C213 accounting quizes

C213 accounting quizes

Which of the following financial statements reports a company’s resources, obligations, and owner’s equity?
Balance Sheet
Which of the following financial statements reports the excess of a company’s revenues over its expenses?
Income Statement
Which of the following is NOT an external user of financial information?
Management
The organization that develops worldwide accounting standards is the
International Accounting Standards Board (IASB)
Which of the following is true of the balance sheet?
It identifies a company’s assets and liabilities as of a specific date.
The idea that businesses must be accounted for as though they will exist at least for the foreseeable future is the
Going concern concept
The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time, such as a month or a year, is called a(n)
Income Statement
Which of the following ratios represents an indication of investors’ expectations concerning a firm’s growth potential?
Price-Earnings Ratio
Which of the following ratios is calculated using only balance sheet numbers?
Curent Ratio
Which of the following ratios is calculated using only income statement numbers?
Return on Sales
11. Selected information for Isaac Company is as follows:
o Common stock $1,200,000
o Additional paid-in capital $500,000
o Retained earnings $740,000
o Sales revenue for year $1,830,000
o Net income for year $480,000
Isaac’s return on equity, rounded to the nearest percentage point, is
20%
Which of the following is NOT a situation when it would be important to analyze cash flow information because net income is NOT giving an accurate portrayal of the economic performance of the company?
When a company has a negative operating cash flow
Which cash flow ratio reflects the extent to which accrual accounting adjustments and assumptions have been included in net income?
Cash flow‐to‐net income
In general, most companies have significant noncash expenses that reduce net income and also cause the cash flow-to-net income ratio to be
Greather than 1
Which of the following usually is NOT considered to be an owners’ equity account?
Inventory
Which of the following accounts would NOT be considered a current asset?
Equipment
In non-U.S. Balance sheets, you will often see each of the following EXCEPT:
The stockholders’ equity section will be listed first on the balance sheet
Historical cost has long been used in accounting because it is
Reliable
Given the following information, compute net income –
o Cost of Goods Sold $2,000
o Extraordinary Item -$170
o Income Taxes $350
o Interest Expense $200
o Operating Expenses $1,500
o Sales $5,500
$1,280
When a company determines to get out of a specific line of business
Revenues and expenses from that line of business are excluded from the company’s recurring revenues and expenses when preparing an income statement.
Which of the following principles best describes the rationale for matching administrative and selling expenses with revenues of the current period?
Immediate recognition
Which of the following categories of expenses is subject to immediate recognition on the income statement?
The salary of the company president
The statement of cash flows replaces the
None of these
Which of the following is NOT a purpose of the statement of cash flows?
It measures the profitability of an entity.
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