Question 1 of 20 5.0\/ 5.0 Points<\/p>\n
Common-size balance sheets may be used for all of the following except<\/p>\n
A. gaining insights into the nature of a company\u2019s operations<\/p>\n
B. analyzing a company\u2019s asset and financial structure<\/p>\n
C. determining how management assesses the risks a company faces.<\/p>\n
D. learning about the underlying economics of an industry<\/p>\n
Question 2 of 20 5.0\/ 5.0 Points<\/p>\n
Investing activities include the cash effects of:<\/p>\n
A. producing and delivering goods and services<\/p>\n
B. purchasing and disposing of fixed assets used in production of revenue<\/p>\n
C. borrowing and repaying loans used to purchase fixed assets.<\/p>\n
D. selling stocks and bonds to raise capital to purchase fixed assets<\/p>\n
Question 3 of 20 5.0\/ 5.0 Points<\/p>\n
Financing activities include the cash effects of:<\/p>\n
A. producing and delivering goods and services<\/p>\n
B. purchasing and disposing of fixed assets used in production of revenue<\/p>\n
C. purchasing and disposing of debt securities of other companies<\/p>\n
D. selling stocks and bonds to raise capital for the production of revenue<\/p>\n
Question 4 of 20 5.0\/ 5.0 Points<\/p>\n
Probable future sacrifices of economic benefits arising from an entity\u2019s present obligations to transfer resources or provide services to other entities in the future as a result of past transactions or events define:<\/p>\n
A. assets<\/p>\n
B. liabilities<\/p>\n
C. equity.<\/p>\n
D. retained earnings<\/p>\n
Question 5 of 20 5.0\/ 5.0 Points<\/p>\n
The Common Stock account is reported on the balance sheet at the:<\/p>\n
A. historical par value of the stock<\/p>\n
B. current market value of the stock<\/p>\n
C. net realizable value of the stock<\/p>\n
D. discounted present value of the future dividends`<\/p>\n
Question 6 of 20 5.0\/ 5.0 Points<\/p>\n
How much cash did Kris collect from customers during Year 2? Assume all sales are on credit.<\/p>\n
A. $150,000<\/p>\n
B. $750,000<\/p>\n
C. $850,000<\/p>\n
D. $900,000<\/p>\n
$900,000 sales – $50,000 increase in A\/R = $850,000<\/p>\n
Question 7 of 20 5.0\/ 5.0 Points<\/p>\n
Current liabilities are reported on the balance sheet at:<\/p>\n
A. current market value.<\/p>\n
B. historical cost.<\/p>\n
C. discounted present value<\/p>\n
D. future value<\/p>\n
Question 8 of 20 5.0\/ 5.0 Points<\/p>\n
The Additional Paid-In Capital account is reported on the balance sheet at the __________ minus par value.<\/p>\n
A. current market value of the stock<\/p>\n
B. historical sales price of the stock<\/p>\n
C. net realizable value of the stock<\/p>\n
D. discounted present value of the future dividends<\/p>\n
Question 9 of 20 5.0\/ 5.0 Points<\/p>\n
Companies that are considered to be in stronger financial health and better credit risks are able to satisfy most of their cash needs from __________ activities<\/p>\n
A. operating<\/p>\n
B. investing<\/p>\n
C. financing<\/p>\n
D. investing and financing<\/p>\n
Question 10 of 20 5.0\/ 5.0 Points<\/p>\n
The amount of income taxes recognized on the income statement but NOT yet payable to the government are found on the:<\/p>\n
A. balance sheet in the account Deferred Income Taxes.<\/p>\n
B. balance sheet in the account Income Taxes Payable.<\/p>\n
C. income statement in the account Income Tax Expense Current.<\/p>\n
D. income statement in the account Income Tax Expense Deferred<\/p>\n
Question 11 of 20 5.0\/ 5.0 Points<\/p>\n
Which one of the following equations explains why successive balance sheets can be used to prepare a firm\u2019s cash flow statement?<\/p>\n
A. Assets = Liabilities \u2013 Equity<\/p>\n
B. Cash \u2013 Noncash assets = Liabilities \u2013 Equity<\/p>\n
C. \uf044 Cash = \uf044 Liabilities \u2013 \uf044 Noncash assets + \uf044 Stockholders\u2019 equity<\/p>\n
D. \uf044 Cash = \uf044 Liabilities + \uf044 Stockholders\u2019 equity<\/p>\n
Question 12 of 20 5.0\/ 5.0 Points<\/p>\n
Retained earnings are reported on the balance sheet at:<\/p>\n
A. historical cost.<\/p>\n
B. current market value.<\/p>\n
C. net realizable value.<\/p>\n
D. a mixture of different measurement bases<\/p>\n
Question 13 of 20 5.0\/ 5.0 Points<\/p>\n
How far into the future the obligations of a company will come due refers to the company\u2019s:<\/p>\n
A. capital structure<\/p>\n
B. maturity structure<\/p>\n
C. solvency<\/p>\n
D. liquidity<\/p>\n
Question 14 of 20 5.0\/ 5.0 Points<\/p>\n
In a common-size balance sheet, each balance sheet account is expressed as a percentage of total:<\/p>\n
A. liabilities<\/p>\n
B. assets<\/p>\n
C. shareholders\u2019 equity<\/p>\n
D. assets plus shareholders\u2019 equity<\/p>\n
Question 15 of 20 5.0\/ 5.0 Points<\/p>\n
Inventories are reported on the balance sheet at:<\/p>\n
A. current market value<\/p>\n
B. historical cost<\/p>\n
C. net realizable value<\/p>\n
D. the lower of cost or market<\/p>\n
Question 16 of 20 5.0\/ 5.0 Points<\/p>\n
How much cash did Barden pay for rent during Year 4?<\/p>\n
A. $0<\/p>\n
B. $15,000<\/p>\n
C. $25,000<\/p>\n
D. $40,000<\/p>\n
$25,000 rent expense – $25,000 decrease in prepaid rent = $0<\/p>\n
Question 17 of 20 5.0\/ 5.0 Points<\/p>\n
Operating activities result from the cash effects of:<\/p>\n
A. producing and delivering goods and services<\/p>\n
B. purchasing and disposing of fixed assets used in production of revenue<\/p>\n
C. borrowing and repaying loans used in the production of revenue<\/p>\n
D. selling stocks and bonds to raise capital for the generation of revenue<\/p>\n
Question 18 of 20 5.0\/ 5.0 Points<\/p>\n
All of the following disclosures would appear in the Summary of Significant Accounting Policies EXCEPT the __________ method<\/p>\n
A. inventory<\/p>\n
B. depreciation<\/p>\n
C. long-term construction contract<\/p>\n
D. financing<\/p>\n
Question 19 of 20 5.0\/ 5.0 Points<\/p>\n
The balance sheet amount reported for a long-term debt on the issue date is the:<\/p>\n
A. discounted present value of the future principal repayment<\/p>\n
B. discounted present value of the periodic interest payments<\/p>\n
C. sum of the future value of principal repayment and the periodic interest payments.<\/p>\n
D. sum of the discounted present values of the future principal repayments and the periodic interest payments.<\/p>\n
Question 20 of 20 5.0\/ 5.0 Points<\/p>\n
Current assets are assets expected to:<\/p>\n
A. be converted to cash within twelve months<\/p>\n
B. be converted to cash within twelve months or one operating cycle if it is longer than twelve months<\/p>\n
C. remain on the books for at least twelve months<\/p>\n
D. remain on the books for at least twelve months or one operating cycle if longer than twelve months<\/p>\n","protected":false},"excerpt":{"rendered":"
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