Which would be issued by auditors where there is a history of significant losses coupled with uncertain prospects?

Which would be issued by auditors where there is a history of significant losses coupled with uncertain prospects?  A. An "except for" qualification B....

The ability meet long-term obligations is referred to as:

The ability meet long-term obligations is referred to as:  a. Liquidity b. Solvency c. Profitability d. Market prospects Answer: ...

The ability to make return is called:

The ability to make return is called:  a. Efficiency b. Solvency c. Profitability d. Market prospects Answer: ...

The ability to generate revenues is called:

The ability to generate revenues is called:  a. Efficiency b. Solvency c. Profitability d. Market prospects Answer: ...

Which of the following ratios would be considered useful in assessing profitability on the point of view of the owner?

Which of the following ratios would be considered useful in assessing profitability on the point of view of the owner? a. Debt/Equity ratio b. Acid...

Which of the following ratios would be considered useful in assessing financial health?

Which of the following ratios would be considered useful in assessing financial health?  a. Debt/Equity ratio b. Acid test ratio c. Profit margin d....

Which of the following ratios would be considered useful in assessing operating profitability?

Which of the following ratios would be considered useful in assessing operating profitability?  a. Debt/Equity ratio b. Acid test ratio c. Profit...

The ability to meet short-term obligations is called:

The ability to meet short-term obligations is called: a. Liquidity. b. Efficiency. c. Profitability. d. Market prospects. Answer: ...

The building blocks of financial statement analysis include:

The building blocks of financial statement analysis include:  a. Liquidity, Efficiency, Solvency, Debt prospects. b. Liquidity, Efficiency, Market...

Liquidity of a company is generally defined as a measure of:

Liquidity of a company is generally defined as a measure of:  a. the ability of a company to pay its employees in a timely manner. b. the ability...

Which of the following ratios is considered to be the most helpful in assessing short-term liquidity?

Which of the following ratios is considered to be the most helpful in assessing short-term liquidity?  a. Acid test ratio b. Current ratio c....

Which of the following ratios is considered to be the most helpful in assessing efficiency of Uncollectable asset?

Which of the following ratios is considered to be the most helpful in assessing efficiency of Uncollectable asset? a. Day in inventory b. Inventory...

While determining the most profitable company, especially on the point of view of an owner, which of the following would be the best indicator of relative profitability?

While determining the most profitable company, especially on the point of view of an owner, which of the following would be the best indicator of relative...

Which of the following is not a common tool used in financial statement analysis?

Which of the following is not a common tool used in financial statement analysis?  a. Random analysis b. Ratio analysis c. Common size statement...

Internal users of financial information:

Internal users of financial information:  a. Are not directly involved in operating a company. b. Are those individuals involved in managing...

Which of activity would be considered an operating activity?

Which of activity would be considered an operating activity? a. Paid interest expense b. Paid the principle of short term loan c. Pay dividend in...

Which of activity would be considered an operating activity?

Which of activity would be considered an operating activity? a. Pay rent office expense b. Borrow short term loan c. Pay dividend in cash d. Purchase...

Which of activity would be considered an operating activity?

Which of activity would be considered an operating activity? a. Purchase merchandised inventory b. Borrow short term loan c. Pay dividend in cash d....

Which of activity would be considered an operating activity?

Which of activity would be considered an operating activity? a. Hide employee b. Borrow short term loan c. Pay dividend in cash d. Purchase office...

Which of activity would be considered an operating activity?

Which of activity would be considered an operating activity? a. Purchase raw material b. Borrow short term loan c. Pay dividend in cash d. Purchase...

External users of financial information:

External users of financial information:  a. Are those individuals involved in managing and operating the company? b. Include internal auditors...

Evaluation of company performance can include comparison and/or assessment of:

Evaluation of company performance can include comparison and/or assessment of:  a. Past performance. b. Current financial position. c. Future...

Financial statement analysis:

Financial statement analysis:  a. Involves transforming accounting data into useful information for decision-making. b. Helps users to make better...

Which of the following would be considered a source of financing?

Which of the following would be considered a source of financing?  a. All of these b. Short term loan c. Retained earnings d. Long term loan Answer:...

Which of the following would be considered a source of financing?

Which of the following would be considered a source of financing?  a. Account receivable b. Account payable c. Inventory d. All of these Answer:...

