Question 1

Which of the following would appear on both the Balance Sheet and the Statement of Changes in Owners' Equity?

Accepted Answer

A) Net Income 
B) Prior Period Adjustment 
C) Paid-in-Capital in Excess of Par 
D) Common Stock Dividends 
A) Net Income 
B) Prior Period Adjustment 
C) Paid-in-Capital in Excess of Par 
D) Common Stock Dividends

Question 2

Which of the following would be classified as an investment?

Accepted Answer

A) prepaid expenses 
B) trading securities 
C) estimated pension obligation 
D) land held for sale in the future 
A) prepaid expenses 
B) trading securities 
C) estimated pension obligation 
D) land held for sale in the future

Question 3

What is the value of current assets? $$\begin{array} { l l l l } 
\text { Cash } & \$ 50,000 & \text { Irventory } & \$ 9,000 \
\text { Sales } & \$ 30,000 & \text { Accounts Payable } & \$ 9,000 \
\text { Cost of Goods Sold } & \$ 8,000 & \text { Accourts Receivable } & \$ 18,000 \
\text { Prepaid Irsurance } & \$ 8,000 & \text { Insurance Expense } \$ 9,000 & \
& & \text { Long-Tern Liabilities (due withirn one year) } & \$ 30,000
\end{array}$$

Accepted Answer

A) $ 50,000 
B) $ 58,000 
C) $ 85,000 
D) $ 115,000 
A) $ 50,000 
B) $ 58,000 
C) $ 85,000 
D) $ 115,000

Question 4

Using only the appropriate accounts below create a stockholders' equity section of the balance sheet.

Accepted Answer

The answer of Using only the appropriate accounts below create...

Question 5

What account would not be found in the stockholders' equity section of the balance sheet?

Accepted Answer

A) paid-in-capital 
B) common stock 
C) retained earnings 
D) treasury stock 
E) bonds payable 
A) paid-in-capital 
B) common stock 
C) retained earnings 
D) treasury stock 
E) bonds payable

Question 6

If a firm failed to classify the portion of long-term debt that is due within one year as a current liability,which of the following ratios would not be overstated?

Accepted Answer

A) quick ratio 
B) current ratio 
C) debt to equity ratio 
D) current-debt-to-cash ratio 
A) quick ratio 
B) current ratio 
C) debt to equity ratio 
D) current-debt-to-cash ratio

Question 7

A compensating balance is generally reported on a company's balance sheet as:

Accepted Answer

A) a cash equivalent 
B) a long-term investment 
C) a short-term investment 
D) a part of the total cash balance 
A) a cash equivalent 
B) a long-term investment 
C) a short-term investment 
D) a part of the total cash balance

Question 8

The assets on the balance sheet are listed:

Accepted Answer

A) in alphabetical order 
B) in order of significance 
C) by dollar value 
D) in order of liquidity 
A) in alphabetical order 
B) in order of significance 
C) by dollar value 
D) in order of liquidity

Question 9

The method chosen by a company to account for its inventories would generally be disclosed in the:

Accepted Answer

A) auditor's report accompanying the financial statements 
B) summary of significant accounting policies note 
C) management's letter to the stockholders 
D) current asset section of the balance sheet 
A) auditor's report accompanying the financial statements 
B) summary of significant accounting policies note 
C) management's letter to the stockholders 
D) current asset section of the balance sheet

Question 10

Cassiopeia Corporation acquired an asset in a transaction which resulted in a non-cancelable obligation to make future payments.The transaction was classified as an operating lease.What is the term for this procedure?

Accepted Answer

A) off-the-balance-sheet financing 
B) compound financing 
C) phantom financing 
D) illegal financing 
A) off-the-balance-sheet financing 
B) compound financing 
C) phantom financing 
D) illegal financing

Question 11

Match between columns
                        Premises: Inventory
Note Payable due in 60 days
Premium on Bonds Payable
Discount on Note Payable (note due in 5 years)
Land
Dividend Payable
Bonds Payable
Accumulated Depreciation
Paid-in-Capital from Treasury Stock
Trading Securities
Copyright
Accounts Receivable
Paid-in-Capital in Excess of Par
Accounts Payable
Cash
Interest Expense
Foreign Currency Translations
Available-for-Sale Securities
Unrealized Gains on Investments
Equipment

Accepted Answer

The Answer of Contributed Capital and Investments and Current Assets is...

