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Which of the following items should be included in cash on the balance sheet? (Select all that apply.) Multiple select question. short-term investments cash on hand money orders cashier's checks

cash on hand money order cashiers checks

Which of the following items are included in investments? (Select all that apply.) Multiple select question. accounts receivable due in 60 days inventory on hand cash reserved to purchase land note receivable due in 5 years

cash reserved to purchase land note receivable due in 5 years

Which of the following items are considered cash equivalents? (Select all that apply.) Multiple select question. Commercial paper due in less than 3 months. Notes receivable. Cashier's checks payable on demand. Money market funds quickly converted into cash

commercial paper due in less than 3 months money market funds quickly converted into cash

Which of the following items are included in property, plant, and equipment? (Select all that apply.) Multiple select question. land inventory buildings natural resources accounts payable

land natural resources buildings

Long-term___are obligations that will not be satisfied in the next year or operating cycle, whichever is longer. (Enter only one word.)

liabilities

Obligations to other entities are known as what? Multiple choice question. Equity Investments Liabilities Intangibles

liabilities

Common practice requires that current assets are presented on the balance sheet in the order of______ . (Enter only one word.)

liquidity

Which of the following items should be disclosed in other long-term assets on the balance sheet? (Select all that apply.) Multiple select question. goodwill from a business acquisition intangible assets used in the business long-term prepaid expenses noncurrent investments that are not material Correct Answer

long-term prepaid expenses noncurrent investments that are not material

Which of the following items are included in property, plant, and equipment? (Select all that apply.) Multiple select question. inventory machines furniture oil wells mineral mines investments

machines furniture oil wells mineral mines

Responsibility for the financial statements and other information found in the annual report lies with____

management

A Blank______ firm will include finished goods, work in process, and raw materials as part of their inventory. Multiple choice question. wholesale manufacturing service retail

manufacturing

Assets minus liabilities, measured according to GAAP, is not likely to be representative of the---- value of the entity. (Enter only one word.)

market

The full-disclosure principle requires financial statements to provide all materialBlank 1Blank 1 material , Correct Unavailable relevantBlank 2Blank 2 relevant , Correct Unavailable information regarding the company. (Enter one word per blank.)

material, relevant

On January 1 of the current year, Lafferty signs a contract to rent a building for $1,000 per month for the next three years. On that date, Lafferty pays $36,000 for rent. On January 1 when payment is made, what is the amount of the prepaid rent that should be classified as a current asset? Multiple choice question. $24,000 $0 $36,000 $12,000

12000

On January 1 of the current year, Lafferty signs a contract to rent a building for $1,000 per month for the next three years. On that date, Lafferty pays $36,000 for rent. On January 1 when payment is made, what is the amount of the prepaid rent that should be classified as a noncurrent asset? Multiple choice question. $36,000 $12,000 $0 $24,000

24000

Barsky Corp. has the following items: Cash $5,000 Prepaid expenses 2,000 Building 40,000 Land 20,000 Inventory 15,000 Total noncurrent assets on the balance sheet is Multiple choice question. $62,000. $75,000. $60,000. $35,000.

60000

The full-disclosure principle requires that financial statements report which of the following? Multiple choice question. All financial strategy and policies of the entity. All material relevant information. All calculations of each item on the balance sheet. All calculations regardless of materiality.

All material relevant information

What is the difference between an account payable and a note payable? Multiple choice question. A note payable is always long-term. A note payable is owed to a bank. An account payable is a signed promissory note. An account payable is usually due in 30-60 days.

An account payable is usually due in 30-60 days.

How should liquid investments expected to be converted to cash within the current operating cycle be reported in the balance sheet? Multiple choice question. As a restricted stockholders' equity account on the balance sheet. As a long-term investment in the noncurrent asset section. As a short-term investment in the current asset section. As a current liability in the liability section of the balance sheet.

As a short-term investment in the current asset section.