Which of the following would not be considered a source of financing?

Which of the following would not be considered a source of financing?  a. Prepaid expense b. Unearned revenue c. Retained earnings d. Debentures Answer:...

All of the following are basic approaches to valuation except:

All of the following are basic approaches to valuation except:  A. market approach. B. asset approach. C. income approach. D. cost approach. Answer:...

SFAS prescribes that information about the level of inputs used for determining fair values must be reported in the:

SFAS prescribes that information about the level of inputs used for determining fair values must be reported in the:  A. balance sheet. B. director's...

SFAS 157 defines fair value as the:

SFAS 157 defines fair value as the:  A. market price. B. exchange price. C. net asset value. D. real value. Answer: ...

To determine a company's sustainable earning power, an analyst needs to first determine the recurring component of the current period's accounting income by excluding nonrecurring components of accounting income. Such adjusted earnings are often referred to as:

To determine a company's sustainable earning power, an analyst needs to first determine the recurring component of the current period's accounting income...

Accounting income consists of all the following components except:

Accounting income consists of all the following components except:  A. permanent component. B. transitory component. C. value irrelevant component. D....

For a going concern, company value can be expressed by:

For a going concern, company value can be expressed by:  A. dividing permanent income by the cost of capital. B. multiplying permanent income...

Economic income includes:

Economic income includes:  A. recurring components only. B. nonrecurring components only. C. both recurring and nonrecurring components. D. neither...

Which one of the following is not an example of a red flag, used to evaluate earnings quality?

Which one of the following is not an example of a red flag, used to evaluate earnings quality?  A. Qualified audit report B. Net income this...

Economic income measures change in:

Economic income measures change in:  A. asset value. B. liability value. C. shareholder value. D. net cash flows. Answer: ...

The two secondary qualities of accounting information to make it useful for decision making are:

The two secondary qualities of accounting information to make it useful for decision making are:  A. consistency and comparability. B. relevance...

Voluntary disclosure by managers is becoming an increasingly important source of information. Which of the following is least likely to be a reason for this increased disclosure?

Voluntary disclosure by managers is becoming an increasingly important source of information. Which of the following is least likely to be a reason...

Which of the following is incorrect? When using the 10-Q, the analyst should be aware that the usefulness of the quarterly financial statements might be affected by:

Which of the following is incorrect? When using the 10-Q, the analyst should be aware that the usefulness of the quarterly financial statements might...

The primary responsibility for fair and accurate financial reporting rests with the:

The primary responsibility for fair and accurate financial reporting rests with the:  A. board of directors. B. SEC. C. management. D. auditors. Answer:...

If a company changes auditors, it is required to file the following with the SEC:

If a company changes auditors, it is required to file the following with the SEC:  A. 10-K B. 10-Q C. 8-K D. S-1 Answer: ...

The matching principle requires that:

The matching principle requires that:  A. revenues earned and expenses incurred in generating those revenues should be reported in the same income...

Accounting Standards are best described as:

Accounting Standards are best described as:  A. the result of a political process among groups with diverse interests. B. presentation standards...

Which of the following information would not be filed with the SEC by a publicly traded company?

Which of the following information would not be filed with the SEC by a publicly traded company?  A. 10-K report B. Prospectus C. Proxy statement D....

Which of the following is not a source of industry information?

Which of the following is not a source of industry information?  A. SEC manuals B. Standard and Poor's C. Trade journals D. Robert Morris Associates Answer:...

Which of the following are changes in accounting principle? I. A change from LIFO to FIFO. II. A change in estimated salvage value of depreciable asset. III. A change from an accelerated depreciation method to straight line depreciation. IV. Recording depreciation for the first time on machinery purchased five years ago.

Which of the following are changes in accounting principle?I. A change from LIFO to FIFO.II. A change in estimated salvage value of depreciable asset.III....

Which of the following is a change in an accounting estimate? I. A change from straight line depreciation to an accelerated depreciation method. II. A change in estimated salvage value of depreciable asset. III. A change in estimated useful life of an asset. IV. Recording depreciation for the first time on machinery purchased five years ago.

Which of the following is a change in an accounting estimate?I. A change from straight line depreciation to an accelerated depreciation method.II. A...

