Post ACC305 Unit 1 Self Quiz
Question 1
0 out of 0 points
Which of the following is a user of a company's financial statements?
Question 2
0 out of 0 points
By law, the setting of accounting standards is the responsibility of the
Question 3
0 out of 0 points
The accounting equation could be expressed as:
Question 4
0 out of 0 points
The major sections of the statement of cash flows are:
Question 5
0 out of 0 points
Understating assets and revenues is justified based on
Question 6
0 out of 0 points
Who is responsible for the preparation and integrity of financial statements?
Question 7
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Which of the following is not a type of audit opinion?
Audit opinion types are unqualified opinion, qualified opinion, adverse opinion, and disclaimer of opinion.
Question 8
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Which of the following is a permanent account?
Question 9
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Which of the following is a temporary account?
Question 10
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The materiality concept involves the relative size and importance of an item to a firm.
Post ACC305 Unit 1 Self Quiz Ch 1-2
Question 1
0 out of 1 points
Which of the following is a characteristic of information provided by external financial reports?
Question 2
0 out of 1 points
Which of the following is not an objective of financial reporting?
Question 3
0 out of 1 points
According to SFAC No. 6, assets can be defined by which of the following?
Question 4
1 out of 1 points
According to SFAC No. 6, expenses can be defined by which of the following?
Correct Outflows or other consumption or using up of assets or incurrences of liabilities ( or a combination of both) from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity’s ongoing major or central operations.
Question 5
1 out of 1 points
If assets are $ 40,000 and stockholders’ equity is $ 10,000, how much are liabilities?
Question 6
1 out of 1 points
In addition to the company’s principal financial statements, the Form 10- K and shareholder annual reports must include the following:
Question 7
0 out of 1 points
Audit opinions cannot be classified as which of the following?
Question 8
0 out of 1 points
From the point of view of analysis, which classification of an audit opinion indicates that the financial statements carry the highest degree of reliability?
Question 9
1 out of 1 points
This item need not be provided with a complete set of financial statements:
Question 10
1 out of 1 points
Which party has the primary responsibility for the financial statements?
Post ACC305 Unit 2 Self Quiz
Question 1
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Each method of depreciation will result in the same total amount of depreciation at the end of the asset's life.
Question 2
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Accounts receivable is a current asset.
Question 3
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Accounts payable is a current asset.
Question 4
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Capital and retained earnings are classified as assets.
Question 5
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On a balance sheet liabilities are listed before assets.
Question 6
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In practice, the income statement is frequently considered to be the least important financial statement.
Question 7
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An income statement is a summary of revenues and expenses and gains and losses, ending with net income for a particular period of time.
Question 8
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Earnings per share is earnings divided by the number of shares of outstanding common stock.
Question 9
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Gross profit will be a prominent figure on a single-step income statement.
Question 10
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Retained earnings are an asset.
Post ACC305 Unit 2 Self Quiz Ch 3-4
Question 1
0 out of 1 points
________ are normally classified as a current liability on the balance sheet.
Question 2
1 out of 1 points
________ is considered a tangible asset.
Question 3
0 out of 1 points
Which of the following is seldomly a preferred stock characteristic?
Question 4
0 out of 1 points
A quasi-reorganization:
Question 5
1 out of 1 points
Employee Stock Ownership Plans (ESOPs):
Question 6
0 out of 1 points
Gross profit is the difference between:
Question 7
0 out of 1 points
The following relate to Data Original in 2008. What is the ending inventory?
Question 8
1 out of 1 points
Which of the following would be classified as an extraordinary item on the income statement?
Question 9
1 out of 1 points
Which of the following will be disclosed in the reconciliation of retained earnings?
Question 10
1 out of 1 points
If the Investor Company owns 20% of the stock of Investee Company and Investee Company reports profits of $100,000, then Investor Company reports equity income of:
Post ACC305 Unit 3 Chapter 5 Quiz
Question 1
1 out of 1 points
Which of the following statements is incorrect?
Question 2
1 out of 1 points
A figure from this year’s statement is compared with a base selected from the current year.
Question 3
1 out of 1 points
Fremont Electronics has income of $ 1,000,000. Columbus Electronics has income of $ 2,000,000. Which of the following statements is a correct statement?
Question 4
1 out of 1 points
Industry ratios should not be considered as absolute norms for a given industry because of all but which of the following?
Question 5
1 out of 1 points
Which of the following is a publication of the federal government for manufacturing, mining, and trade corporations?
Question 6
1 out of 1 points
Which service represents a compilation of corporate tax return data?
Question 7
1 out of 1 points
Which service includes over 800 different lines of business?
Question 8
1 out of 1 points
Suppose you are comparing two firms in the coal industry. Which type of numbers would be most meaningful for statement analysis?
Question 9
1 out of 1 points
Question 10
1 out of 1 points
A horizontal analysis compares each amount with its base amount for a selected base year.
