2006 Fall Accounting_011_exam_1___Fall_2006__Answers

2006 Fall Accounting_011_exam_1___Fall_2006__Answers - Name...

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Name ____________________ Temple University Fox School of Business and Management Dr. Steven Balsam Accounting 011 Exam #1- Answers September 20, 2006 Instructions: You have 100 minutes. Answer the questions on the pages provided and please remember to show all work so that you may receive partial credit. Also please put your name on each page in case the pages get separated. Good luck! 1
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Name ____________________ Multiple Choice (2 points each – 50 points total – please include answers on answer sheet). 1.. The body that has the power to prescribe the accounting practices and standards to be employed by companies that fall under its jurisdiction is the a. FASB. b. AICPA. c . SEC. d. APB. 2. Companies that are listed on a stock exchange are required to submit their financial statements to the a. AICPA. b. APB c. FASB. d. SEC. 3. In order to be classified as an extraordinary item in the income statement, an event or transaction should be a. Unusual in nature, infrequent, and material in amount. b. Unusual in nature and infrequent, but it need not be material. c. Infrequent and material in amount, but it need not be unusual in nature. d. Unusual in nature and material, but it need not be infrequent 4. Comprehensive income includes all of the following except a. Operating revenue. b. Losses on disposal of assets. c. Investments by owners. d. Unrealized holding gains. 5. Which of the following is a limitation of the balance sheet? a. Many items that are of financial value are omitted. b. Judgments and estimates are used. c. Current fair value is not reported. d. All of these 6. Investors and creditors can use the information in the income statement to a. Evaluate the past performance of the enterprise. b. Provide a basis for predicting future performance c. Help assess the risk or uncertainty of achieving future cash flows d. All of these. 2
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Name ____________________ 7. The numbers reported on the financial statements are affected by management's' choice of a. accounting methods b. estimates c. through the timing of transactions d. all of the above 8. Which of the following is an important advantage of using cost over other possible valuations? a. Reliability b. Objectivity c. Verifiability d. All of the above 9. Comprehensive Income can appear either on the a. Income Statement b. Statement of Owners Equity c. A Separate Statement, i.e., one that starts with net income and reconciles to comprehensive income.
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This note was uploaded on 05/19/2008 for the course ACCT 3511 taught by Professor Balsam during the Spring '07 term at Temple.

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2006 Fall Accounting_011_exam_1___Fall_2006__Answers - Name...

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