Which of the following are likely examples of a related-party transaction? (Select all that apply.) Multiple select question. Borrowing or lending money at an unusually low interest rate to an affiliated company. Purchasing goods from independent suppliers. Loaning money to officers and directors. Selling goods to affiliated companies.

Borrowing or lending money at an unusually low interest rate to an affiliated company. Loaning money to officers and directors. Selling goods to affiliated companies.

Which of the following is a likely example of a related-party transaction? Multiple choice question. Selling goods to customers at retail values. Borrowing or lending money at unusually low interest rates. Purchasing goods from suppliers.

Borrowing or lending money at unusually low interest rates.

Indicate the order of the following current assets on the balance sheet.

Cash and cash equivalents accounts receivable inventory prepaid expenses

Sustainability Disclosures include (Select all that apply.) Multiple select question. Environmental Governance Social Finance Third-party

Environmental Governance Social

Which of the following are required SEC disclosures? (Select all that apply.) Multiple select question. Executive compensation Director and executive hourly wage information Director and executive daily activity report Director compensation Executive stock option information

Executive compensation Director compensation Executive stock option information

The SEC requires disclosures on compensation for which of the following? (Select all that apply.) Multiple select question. All employees Executives Directors Low-level management Mid-level management

Executives Directors

Ownership of an exclusive right to something such as a product, a process, or a name is called what? Multiple choice question. Long-lived asset Tangible asset Current asset Intangible asset

Intangible asset

What is the criterion to classify an investment as a cash equivalent versus a short-term investment? Multiple choice question. It is a highly liquid investment with a maturity date of 3 months or less from date of purchase. It is a short-term investment with a maturity date of 12 months or less. It is a marketable security being held for sale. It is an investment in stock of another company that is held for active trading.

It is a highly liquid investment with a maturity date of 3 months or less from date of purchase.

The Management Discussion and Analysis section of the financial statements includes a perspective on which of the following? (Select all that apply.) Multiple select question. Liquidity Job costing Auditors' report Operations Capital resources

Liquidity Operations Capital resources

Which of the following are likely examples of a related-party transaction? (Select all that apply.) Multiple select question. Loaning money to officers and directors. Borrowing or lending money at an unusually low interest rate to an affiliated company. Selling goods to affiliated companies. Purchasing goods from independent suppliers.

Loaning money to officers and directors. Borrowing or lending money at an unusually low interest rate to an affiliated company. Selling goods to affiliated companies.

An analysis provided by the company's management is included in the Multiple choice question. notes to the financial statements. summary of significant accounting policies. Management Discussion and Analysis.

Management Discussion and Analysis.

Who is responsible for the information in the annual report? Multiple choice question. CPA firm that audits the company. Management of the company. Internal auditors of the company. Board of directors of the company.

Management of the company.

Which of the following are included in the summary of significant accounting policies included in the notes to the financial statements? (Select all that apply.) Multiple select question. Supporting calculations for income taxes. Method of depreciation. Items included in cash and cash equivalents. Choice between LIFO and FIFO.

Method of depreciation. Items included in cash and cash equivalents. Choice between LIFO and FIFO.

Which of the following investments would be classified as a cash equivalent? (Select all that apply.) Multiple select question. Common stock held for trading purposes Money market funds U.S. Treasury bills with a maturity of 90 days

Money market funds U.S. Treasury bills with a maturity of 90 days

Which of the following items are considered cash equivalents? (Select all that apply.) Multiple select question. Money market funds that are quickly converted to cash. Commercial paper due in 1 month. U.S. Treasury bills due in 2 months. Cashier's checks and money orders.

Money market funds that are quickly converted to cash. Commercial paper due in 1 month. U.S. Treasury bills due in 2 months

The _____ cycle refers to the period of time necessary to convert cash to raw materials, raw materials to a finished product, the finished product to receivables, and then receivables back to cash. (Enter only one word.)