Question 12

Treasury Stock would be reported on the balance sheet as:

Accepted Answer

A) retained earnings 
B) contributed capital 
C) reduction to stockholders' equity 
D) a long-term investment 
A) retained earnings 
B) contributed capital 
C) reduction to stockholders' equity 
D) a long-term investment

Question 13

A discount on bonds payable would be reported on the balance sheet as part of the:

Accepted Answer

A) long-term investment section 
B) other owners' equity section 
C) long-term liability section 
D) current liability section 
A) long-term investment section 
B) other owners' equity section 
C) long-term liability section 
D) current liability section

Question 14

Goodwill would be reported on the balance sheet as a(n):

Accepted Answer

A) intangible asset 
B) current asset 
C) investment 
D) plant asset 
A) intangible asset 
B) current asset 
C) investment 
D) plant asset

Question 15

Inventory would be reported on the balance sheet as a(n):

Accepted Answer

A) plant asset 
B) investment 
C) current asset 
D) intangible asset 
A) plant asset 
B) investment 
C) current asset 
D) intangible asset

Question 16

Comment on this statement: "Dividends are paid out of retained earnings; so,obviously,retained earnings is the cash generated by earnings".

Accepted Answer

While people often say dividends are pai

Question 17

Available-for-sale securities are reported on the balance sheet

Accepted Answer

A) In the Investments classification at their historic cost 
B) In the Current Assets classification at their market value 
C) In the Investments classification at their market value 
D) In the Stockholders' Equity section at their market value. 
A) In the Investments classification at their historic cost 
B) In the Current Assets classification at their market value 
C) In the Investments classification at their market value 
D) In the Stockholders' Equity section at their market value.

Question 18

Unrealized Gains and Losses would be reported on the balance sheet as an adjustment to:

Accepted Answer

A) retained earnings 
B) contributed capital 
C) comprehensive income 
D) a long-term investment 
A) retained earnings 
B) contributed capital 
C) comprehensive income 
D) a long-term investment

Question 19

Potential events that could create negative financial results for a company,which are required to be recorded when the event is both probable and reasonably estimated in terms of its monetary effects,are referred to as:

Accepted Answer

A) deferred charges 
B) cumulative effects 
C) contingent liabilities 
D) prior period adjustments 
A) deferred charges 
B) cumulative effects 
C) contingent liabilities 
D) prior period adjustments

Question 20

Which of the following would not appear on the Balance Sheet.

Accepted Answer

A) Common Stock 
B) Prior Period Adjustment 
C) Retained Earnings 
D) Paid-in-Capital in Excess of Par 
A) Common Stock 
B) Prior Period Adjustment 
C) Retained Earnings 
D) Paid-in-Capital in Excess of Par

Which of the following would appear on both the Balance Sheet and the Statement of Changes in Owners' Equity?

Which of the following would be classified as an investment?

What is the value of current assets? Cash \ 50,000 Irventory \ 9,000 Sales \ 30,000 Accounts Payable \ 9,000 Cost of Goods Sold \ 8,000 Accourts Receivable \ 18,000 Prepaid Irsurance \ 8,000 Insurance Expense \ 9,000 Long-Tern Liabilities (due withirn one year) \ 30,000

Using only the appropriate accounts below create a stockholders' equity section of the balance sheet.

What account would not be found in the stockholders' equity section of the balance sheet?

If a firm failed to classify the portion of long-term debt that is due within one year as a current liability,which of the following ratios would not be overstated?

A compensating balance is generally reported on a company's balance sheet as:

The assets on the balance sheet are listed:

The method chosen by a company to account for its inventories would generally be disclosed in the:

Cassiopeia Corporation acquired an asset in a transaction which resulted in a non-cancelable obligation to make future payments.The transaction was classified as an operating lease.What is the term for this procedure?

