question

Which of the following is an example of managing earnings down? a.Changing estimated bad debts from 3 % to 2.5 % of sales. b.Revising the estimated life of equipment from 10 years to 8 years. c.Not writing off obsolete inventory. d.Reducing research and development expenditures.

answer

b. b. Revising the estimated life of equipment from 10 years to 8 years.

question

The major elements of income statement are

answer

revenues, expenses, gains, and losses

question

Companies use intraperiod tax allocation for all of the following items except a.discontinued operations. b.extraordinary items. c.changes in accounting estimates. d.income from continuing operations.

answer

c. changes in accounting estimates.

question

Comprehensive income includes all of the following except a. dividend revenue. b. losses on disposal of assets. c. investments by owners. d. unrealized holding gains.

answer

c. investments by owners.

question

in preparing a statement of cash, what would be considered an investing activity? a. sale of equipment at book value b. sale of merchandise on credit c. declaration of cash dividends d. issuance of bonds payable at a discount

answer

a. sale of equipment at book value

question

the current cash debt ratio is often used to access

answer

liquidity

question

General-purpose financial statements are the product of a. financial accounting. b. managerial accounting. c. both financial and managerial accounting. d. neither financial nor managerial accounting.

answer

a

question

The information provided by financial reporting pertains to a. individual business enterprises, rather than to industries or an economy as a whole or to members of society as consumers. b. business industries, rather than to individual enterprises or an economy as a whole or to members of society as consumers. c. individual business enterprises, industries, and an economy as a whole, rather than to members of society as consumers. d. an economy as a whole and to members of society as consumers, rather than to individual enterprises or industries.

answer

d

question

All the following are differences between financial and managerial accounting in how accounting information is used except to a. plan and control company's operations. b. decide whether to invest in the company. c. evaluate borrowing capacity to determine the extent of a loan to grant. d. All the answer choices are correct.

answer

D

question

Which of the following represents a form of communication through financial reporting but not through financial statements? a. Balance sheet. b. President's letter. c. Income statement. d. Notes to financial statements.

answer

B

question

The process of identifying, measuring, analyzing, and communicating financial information needed by management to plan, evaluate, and control an organization's operations is called a. financial accounting. b. managerial accounting. c. tax accounting. d. auditing.

answer

B

question

How does accounting help the capital allocation process attract investment capital? a. By providing timely, relevant information. b. By encouraging innovation. c. By promoting productivity. d. By providing timely, relevant information and by encouraging innovation.

answer

A

question

Which of the following helps in determining whether a business thrives? a. Markets. b. Free enterprise. c. Competition. d. All of these answer choices are correct.

answer

D

question

Which of the following is related to an effective capital allocation? a. Promoting productivity. b. Encouraging innovation. c. Providing an efficient market for buying and selling securities. d. All of these answer choices are correct.

answer

D

question

Financial statements in the early 2000s provide information related to a. nonfinancial measurements. b. forward-looking data. c. hard assets (inventory and plant assets). d. None of these answer choices are correct.

answer

c

question

Which of the following is not a major challenge facing the accounting profession? a. Nonfinancial measurements. b. Timeliness. c. Accounting for hard assets. d. Forward-looking information.

answer

C

question

What is the objective of financial reporting? a. Provide information that is useful to management in making decisions. b. Provide information that clearly portrays nonfinancial transactions. c. Provide information about the reporting entity that is useful to present and potential equity investors, lenders, and other creditors. d. Provide information that excludes claims to the resources.

answer

C

question

Primary users for general-purpose financial statements include a. creditors. b. employees. c. investors. d. both creditors and investors

answer

D

question

Which of the following will be of interest to investors in decision-making? a. Assessing the company's ability to generate net cash inflows. b. Assessing management's ability to protect and enhance the capital providers' investments. c. Both assessing the company's ability to generate net cash inflows and assessing management's ability to protect and enhance the capital provider's investments. d. Assessing the company's ability to collect debts.

answer

C

question

Accrual accounting is used because a. cash flows are considered less important. b. it provides a better indication of a company's ability to generate cash flows than the cash basis. c. it recognizes revenues when cash is received and expenses when cash is paid. d. None of the answer choices are correct.

answer

B

question

Which of the following is a requirement for an accounting principle to be called "generally accepted"? a. An authoritative accounting rule-making body has established it in an official pronouncement. b. The principle has been accepted as appropriate because of its universal application. c. An authoritative accounting rule-making body has established it and it has been accepted because of its universal application. d. None of the answer choices are correct.

