Question 1

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Prepaid expense

Accepted Answer

A)  Cash received from a customer for goods or services to be provided in a future period.
B)  Accumulated net income less dividends since the inception of the corporation.
C)  Converting cash to inventory to receivables to cash.
D)  Cash paid in advance for a cost of the company.
E)  Amounts invested by shareholders in the corporation.F) A) and E)
G) C) and D)

Question 2

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Accounts receivable

Accepted Answer

A)  Goods to be sold in the ordinary course of business
B)  Insurance premiums paid in advance.
C)  Due from customers in the ordinary course of business
D)  Formal agreement that specifies customer's payment terms.
E)  Liquid investments not classified as cash equivalents.F) B) and E)
G) A) and B)

Question 3

Current assets include cash and all other assets expected to become cash or be consumed:

Accepted Answer

A)   Within one year.
B)   Within one operating cycle.
C)   Within one year or one operating cycle, whichever is shorter.
D)   Within one year or one operating cycle, whichever is longer.E) None of the above
F) All of the above

Question 4

Assets classified as property, plant, and equipment include machinery, equipment, and inventories.

Accepted Answer

A) True 
 B)False

Question 5

Carter Appliances is preparing its annual report for the current fiscal year. The company's controller has asked for your help in determining how best to disclose information about the following items:
1. A subsequent event.
2. Inventory costing method.
3. Composition of accrued liabilities.
4. Useful lives of depreciable assets.
5. Information on long-term leases.
6. Allowance for uncollectible accounts.
7. Revenue recognition policy.
8. Pension plans.
Required: Indicate whether the above items should be disclosed (a) in the summary of significant accounting policies note, (b) in a separate disclosure note, or (c) on the face of the balance sheet

Accepted Answer

1. (b) in a separate disclosure note.
2....

Question 6

Indicate whether each of the actions listed below will immediately increase (I), decrease (D), or have no effect (N) on the ratios shown. Assume each ratio is greater than 1.0 before the action is taken. 
-

Accepted Answer

The answer of Indicate whether each of the actions listed...

Question 7

When a company sells land for cash and recognizes a $25,000 gain:

Accepted Answer

A)   Its acid-test ratio decreases.
B)   Its current ratio decreases.
C)   Its debt to equity ratio decreases.
D)   Cannot determine from the given information.E) A) and B)
F) None of the above

Question 8

Which of the following is not a required segment reporting disclosure according to International Financial Reporting Standards (IFRS) ?

Accepted Answer

A)   Segment profit or loss.
B)   Segment assets.
C)   Segment liabilities.
D)   All are required disclosures.E) A) and D)
F) C) and D)

Question 9

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Long-term liabilities

Accepted Answer

A)  Obligations payable in more than one year or longer than the operating cycle.
B)  Includes buildings and land used in operations.
C)  Obligations payable within one year or the operating cycle.
D)  Ownership of an exclusive right.
E)  Items expected to be converted to cash or consumed within one year or the operating cycle.F) All of the above
G) B) and E)

Question 10

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-MD&A

Accepted Answer

A)  Management's views on its operations, liquidity, and capital resources.
B)  Independent and professional opinion about the fairness of the financial statements.
C)  Occurs after the fiscal year-end, but before the statements are issued.
D)  Information about the company's choices from among various alternative accounting methods.
E)  Includes disclosures of executive compensation.F) All of the above
G) A) and B)

Question 11

Long-term assets generally include:

Accepted Answer

A)   Inventory held for sale.
B)   Prepaid rent.
C)   Accounts receivable.
D)   Land held for a possible future plant site.E) B) and D)
F) A) and C)

Question 12

How are management's responsibility and the auditors' opinion on internal controls represented in the unqualified auditor's report?

Accepted Answer

A)   Option a
B)   Option b
C)   Option c
D)   Option dE) B) and C)
F) A) and C)

Question 13

The condensed balance sheet and income statement for Marjoram Company are presented below.

-Compute the current ratio for Marjoram Company. Round your answer to two decimal places.

Accepted Answer

($19,000 + 35,000 + ...

Question 14

Listed below are year-end account balances ($ in millions)  taken from the records of Symphony Stores.  
-What is the amount of working capital for Symphony?

Accepted Answer

A)   $98 millions.
B)   $143 millions.
C)   $128 millions.
D)   $113 millions.E) A) and B)
F) A) and D)

Question 15

Listed below are ten terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Related-party transactions

Accepted Answer

A)  Asset recorded when an expense is paid for in advance.
B)  Goods to be sold in the ordinary course of business.
C)  Transactions with owners, managers, and affiliated companies.
D)  An intangible asset.
E)  Management's views on significant events.F) Net income less dividends since inception of the corporation.G) Amounts due from customers.H) Material events that occur after the end of the fiscal year and before the statements are issued.I) Obligations to suppliers of merchandise or of services purchased on account.J) Cash received from a customer in advance of providing a good or service.K) A) and B)
L) C) and F)

Question 16

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Deferred revenue

Accepted Answer

A)  Cash received from a customer for goods or services to be provided in a future period.
B)  Accumulated net income less dividends since the inception of the corporation.
C)  Converting cash to inventory to receivables to cash.
D)  Cash paid in advance for a cost of the company.
E)  Amounts invested by shareholders in the corporation.F) A) and B)
G) B) and C)

Question 17

The following partial balance sheet ($ in thousands)  for Paisano Seafood Inc. is shown below. 
- The current ratio is (Round your answer to two decimal places.) :

Accepted Answer

A)   1.98.
B)   1.58.
C)   1.17.
D)   0.66.E) A) and B)
F) None of the above

Question 18

When a company accrues salaries at the end of the accounting period:

Accepted Answer

A)   Its acid-test ratio increases.
B)   Its current ratio increases.
C)   Its debt to equity ratio decreases.
D)   Its debt to equity ratio increases.E) A) and D)
F) B) and C)

Question 19

The compensation of top executives is disclosed in the proxy statement.

