ReviewTwoAnswers - CHAPTER 5 67. In addition to the four...

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CHAPTER 5 67. In addition to the four required financial statements, which of the following is a required disclosure in the annual report of a publicly traded company? A) A five year summary of financial data. B) Notes (footnotes). C) Management's discussion and analysis. D) Only B and C are required disclosures. E) All of the above are required disclosures. Answer: E Difficulty: Medium L.O.: 2 68. In addition to the four required financial statements, which of the following is a required disclosure in the annual report? A) Management's discussion and analysis B) Marketing forecasts C) Full descriptions of contracts in which the company is engaged. D) All of the above are required disclosures E) None of the above is a required disclosure Answer: A Difficulty: Medium L.O.: 2 69. The Securities and Exchange Commission's (SEC) report that is required to be filed if any special event occurs that is material in amount is the A) Form 10K. B) Form 8K. C) Form 10Q. D) Prospectus. E) None of the above. Answer: B Difficulty: Medium L.O.: 2 70. Which of the following is false ? A) Relevance is the qualitative characteristic of accounting information that says the information would make a difference in a user's decision. B) Accounts receivable would normally be classified as a current asset. C) Accumulated depreciation would normally appear in the income statement. D) The matching principle holds that all expenses incurred in the earning of revenue should be recognized in the same period as the revenue earned. E) None of the above is correct. Answer: C Difficulty: Medium L.O.: 2
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73. In what order are current assets usually reported on the balance sheet? A) From the most liquid to the least liquid. B) From the least liquid to the most liquid. C) In alphabetical order of accounts. D) From the largest balance to the smallest balance. E) In no particular order. 79. Which of the following would not be a section reported on a corporate income statement? A) Income from operations. B) Gain or loss from discontinued operations. C) Earnings per share. D) Cumulative effects of a change in accounting principle. E) All of the above may be reported as a section on an income statement. Answer: E Difficulty: Medium L.O.: 3 83. The income statement reports A) all of the changes in assets, liabilities, and stockholders' equity during the period which result from financing and investing activities. B) changes in the cash account during the year. C) all changes in retained earnings during the period. D) B and C only. E) None of the above is correct. Answer: E Difficulty: Medium L.O.: 3 84. What are the categories of cash flows that appear on a statement of cash flows? A) Cash flows from investing, financing, and service activities. B) Cash flows from investing, financing, and saving activities.
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ReviewTwoAnswers - CHAPTER 5 67. In addition to the four...

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