Financial accounting(Chap. 5 pre-test)

Financial accounting(Chap. 5 pre-test) - Question 1: Score...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Question 1: Score 1/1 The primary qualities of accounting information that increase the information's usefulness to the users are Your Answer: Choice Selected consistency and comparability. relevance and reliability. comparability and reliability. relevance and consistency. None of the above are the secondary qualities of accounting information. Question 2: Score 1/1 The Securities and Exchange Commission (SEC) is empowered to do the following: Your Answer: Choice Selected A. set reporting standards for firms with publicly traded debt or equity securities. B. bring enforcement actions against company executives and auditors for accounting related violations. C. file anti-trust suits against companies involved in restraint of trade. D. Both A and B are SEC powers. E. All of the above are SEC powers. Question 3: Score 0/1 In addition to the four required financial statements, which of the following is a required disclosure in the annual report of a publicly traded company? Your Answer:
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Choice Selected A. A five year summary of financial data. B. Notes (footnotes). Selected C. Management's discussion and analysis. D. Only B and C are required disclosures. E. All of the above are required disclosures. Question 4: Score 1/1 In what order are current assets usually reported on the balance sheet? Your Answer: Choice Selected In no particular order. From the largest balance to the smallest balance. From the least liquid to the most liquid. From the most liquid to the least liquid. In alphabetical order of accounts. Question 5: Score 0/1 Which of the following condition(s) must be met for an item to be disclosed as extraordinary on the income statement? Your Answer: Choice Selected A. It must be unusual in nature. B. Extraordinarily large in comparison to other items on the income statement. Selected C. Infrequent in occurrence. D. Both A and C. E. All of the above are conditions.
Background image of page 2
Question 6: Score 1/1 What are the categories of cash flows that appear on a statement of cash flows? Your Answer: Choice Selected Cash flows from investing, financing, and service activities. Cash flows from investing, financing, and saving activities. Cash flows from operating, investing, and financing activities. Cash flows from operating, production, and investing activities. None of the above is correct. Question 7: Score 1/1 The cumulative effects of a change in an accounting principle are Your Answer: Choice Selected the amount reflected on the income statement for adjustments made to balance sheet accounts when applying different accounting principles. the result of the disposal of a major segment of the business.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/30/2008 for the course BUS 210 taught by Professor Cyze during the Fall '07 term at St. Xavier.

Page1 / 13

Financial accounting(Chap. 5 pre-test) - Question 1: Score...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online