answer

B

question

A common set of accounting standards and procedures are called a. financial accounting standards. b. generally accepted accounting principles. c. objectives of financial reporting. d. statements of financial accounting concepts.

answer

A

question

Generally accepted accounting principles a. are fundamental truths or axioms that can be derived from laws of nature. b. derive their authority from legal court proceedings. c. derive their credibility and authority from general recognition and acceptance by the accounting profession. d. have been specified in detail in the FASB conceptual framework.

answer

c

question

A soundly developed conceptual framework of concepts and objectives should a. increase financial statement users' understanding of and confidence in financial reporting. b. enhance comparability among companies' financial statements. c. allow new and emerging practical problems to be more quickly solved. d. All of these answer choices are correct.

answer

D

question

Which of the following is not true concerning a conceptual framework in accounting? a. It should be a basis for standard-setting. b. It should allow practical problems to be solved more quickly by reference to it. c. It should be based on fundamental truths that are derived from the laws of nature. d. All of these answer choices are true.

answer

C

question

What is a purpose of having a conceptual framework? a. To enable the profession to more quickly solve emerging practical problems. b. To provide a foundation from which to build more useful standards. c. Neither a nor b. d. To enable the profession to more quickly solve emerging practical problems and to provide a foundation from which to build more useful standards

answer

d

question

Which of the following is not a benefit associated with the FASB Conceptual Framework Project? a. A conceptual framework should increase financial statement users' understanding of and confidence in financial reporting. b. Practical problems should be more quickly solvable by reference to an existing conceptual framework. c. A coherent set of accounting standards and rules should result. d. Business entities will need far less assistance from accountants because the financial reporting process will be quite easy to apply.

answer

D

question

In the conceptual framework for financial reporting, what provides "the why"--the purpose of accounting? a. Recognition, measurement, and disclosure concepts such as assumptions, principles, and constraints b. Qualitative characteristics of accounting information c. Elements of financial statements d. Objective of financial reporting

answer

D

question

The underlying theme of the conceptual framework is a. decision usefulness. b. understandability. c. faithful representation. d. comparability.

answer

A

question

The objective of general-purpose financial reporting is to provide financial information about a reporting entity to each of the following except a. potential equity investors. b. potential lenders. c. present investors. d. All of these answers are correct.

answer

D

question

What is the primary objective of financial reporting as indicated in the conceptual framework? a. Provide information that is useful to those making investing and credit decisions. b. Provide information that is useful to management. c. Provide information about those investing in the entity. d. All of these answer choices are correct.

answer

A

question

If the LIFO inventory method was used last period, it should be used for the current and following periods because of a. comparability. b. materiality. c. timeliness. d. verifiability.

answer

A

question

What is the following is a characteristic describing the primary quality of relevance? a. Predictive value. b. Materiality. c. Verifiability. d. Understandability.

answer

A

question

Which of the following is a fundamental quality of useful accounting information? a. Comparability. b. Relevance. c. Neutrality. d. Materiality

answer

B

question

Which of the following is a primary quality of useful accounting information? a. Conservatism. b. Comparability. c. Faithful representation. d. Consistency.

answer

C

question

What is meant by comparability when discussing financial accounting information? a. Information has predictive or confirmatory value. b. Information is reasonably free from error. c. Information that is measured and reported in a similar fashion across companies. d. Information is timely.

answer

C

question

What is meant by consistency when discussing financial accounting information? a. Information that is measured and reported in a similar fashion across points in time. b. Information is timely. c. Information is measured similarly across the industry. d. Information is verifiable.

answer

A

question

Which of the following is an ingredient of relevance? a. Verifiability. b. Neutrality. c. Timeliness. d. Materiality.

answer

D

question

Which of the following is an ingredient of faithful representation? a. Predictive value. b. Materiality. c. Neutrality. d. Confirmatory value.

answer

C

question

Changing the method of inventory valuation should be reported in the financial statements under what qualitative characteristic of accounting information? a. Consistency. b. Verifiability. c. Timeliness. d. Comparability.

answer

A

question

Company A issuing its annual financial reports within one month of the end of the year is an example of which enhancing quality of accounting information? a. Comparability. b. Timeliness. c. Understandability. d. Verifiability.

