Quiz Instructions Your Full Name: Your Email Address: The Email address of an instructor to mail your quiz results: 1. Four activities are common to all entities. These are setting goals and strategies, financing activities, investing activities, and a. activities involving acquisition of land, buildings and equipment b. product differentiation strategy c. managing activities d. operating activities 2. (CMA adapted, Jun 96 #17) A primary objective of external financial reporting is a. direct measurement of the value of a business enterprise b. provision of information that is useful to present and potential investors, creditors, and others in making rational financial decisions regarding the enterprise c. direct measurement of the enterprise's stock price d. provision of information that details the source of cash receipts and the timing of such receipts 3. At year end, Relevance Corporation reported total assets of $22 million, total shareholders' equity of $14 million, and total contributed capital of $10 million. Total liabilities equal a. $1 million b. $6 million c. $7 million d. $8 million 4. In its first year of operations, United Universal Corporation's earnings are $2.1 million. Retained earnings at the end of the year were $1 million and contributed capital totaled $5.6 million. How much did the corporation distribute in dividends? a. $1.0 million b. $1.1 million c. $2.5 million d. $6.7 million 5. All of the following are classified as noncurrent assets except a. land and buildings b. patents c. contributed capital d. long-term investments in securities 6. Expenses measure a. the outflows of assets from selling goods and providing services to customers b. the increase of liabilities from selling goods and providing services to customers c. all sources of cash received by a firm d. both (a) and (b) 7. The auditor's opinion states that a. fraud has not occurred b. the responsibility for the financial statements rests with management c. the financial statements are accurate d. there are no exceptions or qualifications as to the accuracy of the information 8. Which of the following statements is not correct? a. Product costs are assets at the time they are incurred. b. Monetary assets appear on the balance sheet at their current cash, or cash equivalent, values. c. Revenues result in an increase in net assets (that is, assets minus liabilities). d. Dividends represent a cost of generating earnings. 9. (CMA adapted, Dec 95 #12) Accounting standard setting in the United States is a. done primarily by the Securities and Exchange Commission b. done primarily by the private sector c. the responsibility of the largest accounting firms d. done primarily by the International Accounting Standards Committee 10. What user of financial accounting reports is probably most interested in information about a firm's ability to pay dividends? a. Potential investors b. Competitors c. Labor unions d. Income tax agencies Copyright © 2003 South-Western. All Rights Reserved.
Copyright © 2003 South-Western. All Rights Reserved.