mid term #1b

mid term #1b - UCSB136(A) BarrettCarrere Fall2008 MidTerm#1...

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UCSB 136(A)  Barrett Carrere Fall 2008  Mid Term #1  _______________________________ Name and student # (not photo #) Note: please turn in all three to receive credit on test: 1) this test.  2) your green scantron.  3) your blue book(s) if used.   You may remove the problem pages from the test if you like, however, please make sure you write  your name on these sheets.    The test is 250 points as follows: 1) #1-25 multiple choice/true, false Please use your scantron 175 points or 70%, each  is 7 points or 2.8% of  total. 2) Comprehensive income problem  Please write answers on  space provided.    75 points or 30% of  total.  1.   Per the Statements of Financial Accounting Concepts the primary focus of financial information  is reporting to the following users: a. Management and employees concerned with the operations of the company.  b. SEC, IRS and other governmental agencies concerned with compliance with laws. c. Investors and creditors concerned with income and earnings power as it relates to future cash  flows and cash flows amount, timing and risk. d. All of the above.   BC - C.  2. The overriding criterion by which accounting information can be judged is that of 1 of 9
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a. usefulness for decision making. b. freedom from bias. c. timeliness. d. comparability. 2-30. A 3. The quality of information that gives assurance that it is reasonably free of error and bias and is a  faithful representation is a. relevance. b. reliability. c. verifiability. d. neutrality. 2-33.  B. 4.  According to Statement of Financial Accounting Concepts No. 2, timeliness is an ingredient of  the primary quality of Relevance Reliability a. Yes Yes b. No Yes c. Yes No d. No No 2-35. C. 5. Information  about different entities and about different periods of the same entity can be  prepared and presented in a similar manner. Comparability and consistency are related to which  of these objectives? Comparability Consistency a. Entities Entities b. Entities Periods c. Periods Entities d. Periods Periods 2-44. B 6. The allowance for doubtful accounts, which appears as a deduction from accounts receivable on  a balance sheet and which is based on an estimate of bad debts, is an application of the 2 of 9
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a. consistency characteristic. b. matching principle. c. materiality constraint. d. revenue recognition principle. 2-71.  B.  You are matching the expense of uncollectible accounts with the related revenue instead of  writing off accounts in latter periods when you discover that they are uncollectible.  7. Application of the full disclosure principle a. is theoretically desirable but not practical because the costs of complete disclosure exceed the 
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This note was uploaded on 01/31/2010 for the course ECON 136A taught by Professor Anderson during the Winter '08 term at UCSB.

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mid term #1b - UCSB136(A) BarrettCarrere Fall2008 MidTerm#1...

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