct 
A)  $85,000 
B)  $45,000 
C)  $55,000 
D)  $60,000 
E)  none of the answers are correct C

Question 3

Which of these statements is not true?

Accepted Answer

A)  Transactions must be recorded in a journal. 
B)  All transactions could be recorded in the general journal. 
C)  Companies use a number of special journals to record most transactions. 
D)  Special journals are designed to improve record- keeping efficiency. 
E)  The form of the journals are the same from industry to industry. 
A)  Transactions must be recorded in a journal. 
B)  All transactions could be recorded in the general journal. 
C)  Companies use a number of special journals to record most transactions. 
D)  Special journals are designed to improve record- keeping efficiency. 
E)  The form of the journals are the same from industry to industry. E

Question 4

For public companies reporting to the SEC, the 10-K, 10-Q, 8-K, and proxy can be found at http://www.sec.gov.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements is not correct concerning summary annual reports?

Accepted Answer

A)  A summary annual report omits much of the financial information included in an annual report. 
B)  When a company issues a summary annual report, the proxy materials it sends to shareholders must include a set of fully audited statements and other required financial disclosures. 
C)  A summary annual report generally has more nonfinancial pages than financial pages. 
D)  A summary annual report is adequate for reasonable analysis. 
E)  The concept of a summary annual report was approved by the Securities and Exchange Commission. 
A)  A summary annual report omits much of the financial information included in an annual report. 
B)  When a company issues a summary annual report, the proxy materials it sends to shareholders must include a set of fully audited statements and other required financial disclosures. 
C)  A summary annual report generally has more nonfinancial pages than financial pages. 
D)  A summary annual report is adequate for reasonable analysis. 
E)  The concept of a summary annual report was approved by the Securities and Exchange Commission.

Question 6

With the expansion of international business and global capital markets, the business community and governments have shown a decreased interest in the harmonization of international accounting standards.

Accepted Answer

A) True 
 B)False

Question 7

The auditor will issue a qualified opinion when he/she has not performed an audit sufficient in scope to form an opinion.

Accepted Answer

A) True 
 B)False

Question 8

The statement of cash flows consists of two sections: cash flows from operating activities and cash flows from financing activities.

Accepted Answer

A) True 
 B)False

Question 9

The proxy is the solicitation sent to stockholders for the election of directors and for the approval of other corporation actions.

Accepted Answer

A) True 
 B)False

Question 10

The efficient market hypothesis (EMH) relates to the ability of capital markets to generate prices for securities that reflect worth.

Accepted Answer

A) True 
 B)False

Question 11

The responsibility for the preparation and integrity of financial statements rests with management.

Accepted Answer

A) True 
 B)False

Question 12

The accountant's report expresses an opinion on reviewed financial statements.

Accepted Answer

A) True 
 B)False

Question 13

A balance sheet shows the financial condition of an accounting entity for a particular period of time.

Accepted Answer

A) True 
 B)False

Question 14

The responsibility for the preparation and integrity of financial statements rests with the auditors.

Accepted Answer

A) True 
 B)False

Question 15

The market will not be efficient if it does not have access to relevant information or if fraudulent information is provided.

Accepted Answer

A) True 
 B)False

Question 16

Accounts store the monetary information from the recording of transactions.

Accepted Answer

A) True 
 B)False

Question 17

The IASC does not have authority to enforce its standards, but these standards have been adopted in whole or in part by many countries.

Accepted Answer

A) True 
 B)False

Question 18

T-accounts have a left, or credit, side and a right, or debit, side.

Accepted Answer

A) True 
 B)False

Question 19

The principal financial statements of a corporation are the balance sheet, income statement, and statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 20

When a subsidiary is not consolidated, it is accounted for as an investment on the parent's balance sheet.

Accepted Answer

A) True 
 B)False

Accepted accounting principles leave ample room for arriving at different results in the short run.

Tiffin Company had retained earnings of $50,000 at the end of last year.For the current year, income was $20,000 and dividends $15,000.What is the balance in retained earnings at the end of the current year?

Which of these statements is not true?

