Question 1

Opinions on the effectiveness of the internal control system and the fairness of the amounts reported in the financial statements are known as:

Accepted Answer

A)   Management Discussion and Analysis.
B)   Assurance Opinions.
C)   Notes to the Financial Statements
D)   Management Assessments.E) A) and D)
F) None of the above

Question 2

Current assets are defined as:

Accepted Answer

A)   Cash and cash equivalents.
B)   All assets expected to be quickly used by the firm.
C)   Cash and other assets that the firm expects to sell or consume during the normal operating cycle of a business, usually one year.
D)   Cash and other assets that the firm expects maintain for a period including the normal operating cycle of a business, usually one year.E) A) and C)
F) B) and C)

Question 3

What is the rationale for the statement of cash flows?

Accepted Answer

The statement of cash flows provides inf...

Question 4

During 2014,Waggoner Company performed services for which customers paid or promised to pay $587,000.Of this amount,$552,000 had been collected by year end.Waggoner paid $340,000 in cash for employee wages and owed the employees $15,000 at the end of the year for work that had been done but had not paid for.Waggoner paid interest expense of $3,000 and $195,000 for other service expenses.The income tax rate was 35%,and income taxes had not yet been paid at the end of the year.Waggoner declared and paid dividends of $20,000.There were no other events that affected cash.
Required:
1.What was the amount of the increase or decrease in cash during the year?
2.Prepare an income statement for Waggoner for the year (December 31 year-end).
3.Prepare a statement of cash flows for the year (December 31 year-end)

Accepted Answer

1.$552,000 - 340,000 -3,000 -195,000 -20...

Question 5

All of the following are reasons that pharmaceutical companies have higher barriers for entry than grocery stores except:

Accepted Answer

A)   There is lengthy government testing and approval required.
B)   Research and development is a lengthy and uncertain process.
C)   Patent protection is needed for exclusive rights.
D)   The largest asset is typically capital intensive Property, Plant and Equipment.E) C) and D)
F) A) and B)

Question 6

Obtaining a competitive advantage by being the first company to introduce new concepts or ideas is referred to as ________________________________________.

Accepted Answer

first move...

Question 7

Cash and cash equivalents are considered ____________________ assets.

Accepted Answer

Monetary

Question 8

Normally,intense rivalries have a tendency to reduce ____________________.

Accepted Answer

The answer of Normally,intense rivalries have a tendency to reduce...

Question 9

What three financial statements are prepared by business firms and what information does each provide?

Accepted Answer

1.Balance sheet--Point in time reporting...

Question 10

What is comprehensive income?

Accepted Answer

Comprehensive income equals net income for a period plus or minus the changes in shareholders' equity accounts other than from net income and transactions with owners.Items affecting comprehensive income include foreign currency translation adjustments,cash flow hedge accounting,minimum pension liability adjustments and unrealized gains and losses from holding investment securities classified as available for sale.

Question 11

Which form does the balance sheet equation take in the United Kingdom?

Accepted Answer

A)   Noncurrent Assets + Noncurrent Liabilities = Shareholders' Equity
B)   Revenues - Expenses = Shareholders' Equity
C)   Noncurrent Assets + [Current assets - Current Liabilities] - Noncurrent Liabilities = Shareholders' Equity
D)   Noncurrent Assets - Current assets = Noncurrent Liabilities - Current Liabilities + Shareholders' EquityE) All of the above
F) A) and C)

Question 12

When a firm attempting to create unique products or services for particular market niches,in order to achieve relatively high profit margins,this is best known as:

Accepted Answer

A)   A quality strategy
B)   A low-cost leadership strategy
C)   A vertical integration strategy
D)   A product differentiation strategyE) C) and D)
F) B) and C) D

Question 13

Net income is equal to:

Accepted Answer

A)   Assets minus Liabilities
B)   Revenues and Gains minus Expenses and Losses
C)   Shareholders' Equity minus Assets
D)   Revenues and Assets minus Expenses and LiabilitiesE) C) and D)
F) B) and D)

Question 14

The main components that make up the stockholder's equity section of the balance sheet are _________________ and ___________________.

Accepted Answer

retained e...

Question 15

Nonmonetary assets include assets that are ____________________,such as inventories,and assets that are ____________________ such as brand names.

Accepted Answer

The answer of Nonmonetary assets include assets that are ____________________,such...

Question 16

All of the following are principal provisions of the Sarbanes-Oxley Act of 2002 except:

Accepted Answer

A)   At least one member of the audit committee of the board of directors must be a "financial expert."
B)   The lead audit or coordinating partner and the reviewing partner of the public accounting firm must rotate, or change, every five years.
C)   The firm's chief executive officer and the chief financial officer must issue a statement along with the audit report stating that the financial statements and notes fairly present the operations and financial position of the firm.
D)   The FASB has oversight and enforcement authority over the SEC.E) C) and D)
F) B) and D)

Question 17

Assets for a particular business might include:

Accepted Answer

A)   Cash, retained earnings, and accounts payable.
B)   Cash, common shareholders' equity, and accounts receivable.
C)   Cash, property, plant, and equipment, and accumulated other comprehensive income.
D)   Cash, inventories, and goodwill.E) B) and D)
F) A) and D)

Question 18

Under the ____________________ basis of accounting,a firm recognizes revenue when it performs all or a substantial portion,of the services it expects to perform and receives either cash or a receivable.

Accepted Answer

The answer of Under the ____________________ basis of accounting,a firm...

Question 19

Which of the following activities is an operating activity?

