Exam2blueKey - CHOOSE THE BEST ANSWER Chapter 5 1. Which of...

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

View Full Document Right Arrow Icon
CHOOSE THE BEST ANSWER Chapter 5 1. Which of the following reports is filed annually with the SEC? a. Form 10-K b. Form 10-Q c. Form 8-K d. Press release 2. The classified balance sheet format allows one to ascertain quickly which of the following? a. What liabilities must be paid within the upcoming year. b. The most valuable asset of the company. c. The specific due date for all liabilities of the company. d. None of the above. 3. What type of audit report does a client hope to include with its annual report? a. unqualified b. qualified c. comparable d. conservative 4. Independent CPA who examines financial statements and attests to their fairness. a. Independent auditor b. Financial analyst c. Private investor d. Institutional investor 5. Quarterly report filed by public companies with the SEC that contains additional unaudited financial information. a. 10-Q b. 10-K c. 8-K d. Press release
Background image of page 1

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

View Full DocumentRight Arrow Icon
FACTS FOR QUESTIONS 6-10: For each item listed, indicate in which of the following financial reports you would find it. a. Annual report b. Form 8-K c. Form 10-K d. Press release e. 6. Initial announcement of quarterly earnings. D 7. Announcement of a change in auditors. B 8. Notes to financial statements. E 9. The four basic financial statements for the year. E 10. Initial announcement of hiring of new vice president of sales. D FACTS FOR QUESTIONS 11-15: Match the following items with the numbered definitions. a. Cost of goods sold b. Extraordinary item c. EPS d. Gross margin on sales e. Interest expense 11. Sales revenue – cost of goods sold. D 12. Cost of money (borrowing) over time. E 13. Item that is both unusual and infrequent. B 14. Net income divided by average shares outstanding. C 15. Amount of resources used to purchase or produce the goods that were sold during the reporting period. A 2
Background image of page 2
16. Sales discounts with terms 2/10, n/30 mean: a. 10 percent discount for payment within 30 days. b. 2 percent discount for payment within 10 days or the full amount (less returns) is due within 30 days. c. two-tenths of a percent discount for payment within 30 days. d. None of the above. 17. When a company using the allowance method writes off a specific customer’s accounts receivable from the accounting system, which of the following statements is true. 1. Total stockholders’ equity remains the same. 2. Total assets remain the same. 3. Total expenses remain the same a. 2 b. 1 and 3 c. 1 and 2 d. 1, 2, and 3 18. Which of the following is not a component of net sales? a. sales returns and allowances b. sales discounts c. cost of goods sold d. credit card discounts 19. A company has been successful in reducing the cost of its manufactured inventory by relocating the factory to another locale. What effect will this factor have on the company’s gross profit percentage ratio, all other things equal? a.
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 04/07/2008 for the course ACCT 2113 taught by Professor Knapp during the Spring '08 term at The University of Oklahoma.

Page1 / 14

Exam2blueKey - CHOOSE THE BEST ANSWER Chapter 5 1. Which of...

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