QUESTION 1
Which of the following account titles would not be included in contributed capital?
Treasury Stock
Common Stock-Stated Value
Donated Capital
Premium on Preferred Stock
QUESTION 2
Which of the following best describes the characteristics that relate to the income statement?
The income statement can alternatively be referred to as a statement of financial position.
The income statement is the most important financial statement in the annual report.
The income statement serves as a link between the statement of retained earnings and the balance sheet.
The income statement summarizes the results of a company's cash operations for the accounting period.
QUESTION 3
On the balance sheet, treasury stock is classified as a(n)
long-term investment account
contra stockholders' equity account
capital stock account
other asset accoun
QUESTION 4
According to APB Opinion No. 22, the initial note to the financial statements should describe
the calculation of comprehensive income
the significant concentrations of credit risk
the significant accounting policies
the objectives of holding derivatives and the strategies for achieving them
QUESTION 5
A deficit occurs when a company's
retained earnings are less than it's common stock
dividends distributed are greater than comprehensive income
dividends and cumulative losses are greater than cumulative net income
retained earnings are less than assets minus liabilities
QUESTION 6
State law may require that capital stock have which of the following values?
stated value
market value
no-par value
present value
QUESTION 7
Which of the following is least likely to be included in long-term liabilities?
obligations for future pension payments
capital leases payable
liabilities on options to sell stock
unearned revenue
QUESTION 8
Which of the following is not a limitation of the balance sheet?
In periods of inflation, lack of disclosure makes it impossible to determine which amounts reported show purchasing power of the assets and liabilities.
It fails to include all of a company's economic resources and obligations.
Many of the amounts reported are based on estimates, which are subject to change.
Valuing assets and liabilities using historical costs does not help in assessing a company's future cash flows
QUESTION 9
The amount of cash (or equivalent) that currently would be required to replace the service capacity of the asset is called the asset's
historical cost
current cost
current exit value
present value
QUESTION 10
If the owners' equity at the end of the accounting period is greater than the owners' equity at the beginning of the accounting period, the firm's
capital has increased
working capital has increased
cash has increased
capital has been maintained