1700998
Descripción
Test por Natalie Balzert, actualizado hace más de 1 año
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Creado por Natalie Balzert
hace más de 9 años
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Pregunta 1
Pregunta
Corporations invest excess cash for short periods of time in each of the following except
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Equity securities.
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Highly liquid securities.
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Low-Risk securities.
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Government securities.
Pregunta 2
Pregunta
Corporations invest in other companies for all of the following reasons except to
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house excess cash until needed.
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generate earnings.
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meet strategic goals.
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increase trading of the other companies stock.
Pregunta 3
Pregunta
A typical investment to house excess cash until needed is
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stocks of companies in a related industry.
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debt securities.
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low-risk, highly liquid securities.
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stock securities.
Pregunta 4
Pregunta
A company may purchase a non controlling interest in another firm in related industry
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to house excess cash until needed.
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to generate earnings.
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for strategic reasons.
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for speculative reasons.
Pregunta 5
Pregunta
Pension funds and mutual funds regularly invest in debt and stock securities primarily to
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generate earnings.
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house excess cash until needed.
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meet strategic goals.
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control the company in which they invest.
Pregunta 6
Pregunta
At the time of acquisition of a debt investment,
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no journal entry is required.
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the cost principle applies.
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the Stock investments account is debited when bonds are purchased.
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the Investment account is credited for its cost plus brokerage fees.
Pregunta 7
Pregunta
Which of the following is not a true statement regarding short-term debt investments?
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The securities usually pay interest.
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Investments are frequently government or corporate bonds.
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This type of investment must be currently traded in the securities market.
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Debt investments are recorded at the price paid less brokerage fees.
Pregunta 8
Pregunta
On January 1, 2013, Danner Company purchased at face value, a $1000, 8% bond that pays interest on January 1 and July 1. Danner Company has a calendar year end. The entry for the receipt of interest on July 1, 2013 is
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Cash..........................................40 Interest Revenue .......................40
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Cash.........................................80 Interest Revenue..........................80
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Interest Receivable................................40 Interest Revenue................................40
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Interest Receivable.............................80 Interest Revenue..............................80
Pregunta 9
Pregunta
On January 1, 2013, Danner Company purchased at face value, a $1000, 10% bond that pays interest on January 1 and July 1. Danner Company has a calendar year end. The adjusting entry on December 31, 2013 is
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not required
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Cash..............50 Interest Revenue..............50
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Interest Receivable......................50 Interest Revenue.............................50
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Interest Receivable.....................50 Debt investments...........................50
Pregunta 10
Pregunta
On January 1, 2013, Milton Company purchased at face value, a $1000, 4% bond that pays interest on January 1 and July 1. Milton Company has a calendar year end. The entry for the receipt of interest on January 1, 2014 is
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Cash..............................40 Interest Revenue................40
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Cash............................40 Interest Receivable......................40
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Cash....................................20 Interest Revenue...........................20
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Cash.....................................20 Interest Receivable.........................20
Pregunta 11
Pregunta
The statement of cash flows should help investors and creditors assess each of the following except the
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entity's ability to generate future income.
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entity's ability to pay dividends.
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reasons for the difference between net income and net cash provided by operating activities.
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cash investing and financing transactions during the period.
Pregunta 12
Pregunta
The statement of cash flows
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must be prepared on a daily basis.
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summarizes the operating, financing,and investing activities of an entity.
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is another name for the income statement.
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is a special section of the income statement.
Pregunta 13
Pregunta
Which of the following items is not generally used in preparing a statement of cash flows?
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Adjusted trial balance.
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Comparative balance sheets.
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Current income statement.
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Additional information.
Pregunta 14
Pregunta
The primary purpose of the statement of cash flows is to
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provide information about the investing and financing activities during a period.
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prove that revenues exceed expenses if there is a net income.
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provide information about the cash receipts and cash payments during a period.
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facilitate banking relationships.
Pregunta 15
Pregunta
If a company reports a net loss, it
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may still have a net increase in cash.
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will not be able to pay cash dividends.
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will not be able to get a loan.
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will not be able to make capital expenditures.
Pregunta 16
Pregunta
In addition to the three basic financial statements, which of the following is also a required financial statement?
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the "Cash Budget"
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the Statement of Cash Flows
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the Statement of Cash Inflows and Outflows
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the "Cash Reconciliation"
Pregunta 17
Pregunta
The statement of cash flows will not report the
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amount of checks outstanding at the end of the period.
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sources of cash in the current period.
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uses of cash in the current period.
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change in the cash balance for the current period.
Pregunta 18
Pregunta
The statement of cash flows reports each of the following except
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cash receipts from operating activities.
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cash payments from investing activities.
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the net change in cash.
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cash sales.
Pregunta 19
Pregunta
Each of the following are particularly interested in the statement of cash flows except
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creditors.
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employees.
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shareholders.
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government agencies.
Pregunta 20
Pregunta
Lending money and collecting the loads are
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operating activities.
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investing activities.
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financing activities.
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non-cash investing and financing activities.
Pregunta 21
Pregunta
Which one of the following is primarily interested in the liquidity of a company?
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Federal government.
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Stockholders.
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Long-term creditors.
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Short-term creditors.
Pregunta 22
Pregunta
Which of of the following is not a characteristic generally evaluated in analyzing financial statements?
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Liquidity
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Profitability
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Marketability
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Solvency
Pregunta 23
Pregunta
In analyzing the financial statements of a company, a single item on the financial statements
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should be reported in bold-face type.
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is more meaningful if compared to other financial information.
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is significant only if it is large.
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should be accompanied by a footnote.
Pregunta 24
Pregunta
Short-term creditors are usually most interested in evaluating
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solvency.
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liquidity.
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marketability.
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profitability.
Pregunta 25
Pregunta
Long-term creditors are usually most interested in evaluating
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liquidity and solvency.
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solvency and marketability.
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liquidity and profitability.
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profitability and solvency.
Pregunta 26
Pregunta
Stockholders are most interested in evaluating
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liquidity and solvency.
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profitability and solvency.
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liquidity and profitability.
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marketability and solvency.
Pregunta 27
Pregunta
A stockholder is interested in the ability of a firm to
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pay consistent dividends.
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appreciate in share price.
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survive over a long period.
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all of these.
Pregunta 28
Pregunta
Comparisons of financial date made within a company are called
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intracompany comparisons.
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interior comparisons.
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intercompany comparisons.
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intramural comparisons.
Pregunta 29
Pregunta
A technique for evaluating financial statements that expresses the relationship among selected items of financial statement date is
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common size analysis.
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horizontal analysis.
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ratio analysis.
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vertical analysis.
Pregunta 30
Pregunta
Which one of the following is not a tool in financial statement analysis?
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Horizontal analysis.
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Circular analysis.
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Vertical analysis.
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Ratio analysis.
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