When analyzing financial statements it is important to recognize that accounting distortions can arise. Accounting distortions are those things that cause deviations in accounting information from the underlying economics. Which of the following statements is not correct? Accounting distortions:

When analyzing financial statements it is important to recognize that accounting distortions can arise. Accounting distortions are those things that...

Which of the following statements is incorrect?

Which of the following statements is incorrect?  A. Under GAAP, statements are prepared using accrual accounting. B. Under GAAP, all assets are...

The management of Finner Company believes that "the statement of cash flows is not a very useful statement" and does not include it with the company's financial statements. As a result the auditor's opinion should be:

The management of Finner Company believes that "the statement of cash flows is not a very useful statement" and does not include it with the company's...

10-K reports are:

10-K reports are:  A. the quarterly reports to stockholders. B. quarterly filings made by a company with the SEC. C. annual filings made by a...

Which of the following would affect the comparison of financial statements across two different firms?

Which of the following would affect the comparison of financial statements across two different firms?  I. Different accounting principles II....

Which of the following would affect the comparability of accounting information for a given company from one accounting period to the next?

Which of the following would affect the comparability of accounting information for a given company from one accounting period to the next?  I....

Which of the following are examples of judgments made in the accounting reporting process?

Which of the following are examples of judgments made in the accounting reporting process?  I. Useful life of machinery II. Allowance for doubtful...

If a company fails to record a material amount of depreciation in a previous year, this is considered:

If a company fails to record a material amount of depreciation in a previous year, this is considered:  A. a change in accounting principle. B....

Audit risk represents a danger to users of audited financial statements. The following are attributes pointing to potential areas of vulnerability except

Audit risk represents a danger to users of audited financial statements. The following are attributes pointing to potential areas of vulnerability except  A....

Financial accounting data has some inherent limitations. Which of the following are limitations?

Financial accounting data has some inherent limitations. Which of the following are limitations?  I. Not all economic events are easily quantifiable. II....

The two primary qualities of accounting information to make it useful for decision making are:

The two primary qualities of accounting information to make it useful for decision making are:  A. reliability and comparability. B. relevance...

Which of the following statements about accruals and cash flows is false?

Which of the following statements about accruals and cash flows is false?  A. Company value can be determined by using accrual accounting numbers. B....

Which of the following statements about accruals and cash flows is true?

Which of the following statements about accruals and cash flows is true?  A. All cash flows are value relevant. B. Cash flows cannot be manipulated. C....

Which of the following statements about directors of a company is true?

Which of the following statements about directors of a company is true?  A. Directors are elected by management of a company. B. Directors only...

Which of the following is not considered a monitoring mechanism?

Which of the following is not considered a monitoring mechanism?  A. The Securities and Exchange Commission (SEC) B. Top level management C....

Which of the following is not considered part of GAAP?

Which of the following is not considered part of GAAP?  A. Statements of Financial Accounting Standards (SFAS) B. International Accounting Standards...

Which of the following would require the filing of Form 8-K?

Which of the following would require the filing of Form 8-K?  I. Major acquisition II. Audited financial statements III. Bankruptcy IV. Change...

Which would be issued by auditors where there is a history of significant losses coupled with uncertain prospects?

Which would be issued by auditors where there is a history of significant losses coupled with uncertain prospects?  A. An "except for" qualification B....

Which group of ratios measures how effectively the firm is using its assets?

Which group of ratios measures how effectively the firm is using its assets? a. Liquidity ratios. b. Debt ratios. c. Efficiency ratios d. Profitability...

Which of the following items is deducted from net income to arrive at cash flow from operations when using the indirect method?

Which of the following items is deducted from net income to arrive at cash flow from operations when using the indirect method?  a. depreciation...

Which of the following items would be classified as investing activities?

Which of the following items would be classified as investing activities? a. Proceeds from borrowing, payment of dividends, receipt of dividends. b....

Which of the following items would be classified as operating activities?

Which of the following items would be classified as operating activities? a. Payments for inventory, payments for salaries, cash received from sale...

On a statement of cash flows that uses the indirect approach, calculation of cash flow from operations treats depreciation as an adjustment to reported net income because:

On a statement of cash flows that uses the indirect approach, calculation of cash flow from operations treats depreciation as an adjustment to reported...

