202

Choose the correct. Which of the following items must be disclosed in interim reports?a. Total assets.b. Total liabilities.c. Cash flow from operating activities.d. Gross revenues.

Fair value is used to value which of the following balance sheet accounts? a. Prepaid expenses; patents; property, plant, and equipment b. Capital lease obligations, bonds payable c. Receivables net of allowance for doubtful accounts d. Debtsecurities available for sale, trading securities

6.On a statement of financial affairs, a company's liabilities should be valued at Select one: a.the present value of future cash flows. b.the amount expected to be paid if the company could honor its debts. c.net realizable value. d.the amount required for settlement. e.replacement cost.

Which of the following should be disclosed in the Summary ofSignificant Accounting Policies?a. rent expense amount b. maturity dates of long-term debtc. methods of amortizing intangiblesd. composition of plant assets

19. The current assets section of the statement of financial position should include *   b. patents. a. machinery. d. inventory c. goodwill.   20. Equity or debt securities held to finance future construction of additional plants should be classified on a balance sheet as *   c. intangible assets. a. current assets. d. long-term investments b. property, plant, and equipment.   21. In a statement of cash flows, receipts from sales of property, plant, and equipment and other productive assets should generally be classified as cash inflows from *   d. selling activities c. investing activities. a. operating activities. b. financing activities.   22. The statement of financial position *   d. All of the choices are correct regarding the statement of financial position. c. Uses fair value for most assets and liabilities. b. Makes very limited use of judgments and estimates. a. Omits many items that are of financial value.   23. The basis for classifying assets as current or noncurrent is…

The following are the typical classifications used in a statement of financial position : a.       Current assets b.      Investments and funds c.       Property, plant, and equipment d.      Investment property e.       Intangible assets f.       Current liabilities g.       Long-term liabilities h.      Issued capital i.        Retained earnings Required : For each of the following statements of financial position items. use the letters above to indicate the appropriate classification category. If the item is a contra account, place a minus before the chosen letter   3.      ………. Unearned rent revenue 4.      ……….. Income less dividends, accumulated 5.      ………. Building, in use

The following are the typical classifications used in a statement of financial position : a.       Current assets b.      Investments and funds c.       Property, plant, and equipment d.      Investment property e.       Intangible assets f.       Current liabilities g.       Long-term liabilities h.      Issued capital i.        Retained earnings Required : For each of the following statements of financial position items. use the letters above to indicate the appropriate classification category. If the item is a contra account, place a minus before the chosen letter 1.      ….  .…….Prepaid insurance 2.      ……….. Note payable due in three months

On a classified statement of financial position, current assets are customarily listed? a. in the reverse order of liquidity O b. in alphabetical order O c. in the order of acquisition O d. with the largest dollar amounts first

Which of the following are examples of subsections found on a classified balance sheet? O a. Liabilities; long-term liabilities; stockholders' equity O b. Stockholders' equity; liabilities; property, plant, and equipment O c. Current assets; long-term liabilities; property, plant, and equipment O d. Assets; current assets; long-term liabilities

Which of the following ratios measures short-term solvency? a. Current ratio b. Creditors' equity to total assets c. Return on investment d. Total asset turnover

For which of the following balance sheet items will the book value and market value most likely be closest at the time the balance sheet is prepared? Select one: O a. Short-term debt O b. Net fixed assets O c. Long-term debt O d. Common stock O e. Retained earnings

Which of the following statements regarding the income statement are true? Group of answer choices A. The net income from the income statement is included on the asset section of the balance sheet. B. The income statement shows the cash flows from operations during a period of time. C. Net income or loss from the income statement is included in the calculation of ending retained earnings on the Statement of Retained Earnings. D. The income statement shows how much the company owes.

The following information can be obtained by examining a company's balance sheet and income statement information: a. Increases in current asset account balances, other than cash. b. Decreases in current asset account balances, other than cash. c. Cash outflows to purchase long-term assets. d. Decreases in current liability account balances. e. Cash outflows to repay long-term debt. f. Gains recognized on the sale of long-term assets. g. Noncash expenses (e.g., depreciation). h. Cash outflows to purchase treasury stock. i. Increases in current liability account balances. j. Cash inflows from the sale of long-term assets. k. Cash inflows from the issue of common stock. I. Cash outflows to pay dividends. m. Losses incurred from the sale of long-term assets. n. Cash inflows from the issue of long-term debt. Required For each item, indicate whether it would be used in the computation of net cash flows from operating, investing, or financing activities. Also, indicate whether the item would…

2