Operating

the time period necessary to convert cash to raw materials, convert raw materials into finished products, sell the products, and collect on the account receivable is referred to as the Blank______ cycle. Multiple choice question. production liquidity collection operating

Operating

How are property, plant, and equipment presented on the balance sheet? Multiple choice question. Original cost less accumulated depreciation Market value plus accumulated depreciation Market value less accumulated depreciation Original cost plus accumulated depreciation

Original cost less accumulated depreciation

How are property, plant, and equipment presented on the balance sheet? Multiple choice question. Original cost plus accumulated depreciation Market value plus accumulated depreciation Market value less accumulated depreciation Original cost less accumulated depreciation

Original cost less accumulated depreciation

Which of the following are examples of prepaid expenses? (Select all that apply.) Multiple select question. Prepaid insurance. Rent paid in advance. Customer payment in advance. Unearned revenue.

Prepaid insurance. Rent paid in advance.

What asset is listed as a separate item on the balance sheet because it has an unlimited life and is not depreciated? Multiple choice question. Investments Furniture Land Buildings

land

Which of the following transactions would be recorded as a prepaid expense? (Select all that apply.) Multiple select question. Inventory purchased and held for sale. Rent for an office building paid for 12 months. Insurance paid for 6 months. Salaries paid for the previous 2 months. January's utility bill paid in February.

Rent for an office building paid for 12 months. Insurance paid for 6 months.

Accounts receivable represents which of the following? Multiple choice question. The amount owed to suppliers. The amount owed by customers. The amount of sales recorded for the period.

The amount owed by customers.

Which of the following items are included in the professional opinions given in the auditor's report? (Select all that apply.) Multiple select question. The effectiveness of internal control. The fairness of the financial statements. The accuracy of the financial statements. The effectiveness of management strategy.

The effectiveness of internal control. The fairness of the financial statements.

Which of the following investments would be classified as a cash equivalent? (Select all that apply.) Multiple select question. Common stock held for trading purposes U.S. Treasury bills with a maturity of 90 days Money market funds

US treasury bills with a maturity of 90 days money market funds

How are current liabilities satisfied? (Select all that apply.) Multiple select question. The creation of other current assets. The use of current liabilities. The use of current assets. The creation of other current liabilities.

The use of current assets. The creation of other current liabilities.

Why are inventories reported as current assets? Multiple choice question. They may become obsolete. They are directly related to revenues. They are matched with current liabilities. They are normally sold within the operating cycle.

They are normally sold within the operating cycle.

Which of the following describe long-term liabilities? (Select all that apply.) Multiple select question. They require the use of current assets. They do not require the creation of current liabilities for payment. They do not require the use of current assets. They require the creation of current liabilities for payment.

They do not require the creation of current liabilities for payment. They do not require the use of current assets.

What is the role of the auditor? Multiple choice question. To attest to the accuracy of information in the annual report. To attest to the solvency of the company. To attest to the accuracy of the financial statements. To attest to the fairness of the financial statements.

To attest to the fairness of the financial statements.

What is the role of the auditor's attest function? Multiple choice question. To provide an opinion on the company's success. To provide an opinion on the company's future. To provide an opinion on the financial statements. To provide an opinion on management's strategies.

To provide an opinion on the financial statements

The purpose of the balance sheet is to report Multiple choice question. the difference between revenues and expenses during a period of time. the difference between revenues and expenses on a specific date. a company's financial position on a specific date. a company's financial position during a period of time.

a companys financial position on a specific date

The account that represents the amount of money owed by customers is called ______ _______. (Enter one word per blank.)

accounts receivable

An obligation to pay a supplier within 30 days should be recorded in accountsBlank 1Blank 1 accounts , Correct Unavailable payable, whereas a signed promise to pay cash at some point in the future should be recorded as notesBlank 2Blank 2 notes , Correct Unavailable payable. (Enter one word per blank.)

accounts, notes

An expense that has been incurred but not yet paid results is a(n) Multiple choice question. intangible asset. accrued liability. noncurrent expense. deferred charge.