answer

B

question

What is the quality of information that is capable of making a difference in a decision? a. Faithful representation. b. Materiality. c. Timeliness. d. Relevance.

answer

D

question

Neutrality is an ingredient of which fundamental quality of information? a. Faithful representation. b. Comparability. c. Relevance. d. Understandability.

answer

A

question

If the FIFO inventory method was used last period, it should be used for the current and following periods because of a. relevance. b. neutrality. c. understandability. d. consistency.

answer

D

question

The pervasive criterion by which accounting information can be judged is that of a. decision usefulness. b. freedom from bias. c. timeliness. d. comparability.

answer

A

question

The two fundamental qualities that make accounting information useful for decision making are a. comparability and timeliness. b. materiality and neutrality. c. relevance and faithful representation. d. faithful representation and comparability.

answer

C

question

Accounting information is considered to be relevant when it a. can be depended on to represent the economic conditions and events that it is intended to represent. b. is capable of making a difference in a decision. c. is understandable by reasonably informed users of accounting information. d. is verifiable and neutral.

answer

B

question

The quality of information that means the numbers and descriptions match what really existed or happened is a. relevance. b. faithful representation. c. completeness. d. neutrality.

answer

B

question

Factors that shape an accounting information system include the a. nature of the business. b. size of the firm. c. volume of data to be handled. d. All of these answer choices are correct.

answer

D

question

The process of transferring figures from the book of original entry to the ledger accounts is called a. adjusting. b. balancing. c. ledgering. d. posting.

answer

D

question

Debit always means a. the right side of an account. b. an increase. c. a decrease. d. None of these answer choices are correct.

answer

D

question

An accounting record into which the essential facts and figures in connection with all transactions are first recorded is called the a. ledger. b. account. c. trial balance. d. None of these answer choices are correct.

answer

D

question

A trial balance a. proves that debits and credits are equal in the ledger. b. supplies a listing of open accounts and their balances that are used in preparing financial statements. c. is normally prepared three times in the accounting cycle. d. All of these answer choices are correct.

answer

D

question

Which of the following is a real (permanent) account? a. Goodwill b. Service Revenue c. Accounts Receivable d. Both Goodwill and Accounts Receivable

answer

D

question

Which of the following is a nominal (temporary) account? a. Unearned Service Revenue b. Salaries and Wages Expense c. Inventory d. Retained Earnings

answer

B

question

Nominal accounts are also called a. temporary accounts. b. pmanent accounts. c. real accounts. d. None of these answer choices are correct

answer

A

question

The double-entry accounting system means a. Each transaction is recorded with two journal entries. b. Each item is recorded in a journal entry, then in a general ledger account. c. The dual effect of each transaction is recorded with a debit and a credit. d. None of these answer choices are correct.

answer

C

question

When a corporation pays a note payable and interest, a. the account notes payable will be increased. b. the account interest expense will be decreased. c. they will debit notes payable and interest expense. d. they will debit cash

answer

C

question

Stockholders' equity is not affected by all a. cash receipts. b. dividends. c. revenues. d. expenses.

answer

A

question

The debit and credit analysis of a transaction normally takes place a. before an entry is recorded in a journal. b. when the entry is posted to the ledger. c. when the trial balance is prepared. d. at the end of the accounting cycle.

answer

A

question

The accounting equation must remain in balance a. throughout each step in the accounting cycle. b. only when journal entries are recorded. c. only at the time the trial balance is prepared. d. only when formal financial statements are prepared.

answer

A

question

The difference between the accounting process and the accounting cycle is a. the accounting process results in the preparation of financial statements, whereas the accounting cycle is concerned with recording business transactions. b. the accounting cycle represents the steps taken to accomplish the accounting process. c. the accounting process represents the steps taken to accomplish the accounting cycle. d. merely semantic, because both concepts refer to the same thing.

answer

B

question

An optional step in the accounting cycle is the preparation of a. adjusting entries. b. closing entries. c. a statement of cash flows. d. a post-closing trial balance.

answer

D

question

Which of the following criteria must be met before an event or item should be recorded for accounting purposes? a. The event or item can be measured objectively in financial terms. b. The event or item is relevant and reliable. c. The event or item is an element. d. All of these must be met.

answer

D

question

Which of the following is a recordable event or item? a. Changes in managerial policy b. The value of human resources c. Changes in personnel d. None of these answer choices are correct.

answer

D

question

Which of the following is not an internal event? a. Depreciation b. Using raw materials in the production process c. Dividend declaration and subsequent payment d. All of these are internal transactions.

