1 2 Which is the best description of authorized shares? The total amount of shares that can be publicly traded The total amount of shares held by the directors The total amount of shares a company has received cash for The total amount of shares that can be sold Which is not a type of note found in a set of financial statements? Indirect information Significant accounting policies Significant internal controls Direct information 3 Where would unearned revenue most likely appear in a set of financial statements? 5 In the Balance Sheet as an asset In the Income Statement after Operating Profit In the Balance Sheet as a liability In the Income Statement before Gross Profit 4 Which is not an example of an intangible asset? OOOO A copyright A patent A computer A trademark What will a contingency note contain? A set of criteria required to be able to recognize revenue A disclosure of all future commitments of the company A disclosure of future contracts to be performed A circumstance where a company may have a liability 6 7 8 Where would advertising costs normally be found? On the balance sheet, within contingent liabilities On the income statement, within cost of sales On the income statement, within selling, general and administration On the balance sheet, within intangible assets What is an advantage to using a multi-step income statement? All income items are grouped in one section, and all expenses in another The fixed costs and variable costs are broken out separately Net Income is shown before income taxes Direct expenses and indirect expenses are broken out separately Which of the following is an example of an investing activity? OOOO Prepayment of a contract Purchase of machinery Issuance of shares Repayment of long term debt 9 10 Which statement does NOT describe operating cash flows? Cash Paid for New Factory Equipment Employee Salaries Cash Paid to Suppliers Cash Received from Customers What would you find on the Management's Discussion and Analysis (MD&A) Section of an Annual Report? A review of the company's past performance Key risks facing the organization All of the above List of future actions that the company plans on taking