CHAPTER 1INTRODUCTION TO FINANCIAL REPORTING
1. Charging off equipment that cost less than $20 would be an example of the application of:
a. going concern
2. The going concern assump
CHAPTER 13PERSONAL FINANCIAL STATEMENTS AND ACCOUNTING FOR
GOVERNMENTS AND NOT-FOR-PROFIT ORGANIZATIONS
1. Which of the following is not an example of a nonprofit institution?
c. state government
CHAPTER 2INTRODUCTION TO FINANCIAL STATEMENTS AND OTHER
FINANCIAL REPORTING TOPICS
1. At the end of the fiscal year, an adjusting entry is made that increases both interest expense and interest
payable. This entry is an application for whi
CHAPTER 3BALANCE SHEET
1. The balance sheet reports:
a. the assets, liabilities, gains, and losses for a period of time
b. the changes in assets, liabilities, and equity for a period of time
c. the assets, expenses, and liabilities as of a
CHAPTER 6LIQUIDITY OF SHORT-TERM ASSETS; RELATED DEBT-PAYING
1. Company A uses lifo and Company B uses fifo for inventory valuation. Otherwise, the firms are of
similar size and have the same revenue and expense. Assume inflation.
CHAPTER 7LONG-TERM DEBT-PAYING ABILITY
1. Jones Company has long-term debt of $1,000,000, while Smith Company, Jones' competitor, has longterm debt of $200,000. Which of the following statements best represents an analysis of the long-term
CHAPTER 11EXPANDED ANALYSIS
1. Which of the following ratios is given the highest significance rating by commercial loan officers?
a. Inventory Turnover In Days
b. Degree of Financial Leverage
c. Times Interest Earned
d. Fixed Charge Cover
CHAPTER 9FOR THE INVESTOR
1. The ratio percentage of earnings retained is the same as that termed:
a. dividend yield
b. dividend payout
c. this year's retained earnings to net income
d. return on common equity
e. book value
2. The e
CHAPTER 10STATEMENT OF CASH FLOWS
1. Which of the following is not a purpose of the statement of cash flows?
a. To show cash flow from operations.
b. To show cash flow from financing activities.
c. To show cash flow from investing activiti
CHAPTER 5BASICS OF ANALYSIS
1. Statements in which all items are expressed only in relative terms (percentages of a base) are termed:
a. Vertical Statements
b. Horizontal Statements
c. Funds Statements
d. Common-Size Statements
e. none of
1. Which of the following is not a base against which profits are measured?
a. owners' equity
b. owners' and creditors' funds provided
e. productive assets
2. Net profit margin measu