For public companies reporting to the SEC, the 10-K, 10-Q, 8-K, and proxy can be found at http://www.sec.gov.

Which of the following statements is not correct concerning summary annual reports?

With the expansion of international business and global capital markets, the business community and governments have shown a decreased interest in the harmonization of international accounting standards.

The auditor will issue a qualified opinion when he/she has not performed an audit sufficient in scope to form an opinion.

The statement of cash flows consists of two sections: cash flows from operating activities and cash flows from financing activities.

The proxy is the solicitation sent to stockholders for the election of directors and for the approval of other corporation actions.

The efficient market hypothesis (EMH) relates to the ability of capital markets to generate prices for securities that reflect worth.

The responsibility for the preparation and integrity of financial statements rests with management.

The accountant's report expresses an opinion on reviewed financial statements.

A balance sheet shows the financial condition of an accounting entity for a particular period of time.

The responsibility for the preparation and integrity of financial statements rests with the auditors.

The market will not be efficient if it does not have access to relevant information or if fraudulent information is provided.

Accounts store the monetary information from the recording of transactions.

The IASC does not have authority to enforce its standards, but these standards have been adopted in whole or in part by many countries.

T-accounts have a left, or credit, side and a right, or debit, side.

The principal financial statements of a corporation are the balance sheet, income statement, and statement of cash flows.

When a subsidiary is not consolidated, it is accounted for as an investment on the parent's balance sheet.

Introduction to Financial Reporting

Balance Sheet

Income Statement

Basics of Analysis

Liquidity of Short-Term Assets; Related Debt-Paying Ability

Long-Term Debt-Paying Ability

Profitability

For the Investor

Statement of Cash Flows

Expanded Analysis

Special Industries: Banks, Utilities, Oil and Gas, Transportation, Insurance, Real Estate Companies

Personal Financial Statements and Accounting for Governments and Not-For-Profit Organizations

Filters

Exam 2: Introduction to Financial Statements and Other Financial Reporting Topics

Accepted accounting principles leave ample room for arriving at different results in the short run.

Tiffin Company had retained earnings of $50,000 at the end of last year.For the current year, income was $20,000 and dividends $15,000.What is the balance in retained earnings at the end of the current year?

Which of these statements is not true?

For public companies reporting to the SEC, the 10-K, 10-Q, 8-K, and proxy can be found at http://www.sec.gov.

Which of the following statements is not correct concerning summary annual reports?

With the expansion of international business and global capital markets, the business community and governments have shown a decreased interest in the harmonization of international accounting standards.

The auditor will issue a qualified opinion when he/she has not performed an audit sufficient in scope to form an opinion.

The statement of cash flows consists of two sections: cash flows from operating activities and cash flows from financing activities.

The proxy is the solicitation sent to stockholders for the election of directors and for the approval of other corporation actions.

The efficient market hypothesis (EMH) relates to the ability of capital markets to generate prices for securities that reflect worth.

The responsibility for the preparation and integrity of financial statements rests with management.

The accountant's report expresses an opinion on reviewed financial statements.

A balance sheet shows the financial condition of an accounting entity for a particular period of time.

The responsibility for the preparation and integrity of financial statements rests with the auditors.

The market will not be efficient if it does not have access to relevant information or if fraudulent information is provided.

Accounts store the monetary information from the recording of transactions.

The IASC does not have authority to enforce its standards, but these standards have been adopted in whole or in part by many countries.

T-accounts have a left, or credit, side and a right, or debit, side.

The principal financial statements of a corporation are the balance sheet, income statement, and statement of cash flows.

When a subsidiary is not consolidated, it is accounted for as an investment on the parent's balance sheet.

Introduction to Financial Reporting

Balance Sheet

Income Statement

Basics of Analysis

Liquidity of Short-Term Assets; Related Debt-Paying Ability

Long-Term Debt-Paying Ability

Profitability

For the Investor

Statement of Cash Flows

Expanded Analysis

Special Industries: Banks, Utilities, Oil and Gas, Transportation, Insurance, Real Estate Companies

Personal Financial Statements and Accounting for Governments and Not-For-Profit Organizations

Filters