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Financial Reporting Quiz 9 (20 MCQs)

Quiz Instructions

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1. What does the balance sheet in financial reporting show?
2. The adjusting entry to record an accrued expense results in which of the following types of accounts being debited and credited?
3. Brown Corporation had average days of sales outstanding of 19 days in themost recent fiscal year. Brown wants to improve its credit policies and collectionpractices and decrease its collection period in the next fiscal year to matchthe industry average of 15 days. Credit sales in the most recent fiscal year were$ 300 million, and Brown expects credit sales to increase to $ 390 million in thenext fiscal year. To achieve Brown's goal of decreasing the collection period, thechange in the average accounts receivable balance that must occur is closest to:
4. What is not a type of company is:
5. Which of the following is any reporting period shorter than a full year (fiscal or calendar) and can encompass monthly, quarterly, or half-year statements?
6. The following is not a function of the financial reporting conceptual framework
7. All businesses use the same system, which follows established accounting guidelines called "generally accepted accounting principles"
8. A company receives advance payments from customers that are immediatelytaxable but will not be recognized for accounting purposes until the companyfulfills its obligation. The company will most likely record:
9. Investors study the company's ROI trends = confirmatory value
10. A set of interrelated concepts that determine the function, scope and objectives of accounting and financial reporting. In Australia, the SAC (Statement of Accounting Concepts) represents the constitution for financial reporting.
11. Represent advance payments made for expenses which have not yet been incurred, used, utilized or consumed.
12. What group that was created last November 1991?
13. The obligation of the contractor to sell the contractor's share of oil for domestic needs at a price below market price, is defined as:
14. Sales revenue should be recognised when goods and services have been supplied; costs are incurred when goods and services have been received.Which accounting concept governs the above?
15. Anaya, Samuel, and Grace are studying for their business exam. They come across a question:'What financial statement provides information about a company's sources of income and expenses?' Can you help them answer this?
16. Which of the following accounts will not be closed to a profit and loss summary account?
17. The ..... of an asset is the estimated amount that an entity would currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.
18. The two accounting assumptions are:1st assumption:your business operates as a separate entity from your personal finances 2nd assumption:your financial reports always cover a specific period of time
19. Arthur, Kiara, and Thomas are studying for their finance exam. They are discussing about a financial statement that provides information about a company's cash inflows and outflows. Can you tell them which statement it is?
20. Anything of value that the business owns ex:cash, equipment, buildings
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