26. Which of the following is not an acceptable way of reporting a company's comprehensive income? (Points: 4) on the face of the income statement in a separate statement of comprehensive income in the statement of changes in stockholders' equity in the statement of retained earnings
27. A company is required to report earnings per share on Net Income Comprehensive Income (Points: 4) Yes Yes No No Yes No No Yes 28. The statement of cash flows is least likely to help external users to assess (Points: 4) a company's ability to generate positive future cash flows the amount of a company's future accrual-based sales revenue a company's ability to meet its obligations and pay dividends a company's need for external financing 29. Which of the following sections will not appear in the statement of cash flows? (Points: 4) operating activities investing activities financing activities selling activities 30. Which of the following statements regarding a statement of cash flows is not true? (Points: 4) The most common method for reporting operating activities is the direct method. Operating activities include all transactions and other events related to the earnings process. It requires a reconciliation of beginning and ending cash balances. It helps users to assess a company's need for external financing. 31. Comprehensive income includes the following changes in equity in a company during a period except (Points: 4) transactions with non-owners events relating to non-owner sources circumstances relating to non-owner sources distributions to owners 32. Characteristics of risk as they relate to the uncertainty or unpredictability of the future results of a company include (Points: 4) the greater the risk, the higher the rate of return expected by investors risk increases as the range and timeframe within which future results are likely to fall increases risk increases as the range and timeframe within which future results are likely to fall decreases the greater the risk, the higher the rate of return expected by creditors 33. In 2007, the CFA Institute Centre for Financial Market Integrity proposed a new financial model to replace the traditional earnings number. Which of the following characteristics does the proposed statement of changes in net assets available to stockholders exclude? (Points: 4) It recognizes all transactions and events that change net assets. Line items would be reported by the nature of the item. Line items would be reported by the function for which the resource is consumed. It includes the effects of all investing and financing activities. 34. The following information relates to the Smith Company: What is the unadjusted January 1, 2010, balance in retained earnings? (Points: 4) $1,170 $1,320 $1,470 $1,630 35. IFRS reporting requires all of the following items except (Points: 4) earnings per share disclosure comprehensive income disclosure in a statement of stockholders' equity disclosure of the results of discontinued operations operating expenses disclosure 36. Differences that currently exist between IFRS and U.S. GAAP with regard to the presentation of information on the income statement include all of the following except (Points: 4) different acceptable terminology relating to revenue items depreciation measures differ when equipment has been revalued different performance measures such as EBITDA are permitted under IFRS differences resulting because IFRS does not require the use of accrual accounting under the historical cost framework 37. The Philip Company had the following information available for the fiscal year ended December 31, 2010: Philip's inventory turnover for 2010 was (Points: 4) 3 times 4 times 5.33 times 6 times 38. The following information was obtained from the records of Trophy Company for 2010: How many times was interest earned in 2010? (Points: 4) 1.25 times 1.75 times 2.75 times 32.5 times 39. Monroe Company reported the following information for the year ended December 31, 2010: Monroe's earnings per share for 2010 was (Points: 4) $6.67 $6.00 $5.11 $0.15 40. Morgan Company reported the following information for the year ended December 31, 2010: Morgan's 2010 price/earnings ratio was (Points: 4) 0.17 times 5.25 times 6.00 times 4.67 times (No information about Morgan company available) 41. Full disclosure is desirable for all of the following reasons except (Points: 4) it helps to prevent the inappropriate use of insider information it helps financial markets to operate more efficiently it helps financial markets to operate more cost effectively it eliminates the need for financial analysis 42. In the Management Report contained in the audited annual report, management acknowledges its responsibility for all of the following except (Points: 4) preparing and presenting the financial statements correcting all internal control deficiencies prior to issuance of the financial statements designing and maintaining appropriate internal controls evaluating the effectiveness of the internal controls 43. A difference between the segment disclosures required by IFRS and GAAP is that (Points: 4) under GAAP, each segment's liabilities must be disclosed under certain circumstances, while under IFRS, liabilities by segment need not be disclosed under IFRS, each segment's cash balances must be disclosed under certain circumstances, while under GAAP, cash balances by segment need not be disclosed under IFRS, each segment's total assets must be disclosed under certain circumstances, while under GAAP, total assets by segment need not be disclosed under IFRS, each segment's liabilities must be disclosed under certain circumstances, while under GAAP, liabilities by segment need not be disclosed 44. On September 1, 2010, the Baker Company received $44,940 from 4-Most Finance Company. To pay off this loan, the Baker Company will have to pay 4-Most $10,000 each year for 10 years. The first payment is due September 1, 2011. Which interest rate compounded annually is Baker paying on this loan? (Points: 4) 12% 15% 18% 24% 45. In the present value of an annuity table, the factors (Points: 4) increase as the interest rates increase decrease as the periods increase remain the same as the periods increase decrease as the interest rates increase 46. Paul's Painting Co. acquired a new $800,000 press on April 1, 2010. Paul's will make six equal payments based upon 8% compound interest, starting on March 31, 2011. How much will each payment be? (Points: 4) $504,136 $173,056 $160,234 $109,052 47. An advantage of basing bad debt expense on the historical relationship between bad debts and net credit sales is that (Points: 4) it provides the best estimate of the net realizable value of accounts receivable it provides the best information to the credit department to use in its collection activities it best adheres to the matching concept it considers the balance in the allowance account when making the bad debt expense estimate 48. When an uncollectible account is written off under the estimated bad debts method, it (Points: 4) decreases net income increases working capital increases the accounts receivable net realizable value leaves total assets unchanged 49. Bad debt expense is normally reported on the income statement as a(n) (Points: 4) operating expense offset against gross sales financial expense in the other items section contra-revenue amount 50. When a company writes off an account receivable using the direct write-off method, the effect of this write-off on the financial statements is to (Points: 4) increase the net realizable value of accounts receivable reduce total expenses reduce total assets increase working capital Read more: 1. The purposes of the joint long-term project 
|
