Exam 1 Kahoot Review Flashcards
General-purpose financial statements are the product of
financial accounting
Which communication below is recognized in financial reporting but not in financial statements?
President’s letter
Which of the following does not help in determining whether a business thrives?
Lack of innovation
Which of the following is related to an effective capital allocation?
Provides timely, relevant info and encourages innovation
Which of the following is not a major challenge facing the accounting profession?
Accounting for hard assets
Accrual accounting is used because
it shows the company’s true ability to generate cash flows
A common set of accounting standards and procedures is called
generally accepted accounting principles
Which of the following organizations has been responsible for setting US accounting standards?
All of the answer choices are correct (the Accounting Principles Board, the Committee on Accounting Procedure, the Financial Accounting Standards Board)
Which organization is responsible for issuing Emerging Issues Task Force Statements?
the FASB
Publicly-traded companies are required to submit their financial statements to the
the SEC
The underlying theme of the conceptual framework is
decision usefulnessi
If the LIFO method was used last period, it should be used for the current period because of
consistency
Which of the following is a characteristic describing the fundamental quality of relevance?
Predictive value
What of the following is a fundamental quality of useful accounting information?
Relevance
What is meant by comparability when discussing financial accounting information?
info is measured and reported similarly across companies
Which of the following is an ingredient of faithful representation?
neutrality
What is the quality of information that is capable of making a difference in a decision?
relevance
Accounting information is considered to be relevant when it
is capable of making a difference in a decision
Which of the following does not relate to relevance?
All of these answers choices relate to relevance (materiality, predictive value, confirmatory value)
Which of the following elements of financial statements is not a part of comprehensive income?
distributions to owners
The process of transferring figures from the book of original entry to the ledger accounts is
posting
Which of the following is a nominal (temporary) account?
salaries and wages expense
The double-entry accounting system means
The dual effect of each transaction, debit and credit
Stockholders’ equity is not affected by all
cash receipts
Which of the following is a recordable event or item?
payment of monthly payroll
A trial balance may prove that debits and credits are equal, but
All of these answer choices are correct (an amount could be entered in the wrong account, a transaction could have been entered twice, a transaction could have been omitted)
A journal entry to record an outgoing payment on account will include a
debit to Accounts Payable
An adjusting entry should never include a
debit to an expense account & credit to a revenue account
When an expense is paid in cash before it is used, it is called a(n)
prepaid expense
An accrued expense can best be described as an amonut
not paid and currently matched with earnings
The major elements of the income statement are
revenues, expenses, gains, and losses
The income statement reveals
net earnings (net income) of a firm for a period of time
The income statement provides investors/creditors with information to predict all of the following except:
the sources of future cash flows
Which of the following is an advantage of the single-step income statement over the multi-step?
it does not imply that one type of revenue or expense has priority
The single-step income statement emphasizes
total revenues and total expenses
Which of the following is not an acceptable method of presenting the income statement?
a partial statement of income
Which of the following is not a selling expense?
office salaries expense
Companies use intraperiod tax allocation for all of the following items except
changes in accounting estimates
Which of the following EPS figures must be disclosed on the face of the income statement?
EPS for income from continuing operations
Which of the following items will not appear in the retained earnings statement?
Discontinued operations
