Question 1

Tangible assets on the balance sheet should include:

Accepted Answer

A)  equipment 
B)  taxes payable 
C)  trademarks 
D)  bonds payable 
E)  none of the answers are correct 
A)  equipment 
B)  taxes payable 
C)  trademarks 
D)  bonds payable 
E)  none of the answers are correct

Question 2

The financial statements of legally separate entities may be issued to show the financial position and income as they would appear if the companies were one legal entity.Such statements reflect a legal, rather than an economic, concept of the entity.

Accepted Answer

A) True 
 B)False

Question 3

An ESOP is a qualified stock-bonus or combination stock-bonus and money-purchase pension plan designed to invest primarily in stock, other than the employer's securities.

Accepted Answer

A) True 
 B)False

Question 4

If dividends are not declared by the board of directors in a particular year, a holder of cumulative preferred stock will never be paid that dividend.

Accepted Answer

A) True 
 B)False

Question 5

The balance sheet is presented with the assets equal to liabilities plus equity.When this presentation is presented side by side, it is called the account form.

Accepted Answer

A) True 
 B)False

Question 6

The most popular depreciation method for financial reporting is the following:

Accepted Answer

A)  units-of-production 
B)  sum-of-the-years'-digits 
C)  declining-balance 
D)  straight-line 
E)  other 
A)  units-of-production 
B)  sum-of-the-years'-digits 
C)  declining-balance 
D)  straight-line 
E)  other

Question 7

Which of the following is not a common characteristic of preferred stock?

Accepted Answer

A)  voting rights 
B)  preference as to dividends 
C)  preference in liquidation 
D)  callability by the corporation 
E)  none of the answers are correct 
A)  voting rights 
B)  preference as to dividends 
C)  preference in liquidation 
D)  callability by the corporation 
E)  none of the answers are correct

Question 8

Which of the following would not appear on a conventional balance sheet?

Accepted Answer

A)  income taxes payable 
B)  funds from operations 
C)  cash surrender value of life insurance 
D)  appropriation for contingencies (restriction of retained earnings) 
E)  patents 
A)  income taxes payable 
B)  funds from operations 
C)  cash surrender value of life insurance 
D)  appropriation for contingencies (restriction of retained earnings) 
E)  patents

Question 9

Which of the following is not true relating to treasury stock?

Accepted Answer

A)  A firm creates treasury stock when it repurchases its own stock and does not retire it. 
B)  Treasury stock lowers the stock outstanding. 
C)  Treasury stock may be recorded at the cost of the stock. 
D)  Treasury stock may be recorded at par or stated value. 
E)  Treasury stock is, in essence, an increase in paid-in capital. 
A)  A firm creates treasury stock when it repurchases its own stock and does not retire it. 
B)  Treasury stock lowers the stock outstanding. 
C)  Treasury stock may be recorded at the cost of the stock. 
D)  Treasury stock may be recorded at par or stated value. 
E)  Treasury stock is, in essence, an increase in paid-in capital.

Question 10

The current asset section of the balance sheet should include:

Accepted Answer

A)  land 
B)  trademarks 
C)  investment in C Company (for purposes of control) 
D)  dividends payable 
E)  work in process inventory 
A)  land 
B)  trademarks 
C)  investment in C Company (for purposes of control) 
D)  dividends payable 
E)  work in process inventory

Question 11

Noncontrolling interest reflects the ownership of noncontrolling shareholders in the equity of consolidated subsidiaries less than wholly occurred.

Accepted Answer

A) True 
 B)False

Question 12

Preferred stock usually has voting rights.

Accepted Answer

A) True 
 B)False

Tangible assets on the balance sheet should include:

The financial statements of legally separate entities may be issued to show the financial position and income as they would appear if the companies were one legal entity.Such statements reflect a legal, rather than an economic, concept of the entity.

An ESOP is a qualified stock-bonus or combination stock-bonus and money-purchase pension plan designed to invest primarily in stock, other than the employer's securities.

If dividends are not declared by the board of directors in a particular year, a holder of cumulative preferred stock will never be paid that dividend.

The balance sheet is presented with the assets equal to liabilities plus equity.When this presentation is presented side by side, it is called the account form.

The most popular depreciation method for financial reporting is the following:

Which of the following is not a common characteristic of preferred stock?

Which of the following would not appear on a conventional balance sheet?

Which of the following is not true relating to treasury stock?

The current asset section of the balance sheet should include:

Noncontrolling interest reflects the ownership of noncontrolling shareholders in the equity of consolidated subsidiaries less than wholly occurred.

Preferred stock usually has voting rights.

Introduction to Financial Reporting

Introduction to Financial Statements and Other Financial Reporting Topics

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 3: Balance Sheet

Tangible assets on the balance sheet should include:

The financial statements of legally separate entities may be issued to show the financial position and income as they would appear if the companies were one legal entity.Such statements reflect a legal, rather than an economic, concept of the entity.

An ESOP is a qualified stock-bonus or combination stock-bonus and money-purchase pension plan designed to invest primarily in stock, other than the employer's securities.

If dividends are not declared by the board of directors in a particular year, a holder of cumulative preferred stock will never be paid that dividend.

The balance sheet is presented with the assets equal to liabilities plus equity.When this presentation is presented side by side, it is called the account form.

The most popular depreciation method for financial reporting is the following:

Which of the following is not a common characteristic of preferred stock?

Which of the following would not appear on a conventional balance sheet?

Which of the following is not true relating to treasury stock?

The current asset section of the balance sheet should include:

Noncontrolling interest reflects the ownership of noncontrolling shareholders in the equity of consolidated subsidiaries less than wholly occurred.

Preferred stock usually has voting rights.

Introduction to Financial Reporting

Introduction to Financial Statements and Other Financial Reporting Topics

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