Post ACC305 Unit 3 Chapter 5 Self Quiz
Question 1
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Absolute figures usually have more meaning than ratio comparisons.
Question 2
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In order to determine the meaning of a ratio, some kind of comparison, such as an industry average or trend analysis, is helpful.
Question 3
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Typically, the largest expense to a manufacturing firm is cost of goods sold.
Question 4
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Liquidity ratios measure the degree of protection of long-term suppliers of funds.
Question 5
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The ideal way to compare income statement figures, such as sales, to balance sheet figures, such as receivables, is to use a measure of the average for the balance sheet figures.
Question 6
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Different accounting methods can cause some ratios to differ substantially.
Question 7
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The descriptive information in annual reports is not useful in statement analysis; only the financial statements themselves are of value.
Question 8
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In the set of numbers below, the median is 4:
Question 9
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Only managers use financial analysis tools.
Question 10
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Financial statement analysis is a judgmental process.
Post ACC305 Unit 4 Self Quiz Chapter 6
Question 1
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A firm that has been on lifo for many years may have some inventory costs that go back ten years or more.
Question 2
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The operating cycle is the time between the acquisition of inventory and the realization of cash from selling the inventory.
Question 3
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To qualify as a marketable security, the investment must be readily marketable and it must be the intent of management to convert the investment to cash within the current operating cycle or a year, whichever is longer.
Question 4
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Long term assets are assets that are in the form of cash or that will be realized in cash or that conserve the use of cash within the operating cycle of a business, or one year, whichever is the longer period of time.
Question 5
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Current liabilities are obligations whose liquidation is reasonably expected to require the use of existing current assets or the creation of other current liabilities within a year or an operating cycle, whichever is longer.
Post ACC305 Unit 4 Chapter 6 Quiz
Question 1
10 out of 10 points
Match the ratio with the formula.
•
Question
Sales
Average Working Capital
Net Sales
Average Gross Receivables
Current Assets - Current Liabilities
Cash Equivalents + Marketable Securities + Net Receivables
Current Liabilities
Gross Receivables
Net Sales/365
Average Gross Receivables
Net Sales/365
Average Inventory
Cost of Goods Sold/365
Cash Equivalents + Marketable Securities
Current Liabilities
Current Assets
Current Liabilities
Accounts Receivable + Inventory Turnover
Turnover in Days in Days
Cost of Goods Sold
Average Inventory
Ending Inventory
Cost of Goods Sold/365
•
All Answer Choices
A.
days' sales in receivables
B.
accounts receivable turnover
C.
accounts receivable turnover in days
D.
days' sales in inventory
E.
inventory turnover
F.
inventory turnover in days
G.
operating cycle
H.
working capital
I.
current ratio
J.
acid-test ratio
K.
cash ratio
L.
sales to working capital
•
Post ACC305 Unit 5 Ch 7 Self Quiz
Question 1
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When doing financial analysis it is not important to analyze a firm's debt.
Question 2
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Discontinued operations and extraordinary items would be excluded when analyzing a firm's ability to carry debt.
Question 3
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A good times interest earned record would be indicated by a relatively high, stable coverage for the times interest earned coverage.
Question 4
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If an employee is in the pension plan, rights under this plan will be lost if the employee leaves the firm prior to receiving a vested interest.
Question 5
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Capitalization of interest results in interest being deducted from a fixed asset instead of expensed.
Question 6
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Some revenue and expense items never go on the tax return, but do go on the income statement.
Question 7
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Repayment of a long-term bank loan would increase the debt ratio.
Question 8
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Under generally accepted accounting principles, an item must clearly represent a commitment to pay out funds in the future in order to be classified as a liability.
Question 9
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Deferred taxes do not need to be accounted for using the liability method.
Question 10
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The tax code allows a corporation reporting an operating loss for income tax purposes in the current year to carry that loss back and forward to offset reported taxable income.
Post ACC305 Unit 5 Chapter 7 Quiz
• Question 1
0 out of 1 points
All but which of these ratios are considered to be debt ratios?
• Question 2
1 out of 1 points
In computing the debt ratio, which of the following is subtracted in the denominator?
• Question 3
0 out of 1 points
Which of the following ratios can be used as a guide to a firm’s ability to carry debt from an income perspective?
• Question 4
1 out of 1 points
In computing debt to tangible net worth, which of the following is not subtracted in the denominator?
• Question 5
1 out of 1 points
Under the Employee Retirement Income Security Act, a company can be liable for its pension plan up to
• Question 6
5 out of 5 points
Match the five ratios with their formulas.
o
Question
times interest earned
fixed charge coverage
debt ratio
debt/equity ratio
debt to tangible net worth
o
All Answer Choices
A.
Total Liabilities
Shareholders' Equity - Intangible Assets
B.
Total Liabilities
Total Assets
C.