answer

C

question

External events do not include a. interaction between an entity and its environment. b. a change in the price of a good or service that an entity buys or sells. c. improvement in technology by a competitor. d. using buildings and machinery in operations.

answer

d

question

A trial balance may prove that debits and credits are equal, but a. an amount could be entered in the wrong account. b. a transaction could have been entered twice. c. a transaction could have been omitted. d. All of these answer choices are correct.

answer

d

question

A general journal a. chronologically lists transactions and other events, expressed in terms of debits and credits. b. contains one record for each of the asset, liability, stockholders' equity, revenue, and expense accounts. c. lists all the increases and decreases in each account in one place. d. contains only adjusting entries.

answer

A

question

A journal entry to record the sale of inventory on account will include a a. debit to Inventory. b. debit to Accounts Receivable. c. debit to Sales Revenue. d. credit to Cost of Goods Sold.

answer

B

question

A journal entry to record a payment on account will include a a. debit to Accounts Receivable. b. credit to Accounts Receivable. c. debit to Accounts Payable. d. credit to Accounts Payable.

answer

c

question

A journal entry to record a receipt of rent in advance will include a a. debit to Rent Revenue. b. credit to Rent Revenue. c. credit to Cash. d. credit to Unearned Revenue

answer

d

question

Which of the following errors will cause an imbalance in the trial balance? a. Omission of a transaction in the journal. b. Posting an entire journal entry twice to the ledger. c. Posting a credit of $720 to Accounts Payable as a credit of $720 to Accounts Receivable. d. Listing the balance of an account with a debit balance in the credit column of the trial balance.

answer

D

question

Which of the following is not a principal purpose of an unadjusted trial balance? a. It proves that debits and credits of equal amounts are in the ledger. b. It is the basis for any adjustments to the account balances. c. It supplies a listing of open accounts and their balances. d. It proves that debits and credits were properly entered in the ledger accounts.

answer

D

question

An adjusting entry should never include a. a debit to an expense account and a credit to a liability account. b. a debit to an expense account and a credit to a revenue account. c. a debit to a liability account and a credit to revenue account. d. a debit to a revenue account and a credit to a liability account.

answer

B

question

Which of the following is an example of an accrued expense? a. Office supplies purchased at the beginning of the year and debited to an expense account. b. Property taxes incurred during the year, to be paid in the first quarter of the subsequent year. c. Depreciation expense d. Rent recognized during the period, to be received at the end of the year

answer

B

question

The major elements of the income statement are a. revenue, cost of goods sold, selling expenses, and general expense. b. operating section, nonoperating section, discontinued operations, extraordinary items, and cumulative effect. c. revenues, expenses, gains, and losses. d. revenues, irregular items, and general expenses

answer

C

question

Which of the following is true about the information provided in the income statement? a. It helps in evaluating the past performance of the enterprise. b. It provides a basis for predicting future performance. c. It helps assess the risk or uncertainty of achieving future cash flows. d. All of these answer choices are correct.

answer

D

question

Which of the following is false about an income statement? a. Items that cannot be measured reliably are not reported in the income statement. b. It is used to measure the solvency of a company. c. Income measurement involves judgment. d. Income numbers are affected by the accounting methods employed.

answer

B

question

Which of the following would represent the least likely use of an income statement prepared for a business enterprise? a. Use by customers to determine a company's ability to provide needed goods and services. b. Use by labor unions to examine earnings closely as a basis for salary discussions. c. Use by government agencies to formulate tax and economic policy. d. Use by investors interested in the financial position of the entity.

answer

D

question

The income statement reveals a. resources and equities of a firm at a point in time. b. resources and equities of a firm for a period of time. c. net earnings (net income) of a firm at a point in time. d. net earnings (net income) of a firm for a period of time.

answer

D

question

The income statement provides investors and creditors with information to predict all of the following except the: a. amount of future cash flows. b. sources of future cash flows. c. timing of future cash flows. d. uncertainty of future cash flows.

answer

B

question

Which of the following is an example of managing earnings down? a. Changing estimated bad debts from 3 percent to 2.5 percent of sales. b. Revising the estimated life of equipment from 10 years to 8 years. c. Not writing off obsolete inventory. d. Reducing research and development expenditures.