Accepted Answer

A) True 
 B)False

Question 20

Vertical analysis involves expressing each item in the financial statements as a percentage of an appropriate total, or base amount, within the same year.

Accepted Answer

A) True 
 B)False

Exam 3: The Balance Sheet and Financial Disclosures

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -MD&A

Correct Answer
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Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Prepaid expense

Correct Answer
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Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Accounts receivable

Correct Answer
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When a company accrues salaries at the end of the accounting period:

Correct Answer
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Listed below are year-end account balances ($ in millions) taken from the records of Symphony Stores. -What is the amount of working capital for Symphony?

Correct Answer
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Vertical analysis involves expressing each item in the financial statements as a percentage of an appropriate total, or base amount, within the same year.

Correct Answer
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The condensed balance sheet and income statement for Marjoram Company are presented below. -Compute the current ratio for Marjoram Company. Round your answer to two decimal places.

Correct Answer
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($19,000 + 35,000 + ...
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The compensation of top executives is disclosed in the proxy statement.

Correct Answer
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Current assets include cash and all other assets expected to become cash or be consumed:

Correct Answer
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Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Long-term liabilities

Correct Answer
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The following partial balance sheet ($ in thousands) for Paisano Seafood Inc. is shown below. - The current ratio is (Round your answer to two decimal places.) :

Correct Answer
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Indicate whether each of the actions listed below will immediately increase (I), decrease (D), or have no effect (N) on the ratios shown. Assume each ratio is greater than 1.0 before the action is taken. -

Correct Answer
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When a company sells land for cash and recognizes a $25,000 gain:

Correct Answer
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Long-term assets generally include:

Correct Answer
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Listed below are ten terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Related-party transactions

Correct Answer
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Which of the following is not a required segment reporting disclosure according to International Financial Reporting Standards (IFRS) ?

Correct Answer
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How are management's responsibility and the auditors' opinion on internal controls represented in the unqualified auditor's report?

Correct Answer
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1. (b) in a separate disclosure note.
2....
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Assets classified as property, plant, and equipment include machinery, equipment, and inventories.

Correct Answer
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Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Deferred revenue

Correct Answer
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Exam 3: The Balance Sheet and Financial Disclosures

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -MD&A

Correct AnswerverifiedShow Answer

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Prepaid expense

Correct AnswerverifiedShow Answer

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Accounts receivable

Correct AnswerverifiedShow Answer

When a company accrues salaries at the end of the accounting period:

Correct AnswerverifiedShow Answer

Listed below are year-end account balances ($ in millions) taken from the records of Symphony Stores. -What is the amount of working capital for Symphony?

Correct AnswerverifiedShow Answer

Vertical analysis involves expressing each item in the financial statements as a percentage of an appropriate total, or base amount, within the same year.

Correct AnswerverifiedShow Answer

The condensed balance sheet and income statement for Marjoram Company are presented below. -Compute the current ratio for Marjoram Company. Round your answer to two decimal places.

Correct Answerverified($19,000 + 35,000 + ...View AnswerShow Answer

The compensation of top executives is disclosed in the proxy statement.

Correct AnswerverifiedShow Answer

Current assets include cash and all other assets expected to become cash or be consumed:

Correct AnswerverifiedShow Answer

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Long-term liabilities

Correct AnswerverifiedShow Answer

The following partial balance sheet ($ in thousands) for Paisano Seafood Inc. is shown below. - The current ratio is (Round your answer to two decimal places.) :

Correct AnswerverifiedShow Answer

Indicate whether each of the actions listed below will immediately increase (I), decrease (D), or have no effect (N) on the ratios shown. Assume each ratio is greater than 1.0 before the action is taken. -

Correct AnswerverifiedShow Answer

When a company sells land for cash and recognizes a $25,000 gain:

Correct AnswerverifiedShow Answer

Long-term assets generally include:

Correct AnswerverifiedShow Answer

Listed below are ten terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Related-party transactions

Correct AnswerverifiedShow Answer

Which of the following is not a required segment reporting disclosure according to International Financial Reporting Standards (IFRS) ?

Correct AnswerverifiedShow Answer

How are management's responsibility and the auditors' opinion on internal controls represented in the unqualified auditor's report?

Correct AnswerverifiedShow Answer

Correct Answerverified1. (b) in a separate disclosure note.2....View AnswerShow Answer

Assets classified as property, plant, and equipment include machinery, equipment, and inventories.

Correct AnswerverifiedShow Answer

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Deferred revenue

Correct AnswerverifiedShow Answer

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($19,000 + 35,000 + ...
View Answer

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1. (b) in a separate disclosure note.
2....
View Answer

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