Question 1

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Paid-in capital

Accepted Answer

A)  Cash received from a customer for goods or services to be provided in a future period.
B)  Accumulated net income less dividends since the inception of the corporation.
C)  Converting cash to inventory to receivables to cash.
D)  Cash paid in advance for a cost of the company.
E)  Amounts invested by shareholders in the corporation.F) All of the above
G) C) and D)

Question 2

Which of the following is not a required segment reporting disclosure according to U.S. GAAP?

Accepted Answer

A)   Segment profit or loss.
B)   Segment assets.
C)   Segment liabilities.
D)   General information about the operating segment.E) A) and B)
F) C) and D)

Question 3

Rent collected in advance is:

Accepted Answer

A)   An asset account in the balance sheet.
B)   A liability account in the balance sheet.
C)   A shareholders' equity account in the balance sheet.
D)   A temporary account, not in the balance sheet at all.E) A) and C)
F) B) and C)

Question 4

Cash equivalents would not include:

Accepted Answer

A)   Cash not available for current operations.
B)   Money market funds.
C)   U.S. treasury bills.
D)   Bank drafts.E) All of the above
F) C) and D)

Question 5

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Liquidity

Accepted Answer

A)  Also know as the quick ratio.
B)  Current assets divided by current liabilities.
C)  Refers to riskiness of a company with regard to the amount of liabilities in its capital structure.
D)  Relates to the amount of time before an asset is converted to cash or a liability is paid.
E)  If four to one, 80% of assets are debt-financed.F) C) and E)
G) A) and B)

Question 6

Briefly explain what is meant by a subsequent event. Give two examples of subsequent events.

Accepted Answer

A subsequent event is a <b>significant e...

Question 7

Accrued liabilities:

Accepted Answer

A)   Are generally paid in services rather than cash.
B)   Result from payment before services are received.
C)   Result from services received before payment is made.
D)   Are deferred charges to expense.E) All of the above
F) None of the above

Question 8

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Property, plant, and equipment

Accepted Answer

A)  Obligations payable in more than one year or longer than the operating cycle.
B)  Includes buildings and land used in operations.
C)  Obligations payable within one year or the operating cycle.
D)  Ownership of an exclusive right.
E)  Items expected to be converted to cash or consumed within one year or the operating cycle.F) C) and D)
G) B) and D)

Question 9

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Current ratio

Accepted Answer

A)  Also know as the quick ratio.
B)  Current assets divided by current liabilities.
C)  Refers to riskiness of a company with regard to the amount of liabilities in its capital structure.
D)  Relates to the amount of time before an asset is converted to cash or a liability is paid.
E)  If four to one, 80% of assets are debt-financed.F) B) and C)
G) C) and E)

Question 10

Prepaid expenses are classified as current assets if the services purchased are expected to expire within 12 months or the operating cycle, whichever is longer.

Accepted Answer

A) True 
 B)False

Question 11

The balance sheet for Altoid Co. is shown below.

Required: Compute the following financial statement ratios for 2018:
-Altoid Co.'s current ratio. Round your answer to two decimal places.

Accepted Answer

($150 + 200 + 300 + ...

Question 12

The criteria for determining which items comprise cash equivalents often is disclosed in the summary of significant accounting policies.

Accepted Answer

A) True 
 B)False

Question 13

The current ratio is calculated as:

Accepted Answer

A)   Current assets divided by long-term assets.
B)   Current assets divided by total assets.
C)   Current assets divided by current liabilities.
D)   Current assets divided by total liabilities.E) A) and D)
F) C) and D)

Question 14

Which of the following would be disclosed in the summary of significant accounting policies disclosure note?

Accepted Answer

A)   Option a
B)   Option b
C)   Option c
D)   Option dE) A) and D)
F) All of the above

Question 15

Indicate whether each of the actions listed below will immediately increase (I), decrease (D), or have no effect (N) on the ratios shown. Assume each ratio is greater than 1.0 before the action is taken. 
-

Accepted Answer

The answer of Indicate whether each of the actions listed...

Question 16

The usual difference between accounts payable and notes payable is:

Accepted Answer

A)   Legally enforceable debt.
B)   Current-Long-term classification.
C)   Known payment terms.
D)   Explicitly stated interest.E) A) and D)
F) B) and C)

Question 17

All current assets are either cash or assets that will be converted into cash or consumed within 12 months or the operating cycle, whichever is longer.

Accepted Answer

A) True 
 B)False

Question 18

Segment reporting requires disclosure of each customer that accounts for more than 5% of total enterprise revenue.

Accepted Answer

A) True 
 B)False

Question 19

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Long-term solvency

Accepted Answer

A)  Also know as the quick ratio.
B)  Current assets divided by current liabilities.
C)  Refers to riskiness of a company with regard to the amount of liabilities in its capital structure.
D)  Relates to the amount of time before an asset is converted to cash or a liability is paid.
E)  If four to one, 80% of assets are debt-financed.F) All of the above
G) A) and B)

Question 20

An omission in the notes to the financial statements that is so serious that even a qualified opinion is not justified would result in:

Accepted Answer

A)   A disclaimer.
B)   An unqualified opinion.
C)   An adverse opinion.
D)   A consistency exception.E) A) and B)
F) None of the above

Exam 3: The Balance Sheet and Financial Disclosures

Indicate whether each of the actions listed below will immediately increase (I), decrease (D), or have no effect (N) on the ratios shown. Assume each ratio is greater than 1.0 before the action is taken. -

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Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Liquidity

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Which of the following would be disclosed in the summary of significant accounting policies disclosure note?

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Prepaid expenses are classified as current assets if the services purchased are expected to expire within 12 months or the operating cycle, whichever is longer.

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The current ratio is calculated as:

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The usual difference between accounts payable and notes payable is:

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Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Paid-in capital

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Accrued liabilities:

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Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Property, plant, and equipment

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Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Current ratio

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Briefly explain what is meant by a subsequent event. Give two examples of subsequent events.

Correct AnswerverifiedA subsequent event is a significant e...View AnswerShow Answer

Cash equivalents would not include:

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The criteria for determining which items comprise cash equivalents often is disclosed in the summary of significant accounting policies.

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The balance sheet for Altoid Co. is shown below. Required: Compute the following financial statement ratios for 2018: -Altoid Co.'s current ratio. Round your answer to two decimal places.

Correct Answerverified($150 + 200 + 300 + ...View AnswerShow Answer

Which of the following is not a required segment reporting disclosure according to U.S. GAAP?

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An omission in the notes to the financial statements that is so serious that even a qualified opinion is not justified would result in:

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Rent collected in advance is:

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All current assets are either cash or assets that will be converted into cash or consumed within 12 months or the operating cycle, whichever is longer.

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Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Long-term solvency

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Segment reporting requires disclosure of each customer that accounts for more than 5% of total enterprise revenue.

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A subsequent event is a significant e...
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($150 + 200 + 300 + ...
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