answer

B

question

Which of the following is an example of managing earnings up? a. Decreasing estimated salvage value of equipment. b. Writing off obsolete inventory. c. Underestimating warranty claims. d. Accruing a contingent liability for an ongoing lawsuit.

answer

C

question

What might a manager do during the last quarter of a fiscal year if she wanted to improve current annual net income? a. Increase research and development activities. b. Relax credit policies for customers. c. Delay shipments to customers until after the end of the fiscal year. d. Delay purchases from suppliers until after the end of the fiscal year.

answer

B

question

What might a manager do during the last quarter of a fiscal year if she wanted to decrease current annual net income? a. Delay shipments and sales to customers until after the end of the fiscal year. b. Relax credit policies for customers. c. Pay suppliers all amounts owed. d. Delay purchases from suppliers until after the end of the fiscal year.

answer

A

question

Which of the following is an advantage of the single-step income statement over the multiple-step income statement? a. It reports gross profit for the year. b. Expenses are classified by function. c. It matches costs and expenses with related revenues. d. It does not imply that one type of revenue or expense has priority over another.

answer

D

question

The single-step income statement emphasizes a. the gross profit figure. b. total revenues and total expenses. c. operating and non-operating expenses. d. the various components of income from continuing operations.

answer

B

question

Which of the following is an acceptable method of presenting the income statement? a. A single-step income statement b. A multiple-step income statement c. A consolidated statement of income d. All of these answer choices are correct

answer

D

question

Which of the following is not a generally practiced method of presenting the income statement? a. Including prior period adjustments in determining net income b. The single-step income statement c. The consolidated statement of income d. Including gains and losses from discontinued operations of a component of a business in determining net income

answer

A

question

The occurrence which most likely would have no effect on 2014 net income (assuming that all amounts involved are material) is the a. sale in 2014 of an office building contributed by a stockholder in 1983. b. collection in 2014 of a receivable from a customer whose account was written off in 2013 by a charge to the allowance account. c. settlement based on litigation in 2014 of previously unrecognized damages from a serious accident that occurred in 2012. d. worthlessness determined in 2014 of stock purchased on a speculative basis in 2010.

answer

B

question

The occurrence that most likely would have no effect on 2014 net income is the a. sale in 2014 of an office building contributed by a stockholder in 1961. b. collection in 2014 of a dividend from an investment. c. correction of an error in the financial statements of a prior period discovered subsequent to their issuance. d. stock purchased in 1996 deemed worthless in 2014.

answer

C

question

Which of the following is not a selling expense? a. Advertising expense b. Office salaries expense c. Freight-out d. Store supplies consumed

answer

B

question

The accountant for the Lintz Sales Company is preparing the income statement for 2014 and the balance sheet at December 31, 2014. The January 1, 2014 merchandise inventory balance will appear a. only as an asset on the balance sheet. b. only in the cost of goods sold section of the income statement. c. as a deduction in the cost of goods sold section of the income statement and as a current asset on the balance sheet. d. as an addition in the cost of goods sold section of the income statement and as a current asset on the balance sheet.

answer

B

question

In order to be classified as an extraordinary item in the income statement, an event or transaction should be a. unusual in nature, infrequent, and material in amount. b. unusual in nature and infrequent, but it need not be material. c. infrequent and material in amount, but it need not be unusual in nature. d. unusual in nature and material, but it need not be infrequent.

answer

A

question

Which of the following is a limitation of the balance sheet? a. Many items that are of financial value are omitted. b. Judgments and estimates are used. c. Current fair value is not reported. d. All of these answer choices are correct.

answer

D

question

The balance sheet is useful for analyzing all of the following except a. liquidity. b. solvency. c. profitability. d. financial flexibility

answer

C

question

Balance sheet information is useful for all of the following except to a. compute rates of return b. analyze cash inflows and outflows for the period c. evaluate capital structure d. assess future cash flows

answer

B

question

Balance sheet information is useful for all of the following except a. assessing a company's risk b. evaluating a company's liquidity c. evaluating a company's financial flexibility d. determining free cash flows.

answer

D

question

A limitation of the balance sheet that is not also a limitation of the income statement is a. the use of judgments and estimates b. omitted items c. the numbers are affected by the accounting methods employed d. valuation of items at historical cost

answer

D

question

The balance sheet contributes to financial reporting by providing a basis for all of the following except a. computing rates of return. b. evaluating the capital structure of the enterprise. c. determining the increase in cash due to operations. d. assessing the liquidity and financial flexibility of the enterprise.

