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Unformatted text preview: CHAPTER 5 BALANCE SHEET AND STATEMENT OF CASH FLOWS IFRS questions are available at the end of this chapter. TRUE-FALSE Conceptual Answer No. Description F 1. Liquidity and solvency. T 2. Limitations of the balance sheet. T 3. Definition of financial flexibility. T 4. Long-term liability disclosures. F 5. Definitions of the balance sheet. F 6. Land held for speculation. T 7. Balance sheet format. F 8. Disclosure of fair values. F 9. Disclosure of company operations and estimates. T 10. Disclosure of pertinent information. F 11. Use of the term reserve. F 12. Adjunct account. F 13. Purpose of statement of cash flows. F 14. Statement of cash flows reporting. T 15. Financial flexibility. T 16. Collection of a loan. T 17. Determining cash provided by operating activities. F 18. Reporting significant financing and investing activities. T 19. Current cash debt coverage ratio. F 20. Reporting other comprehensive income. MULTIPLE CHOICE Conceptual Answer No. Description d 21. Limitation of the balance sheet. c 22. Uses of the balance sheet. b 23. Use of balance sheet information. d 24. Use of balance sheet information. d 25. Limitation of the balance sheet. c S 26. Uses of the balance sheet. b S 27. Criticisms of the balance sheet. c P 28. Definition of liquidity. d 29. Definition of net assets. b 30. Current assets presentation. b 31. Operating cycle. d 32. Operating cycle. d 33. Identification of current asset. d 34. Identification of current asset. d 35. Identification of current asset. d 36. Classification of short-term investments. c 37. Classification of inventory pledged as security. Test Bank for Intermediate Accounting, Thirteenth Edition MULTIPLE CHOICE Conceptual (cont.) Answer No. Description b 38. Identification of long-term investments. d 39. Identification of valuation methods. b 40. Identification of current liabilities. d 41. Definition of working capital. b 42. Identification of working capital items. d 43. Identification of long-term liabilities. d 44. Identification of long-term liabilities. d 45. Classification of treasury stock. d 46. Disclosures for common stock. d 47. Classification of investment in affiliate. c 48. Classification of owners' equity. d 49. Classification of assets. d P 50. Identification of contra account. d S 51. Balance sheet supplementary disclosure. d 52. Long-term liabilities' disclosure. b 53. Balance sheet supplementary disclosure. c 54. Disclosure of contractual situations. d 55. Disclosure of accounting policies. d 56. Contingency reported in financial statement notes. d 57. Methods of disclosure. d 58. Disclosure of significant accounting policies. d 59. Disclosure of depreciation methods used. d 60. Required notes to the financial statements....
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- Spring '08
- Balance Sheet