Accepted Answer

A)   Collections of accounts receivable.
B)   Investing in equity securities of other companies.
C)   Payment of dividends.
D)   Issuing common stockE) A) and B)
F) None of the above

Question 20

Which of the following is an independent entity comprising 15 members and a full-time professional staff that specifies acceptable accounting principles known as IFRS?

Accepted Answer

A)   FASB
B)   IASB
C)   SEC
D)   GAAPE) B) and D)
F) All of the above

Exam 1: Overview of Financial Reporting, Financial Statement Analysis, and Valuation

Opinions on the effectiveness of the internal control system and the fairness of the amounts reported in the financial statements are known as:

Correct Answer
verified

Current assets are defined as:

Correct Answer
verified

What is the rationale for the statement of cash flows?

Correct Answer
verified
The statement of cash flows provides inf...
View Answer

Correct Answer
verified
1.$552,000 - 340,000 -3,000 -195,000 -20...
View Answer

All of the following are reasons that pharmaceutical companies have higher barriers for entry than grocery stores except:

Correct Answer
verified

Obtaining a competitive advantage by being the first company to introduce new concepts or ideas is referred to as ________________________________________.

Correct Answer
verified
first move...
View Answer

Cash and cash equivalents are considered ____________________ assets.

Correct Answer
verified
Monetary

Normally,intense rivalries have a tendency to reduce ____________________.

Correct Answer
verified

What three financial statements are prepared by business firms and what information does each provide?

Correct Answer
verified
1.Balance sheet--Point in time reporting...
View Answer

What is comprehensive income?

Which form does the balance sheet equation take in the United Kingdom?

Correct Answer
verified

When a firm attempting to create unique products or services for particular market niches,in order to achieve relatively high profit margins,this is best known as:

Correct Answer
verified
D

Net income is equal to:

Correct Answer
verified

The main components that make up the stockholder's equity section of the balance sheet are _ and ___.

Correct Answer
verified
retained e...
View Answer

Nonmonetary assets include assets that are ,such as inventories,and assets that are such as brand names.

Correct Answer
verified

All of the following are principal provisions of the Sarbanes-Oxley Act of 2002 except:

Correct Answer
verified

Assets for a particular business might include:

Correct Answer
verified

Under the ____________________ basis of accounting,a firm recognizes revenue when it performs all or a substantial portion,of the services it expects to perform and receives either cash or a receivable.

Correct Answer
verified

Which of the following activities is an operating activity?

Correct Answer
verified

Which of the following is an independent entity comprising 15 members and a full-time professional staff that specifies acceptable accounting principles known as IFRS?

Correct Answer
verified

Exam 1: Overview of Financial Reporting, Financial Statement Analysis, and Valuation

Opinions on the effectiveness of the internal control system and the fairness of the amounts reported in the financial statements are known as:

Correct AnswerverifiedShow Answer

Current assets are defined as:

Correct AnswerverifiedShow Answer

What is the rationale for the statement of cash flows?

Correct AnswerverifiedThe statement of cash flows provides inf...View AnswerShow Answer

Correct Answerverified1.$552,000 - 340,000 -3,000 -195,000 -20...View AnswerShow Answer

All of the following are reasons that pharmaceutical companies have higher barriers for entry than grocery stores except:

Correct AnswerverifiedShow Answer

Obtaining a competitive advantage by being the first company to introduce new concepts or ideas is referred to as ________________________________________.

Correct Answerverifiedfirst move...View AnswerShow Answer

Cash and cash equivalents are considered ____________________ assets.

Correct AnswerverifiedMonetary

Normally,intense rivalries have a tendency to reduce ____________________.

Correct AnswerverifiedShow Answer

What three financial statements are prepared by business firms and what information does each provide?

Correct Answerverified1.Balance sheet--Point in time reporting...View AnswerShow Answer

What is comprehensive income?

Which form does the balance sheet equation take in the United Kingdom?

Correct AnswerverifiedShow Answer

When a firm attempting to create unique products or services for particular market niches,in order to achieve relatively high profit margins,this is best known as:

Correct AnswerverifiedD

Net income is equal to:

Correct AnswerverifiedShow Answer

The main components that make up the stockholder's equity section of the balance sheet are _________________ and ___________________.

Correct Answerverifiedretained e...View AnswerShow Answer

Nonmonetary assets include assets that are ____________________,such as inventories,and assets that are ____________________ such as brand names.

Correct AnswerverifiedShow Answer

All of the following are principal provisions of the Sarbanes-Oxley Act of 2002 except:

Correct AnswerverifiedShow Answer

Assets for a particular business might include:

Correct AnswerverifiedShow Answer

Under the ____________________ basis of accounting,a firm recognizes revenue when it performs all or a substantial portion,of the services it expects to perform and receives either cash or a receivable.

Correct AnswerverifiedShow Answer

Which of the following activities is an operating activity?

Correct AnswerverifiedShow Answer

Which of the following is an independent entity comprising 15 members and a full-time professional staff that specifies acceptable accounting principles known as IFRS?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified
The statement of cash flows provides inf...
View Answer

Correct Answer
verified
1.$552,000 - 340,000 -3,000 -195,000 -20...
View Answer

Correct Answer
verified

Correct Answer
verified
first move...
View Answer

Correct Answer
verified
Monetary

Correct Answer
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Correct Answer
verified
1.Balance sheet--Point in time reporting...
View Answer

Correct Answer
verified

Correct Answer
verified
D

Correct Answer
verified

The main components that make up the stockholder's equity section of the balance sheet are _ and ___.

Correct Answer
verified
retained e...
View Answer

Nonmonetary assets include assets that are ,such as inventories,and assets that are such as brand names.

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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