Question 1

Sometimes financial statements are presented without an accompanying accountant's report.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is not a true statement relating to the Treadway Commission?

Accepted Answer

A) The Treadway Commission is the popular name for the National Commission on Fraudulent Reporting. 
B) The Treadway Commission has released reports detailing internal control systems. 
C) Management's Report on Internal Control over Financial Reporting and the independent public accounting from report to the shareholders and board of directors often refer to criteria established on internal control by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). 
D) The Treadway Commission has issued a number of recommendations for the prevention of fraud on financial reports,ethics,and effective internal controls. 
E) The Treadway Commission is a voluntary-sector organization formed to support the Sarbones-Oxley Act. 
A) The Treadway Commission is the popular name for the National Commission on Fraudulent Reporting. 
B) The Treadway Commission has released reports detailing internal control systems. 
C) Management's Report on Internal Control over Financial Reporting and the independent public accounting from report to the shareholders and board of directors often refer to criteria established on internal control by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). 
D) The Treadway Commission has issued a number of recommendations for the prevention of fraud on financial reports,ethics,and effective internal controls. 
E) The Treadway Commission is a voluntary-sector organization formed to support the Sarbones-Oxley Act.

Question 3

For public companies reporting under Sarbanes-Oxley,the auditor reports on the firm's internal controls in addition to the audit report.

Accepted Answer

A) True 
 B)False

Question 4

Match the financial statement that goes with each term.
-Summarizes the results of operations for a particular period of time.

Accepted Answer

A) income statements 
B) notes 
C) balance sheet 
D) statement of cash flows 
E) statement of retained earnings (reconciliation of retained earnings) 
A) income statements 
B) notes 
C) balance sheet 
D) statement of cash flows 
E) statement of retained earnings (reconciliation of retained earnings)

Question 5

Which of these statements is not true?

Accepted Answer

A) Asset,liability,and stockholders' equity accounts are referred to as permanent accounts. 
B) Revenue,expense,and dividend accounts are described as temporary accounts. 
C) Temporary accounts are closed at the end of the period to retained earnings. 
D) The balance sheet will not balance until the temporary accounts are closed to retained earnings. 
E) With double-entry,each transaction is recorded twice. 
A) Asset,liability,and stockholders' equity accounts are referred to as permanent accounts. 
B) Revenue,expense,and dividend accounts are described as temporary accounts. 
C) Temporary accounts are closed at the end of the period to retained earnings. 
D) The balance sheet will not balance until the temporary accounts are closed to retained earnings. 
E) With double-entry,each transaction is recorded twice.

Question 6

Not all reports to the SEC are made available on EDGAR.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

The assets for the balance sheet must equal the liabilities and stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 9

Match each auditor's report with the phrase that correctly describes it.
-This opinion states that the financial statements do not present fairly the financial position,results of operations,and cash flows of the entity in conformity with generally accepted accounting principles.

Accepted Answer

A) adverse 
B) unqualified 
C) qualified 
D) reviewed 
E) disclaimer
F)compiled 
A) adverse 
B) unqualified 
C) qualified 
D) reviewed 
E) disclaimer
F)compiled

Question 10

Match each auditor's report with the phrase that correctly describes it.
-Presentation of financial information as presented by management

Accepted Answer

A) adverse 
B) unqualified 
C) qualified 
D) reviewed 
E) disclaimer
F)compiled 
A) adverse 
B) unqualified 
C) qualified 
D) reviewed 
E) disclaimer
F)compiled

Question 11

The retained earnings account is the link between the balance sheet and the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 12

At any point in time,assets must equal the contribution of the creditors only.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Match each auditor's report with the phrase that correctly describes it.
-This opinion states that the financial statements present fairly,in all material respects,the financial position,results of operations,and cash flows of the entity in conformity with generally accepted accounting principles.

Accepted Answer

A) adverse 
B) unqualified 
C) qualified 
D) reviewed 
E) disclaimer
F)compiled 
A) adverse 
B) unqualified 
C) qualified 
D) reviewed 
E) disclaimer
F)compiled

Question 15

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 16

Match each auditor's report with the phrase that correctly describes it.
-Consists principally of inquiries made to company personnel and analytical procedures applied to financial data.

Accepted Answer

A) adverse 
B) unqualified 
C) qualified 
D) reviewed 
E) disclaimer
F)compiled 
A) adverse 
B) unqualified 
C) qualified 
D) reviewed 
E) disclaimer
F)compiled

Question 17

Which of the following statements is not true?

