Question 1
1 out of 1 points
According to SFAC No. 6, assets can be defined by which of
the following?
Probable future sacrifices of economic benefits arising from
present obligations of a particular entity to transfer assets or provide
services to other entities in the future as a result of past trans-actions or
events.
Probable future
economic benefits obtained or controlled by a particular entity as a result of
past transactions or events.
Residual interest on the assets of an entity that remains
after deducting its liabilities.
Increases in equity of a particular business enterprise
resulting from transfers to the enterprise from other entities of something of
value to obtain or increase ownership interests ( or equity) in it.
Question 2
0 out of 1 points
In addition to the company’s principal financial statements,
the Form 10- K and shareholder annual reports must include the following:
Information on the market for holders of common stock and
related securities, including high and low sales price, frequency and amount of
dividends, and number of shares
Five- year summary of selected financial data
Two years of audited balance sheets, three years of audited
statements of income and statements of cash flows
Disclosure of the domestic and foreign components of pretax
income
All of the above.
Question 3
1 out of 1 points
This item need not be provided with a complete set of
financial statements:
Note disclosure of such items as accounting policies
A 20- year summary of operations
Balance sheet
Statement of cash flows
Question 4
1 out of 1 points
Which party has the primary responsibility for the financial
statements?
Bookkeeper
Auditor
Management
Cost accountant
Question 5
1 out of 1 points
Which of the following is not an objective of financial
reporting?
Financial reporting should provide information that is
useful to present and potential investors and creditors and other users in
making rational investment, credit, and similar decisions.
Financial reporting should provide information to help
present and potential investors and creditors and other users in assessing the
amounts, timing, and uncertainty of prospective cash receipts from dividends or
interest and the proceeds from the sale, redemption, or maturity of securities
or loans.
Financial reporting should provide information about the
economic resources of an enterprise, the claims against those resources, and
the effects of transactions, events, and circumstances that change the
resources and claims against those resources.
Financial accounting is designed to measure
directly the value of a business enterprise.
Question 6
1 out of 1 points
From the point of
view of analysis, which classification of an audit opinion indicates that the
financial statements carry the highest degree of reliability?
Unqualified opinion
Disclaimer of opinion
Qualified opinion
Adverse opinion
Question 7
1 out of 1 points
If assets are $ 40,000 and stockholders’ equity is $ 10,000,
how much are liabilities?
$ 30,000
$ 50,000
$ 20,000
$ 60,000
Question 8
1 out of 1 points
Which of the following is a characteristic of information
provided by external financial reports?
The information is exact and not subject to change.
The information is
frequently the result of reasonable estimates
The information pertains to the economy as a whole.
The information is provided at the least possible cost.
Question 9
1 out of 1 points
Audit opinions cannot be classified as which of the
following?
All- purpose
Disclaimer of opinion
Adverse opinion
Qualified opinion
Question 10
1 out of 1 points
According to SFAC No. 6, expenses can be defined by which of
the following?
Outflows or other consumption or using up of
assets or incurrences of liabilities ( or a combination of both) from
delivering or producing goods, rendering services, or carrying out other
activities that constitute the entity’s ongoing major or central operations.
Inflows or other enhancements of assets of an entity or
settlements of its liabilities ( or a combina-tion of both) from delivering or
producing goods, rendering services, or other activities that consti-tute the
entity’s ongoing major or central operations.
Increases in equity ( net assets) from peripheral or
incidental transactions of an entity and from all other transactions and other
events and circumstances affecting the entity during a period, except those
that result from revenues or investments.
Decreases in equity ( net assets) from peripheral or
incidental transactions of an entity and from all other transactions and other
events and circumstances affecting the entity during a period, except those
that result from expenses or distributions to owners.
