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