accured liability

Bear Corp. has $100,000 cash in the bank restricted to repay a note payable that matures in 2 years. How should this $100,000 be reported? Multiple choice question. As cash and cash equivalents on the balance sheet. As restricted cash in the long-term section of the balance sheet. As part of stockholders' equity on the balance sheet. As cash in the current asset section of the balance sheet.

as restricted cash in the long term section of the balance sheet

Current ___include cash and other items that will be converted to cash or consumed within the coming year. (Enter only one word.)

assets

The current versus noncurrent classification applies to what in the financial statements? Multiple choice question. Assets and liabilities Shareholders' Equity Gains and losses Revenues and expenses

assets and liabilities

The financial statement that provides information about liquidity and long-term solvency is the Multiple choice question. statement of owners' equity statement of cash flows income statement balance sheet

balance sheet

Which of the following financial statements shows a firm's financial position on a particular date? Multiple choice question. income statement statement of stockholders' equity balance sheet statement of cash flows

balance sheet

Which of the following items is classified as cash? Multiple choice question. Bank drafts Treasury bills Accounts receivable Investment in stock of another company

bank drafts

A company's total assets minus its total liabilities as shown on the balance sheet is known as the____ value. (Enter only one word.)

book

Inventories held for sale in the normal course of business are classified in the balance sheet as Multiple choice question. current liabilities noncurrent assets current assets noncurrent liabilities

current assests

How are accounts receivable classified on the balance sheet? Multiple choice question. current liability noncurrent asset current asset noncurrent liability

current asset

Cash and other assets that are reasonably expected to be converted to cash or consumed within 1 year or the current operating cycle are classified as Multiple choice question. noncurrent assets. nonmonetary assets. fixed assets. current assets.

current assets

A Blank______ is satisfied within 1 year or the current operating cycle, whichever is longer. Multiple choice question. current liability noncurrent asset current asset noncurrent liability

current liability

A _____ is satisfied within 1 year or the current operating cycle, whichever is longer. Multiple choice question. noncurrent asset current liability current asset noncurrent liability

current liability

If an accounts receivable is due within 60 days, it is classified on the balance sheet as a(n) asset. (Enter only one word.)

current, short-term or shortterm

The two classifications used for assets and liabilities on the balance sheet are Blank______ and Blank______. Multiple choice question. monetary; nonmonetary equity; nonequity fixed; variable current; noncurrent

current; noncurrent

A customer pays in advance for services to be performed in a future period. In which account should the transaction be recorded? Multiple choice question. accounts receivable deferred revenues accounts payable notes payable

deferred revenues

What account is affected when a customer pays in advance for services to be performed in the future? Multiple choice question. accounts payable accounts receivable deferred revenues notes payable

deferred revenues

Shareholders' equity arises primarily from amounts invested by shareholders and amounts Blank______. Multiple choice question. borrowed from banks earned by the corporation borrowed from investors received by customers

earned by the corporation

Schwinn is a company that makes bicycles. Which of the following items would be included in Schwinn's inventory? (Select all that apply.) Multiple select question. salary for salesperson finished bicycles bicycle tires bicycle chains

finished bicycles bicycle tires bicycle chains

Inventory for a wholesale or retail company includes which of the following? Multiple choice question. finished goods raw materials work in process

finished goods

Unearned revenue represents cash received from a customer for goods or services to be provided in a(n) futureBlank 1Blank 1 future , Correct Unavailable period. (Enter only one word.)

future

Patents, copyrights, and franchises are examples of what? Multiple choice question. Intangibles Investments Property Prepaid assets

intagibles

________consist of assets that a retail or wholesale company acquires for resale or goods that manufacturers produce for sale. (Enter only one word.)

inventory

Assets not used directly in the operations of the business are called what? Multiple choice question. Investments Inventories Property Prepaid assets

investments

Assets not used directly in the operations of the business are referred to as . (Enter only one word.)

investments

Cash set aside for future plant expansion and a 3 year note receivable are both examples of what on a company's balance sheet? Multiple choice question. Intangible assets Other assets Investments Property, plant, and equipment

investments

Which of the following items should be classified as a short-term investment? Multiple choice question. Prepaid expenses. Accounts receivable. Inventory held for sale in the normal course of business. Investments to be sold in 12 months.

investments to be sold in 12 months

Land is listed separately on the balance sheet because Multiple choice question. it is an intangible asset. it has an unlimited life. it is a current asset. it is depreciated faster than other assets.

it has an unlimited life.

Rice Company purchases a building for $500,000, which will be used as a production facility. How should the building be classified on the balance sheet? Multiple choice question. current liability current asset inventory noncurrent asset noncurrent liability

noncurrent asset

Which of the following items should be disclosed in other long-term assets on the balance sheet? (Select all that apply.) Multiple select question. noncurrent investments that are not material goodwill from a business acquisition intangible assets used in the business long-term prepaid expenses

noncurrent investments that are not material long-term prepaid expenses

If a company's long-term investments are not material in amount, where should they be disclosed on the balance sheet? Multiple choice question. intangible assets other assets goodwill cash and cash equivalents

other assets

The two sources of shareholders' equity are amounts Blank______. Multiple select question. paid in from shareholders borrowed from related companies earned by the corporation borrowed from banks

paid in from shareholders earned by the corporation

Which of the following represents an expense paid in advance that creates benefits used in the future? Multiple choice question. cash equivalents accounts receivable prepaid expense inventory

prepaid expense

Which of the following are noncurrent assets? (Select all that apply.) Multiple select question. machines investments with maturity of 18 months inventory accounts receivable property

property machines investments with maturity of 18 months

Which of the following items should not be included in cash and cash equivalents in the balance sheet? Multiple choice question. Treasury bills money market funds restricted cash cashier's checks

restricted cash

Classifying items on the balance sheet as current and noncurrent assists financial statement users in assessing what aspects about a company? Multiple choice question. Profitability and future earnings. Solvency and liquidity. Potential cash flows. Earnings and marketability of the stock.

solvency and liquidity

A ___ event is a significant development that occurs after a company's fiscal year-end but before the financial statements are issued or available to be issued. (Enter only one word.

subequent

Reports that communicate the environmental, social, and governance factors of an organization's activities are called: Multiple choice question. sustainability reports. financial reports. operating reports. environmental reports.

sustainability reports

Property, plant, and equipment is a(n) Blank______ asset. (Select all that apply.) Multiple select question. short-lived tangible intangible long-lived

tangible long-lived

Which of the following are accrued liabilities? (Select all that apply.) Multiple select question. taxes payable bonds payable utilities payable notes payable

taxes payable utilities payable

A summary of significant accounting policies includes information regarding Multiple choice question. management's intentions in the future. the calculation of specific items. the choice of accounting policies. achievement of performance targets.

the choice of accounting policies.

Assets are classified as long-term if: Multiple choice question. they are expected to be converted to cash or consumed in more than one operating cycle they are tangible they are expected to be converted to cash or consumed in less than one operating cycle

they are expected to be converted to cash or consumed in more than one operating cycle

Assets are classified as long-term if: Multiple choice question. they are tangible they are expected to be converted to cash or consumed in more than one operating cycle they are expected to be converted to cash or consumed in less than one operating cycle

they are expected to be converted to cash or consumed in more than one operating cycle

True or false: Any event having a material effect on operations that occurs after a company's year-end but before the financial statements are issued requires a subsequent event disclosure. True false question.TrueFalse

true

Which type of audit opinion indicates the financial statements are prepared in accordance with U.S. GAAP? Multiple choice question. Adverse Favorable Unqualified Qualified

unqualified

Which of the following are characteristics of plant, property, and equipment? (Select all that apply.) Multiple select question. used long-term in production tangible used or converted to cash within 1 year or the current operating cycle

used in long term production tangible