Quiz Instructions Your Full Name: Your Email Address: The Email address of an instructor to mail your quiz results: 1. (CMA adapted, Jun 97 #4) A statement of financial position is intended to help investors and creditors a. assess the amount, timing, and uncertainty of prospective net cash inflows of a firm b. evaluate economic resources and obligations of a firm c. evaluate economic performance of a firm d. assess the management's efficient and profitable use of the firm's resources 2. Acquisition cost is generally the basis of accounting for nonmonetary assets. Monetary assets are generally stated at a. historical cost b. current replacement cost c. net present value d. entry value 3. (CMA adapted, Jun 95 #11) The value of property, plant, and equipment that is included in total assets on the statement of financial position is a. appraisal or market value b. acquisition cost c. real estate tax basis assessment d. cost less accumulated depreciation 4. (CMA adapted, Jun 93 #10) When classifying assets as current or noncurrent for reporting purposes, a. prepayments for items such as insurance or rent are included in an "other assets" group rather than as current assets as they will ultimately be expensed b. the time period by which current assets are distinguished from noncurrent assets is determined by the seasonal nature of the business c. the cycle used to determine current assets is at the maximum twelve months d. assets are classified as current if they are reasonably expected to be realized in cash or consumed during the normal operating cycle 5. A liability arises when a firm a. signs a new labor union contract which includes a 6% pay raise for its union employees b. issues a purchase order for 100,000 units of inventory from a supplier over the next two years c. receives inventory previously ordered d. both (b) and (c) 6. When classifying liabilities as monetary or nonmonetary, monetary liabilities require a. payments of specific amounts of cash b. valuation at net present value of future cash outflows c. delivering of goods or services d. both (a) and (b) 7. The stockholders' equity of a firm can be defined as a. net current assets b. a residual interest c. total assets plus total liabilities d. the owner's claim to the assets and liabilities 8. To record the purchase of equipment that is fully financed by the seller, you would a. debit a liability and credit an asset b. debit an asset and credit cash c. debit an asset and credit a liability d. debit an asset and credit shareholders' equity 9. The general journal contains a. only the journal entries that occur on a regular basis b. journal entries listed in order of account as they appear on the financial statements c. a chronological listing of journal entries d. a copy of all invoices and receipts of the company 10. In a corporate environment, the trial balance is prepared from the a. financial statements b. general ledger c. general journal d. t-accounts Copyright © 2003 South-Western. All Rights Reserved.
Copyright © 2003 South-Western. All Rights Reserved.