Question 1

The objective of financial reporting is to provide financial information about a company that is useful to existing and potential investors, lenders, and other creditors in making decisions about providing resources to the company.

Accepted Answer

A) True 
 B)False

Question 2

Use the following information to answer questions . 
-Profit retained for use in the business are:

Accepted Answer

A)  $540,000.
B)  $305,000.
C)  $200,000.
D)  $105,000.

Question 3

Current liabilities are expected to be:

Accepted Answer

A)  converted to cash within one year.
B)  paid within one year.
C)  used in the business within one year.
D)  acquired within one year.

Question 4

Shareholders are most interested in evaluating:

Accepted Answer

A)  liquidity and solvency.
B)  profitability and solvency.
C)  liquidity and profitability.
D)  marketability and solvency.

Question 5

Use the following information to answer questions : 
-The dollar amount of current liabilities is:

Accepted Answer

A)  $196,000.
B)  $170,000.
C)  $ 40,000.
D)  $ 30,000.

Question 6

The qualitative characteristic that says the value of information should exceed the cost of preparing it is called:

Accepted Answer

A)  relevance.
B)  understandability.
C)  cost constraint.
D)  verifiability.

Question 7

The current assets of Key Corporation are $360,000. The current liabilities are $240,000. The current ratio expressed as a ratio is:

Accepted Answer

A)  150%
B)  1.5:1
C)  0.7:1
D)  $360,000 ÷ $240,000

Question 8

Accounting information should be neutral in order to enhance:

Accepted Answer

A)  faithful representation.
B)  materiality.
C)  comparability.
D)  understandability.

Question 9

Long-term creditors are usually most interested in evaluating:

Accepted Answer

A)  liquidity and profitability.
B)  comparability and profitability.
C)  profitability and solvency.
D)  consistency and solvency.

Exam 2: A Further Look at Financial Statements

Accounting information should be neutral in order to enhance:

Correct Answer
verified

The current assets of Key Corporation are $360,000. The current liabilities are $240,000. The current ratio expressed as a ratio is:

Correct Answer
verified

The qualitative characteristic that says the value of information should exceed the cost of preparing it is called:

Correct Answer
verified

Long-term creditors are usually most interested in evaluating:

Correct Answer
verified

Use the following information to answer questions : -The dollar amount of current liabilities is:

Correct Answer
verified

The objective of financial reporting is to provide financial information about a company that is useful to existing and potential investors, lenders, and other creditors in making decisions about providing resources to the company.

Correct Answer
verified

Use the following information to answer questions . -Profit retained for use in the business are:

Correct Answer
verified

Shareholders are most interested in evaluating:

Correct Answer
verified

Current liabilities are expected to be:

Correct Answer
verified

Exam 2: A Further Look at Financial Statements

Accounting information should be neutral in order to enhance:

Correct AnswerverifiedShow Answer

The current assets of Key Corporation are $360,000. The current liabilities are $240,000. The current ratio expressed as a ratio is:

Correct AnswerverifiedShow Answer

The qualitative characteristic that says the value of information should exceed the cost of preparing it is called:

Correct AnswerverifiedShow Answer

Long-term creditors are usually most interested in evaluating:

Correct AnswerverifiedShow Answer

Use the following information to answer questions : -The dollar amount of current liabilities is:

Correct AnswerverifiedShow Answer

The objective of financial reporting is to provide financial information about a company that is useful to existing and potential investors, lenders, and other creditors in making decisions about providing resources to the company.

Correct AnswerverifiedShow Answer

Use the following information to answer questions . -Profit retained for use in the business are:

Correct AnswerverifiedShow Answer

Shareholders are most interested in evaluating:

Correct AnswerverifiedShow Answer

Current liabilities are expected to be:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified