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C213 accounting quizes – Flashcards

Julia Rush

8 July 2022

question

Which of the following financial statements reports a company's resources, obligations, and owner's equity?

answer

Balance Sheet

question

Which of the following financial statements reports the excess of a company's revenues over its expenses?

answer

Income Statement

question

Which of the following is NOT an external user of financial information?

answer

Management

question

The organization that develops worldwide accounting standards is the

answer

International Accounting Standards Board (IASB)

question

Which of the following is true of the balance sheet?

answer

It identifies a company's assets and liabilities as of a specific date.

question

The idea that businesses must be accounted for as though they will exist at least for the foreseeable future is the

answer

Going concern concept

question

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)

answer

Income Statement

question

Which of the following ratios represents an indication of investors' expectations concerning a firm's growth potential?

answer

Price-Earnings Ratio

question

Which of the following ratios is calculated using only balance sheet numbers?

answer

Curent Ratio

question

Which of the following ratios is calculated using only income statement numbers?

answer

Return on Sales

question

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

answer

20%

question

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?

answer

When a company has a negative operating cash flow

question

Which cash flow ratio reflects the extent to which accrual accounting adjustments and assumptions have been included in net income?

answer

Cash flow?to?net income

question

In general, most companies have significant noncash expenses that reduce net income and also cause the cash flow-to-net income ratio to be

answer

Greather than 1

question

Which of the following usually is NOT considered to be an owners' equity account?

answer

Inventory

question

Which of the following accounts would NOT be considered a current asset?

answer

Equipment

question

In non-U.S. Balance sheets, you will often see each of the following EXCEPT:

answer

The stockholders' equity section will be listed first on the balance sheet

question

Historical cost has long been used in accounting because it is

answer

Reliable

question

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

answer

$1,280

question

When a company determines to get out of a specific line of business

answer

Revenues and expenses from that line of business are excluded from the company's recurring revenues and expenses when preparing an income statement.

question

Which of the following principles best describes the rationale for matching administrative and selling expenses with revenues of the current period?

answer

Immediate recognition

question

Which of the following categories of expenses is subject to immediate recognition on the income statement?

answer

The salary of the company president

question

The statement of cash flows replaces the

answer

None of these

question

Which of the following is NOT a purpose of the statement of cash flows?

answer

It measures the profitability of an entity.

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question

Which of the following financial statements reports a company's resources, obligations, and owner's equity?

answer

Balance Sheet

question

Which of the following financial statements reports the excess of a company's revenues over its expenses?

answer

Income Statement

question

Which of the following is NOT an external user of financial information?

answer

Management

question

The organization that develops worldwide accounting standards is the

answer

International Accounting Standards Board (IASB)

question

Which of the following is true of the balance sheet?

answer

It identifies a company's assets and liabilities as of a specific date.

question

The idea that businesses must be accounted for as though they will exist at least for the foreseeable future is the

answer

Going concern concept

question

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)

answer

Income Statement

question

Which of the following ratios represents an indication of investors' expectations concerning a firm's growth potential?

answer

Price-Earnings Ratio

question

Which of the following ratios is calculated using only balance sheet numbers?

answer

Curent Ratio

question

Which of the following ratios is calculated using only income statement numbers?

answer

Return on Sales

question

answer

20%

question

answer

When a company has a negative operating cash flow

question

Which cash flow ratio reflects the extent to which accrual accounting adjustments and assumptions have been included in net income?

answer

Cash flow?to?net income

question

In general, most companies have significant noncash expenses that reduce net income and also cause the cash flow-to-net income ratio to be

answer

Greather than 1

question

Which of the following usually is NOT considered to be an owners' equity account?

answer

Inventory

question

Which of the following accounts would NOT be considered a current asset?

answer

Equipment

question

In non-U.S. Balance sheets, you will often see each of the following EXCEPT:

answer

The stockholders' equity section will be listed first on the balance sheet

question

Historical cost has long been used in accounting because it is

answer

Reliable

question

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

answer

$1,280

question

When a company determines to get out of a specific line of business

answer

Revenues and expenses from that line of business are excluded from the company's recurring revenues and expenses when preparing an income statement.

question

Which of the following principles best describes the rationale for matching administrative and selling expenses with revenues of the current period?

answer

Immediate recognition

question

Which of the following categories of expenses is subject to immediate recognition on the income statement?

answer

The salary of the company president

question

The statement of cash flows replaces the

answer

None of these

question

Which of the following is NOT a purpose of the statement of cash flows?

answer

It measures the profitability of an entity.

C213 accounting quizes – Flashcards

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