Question 1

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Operating cycle

Accepted Answer

A)  Cash received from a customer for goods or services to be provided in a future period.
B)  Accumulated net income less dividends since the inception of the corporation.
C)  Converting cash to inventory to receivables to cash.
D)  Cash paid in advance for a cost of the company.
E)  Amounts invested by shareholders in the corporation.F) B) and D)
G) A) and B)

Question 2

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Proxy statement

Accepted Answer

A)  Management's views on its operations, liquidity, and capital resources.
B)  Independent and professional opinion about the fairness of the financial statements.
C)  Occurs after the fiscal year-end, but before the statements are issued.
D)  Information about the company's choices from among various alternative accounting methods.
E)  Includes disclosures of executive compensation.F) A) and B)
G) C) and D)

Question 3

The balance of net receivables represents the amount expected to be collected.

Accepted Answer

A) True 
 B)False

Question 4

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Auditors' report

Accepted Answer

A)  Management's views on its operations, liquidity, and capital resources.
B)  Independent and professional opinion about the fairness of the financial statements.
C)  Occurs after the fiscal year-end, but before the statements are issued.
D)  Information about the company's choices from among various alternative accounting methods.
E)  Includes disclosures of executive compensation.F) B) and D)
G) D) and E)

Question 5

Listed below are year-end account balances ($ in millions)  taken from the records of Symphony Stores.  
-What would Symphony report as total current assets?

Accepted Answer

A)   $823 millions.
B)   $838 millions.
C)   $843 millions.
D)   $1,696 millions.E) A) and D)
F) B) and C)

Question 6

A payment on account has no effect on working capital but will increase the current ratio if it is already greater than 1.0.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following features is typical of a balance sheet prepared under IFRS?

Accepted Answer

A)   A shareholders' equity section often is not included.
B)   Assets often are listed after liabilities.
C)   Long-term items often are listed before current items.
D)   Assets sometimes do not equal liabilities plus shareholders' equity.E) None of the above
F) A) and B)

Question 8

Lack of long-term solvency refers to:

Accepted Answer

A)   Risk of nonpayment of long-term liabilities.
B)   The length of time before long-term debt becomes due.
C)   The ability to refinance long-term debt when it becomes due.
D)   Long-term assets.E) None of the above
F) A) and C)

Exam 3: The Balance Sheet and Financial Disclosures

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Auditors' report

Correct Answer
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A payment on account has no effect on working capital but will increase the current ratio if it is already greater than 1.0.

Correct Answer
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Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Proxy statement

Correct Answer
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The balance of net receivables represents the amount expected to be collected.

Correct Answer
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Which of the following features is typical of a balance sheet prepared under IFRS?

Correct Answer
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Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Operating cycle

Correct Answer
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Listed below are year-end account balances ($ in millions) taken from the records of Symphony Stores. -What would Symphony report as total current assets?

Correct Answer
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Lack of long-term solvency refers to:

Correct Answer
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Exam 3: The Balance Sheet and Financial Disclosures

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Auditors' report

Correct AnswerverifiedShow Answer

A payment on account has no effect on working capital but will increase the current ratio if it is already greater than 1.0.

Correct AnswerverifiedShow Answer

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Proxy statement

Correct AnswerverifiedShow Answer

The balance of net receivables represents the amount expected to be collected.

Correct AnswerverifiedShow Answer

Which of the following features is typical of a balance sheet prepared under IFRS?

Correct AnswerverifiedShow Answer

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Operating cycle

Correct AnswerverifiedShow Answer

Listed below are year-end account balances ($ in millions) taken from the records of Symphony Stores. -What would Symphony report as total current assets?

Correct AnswerverifiedShow Answer

Lack of long-term solvency refers to:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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