ACCTG 305 - Exam 1.docx - ACCTG 305 Exam – 1 Q The objective of the accrual basis accounting is to A include revenue in the income statement of the

ACCTG 305 - Exam 1.docx - ACCTG 305 Exam – 1 Q The...

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ACCTG 305 - Exam – 1 Q: The objective of the accrual basis accounting is to __________. A: include revenue in the income statement of the period it is earned (regardless of when cash is received) and match costs incurred (expenses) against the revenue (regardless of when paid). Q: A complete set of financial statements __________. A: includes the income statement, the balance sheet, the statement of stockholders’ equity, and the statement of cash flows. Q: Revenues are defined as __________. A: increase in net assets from providing goods or services Q: The term “Quality of Earnings” refers to A: the degree in which a firm’s reported income is useful to determine future income Q: Expenses are defined as __________. A: decrease in net assets from providing goods or services Q: In order for information to be useful for decision making, it must: A: provide a faithful representation (be reliable); be relevant Q: Which Statement of Cash Flow category is generally most important for users’ decision making? A: operating Q: Which of the following is (are) important to users of financial statements in assessing the future cash flows of a firm?
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  • Spring '14
  • DORAN,DAVIDTHOMA

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