jmkerstell
Quiz por , criado more than 1 year ago

"The income statement and the statement of cash flows."

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jmkerstell
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ACC 301: Chapter 5 (theory)

ACC 301: Chapter 5 (theory)

Questão 1 de 33

1

The income statement may be used to do all of the following except:

Selecione uma das seguintes:

  • evaluate profitability and assess the return on investment.

  • evaluate management's performance.

  • obtain a snapshot of the company's financial position at a moment in time.

  • assess the company's operating capability and financial performance for the current period.

Explicação

Questão 2 de 33

1

An income statement provides information that is useful

Selecione uma das seguintes:

  • to investors, creditors, and other external users.

  • for evaluating financial performance.

  • for predicting future cash flows.

  • for all of these choices.

Explicação

Questão 3 de 33

1

Which of the following would not be found on a single-step income statement?

Selecione uma das seguintes:

  • revenues

  • gross profit

  • expenses

  • net income

Explicação

Questão 4 de 33

1

Which of the following make up cost of goods sold?

Selecione uma das seguintes:

  • the cost of inventory available for sale

  • the cost of inventory that was actually sold

  • the operating expenses incurred in generating sales

  • all of these

Explicação

Questão 5 de 33

1

Basic earnings per share (EPS) is computed as

Selecione uma das seguintes:

  • all earnings divided by all shares of stock.

  • all earnings divided by outstanding shares of common stock.

  • net income available to common shareholders divided by weighted average outstanding shares of common stock.

  • dividends to preferred shareholders divided by weighted average outstanding shares of preferred stock.

Explicação

Questão 6 de 33

1

Basic earnings per share (EPS) is used by investors and analysts in evaluating

Selecione uma das seguintes:

  • the book value of the company's assets.

  • the value of a share of the company's common stock.

  • the value of a share of the company's preferred stock.

  • the risk factor of the company's dilutive securities.

Explicação

Questão 7 de 33

1

Which of the following is not an element of the income statement?

Selecione uma das seguintes:

  • revenues

  • liabilities

  • expenses

  • gains

Explicação

Questão 8 de 33

1

When should revenues be recognized?

Selecione uma das seguintes:

  • at the point of agreement regarding the transaction price

  • when performance obligations can be identified

  • when payment is received

  • when performance obligations have been satisfied

Explicação

Questão 9 de 33

1

The three major sections of the statement of cash flows are:

Selecione uma das seguintes:

  • net income, adjustments to net income, and other activities.

  • operating activities, investing activities, and financing activities.

  • indirect activities, investing activities, and operating activities.

  • operating activities, financing activities, and other activities.

Explicação

Questão 10 de 33

1

Using the indirect method, depreciation expense would appear on the statement of cash flows

Selecione uma das seguintes:

  • in the operating activities section as an addition to reverse out the effects of a non-cash transaction.

  • in the operating activities section as a deduction because it represents a non-cash transaction.

  • in the investing activities because it is related to investments in property, plant, and equipment.

  • in the other activities section, because it is a non-cash transaction.

Explicação

Questão 11 de 33

1

Which of the following would not appear in the financing activities section of the statement of cash flows?

Selecione uma das seguintes:

  • receipts from the issuance of bonds

  • receipts from the issuance of common stock

  • payments for the purchase of factory equipment

  • payments of dividends

Explicação

Questão 12 de 33

1

Preencha o espaço em branco para completar o texto.

is the change in equity of a company during a period from transactions, other events, and circumstances relating to nonowner sources.

Explicação

Questão 13 de 33

1

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is measured as revenues - expenses + gains - losses.

Explicação

Questão 14 de 33

1

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measure and report the efforts or sacrifices made to conduct business activities.

Explicação

Questão 15 de 33

1

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Management's salaries and most selling and administrative costs are recognized using the principle because the costs provide no discernible future benefits.

Explicação

Questão 16 de 33

1

Which of the following items are included in a company's operating income?

Selecione uma das seguintes:

  • cost of goods sold

  • dividend income

  • interest revenue

  • all the choices are correct

Explicação

Questão 17 de 33

1

Preencha o espaço em branco para completar o texto.

involves allocating a corporation's total income tax obligation as an expense across various accounting periods because of temporary (timing) differences between its taxable income and pretax financial income.

Explicação

Questão 18 de 33

1

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is necessary to give a fair presentation of the after-tax impact of the major components on net income and retained earnings. The portion of the income tax expense applicable to results from discontinued operations and each extraordinary item is or to the financial statements.

Explicação

Questão 19 de 33

1

Which of the following items are included in a company’s results from discontinued operations?

I. Gain or loss on the sale of the discontinued component.
II. Income or loss from the operations of a discontinued component

Selecione uma das seguintes:

  • I only.

  • II only.

  • I and II.

  • Neither I nor II.

Explicação

Questão 20 de 33

1

Selecione da lista do Menu para completar o texto.