Accepted Answer

A) A qualified opinion or an adverse opinion may bring into question the reliability of the financial statements. 
B) A disclaimer of opinion indicates that one should not look to the auditor's report as an indication of the reliability of the statements. 
C) In some cases,outside accountants are associated with financial statements when they have performed less than an audit. 
D) A review is substantially less in scope than an examination in accordance with generally accepted auditing statements. 
E) The accountant's report expresses an opinion on reviewed financial statements. 
A) A qualified opinion or an adverse opinion may bring into question the reliability of the financial statements. 
B) A disclaimer of opinion indicates that one should not look to the auditor's report as an indication of the reliability of the statements. 
C) In some cases,outside accountants are associated with financial statements when they have performed less than an audit. 
D) A review is substantially less in scope than an examination in accordance with generally accepted auditing statements. 
E) The accountant's report expresses an opinion on reviewed financial statements.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

In addition to the balance sheet,the income statement,and the statement of cash flows,a complete set of financial statements must include:

Accepted Answer

A) an auditor's opinion. 
B) a ten-year summary of operations. 
C) a note disclosure of such items as accounting policies. 
D) historical common-size (percentage)summaries. 
E) a list of corporate officers. 
A) an auditor's opinion. 
B) a ten-year summary of operations. 
C) a note disclosure of such items as accounting policies. 
D) historical common-size (percentage)summaries. 
E) a list of corporate officers.

Question 20

Listed below is information related to several entry situations.Assume that the accounting year ends on December 31. 1. The company acquired land for $100,000 issung a note payable.
2. Equipment is acquired for $30,000 cash.
3. Memberships were sold for $20,000, accepting accounts receivables
4. Salaries of $15,000 were paid in cash.
5. Uthities were paid in cash in the amount of $\$ 5,000$. 
Required:
Record these entries using T-accounts.Use the number of the transaction in lieu of a date for identification purposes.

Accepted Answer

@#IMG-DLM&_TB2094_00 
 @#IMG-DLM&_TB2094

Sometimes financial statements are presented without an accompanying accountant's report.

Which of the following is not a true statement relating to the Treadway Commission?

For public companies reporting under Sarbanes-Oxley,the auditor reports on the firm's internal controls in addition to the audit report.

Match the financial statement that goes with each term. -Summarizes the results of operations for a particular period of time.

Which of these statements is not true?

Not all reports to the SEC are made available on EDGAR.

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

The assets for the balance sheet must equal the liabilities and stockholders' equity.

Match each auditor's report with the phrase that correctly describes it. -This opinion states that the financial statements do not present fairly the financial position,results of operations,and cash flows of the entity in conformity with generally accepted accounting principles.

Match each auditor's report with the phrase that correctly describes it. -Presentation of financial information as presented by management

The retained earnings account is the link between the balance sheet and the statement of cash flows.

At any point in time,assets must equal the contribution of the creditors only.

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

Match each auditor's report with the phrase that correctly describes it. -This opinion states that the financial statements present fairly,in all material respects,the financial position,results of operations,and cash flows of the entity in conformity with generally accepted accounting principles.

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

Match each auditor's report with the phrase that correctly describes it. -Consists principally of inquiries made to company personnel and analytical procedures applied to financial data.

Which of the following statements is not true?

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

In addition to the balance sheet,the income statement,and the statement of cash flows,a complete set of financial statements must include:

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

Sometimes financial statements are presented without an accompanying accountant's report.

Which of the following is not a true statement relating to the Treadway Commission?

For public companies reporting under Sarbanes-Oxley,the auditor reports on the firm's internal controls in addition to the audit report.

Match the financial statement that goes with each term. -Summarizes the results of operations for a particular period of time.

Which of these statements is not true?

Not all reports to the SEC are made available on EDGAR.

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

The assets for the balance sheet must equal the liabilities and stockholders' equity.

Match each auditor's report with the phrase that correctly describes it. -This opinion states that the financial statements do not present fairly the financial position,results of operations,and cash flows of the entity in conformity with generally accepted accounting principles.

Match each auditor's report with the phrase that correctly describes it. -Presentation of financial information as presented by management

The retained earnings account is the link between the balance sheet and the statement of cash flows.

At any point in time,assets must equal the contribution of the creditors only.

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

Match each auditor's report with the phrase that correctly describes it. -This opinion states that the financial statements present fairly,in all material respects,the financial position,results of operations,and cash flows of the entity in conformity with generally accepted accounting principles.

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

Match each auditor's report with the phrase that correctly describes it. -Consists principally of inquiries made to company personnel and analytical procedures applied to financial data.

Which of the following statements is not true?

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

In addition to the balance sheet,the income statement,and the statement of cash flows,a complete set of financial statements must include:

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