Intermediate MC Quiz Study guide
reversing entries
simplify the recording of transactions in the next accounting period.
Under U.S. GAAP, which of the following is true regarding value of assets presented on the balance sheet?
some assets are valued and other assets are valued at historical value
which of the following is true regarding the use of the trial balance in companies using computerized accounting systems
the major benefit of the trial balance to the companies is that the accountants use the trial balance to uncover errors by analyzing balances.
which of the following is true regarding the worksheet in the accounting cycle?
the worksheet is optional and facilitates the end of period accounting and reporting process.
The single-step income statement emphasizes
total revenues and total expenses
a reversing entry should never be made for an adjusting entry that
records depreciation expense
when a revenue is collected and recorded in advance, it is normally accounted for as a(n) " " revenue.
unearned
which of the following is included in comprehensive income?
unrealized gains on available-for-sale debt securities
a prepayment of rent expense could be recorded as
wither a debt to prepaid rent or a debit to rent expense
which of the following properly describes a deferral?
Cash is received before revenue is recognized
Canada follows which of the following for its accounting standards?
IFRS
which of the following is true regarding non-GAAP measures in company SEC quarterly and annual filings.
Non-GAAP measures must be reconciled to GAAP measures
which of the following is a characteristic describing the fundamental quality of relevance?
Predictive value
an adjusting entry should never include
a debit to an expense account and a credit to a revenue account.
current assets
cash and other assets expected to be exchanged for cash or consumed within a year or operating cycle whichever is longer
which of the following is true of accounting for changes in estimates?
changes in estimates are not carried back for adjust prior years
which of the following is true regarding closing entries?
closing entries zero out only revenues, expenses and dividends amounts
An adjusted trial balance
contains amounts that are used to prepare financial statements
Interest Expense is included in which section of a classified ( multi step) income statement?
other expenses and losses
which of the following items would reported net of tax on the face of the income statement?
discontinued operations
A soundly developed conceptual framework of concepts and objectives should
enhance comparability among companies' financial statements, increase financial statement users' understanding of and confidence in financial reporting, allow new and emerging practical problems to be more quickly solved
Income taxes are allocated to
extraordinary items, discontinued operations, prior period adjustments
The quality of information that means the numbers and descriptions match what really existed or happened is
faithful representation
financial statements containing past information instead of future information
highlights the potential trade-off between faithful representation and relevance
comprehensive income includes all of the following except
investments by owners
which of the following is not true about the information provided in the income statement?
it helps in evaluating working capital
statement of stockholders' equity includes a column for each of the following except
net income
which of the following is an ingredient of faithful representation?
neutrality
Unusual and Infrequent Gains and Losses are recorded in
non-operating section of income statement
in the conceptual framework for financial reporting, what provides the purpose of accounting?
objective of financial reporting?
Where must earnings per share be disclosed in the financial statements to satisfy generally accepted accounting principles?
on the face of the income statement
which of the following is an acceptable way of displaying the components of other comprehensive income?
one and two statement approach. one statement approach. two statement apporach