Mthembu is a financial accounting student at Mancosa involved in an internship at Inca Financial Company. The supervisor want to test his knowledge of the financial statements and asked him to identify which of the statements below is false? O A. The financial result of an enterprise is a measure of the profit or loss that the enterprise made over a certain period of time OB. Assels are the possessions of a business that have monetary value OC. A Statement of Comprehensive income shows the financial position of an entity on a certain date OD. Liabilities are the obligations of an entity

Choose the incorrect statement:a.) The objective of the external financial statements is to communicate the economic effects of completed transactions and other events on the entity.b.) The practice of accounting requires considerable professional judgment.c.) Security analysis use information form financial statements and other sources to projects future earnings.d.) The assessment of earning quality has become an exact science.

Which of the following is the primary objective of financial accounting? a) To ensure that a company pays the correct amount of tax b) To provide useful financial information to external users c) To control the company's day-to-day operations d) To help the company minimize its costs

Which of the following is the primary objective of financial accounting?

a. What do the accounting policies say in the annual report (footnotes) regarding the cost of revenue? What are the drivers to the cost of revenue and the trends? b. Are there any trends in sales and marketing expenses or research and development? Are these amounts reasonable for the type of business? c. Compare general and administrative expenses to similar companies. Are they reasonable? d. What is the ratio of net interest income (expense) to income from operations? Is this a safe ratio for the company? Why or why not?

Choose the letter of the best answer. Write the chosen letter on a separate sheet of paper. 1. These are the costs being incurred by the business in generating revenues a. Assets b. Expenses c. Liabilities d. Owner's Equity 2. An asset account that represents the amount of money owed by the customer to the business is c. Cash a. Accounts Payable b. Accounts Receivable d. Inventories 3. These are present obligations of an entity arising from past transactions or events c. Liabilities d. Revenues 4. These are resources controlled by the business as a result of past transactions and events and from a. Assets b. Expenses which future economic benefits are expected to flow to the business a. Assets c. Liabilities d. Revenues b. Expenses 5. It refers to open account which represent the amount of money owed by the business to creditor or suppliers a. Accounts Payable c. Prepaid Expenses b. Accounts Receivable d. Unearned Revenues 6. This represents earnings made by professionals or experts…

Mr. A started his own business.   As it is a very small business with little investment and very less transactions, he does not want to hire any employees to record the transactions happening in the business. As he is not from an Accounting background, he finds it very difficult to understand how to classify the transactions and record. Some transactions are given to you to help him classify transactions category under A) Current Assets B) Current Liabilities C) Long term liabilities D) Long term Assets E) Contingent Liability. You are also required to guide him how you have classified a particular transaction by giving suitable reasons in the books of both the parties. Suppose Mr. A has purchased goods for using it in manufacturing from Mr. B on credit for RO 5000. A’s company borrowed money from Bank Muscat promising to repay it after 2 years. A Promised to deliver the goods to Mr. Z on June 1st Mr. Z paid the cash of RO.           2,500 before the goods were delivered to him.…

Match the appropriate terms with the definitions. Definition 1. The economic benefit (increase in assets) gained by providing goods or services to customers. 2. Investors who purchase common stock. 3. The economic sacrifice (decrease in assets) incurred in the process of providing goods or services to customers. 4. Created when a company borrows money from a bank. 5. Assets minus liabilities and retained earnings. 6. Occurs when expenses exceed revenues during the year. 7. Individuals or institutions that have loaned goods or services to a business. 8. Complete set of accounts used in accounting systems. 9. Occurs when revenue exceeds expenses during the year. 10 Assets minus liabilities. 11. The section of the statement of cash flows that reflects cash paid for expenses. 12 The section of the statement of cash flows that reflects cash collected from the issue of stock. 13 The section of the statement of cash flows that reflects cash paid to purchase land. 14 The item shown on the…

Match each concept with the definition that best describes it. Expense recognition principle (matching [ Choose] principle) [ Choose ] Accounting basis in which companies record transactions that change a company's financial statements in the periods in which the events occur. Accounting basis in which companies record revenue when they receive cash and an expense when they pay out cash. The principle that companies recognize revenue in the accounting period in which the performance obligation is satisfied. Information that accurately depicts what really happened. The principle that companies recognize expense in the period in which they make efforts (consume assets or incur liabilities) to generate revenue. An assumption that accountants can divide the economic life of a business into artificial time periods. Monthly or quarterly accounting time periods. An accounting period that extends from January 1 to December 31. Revenue recognition principle Time period assumption Calendar year…

Which of the following is FALSE regarding the financial statements?