ACCT 304 WEEK 4 Midterm 100 % CORRECT

ACCT 304 WEEK 4 Midterm 100 % CORRECT
 1	Question 	TCO 1 Which of the following has the authority to set accounting standards in the United States?

 	


Question 2.	Question :	(TCO 2) The FASB's conceptual framework's qualitative characteristics of accounting information includes:

 	

Question 3.	Question :	(TCO 3) Mary Parker Co. invested $15,000 in ABC Corporation and received capital stock in exchange. Mary Parker Co.'s journal entry to record this transaction would include a:

 	

Question 4.	Question :	(TCO 3) The adjusting entry required when amounts previously recorded as unearned revenues are earned includes:

 	


Question 5.	Question :	(TCO 3) Permanent accounts would not include:

 	



Question 6.	Question :	(TCO 4) Noncurrent assets include:

 	



Question 7.	Question :	(TCO 4) The acid-test ratio is also known as the:

 	

Question 8.	Question :	(TCO 5) The difference between single-step and multiple-step income statements is primarily an issue of:

 	
Question 9.	Question :	(TCO 5) On June 1, 2013, Romano Inc. changed the estimated useful life of its office equipment from 20 to 12 years. This change would be accounted for:

 	



Question 10.	Question :	(TCO 5) Arrow Printers paid $2,000 interest on short-term notes payable, $10,000 interest on long-term bonds, and $6,000 in dividends on its common stock. Arrow would report cash outflows from activities, as follows:

 	



Question 11.	Question :	(TCO 5) The Maytag Corporation's income statement includes income from continuing operations, a loss from discontinued operations, and extraordinary items. Earnings per share information would be provided for:

 	



Question 12.	Question :	(TCO 5) In a statement of cash flows prepared under International Financial Reporting Standards, each of the following items is typically classified as a financing cash flow except:

 	



Question 13.	Question :	(TCO 4) Which is a shareholders' equity account in the balance sheet?

 	



Question 14.	Question :	(TCO 4) Which of the following groups is not among the external users for whom financial statements are prepared?

 	


Question 2.	Question :	(TCO 4) Listed below are account balances (in $millions) taken from the records of Symphony Stores. All of these are permanent accounts, except the last two that have yet to be closed. The installment receivables are current. Symphony uses a perpetual inventory system.  
What would Symphony report as total assets? Hint: Don’t forget to deduct the contra assets.
What would Symphony report as total shareholders' equity? Hint: You will need to deduct dividends.
 

 	

Question :	(TCO 4) Explain how management's discussion and analysis of its operations and liquidity may be helpful to investors.

 	
Question 2.	Question :	(TCO 2) Briefly describe the materiality constraint.

 	



Question 3.	Question :	(TCO 5) Briefly discuss at least two differences between income statements prepared under U.S. GAAP and IFRS.

 	



Question 4.	Question :	(TCO 3) Describe what is meant by unearned revenues and give two examples.