Question 1

Financial leverage is measured by the debt-to-assets ratio.

Accepted Answer

A) True 
 B)False

Question 2

The SEC requires disclosure of quarterly high and low market prices for

Accepted Answer

A)   two years.
B)   three years.
C)   four years.
D)   The SEC does not require disclosure of quarterly high and low market prices.E) A) and B)
F) A) and C)

Question 3

The systematic allocation of the costs of natural assets to expense is called

Accepted Answer

A)   amortization.
B)   depreciation.
C)   impairment.
D)   depletion.E) C) and D)
F) All of the above

Question 4

A balance sheet account that is usually reported at present value is

Accepted Answer

A)   Land.
B)   Note Payable.
C)   Accounts Payable.
D)   Inventory.E) A) and C)
F) A) and D)

Question 5

The primary attribute of all assets is

Accepted Answer

A)   service potential.
B)   productive capacity.
C)   historical cost.
D)   service contribution.E) None of the above
F) A) and D)

Question 6

Time-series analysis is the same as rate of change analysis.

Accepted Answer

A) True 
 B)False

Question 7

The amount a company would pay to acquire an asset it now holds is the asset's

Accepted Answer

A)   historical cost.
B)   current replacement cost.
C)   current exit value.
D)   present value.E) C) and D)
F) A) and D)

Question 8

What is the term for the systematic allocation of the costs of intangible assets to expense?

Accepted Answer

A)   Amortization
B)   Depreciation
C)   Impairment
D)   DepletionE) None of the above
F) A) and B)

Question 9

A comparison of a company's performance with that of its competitors is known as

Accepted Answer

A)   common-size analysis.
B)   intercompany comparison.
C)   ratio analysis.
D)   intracompany comparison.E) C) and D)
F) A) and D)

Question 10

Exhibit 4-1
Given the following information for Blue Bell Company for last year: 
-Refer to Exhibit 4-1. Blue Bell's inventory turnover for the year was

Accepted Answer

A)   9.0 times
B)   8.3 times
C)   12.0%
D)   11.1%E) A) and D)
F) B) and C)

Question 11

Information about a company's operating capability may be helpful to external users in

Accepted Answer

A)   assessing the uncertainty of its future cash flows.
B)   evaluating the timing of cash flows in the near future.
C)   evaluating the efficiency with which the company uses its resources to generate revenue.
D)   assessing a return of investment as well as a return on investment.E) A) and B)
F) A) and C)

Question 12

Which of the following is not a component of contributed capital?

Accepted Answer

A)   Preferred stock
B)   Treasury stock
C)   Earned capital
D)   Additional paid-in capitalE) All of the above
F) A) and B)

Question 13

Current liabilities includes all of the following except

Accepted Answer

A)   income tax payable.
B)   mortgage due to be paid this year.
C)   notes receivable.
D)   advance payments from customers.E) None of the above
F) All of the above

Question 14

The ability of a company to adapt its resources to create change and react to change is called

Accepted Answer

A)   financial flexibility.
B)   return on investment .
C)   operating capability.
D)   risk .E) None of the above
F) A) and B)

Question 15

Derivative financial instruments must be reported as either assets or liabilities on the balance sheet and be measured at their net realizable value.

Accepted Answer

A) True 
 B)False

Question 16

Net realizable value is the amount a company would have to pay currently to acquire an asset it now holds.

Accepted Answer

A) True 
 B)False

Question 17

What is working capital and how does it relate to the company's operating cycle?

Accepted Answer

Working capital is the excess of total c...

Question 18

Trademarks or acquired brand names are not amortized but are reviewed annually for impairment.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following elements is not recognized on the balance sheet?

Accepted Answer

A)   Equity
B)   Expense
C)   Liability
D)   AssetE) A) and B)
F) A) and C)

Question 20

A component of equity that arises when a parent company owns a majority of the common shares of a subsidiary company is known as

Accepted Answer

A)   majority interest.
B)   noncontrolling interest.
C)   earned capital.
D)   unearned capital.E) A) and D)
F) B) and C)

Exam 4: The Balance Sheet and the Statement of Shareholders Equity

What is working capital and how does it relate to the company's operating cycle?

Correct AnswerverifiedWorking capital is the excess of total c...View AnswerShow Answer

Exhibit 4-1 Given the following information for Blue Bell Company for last year: -Refer to Exhibit 4-1. Blue Bell's inventory turnover for the year was

Correct AnswerverifiedShow Answer

Derivative financial instruments must be reported as either assets or liabilities on the balance sheet and be measured at their net realizable value.

Correct AnswerverifiedShow Answer

A component of equity that arises when a parent company owns a majority of the common shares of a subsidiary company is known as

Correct AnswerverifiedShow Answer

Financial leverage is measured by the debt-to-assets ratio.

Correct AnswerverifiedShow Answer

The amount a company would pay to acquire an asset it now holds is the asset's

Correct AnswerverifiedShow Answer

Information about a company's operating capability may be helpful to external users in

Correct AnswerverifiedShow Answer

The primary attribute of all assets is

Correct AnswerverifiedShow Answer

Trademarks or acquired brand names are not amortized but are reviewed annually for impairment.

Correct AnswerverifiedShow Answer

The systematic allocation of the costs of natural assets to expense is called

Correct AnswerverifiedShow Answer

The ability of a company to adapt its resources to create change and react to change is called

Correct AnswerverifiedShow Answer

Which of the following is not a component of contributed capital?

Correct AnswerverifiedShow Answer

A comparison of a company's performance with that of its competitors is known as

Correct AnswerverifiedShow Answer

Which of the following elements is not recognized on the balance sheet?

Correct AnswerverifiedShow Answer

Time-series analysis is the same as rate of change analysis.

Correct AnswerverifiedShow Answer

A balance sheet account that is usually reported at present value is

Correct AnswerverifiedShow Answer

What is the term for the systematic allocation of the costs of intangible assets to expense?

Correct AnswerverifiedShow Answer

The SEC requires disclosure of quarterly high and low market prices for

Correct AnswerverifiedShow Answer

Net realizable value is the amount a company would have to pay currently to acquire an asset it now holds.

Correct AnswerverifiedShow Answer

Current liabilities includes all of the following except

Correct AnswerverifiedShow Answer

Correct Answer
verified
Working capital is the excess of total c...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified