Accounting 201 FINAL MC

Which of one of the following items is not generally used in preparing the statement of cash flow's

Adjusted trial balance

A stockholder is interested and the ability of a firm to

All of these

The statement of cash flow's will not report of the

Amount of checks outstanding at the end of the period

The statement of cash flow's reports each of the following except

Cash sales

On January 1, 2013 Milton company purchased at face value a $1000.04 percent bond that pays interest on January 1 and July 1. Milton company has a calendar year ahead. Surgery for the receipt of interest on January 1, 2014 is

Cash...20 Interest receivable...20

On January 1, 2013 Danner company purchased at face value a $1000.08 percent bond that pays interest on January 1 and July 1. Danner company has a calendar year end. The entry for the receipt of interest on July 1, 2013 is

Cash...40 Interest revenue...40

Which one of the following is not a tool in financial statement analysis

Circular analysis

Which of the following is not a true statement regarding short term debt investments

Debt investments are recorded at the price paid less brokerage fees

The statement of cash flow's should help investors and creditors assess each of the following except

Entities ability to generate future income

Corporations invest excess cash for short periods of time in each of the following except

Equity securities

A company may purchase a non-controlling interest in another firm in a related industry

For strategic reasons

Pension funds and mutual funds regularly invest in debt and stock securities primarily to

Generate earnings

Each of the following are particularly interested in the statement of cash flow's except

Government agencies

Corporations invest in other companies for all of the following reasons except to

Increase treating of the other companies stock

On January 1, 2013 Danner company purchased at face value a $1000.10 percent bond that pays interest on January 1 and July 1. Theater company has a calendar year end. The adjusting entry on December 31, 2013 is

Interest receivable...50 Interest revenue...50

Lending money and collecting the loans are

Investing activities

In analyzing the financial statements of a company a single item on the financial statements

Is more meaningful if compared to other financial information

A typical investment to house excess cash until needed is

Low risk, highly liquid securities

Which of the following is not a characteristic generally evaluated in analyzing financial statements

Marketability

The primary purpose of the statement of cash flow's is to

Provide information about the cash receipts and cash payments during a period

A technique for evaluating financial statement that expresses the relationship selected items a financial statement data is

Ratio analysis

Which one of the following is primarily interested in the liquidity of a company

Short-term creditors

The statement of cash flow's

Summarizes the operating financing and investing activities of an entity

At the time of acquisition of a debt investment

The cost principle applies

In addition to the three basic financial statements which of the following is also a required financial statement

The statement of cash flow's

If a company reports a net loss it

They still have a net increase in cash

Comparisons of financial data made within a company are called

intracompany comparisons

Short-term creditors are usually most interested in evaluating

liquidity

Long-term creditors are usually most interested in evaluating

profitability and solvency