C213 accounting quizes – Flashcards
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Which of the following financial statements reports a company's resources, obligations, and owner's equity?
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Balance Sheet
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Which of the following financial statements reports the excess of a company's revenues over its expenses?
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Income Statement
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Which of the following is NOT an external user of financial information?
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Management
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The organization that develops worldwide accounting standards is the
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International Accounting Standards Board (IASB)
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Which of the following is true of the balance sheet?
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It identifies a company's assets and liabilities as of a specific date.
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The idea that businesses must be accounted for as though they will exist at least for the foreseeable future is the
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Going concern concept
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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)
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Income Statement
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Which of the following ratios represents an indication of investors' expectations concerning a firm's growth potential?
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Price-Earnings Ratio
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Which of the following ratios is calculated using only balance sheet numbers?
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Curent Ratio
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Which of the following ratios is calculated using only income statement numbers?
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Return on Sales
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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
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20%
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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?
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When a company has a negative operating cash flow
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Which cash flow ratio reflects the extent to which accrual accounting adjustments and assumptions have been included in net income?
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Cash flow?to?net income
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In general, most companies have significant noncash expenses that reduce net income and also cause the cash flow-to-net income ratio to be
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Greather than 1
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Which of the following usually is NOT considered to be an owners' equity account?
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Inventory
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Which of the following accounts would NOT be considered a current asset?
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Equipment
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In non-U.S. Balance sheets, you will often see each of the following EXCEPT:
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The stockholders' equity section will be listed first on the balance sheet
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Historical cost has long been used in accounting because it is
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Reliable
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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
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$1,280
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When a company determines to get out of a specific line of business
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Revenues and expenses from that line of business are excluded from the company's recurring revenues and expenses when preparing an income statement.
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Which of the following principles best describes the rationale for matching administrative and selling expenses with revenues of the current period?
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Immediate recognition
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Which of the following categories of expenses is subject to immediate recognition on the income statement?
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The salary of the company president
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The statement of cash flows replaces the
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None of these
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Which of the following is NOT a purpose of the statement of cash flows?
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It measures the profitability of an entity.
