53020294-Midterm (1) - Multiple questions a LO5 1. The...

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Multiple questions a 1. The overall objective of financial reporting is to provide information LO5 a. that is useful for decision making. b. about an enterprise’s assets, liabilities, and owners’ equity. c. about an enterprise’s financial performance during a period. d. that allows owners to assess management's performance. 3.Financial accounting is the area of accounting that emphasizes reporting to LO1 a. management. b. regulatory bodies. c. internal auditors. d. creditors and investors. The responsibility to review the work of the accountants and issue opinions LO1 as to the fairness of the financial statements rests with a. the external auditor . b. the board of directors. c. the internal auditors. d. management. As independent (or external) auditors, CPAs are primarily responsible for LO1 a. preparing financial statements in conformity with GAAP. b. certifying the accuracy of financial statements. c. expressing an opinion as to the fairness of financial statements. d. filing financial statements with the SEC. A common business transaction that would not affect the amount of owners’ LO2 equity is a. signing a note payable to purchase equipment. b. payment of property taxes. c. billing of customers for services rendered. d. payment of dividends. d 15. An accrued expense can be described as an amount LO3 a. paid and matched with earnings for the current period. b. paid and not matched with earnings for the current period. c. not paid and not matched with earnings for the current period. d. not paid and matched with earnings for the current period. Which of the following errors will be detected when a trial balance is LO3 properly prepared? a. An amount that was entered in the wrong account b. A transaction that was entered twice
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c. A transaction that had been omitted d. None of the above The last step in the accounting cycle is to LO1 a. prepare a post-closing trial balance . b. journalize and post closing entries c. prepare financial statements. d. journalize and post adjusting entries. d 3. Accrued revenues would normally appear on the balance sheet as LO1 a. plant assets. b. current liabilities. c. long-term liabilities. d. current assets. Which of the following would not be classified as a current asset on a LO1 classified balance sheet? a. Investment securities (trading). b. Short-term investments. c. Prepaid expenses. d. Intangible assets. b 6. Unearned rent would normally appear on the balance sheet as a LO1 a. plant asset. b. current liability. c. long-term liability. d. current asset. a 15. Which of the following would not be reported for capital stock in the LO1 contributed capital section of a classified balance sheet? a. Dividends per share b. Shares authorized c. Shares issued d. Shares outstanding b 3. On a multiple-step income statement, gains or losses on sale of equipment LO4 would be shown a. before gross profit on sales. b.
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This note was uploaded on 07/25/2011 for the course ACCT 200 taught by Professor Minliu during the Spring '11 term at Universidad Europea de Madrid.

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53020294-Midterm (1) - Multiple questions a LO5 1. The...

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