ACC 371 Week 2 Quiz 3

ACC 371 Week 2 Quiz 3 | Mercer University

Question 1

In what order would the following accounts normally be listed in a classified balance sheet?

a.  Retained earnings

b.  Accumulated other comprehensive income

c.  Non controlling interest

d.  Common stock

a,b,c,d  

a,d,b,c 

d,a,b,c   

d,a,c,b  

d, b, a, c

Question 2

Stetson Industries is a manufacturer of affordable menswear.  The company manages its business primarily on a geographic basis.  There are differences in the methods used to distribute products between the segments.  Selected information about Stetson’s segments is included below:

Operating segment         Revenues            Pretax operating profit (loss)      Identifiable assets

Pacific Coast       $200,000              $18,000 $1,800,000

Atlantic Coast    36,000   4,000     550,000

Southwest          95,000   12,000   1,425,000

Midwest              52,000   3,000     400,000

Southeast           180,000 12,000   1,750,000

Northeast           25,000   (8,000)  250,000

Totals    $588,000              $41,000 $6,175,000

What is the combined total of reportable operating segment revenue in Stetson Industries’ Form 10-K?

$563,000  

$500,000  

$475,000  

$527,000  

$380,000

Question 3

Which of the following components of Form 10-K is not directly covered by the Accounting Standards Codification?

Management’s discussion and analysis  

Segment information  

Notes to the financial statements  

Supplementary information

Question 4

Johansen Industries, a public company, is required to file Form 10-K with the SEC.  Which of the following statements about the form is(are) accurate?  (Johansen Industries is not a large accelerated registrant.)  

Management’s Report on Internal Control over Financial Reporting must be signed by the chief executive officer and chief financial officer of Johansen Industries and by the auditor.  

Cash dividends declared per common share during the last three years must be included in the Selected Financial Data section.  

Johansen Industries must file Form 10-K within 75 days of year-end.  

Comparative financial statements (two years of data for each required statement) must be presented in Form 10-K  

All of the statements are accurate

Question 5

Gianni Industries is considering doubling the size of the company’s plant, hopefully using funds borrowed from its bank.  What type of financial statement would the company be most likely to prepare for the bank?  

Pro forma statement  

Financial forecast 

Financial projection 

Comparative statement  

Year-end statement

Question 6

Which of the following would not need to be disclosed in a related party transaction note?  (Assume all related dollar amounts are material.)

Corporate guarantee of CEO’s home mortgage  

Lease of factory equipment from subsidiary  

Sale of land to parent entity  

All of the above would need to be disclosed.  

None of the above would need to be disclosed.

Question 7

A company’s external auditors are responsible for which of the following?  

The accuracy of the financial statements and accompanying notes included in Form 10-K  

The accuracy of the required supplementary information included in Form 10-K  

All of the opinions expressed in auditor reports included in Form 10-K

A, B, and C  

A and B  

A and C  

B and C

Question 8

Which of the following types of quantitative information are required to be disclosed in Form 10-K for each reportable segment?  

Profit or loss amounts  

Total asset amounts  

The amount of revenue from a single customer representing 10% or more of any reportable segment’s total revenue.

A and B  

B and C  

A and C 

A, B, and C

Question 9

Management is required to provide information about  ________________ in the Management’s Discussion and Analysis of Financial Operations section of Form 10-K.  

the company’s internal controls over financial reporting  

the Auditor’s report  

the company’s liquidity  

fluctuations in the company’s stock price during the year 

all of the above  

none of the above

Question 10

During the audit of Jasper Corporation, the auditors discovered that a material lease obligation that they believed met the criterion for capitalization, had not been capitalized.  Jasper Corporation’s management was unwilling to adjust the statements.  No other material misstatements were noted.

The auditor’s report would likely include a(n) _______________.  

unqualified opinion  

adverse opinion  

unqualified opinion with a special note describing the lease in question  

qualified opinion  

disclaimer of opinion