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Multiple Choice Question 61 Preparing the statement of cash flows involves all of the following except determining the

cash collections from customers during the period. cash provided by operations. cash provided by or used in investing and financing activities. change in cash during the period.

True False Question 04 Companies frequently describe the terms of all long-term liability agreements in notes to the financial statements. True False

Multiple Choice Question 80 For Grimmett Company, the following information is available: Capitalized leases $600,000 Trademarks 195,000 Long-term receivables 225,000 In Grimmett's balance sheet, intangible assets should be reported at $795,000. $225,000. $825,000. $195,000.

Practice Question 33 The financing section is the first section of the statement of cash flows.

False True

Multiple Choice Question 89 Keisler Corporation reports: Cash provided by operating activities $240,000 Cash used by investing activities 110,000 Cash provided by financing activities 140,000 Beginning cash balance 70,000 What is Keisler's ending cash balance? $490,000 $560,000 $270,000 $340,000

Multiple Choice Question 39 A generally accepted method of valuation is 1. trading securities at market value. 2. accounts receivable at net realizable value. 3. inventories at current cost. 1 2 3 1 and 2

Multiple Choice Question 28 The amount of time that is expected to elapse until an asset is realized or otherwise converted into cash is referred to as financial flexibility. exchangeability. liquidity. solvency.

Practice Question 06 The balance sheet is sometimes referred to as the Statement of Financial Position. False True

Practice Question 05 All of the following would be classified as current liabilities at December 31, 2012 except: accrued warranty costs. advances received from customers. current portion of long-term debt. note payable due January 1, 2014.

Practice Question 49 Which of the following is not a type of information that is supplemental to amounts presented in the balance sheet? Contractual situations.

Accounting policies. Balance sheet format. Contingencies.

Multiple Choice Question 37 When a portion of inventories has been pledged as security on a loan, an equal amount of retained earnings should be appropriated. the cost of the pledged inventories should be transferred from current assets to noncurrent assets. the fact should be disclosed but the amount of current assets should not be affected. the value of the portion pledged should be subtracted from the debt.

True False Question 08 The primary purpose of a statement of cash flows is to report the cash effects of operations during a period. True False

IFRS Practice Question 02 Current assets under IFRS are listed generally: in the reverse order of their expected conversion to cash. alphabetically. by importance.

by longevity. Multiple Choice Question 81 Houghton Company has the following items: common stock, $900,000; treasury stock, $105,000; deferred taxes, $125,000 and retained earnings, $390,000. What total amount should Houghton Company report as stockholders' equity? $1,395,000 $1,060,000 $1,185,000 $1,310,000

Practice Question 51 Which of the following is not a major disclosure technique for the balance sheet? Notes. Worksheets. Parenthetical explanations. Supporting schedules.

True False Question 09 Present value is the value now of a future sum or sums discounted assuming compound interest. True False

Practice Question 26 All of the following variables are fundamental to solving interest problems except the: number of time periods. present value. All of the options are fundamental variables. future value.

Multiple Choice Question 24 What is interest? Return on capital. An equity investment. Payment for the use of money. Loan.

Practice Question 45 D. Greenspan Corporation makes an investment today (January 1, 2012). The company will receive $20,000 every December 31st for the next six years (2012 2017). If Greenspan wants to earn 12% on the investment, what is the most they should invest on January 1, 2012? $82,228. $162,304. $181,780. $92,096.

Multiple Choice Question 79

Altman Company will invest $500,000 today. The investment will earn 6% for 5 years, with no funds withdrawn. In 5 years, the amount in the investment fund is $500,000. $669,115. $650,000. $670,145.

True False Question 20 At the date of issue, bond buyers determine the present value of the bonds' cash flows using the market interest rate. False True

Practice Question 16 The figure 0.94232 is taken from the column marked 2% and the row marked three periods in a certain interest table. From what interest table is this figure taken? Future value of 1 Future value of annuity of 1 Present value of 1 Present value of annuity of 1

True False Question 06 The future value of an ordinary annuity table is used when payments are invested at the beginning of each period.

True False

True False Question 02 Interest is the excess cash received or repaid over and above the amount lent or borrowed. False True

Practice Question 19 The amounts that must be deposited now to permit withdrawals of $10,000 at the beginning of each period are contained in the: present value of an annuity due of 1 table. future value of an ordinary annuity of 1 table. present value of 1 table. present value of an ordinary annuity of 1 table.