Recurring Earnings, Excluding
Interest Expense, Tax Expense,
Equity Earnings, and Minority Expense
Interest Expense, Including
Capitalized Interest
D.
Recurring Earnings, Excluding
Interest Expense, Tax Expense,
Equity Earnings, and Minority Earnings
+ Interest Portion of Rentals
Interest Expense, including
Capitalized Interest + Interest
Portion of Rentals
E.
Total Liabilities
Shareholders' Equity
o
Post ACC305 Unit 6 Self Test Ch 8-9 Quiz
Question 1
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Profitability is the ability of the firm to generate earnings.
Question 2
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In profitability analysis, absolute numbers are more meaningful than relative numbers because the analyst needs to know if one firm earned more dollars than the other.
Question 3
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Changes in the cost of goods sold can have a substantial impact on gross profit margin
Question 4
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An interim period is a fiscal period less than one year.
Question 5
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In In order to compute gross profit margin, the income statement must be in single-step format.
Question 6
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Nonrecurring items such as extraordinary income and disposal of a segment require separate earnings per share disclosure.
Question 7
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When a stock split occurs, earnings per share must be adjusted retroactively.
Question 8
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Book value per share measures the current value of the net assets on a per share basis.
Question 9
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Stock appreciation rights give the employee compensation at a future date, based on the market price at the date of exercise in excess of a pre-established dollar market.
Question 10
0 out of 0 points
Financing leverage refers to the existence of fixed operating costs.
Post ACC305 Unit 6 Quiz Ch 8-9
Question 1
1 out of 1 points
Which of the following items will be reported on the income statement as part of net income?
Question 2
1 out of 1 points
Earnings based on percent of holdings by outside owners of consolidated subsidiaries are termed
Question 3
1 out of 1 points
Which of the following is not a type of operating asset ?
Question 4
1 out of 1 points
Which of the following is considered to be a recurring item ?
Question 5
0 out of 1 points
If a firm’s gross profit has declined substantially, this could be attributed to all but which of the following reasons?
Question 6
1 out of 1 points
Book value per share may not approximate market value per share because
Question 7
1 out of 1 points
Increasing financial leverage can be a risky strategy from the viewpoint of stockholders of companies having
Question 8
1 out of 1 points
Correct
Which of the following ratios gives a perspective on risk in the capital structure ?
Degree of financial leverage gives a perspective on risk in the capital structure.
Question 9
1 out of 1 points
A firm has a degree of financial leverage of 1.3. If earnings before interest and tax increase by 10%, then net income
Question 10
1 out of 1 points
The earnings per share ratio is computed for
Post ACC305 Unit 7 Self Quiz Chapter 10-11
Question 1
0 out of 0 points
The income statement does not fairly represent the cash from operations.
Question 2
0 out of 0 points
Depreciation expense reduces operating income but does not require the use of cash.
Question 3
0 out of 0 points
The statement of cash flows should be reviewed for several time periods in order to determine the major sources of cash and the major uses of cash.
Question 4
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The income statement fairly represents the cash from operations.
The income statement does not fairly represent the cash from operations.
Question 5
0 out of 0 points
Cash flow per share can be viewed as a substitute for earnings per share in terms of a firm's profitability.
Question 6
0 out of 0 points
The acquisition of land using notes payable is an example of a cash transaction.
Question 7
0 out of 0 points
Most of the ratios given a high significance rating by commercial loan officers have a primary measure of liquidity or debt.
Question 8
0 out of 0 points
Presently, no regulatory agency, such as the Securities and Exchange Commission or the Financial Accounting Standards Board, accepts responsibility for determining either the content of financial ratios or the format of presentation in annual reports.
Question 9
0 out of 0 points
With the Altman model, the higher the Z score, the more likely the firm will go bankrupt.
Question 10
0 out of 0 points
An auditor can use financial ratios in analytical review procedures.
Post ACC305 Unit 7 Quiz Chapter 10-11
Question 1
1 out of 1 points
Which of the following could lead to cash flow problems?
Question 2
1 out of 1 points
Which of the following represents an internal source of cash?
Question 3
1 out of 1 points
Which of the following is not a typical cash flow under operating activities?
Question 4
1 out of 1 points
Working capital is defined as
Question 5
1 out of 1 points
Management should use the statement of cash flows for which of the following purposes ?
Question 6
1 out of 1 points
Notes to financial statements are beneficial in meeting the disclosure requirements of financial reporting. The notes should not be used to
Question 7
1 out of 1 points
The concept of conservatism is often considered important in accounting. The application of this concept means that in the event some doubt occurs as to how a transaction should be recorded, it should be recorded so as to
Question 8
0 out of 1 points
Which of the following ratios would best disclose effective management of working capital by a given firm relative to other firms in the same industry?
Question 9
1 out of 1 points
Which of the following would not be an example of the use of a multiple when valuing common equity?
Question 10
1 out of 1 points
Which of the following was not given as a reason for acquirers paying too much in an acquisition?