Which of the following is not a financing activity in the statement of cash flows?

Which of the following is not a financing activity in the statement of cash flows?  a. cash dividend b. repurchase of common stock c. paid interest...

Which of the following represents an investing activity in the statement of cash flows?

Which of the following represents an investing activity in the statement of cash flows? a. depreciation of plant assets b. sale of plant assets c....

A cash flow adequacy ratio, when measured over the last several years, of less than one:

A cash flow adequacy ratio, when measured over the last several years, of less than one:  A. Indicates that a company's net income is too low...

The cash flow adequacy ratio

The cash flow adequacy ratio  A. Measures a company's ability to generate sufficient cash flow from investing to cover debt repayments B. Measures...

The balance for supplies is $41,000 and $27,000 for 12/31/05 and 12/31/06, respectively. During the 2006, the company recorded $30,500 of supplies expense was recorded. How much new supplies were purchased?

The balance for supplies is $41,000 and $27,000 for 12/31/05 and 12/31/06, respectively. During the 2006, the company recorded $30,500 of supplies expense...

Beginning and ending prepaid insurance is, respectively, $36,000 and $26,500. During the period, $30,500 of insurance expense was recorded. How much new insurance was purchased?

Beginning and ending prepaid insurance is, respectively, $36,000 and $26,500. During the period, $30,500 of insurance expense was recorded. How much...

Beginning and ending plant assets are, respectively, $325,000 and $370,000. Beginning and ending accumulated depreciation is, respectively, $82,800 and $95,000. Depreciation expense for the period was $30,000, and new assets of $76,000 were purchased. Plant assets were sold at a $10,500 loss. What were the cash proceeds from the sale?

Beginning and ending plant assets are, respectively, $325,000 and $370,000. Beginning and ending accumulated depreciation is, respectively, $82,800...

Which of the following would be considered a use of cash?

Which of the following would be considered a use of cash?  A. depreciation B. an increase in working capital C. sale of bonds D. an increase...

Which of the following is true? The choice of LIFO versus FIFO will:

Which of the following is true? The choice of LIFO versus FIFO will:  A. not affect net income or cash flow from operations B. not affect net...

Which of the following is true? Depreciation:

Which of the following is true? Depreciation:  A. is recorded so that net book value represents fair value of assets B. does not affect the...

Which of the following would affect cash flow from operations?

Which of the following would affect cash flow from operations?  A. Sale of land for a gain B. Payment of dividends C. Depreciation of fixed assets D....

Compared with firms with capital leases, firms with operating leases generally report:

Compared with firms with capital leases, firms with operating leases generally report:  A. higher cash flow from operations B. lower cash flow...

Firms report payments for capital leases in the cash flow statement:

Firms report payments for capital leases in the cash flow statement:  A. only as financing cash flows B. only as investing cash flows C. partly...

Which of the following items is deducted from net income to arrive at cash flow from operations when using the indirect method?

Which of the following items is deducted from net income to arrive at cash flow from operations when using the indirect method?  A. depreciation...

Tracy used the indirect method of determining cash flow from operations (CFO), had they used the direct method:

Tracy used the indirect method of determining cash flow from operations (CFO), had they used the direct method:  A. CFO would have been higher...

The management of a company wishes to window-dress its cash flow from operations. Which of the following will improve cash flow from operations?

The management of a company wishes to window-dress its cash flow from operations. Which of the following will improve cash flow from operations?  I....

Which of the following statements are correct?

Which of the following statements are correct?  I. A company's choice of accounting principles for financial reporting purposes does not affect...

On a statement of cash flows that uses the indirect approach, calculation of cash flow from operations treats depreciation as an adjustment to reported net income because:

On a statement of cash flows that uses the indirect approach, calculation of cash flow from operations treats depreciation as an adjustment to reported...

Which of the following is not a financing activity in the statement of cash flows?

Which of the following is not a financing activity in the statement of cash flows?  A. cash dividend B. repurchase of common stock C. payment...

Which of the following represents an investing activity in the statement of cash flows ?

Which of the following represents an investing activity in the statement of cash flows ? A. depreciation of plant assets B. sale of plant assets at...