A loss from the write-down of obsolete inventories ( is not deemed an extraordinary item, is deemed an extraordinary item ) and is reported on the income statement as a component of income from continuing operations.

Explicação

Questão 21 de 33

1

Preencha os espaços em branco para completar o texto.

In its most basic form, earnings per share is computed by dividing the available to by the weighted average number of outstanding throughout the year. Diluted earnings per share takes into account potentially dilutive contingent claims on equity.

Explicação

Questão 22 de 33

1

Currently, under U.S. GAAP, which of the following items are excluded from a company's other comprehensive income?

Selecione uma das seguintes:

  • Unrealized gains or losses in the fair value of its investments in available-for-sale securities.

  • Translation adjustments from converting the financial statements of its foreign operations into U.S. dollars.

  • Certain gains or losses resulting from events or transactions that are either unusual in nature or infrequent in occurrence, but not both.

  • Certain gains and losses on derivative financial instruments that hedge future cash flows.

Explicação

Questão 23 de 33

1

Differences between IFRS and U.S. GAAP in regard to a company's presentation and content of the income statement include all of the following except:

Selecione uma das seguintes:

  • IFRS prohibit the reporting of items that are unusual in nature and infrequent in occurrence as extraordinary items.

  • IFRS terminology may differ, for instance "turnover" can be used to refer to sales.

  • The definition of a component of an operation is defined much more broadly under IFRS than under U.S. GAAP.

  • IFRS require the multiple-step format for the income statement.

Explicação

Questão 24 de 33

1

What are the three determinants of a company's rate of return on common equity?

Selecione uma das seguintes:

  • Earnings quality, interest coverage ratio, and operating capability.

  • Interest coverage ratio, profitability, and operating capability.

  • Leverage, earnings quality, and profitability.

  • Operating capability, profitability, and leverage.

Explicação

Questão 25 de 33

1

Preencha o espaço em branco para completar o texto.

enables users to identify which items on the income statement are growing quickly or slowly over time.

Explicação

Questão 26 de 33

1

Preencha o espaço em branco para completar o texto.

The indicates a company's ability to generate revenues and control the costs of producing and delivering its products and services.

Explicação

Questão 27 de 33

1

Preencha o espaço em branco para completar o texto.

Under the indirect method, the net cash provided by operating activities is determined by reporting net income first, then adjusting net income by .

Explicação

Questão 28 de 33

1

Selecione das listas do Menu para completar o texto.

In which section of the cash flow statement will the following transactions appear?

1. Purchases of goods for sale
( Operating activity, Financing, Investing )
2. Repayment of loan
( Financing activity, Operating activity, Investing activity )
3. Purchase and sale of fixed assets, eg. plant
( Investing activity, Financing activity, Operating Activity )

Explicação

Questão 29 de 33

1

When used with a company's other financial statements, the statement of cash flows helps external users assess all of the following except:

Selecione uma das seguintes:

  • The differences between the company's net income and associated cash receipts and payments.

  • The company's profitability and the return on investment in the company.

  • The company's ability to meet its obligations.

  • The company's capital raised from external financing sources and repayments of external financing.

Explicação

Questão 30 de 33

1

The primary purpose(s) of a statement of cash flows is to:

Selecione uma das seguintes:

  • Report the resources of a firm and the claims on the firm as of a specific date.

  • Provide relevant information about a company's cash receipts and cash payments during the period.

  • Inform stakeholders so they can evaluate profitability and assess the return on investment in the company and assess the company's operating capability and financial performance for the current period and over time.

  • All of the choices are correct.

Explicação

Questão 31 de 33

1

What of the following alternatives does a company have for reporting its comprehensive income under U.S. GAAP and IFRS?
I. Present net income in the income statement and present comprehensive income in a separate, but consecutive, statement of comprehensive income.
II. Present net income in the income statement and present comprehensive income in a footnote to the financial statements.
III. Present net income and comprehensive income in a single continuous performance statement.

Selecione uma das seguintes:

  • I and II only.

  • I, II and III.

  • II and III only.

  • I and III only.

Explicação

Questão 32 de 33

1

Currently, under U.S. GAAP, which of the following items are excluded from a company's other comprehensive income?

Selecione uma das seguintes:

  • Certain gains and losses on derivative financial instruments that hedge future cash flows.

  • Unrealized gains or losses in the fair value of its investments in available-for-sale securities.

  • Certain gains or losses resulting from events or transactions that are either unusual in nature or infrequent in occurrence, but not both.

  • Translation adjustments from converting the financial statements of its foreign operations into U.S. dollars.

Explicação

Questão 33 de 33

1

Selecione da lista do Menu para completar o texto.

A loss from the write-down of obsolete inventories ( is not, is ) deemed an extraordinary item and is reported on the income statement as a component of income from continuing operations.

Explicação

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