Treasury Stock would be reported on the balance sheet as:

A discount on bonds payable would be reported on the balance sheet as part of the:

Goodwill would be reported on the balance sheet as a(n):

Inventory would be reported on the balance sheet as a(n):

Comment on this statement: "Dividends are paid out of retained earnings; so,obviously,retained earnings is the cash generated by earnings".

Available-for-sale securities are reported on the balance sheet

Unrealized Gains and Losses would be reported on the balance sheet as an adjustment to:

Potential events that could create negative financial results for a company,which are required to be recorded when the event is both probable and reasonably estimated in terms of its monetary effects,are referred to as:

Which of the following would not appear on the Balance Sheet.

Accounting and Business

Business Processes and Accounting Information

Operating Processes: Planning and Control

Short-Term Decision Making

Strategic Planning Regarding Operating Processes

Planning, The Balanced Scorecard, and Budgeting

Accounting Information Systems

Purchasinghuman Resourcespayment Process: Recording and Evaluating Expenditure Process Activities

Recording and Evaluating Conversion Process Activities

Recording and Evaluating Revenue Process Activities

Time Value of Money

Planning Investments: Capital Budgeting

Planning Equity Financing

Planning Debt Financing

Recording and Evaluating Capital Resource Process Activities: Financing

Recording and Evaluating Capital Resource Process Activities: Investing

Company Performance: Profitability

Company Performance: Cash Flows

Company Performance: Comprehensive Evaluation

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Exam 18: Company Performance: Owners Equity and Financial Position

Which of the following would appear on both the Balance Sheet and the Statement of Changes in Owners' Equity?

Which of the following would be classified as an investment?

What is the value of current assets? Cash \ 50,000 Irventory \ 9,000 Sales \ 30,000 Accounts Payable \ 9,000 Cost of Goods Sold \ 8,000 Accourts Receivable \ 18,000 Prepaid Irsurance \ 8,000 Insurance Expense \ 9,000 Long-Tern Liabilities (due withirn one year) \ 30,000

Using only the appropriate accounts below create a stockholders' equity section of the balance sheet.

What account would not be found in the stockholders' equity section of the balance sheet?

If a firm failed to classify the portion of long-term debt that is due within one year as a current liability,which of the following ratios would not be overstated?

A compensating balance is generally reported on a company's balance sheet as:

The assets on the balance sheet are listed:

The method chosen by a company to account for its inventories would generally be disclosed in the:

Cassiopeia Corporation acquired an asset in a transaction which resulted in a non-cancelable obligation to make future payments.The transaction was classified as an operating lease.What is the term for this procedure?

Treasury Stock would be reported on the balance sheet as:

A discount on bonds payable would be reported on the balance sheet as part of the:

Goodwill would be reported on the balance sheet as a(n):

Inventory would be reported on the balance sheet as a(n):

Comment on this statement: "Dividends are paid out of retained earnings; so,obviously,retained earnings is the cash generated by earnings".

Available-for-sale securities are reported on the balance sheet

Unrealized Gains and Losses would be reported on the balance sheet as an adjustment to:

Potential events that could create negative financial results for a company,which are required to be recorded when the event is both probable and reasonably estimated in terms of its monetary effects,are referred to as:

Which of the following would not appear on the Balance Sheet.

Accounting and Business

Business Processes and Accounting Information

Operating Processes: Planning and Control

Short-Term Decision Making

Strategic Planning Regarding Operating Processes

Planning, The Balanced Scorecard, and Budgeting

Accounting Information Systems

Purchasinghuman Resourcespayment Process: Recording and Evaluating Expenditure Process Activities

Recording and Evaluating Conversion Process Activities

Recording and Evaluating Revenue Process Activities

Time Value of Money

Planning Investments: Capital Budgeting

Planning Equity Financing

Planning Debt Financing

Recording and Evaluating Capital Resource Process Activities: Financing

Recording and Evaluating Capital Resource Process Activities: Investing

Company Performance: Profitability

Company Performance: Cash Flows

Company Performance: Comprehensive Evaluation

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