A firm has net sales of $6,000, cash expenses (including taxes) of $2,800, and depreciation of $1,000. If accounts receivable increased in the period by $800, cash flows from operations equal

A firm has net sales of $6,000, cash expenses (including taxes) of $2,800, and depreciation of $1,000. If accounts receivable increased in the period...

Beginning accounts receivable are $76,000. Sales for the period total $384,000, of which $40,000 was directly for cash. $418,000 was collected from making sales and collecting accounts receivable. What is the ending balance for accounts receivable?

Beginning accounts receivable are $76,000. Sales for the period total $384,000, of which $40,000 was directly for cash. $418,000 was collected from...

Beginning and ending accounts receivable are $76,000 and $42,000, respectively. Sales for the period total $384,000, of which $40,000 was directly for cash. How much cash was collected from making sales and collecting accounts receivable?

Beginning and ending accounts receivable are $76,000 and $42,000, respectively. Sales for the period total $384,000, of which $40,000 was directly for...

Which of the following would require an adjustment in the computation of cash flow from operations using the indirect method?

Which of the following would require an adjustment in the computation of cash flow from operations using the indirect method?  I. Depreciation...

Which of the following would require an adjustment in the computation of cash flow from operations using the indirect method?

Which of the following would require an adjustment in the computation of cash flow from operations using the indirect method?  I. Sale of machinery...

Under the accrual basis of accounting, which of the following statements is true?

Under the accrual basis of accounting, which of the following statements is true?  I. Reported net income provides a measure of operating performance II....

The accounting assumption that requires every business to be accounted for separately from other business entities, including its owner or owners is known as the:

The accounting assumption that requires every business to be accounted for separately from other business entities, including its owner or owners is...

The private group that currently has the authority to establish generally accepted accounting principles is the:

The private group that currently has the authority to establish generally accepted accounting principles is the:  A. APB. B. FASB. C. AAA. D....

The committee that attempts to create more harmony among the accounting practices of different countries by identifying preferred practices and encouraging their worldwide acceptance is the:

The committee that attempts to create more harmony among the accounting practices of different countries by identifying preferred practices and encouraging...

The rules adopted by the accounting profession as guides in preparing financial statements are:

The rules adopted by the accounting profession as guides in preparing financial statements are:  A. Comprised of both general and specific principles. B....

A corporation:

A corporation:  A. Is a business legally separate from its owners. B. Is controlled by the FASB. C. Has shareholders who have unlimited liability...

Businesses can take the following form(s):

Businesses can take the following form(s):  A. Sole proprietorship. B. Common stock. C. Partnership. D. A and C only. E. All of these. Answer:...

The accounting guideline that requires financial statement information to be supported by independent, unbiased evidence other than someone's belief or opinion is the:

The accounting guideline that requires financial statement information to be supported by independent, unbiased evidence other than someone's belief...

Social responsibility:

Social responsibility:  A. Is a concern for the impact of our actions on society. B. Is a code that helps in dealing with confidential information. C....

Ethical behavior requires:

Ethical behavior requires:  A. That auditors' pay not depend on the figures in the client's reports. B. Auditors to invest in businesses they...

A Certified Public Accountant

A Certified Public Accountant  A. Must meet education and experience requirements B. Must pass an examination C. Must exhibit ethical character D....

Accounting certifications include the:

Accounting certifications include the:  A. Certified Public Accountant. B. Certified Management Accountant. C. Certified Internal Auditor. D....

Career opportunities in accounting include:

Career opportunities in accounting include:  A. Auditing. B. Management consulting. C. Tax accounting. D. Cost accounting. E. All of these. Answer:...

External users of accounting information include:

External users of accounting information include:  A. Shareholders. B. Customers. C. Creditors. D. Government regulators. E. All of these. Answer:...

The operating functions of a business include:

The operating functions of a business include:  A. Research and development. B. Purchasing. C. Marketing. D. Distribution. E. All of these. Answer:...

The area of accounting aimed at serving the decision making needs of internal users is:

The area of accounting aimed at serving the decision making needs of internal users is:  A. Financial accounting. B. Managerial accounting. C....

Internal users of accounting information include:

Internal users of accounting information include:  A. Shareholders. B. Managers. C. Lenders. D. Suppliers. E. Customers. Answer: ...

The primary objective of financial accounting is:

The primary objective of financial accounting is:  A. To serve the decision-making needs of internal users. B. To provide financial statements...