answer

C

question

One criticism not normally aimed at a balance sheet prepared using current accounting and reporting standards is a. failure to reflect current value information. b. the extensive use of separate classifications. c. an extensive use of estimates. d. failure to include items of financial value that cannot be recorded objectively.

answer

C

question

The amount of time that is expected to elapse until an asset is realized or otherwise converted into cash is referred to as a. solvency. b. financial flexibility. c. liquidity. d. exchangeability

answer

C

question

The net assets of a business are equal to a. current assets minus current liabilities. b. total assets plus total liabilities. c. total assets minus total stockholders' equity. d. none of these answer choices are correct.

answer

D

question

The correct order to present current assets is a. cash, accounts receivable, prepaid items, inventories. b. cash, accounts receivable, inventories, prepaid items. c. cash, inventories, accounts receivable, prepaid items. d. cash, inventories, prepaid items, accounts receivable.

answer

B

question

The basis for classifying assets as current or noncurrent is conversion to cash within a. the accounting cycle or one year, whichever is shorter. b. the operating cycle or one year, whichever is longer. c. the accounting cycle or one year, whichever is longer. d. the operating cycle or one year, whichever is shorter.

answer

B

question

The basis for classifying assets as current or noncurrent is the period of time normally required by the accounting entity to convert cash invested in a. inventory back into cash, or 12 months, whichever is shorter. b. receivables back into cash, or 12 months, whichever is longer. c. tangible fixed assets back into cash, or 12 months, whichever is longer. d. inventory back into cash, or 12 months, whichever is longer.

answer

D

question

The current assets section of the balance sheet should include a. machinery. b. patents. c. goodwill. d. inventory.

answer

D

question

Which of the following is a current asset? a. Cash surrender value of a life insurance policy of which the company is the beneficiary b. Investment in equity securities for the purpose of controlling the issuing company. c. Cash designated for the purchase of tangible fixed assets. d. Trade installment receivables normally collectible in 18 months.

answer

D

question

Current assets are presented in the balance sheet in a. ascending order of their balances. b. descending order of their balances. c. order of their liquidity. d. reverse order of their liquidity.

answer

C

question

Receivables are valued based on their ________. a. fair value b. estimated amount collectible c. lower-of-cost-or-market value d. historical cost

answer

B

question

When a portion of inventories has been pledged as security on a loan, a. the value of the portion pledged should be subtracted from the debt. b. an equal amount of retained earnings should be appropriated. c. the fact should be disclosed but the amount of current assets should not be affected. d. the cost of the pledged inventories should be transferred from current assets to noncurrent assets.

answer

C

question

Which of the following is not a long-term investment? a. Cash surrender value of life insurance b. Franchise c. Land held for speculation d. A sinking fund

answer

B

question

A generally accepted method of valuation is 1. trading securities at market value. 2. accounts receivable at net realizable value. 3. inventories at current cost. a. 1 b. 2 c. 3 d. 1 and 2

answer

D

question

Which item below is not a current liability? a. Unearned revenue b. Stock dividends distributable c. The currently maturing portion of long-term debt d. Trade accounts payable

answer

B

question

Working capital is a. capital which has been reinvested in the business. b. unappropriated retained earnings. c. cash and receivables less current liabilities. d. none of these answer choices are correct.

answer

D

question

An example of an item which is not an element of working capital is a. accrued interest on notes receivable. b. goodwill. c. goods in process. d. temporary investments.

answer

B

question

Long-term liabilities include a. obligations not expected to be liquidated within the operating cycle b. obligations payable at some date beyond the operating cycle. c. deferred income taxes and most lease obligations. d. all of these answer choices are correct.

answer

D

question

Which of the following should be excluded from long-term liabilities? a. Obligations payable at some date beyond the operating cycle b. Most pension obligations c. Long-term liabilities that mature within the operating cycle and will be paid from a sinking fund d. None of these answer choices are correct

answer

D

question

Treasury stock should be reported as a(n) a. current asset. b. investment. c. other asset. d. reduction of stockholders' equity

answer

D

question

Which of the following should be reported for capital stock? a. The shares authorized b. The shares issued c. The shares outstanding d. All of these answer choices are correct.

answer

D

question

Which of the following would be classified in a different major section of a balance sheet from the others? a. Capital stock b. Common stock subscribed c. Stock dividend distributable d. Stock investment in affiliate

answer

D

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