1. (TCO A) Which of the following statements is not an objective of financial reporting? (Points : 5)

Provide information that is useful in investment and credit decisions. Provide information about enterprise resources, claims to those resources, and changes to them. Provide the liquidation value of a company. Provide information that is useful in assessing cash flow prospects.

Question 2.2. (TCO A) The Governmental Accounting Standards Board (Points : 5)

oversees the activities of the IASB. is a private-sector body, which addresses state and local governmental reporting issues. is a division of the IASB. was created by Congress for creating governmental standards for federal, state and local units.

Question 3.3. (TCO A) Which of the following is an ingredient of relevance? (Points : 5)

Verifiability Completeness Neutrality Predictive value

Question 4.4. (TCO A) Information is neutral if it (Points : 5)

provides benefits that are at least equal to the costs of its preparation. can be compared with similar information about an enterprise at other points in time. would have no impact on a decision maker. is free from bias toward a predetermined result.

Question 5.5. (TCO A) Which of the following is not a basic element of financial statements? (Points : 5)

Assets Balance sheet Losses Revenues

Question 6.6. (TCO A) Issuance of common stock for cash affects which basic element of financial statements? (Points : 5)

Revenues Losses Liabilities Equity

Question 7.7. (TCO A) Which basic assumption may not be followed when a firm in bankruptcy reports financial results? (Points : 5)

Economic entity assumption Going concern assumption Periodicity assumption Monetary unit assumption

Question 8.8. (TCO D) The balance sheet is useful for analyzing all of the following except (Points : 5)

liquidity. solvency. profitability. financial flexibility.

Question 9.9. (TCO D) The balance sheet contributes to financial reporting by providing a basis for all of the following except (Points : 5)

computing rates of return. evaluating the capital structure of the enterprise. determining the increase in cash due to operations. assessing the liquidity and financial flexibility of the enterprise.

Question 10.10. (TCO A) Accounting information is considered to be relevant when it (Points : 5)

can be depended on to represent the economic conditions and events that is intended to represent. is capable of making a difference in a decision. is understandable by reasonably informed users of accounting information. is verifiable and neutral.

1. (TCO A) Which of the following statements is not an objective of financial reporting? (Points : 5) Provide information that is useful in investment and credit decisions. Provide information about enterprise resources, claims to those resources, and changes to them. Provide the liquidation value of a company. Provide information that is useful in assessing cash flow prospects. Question 2.2. (TCO A) The Governmental Accounting Standards Board (Points : 5) oversees the activities of the IASB. is a private-sector body, which addresses state and local governmental reporting issues. is a division of the IASB. was created by Congress for creating governmental standards for federal, state and local units. Question 3.3. (TCO A) Which of the following is an ingredient of relevance? (Points : 5) Verifiability Completeness Neutrality Predictive value Question 4.4. (TCO A) Information is neutral if it (Points : 5) provides benefits that are at least equal to the costs of its preparation. can be compared with similar information about an enterprise at other points in time. would have no impact on a decision maker. is free from bias toward a predetermined result. Question 5.5. (TCO A) Which of the following is not a basic element of financial statements? (Points : 5) Assets Balance sheet Losses Revenues Question 6.6. (TCO A) Issuance of common stock for cash affects which basic element of financial statements? (Points : 5) Revenues Losses Liabilities Equity Question 7.7. (TCO A) Which basic assumption may not be followed when a firm in bankruptcy reports financial results? (Points : 5) Economic entity assumption Going concern assumption Periodicity assumption Monetary unit assumption Question 8.8. (TCO D) The balance sheet is useful for analyzing all of the following except (Points : 5) liquidity. solvency. profitability. financial flexibility. Question 9.9. (TCO D) The balance sheet contributes to financial reporting by providing a basis for all of the following except (Points : 5) computing rates of return. evaluating the capital structure of the enterprise. determining the increase in cash due to operations. assessing the liquidity and financial flexibility of the enterprise. Question 10.10. (TCO A) Accounting information is considered to be relevant when it (Points : 5) can be depended on to represent the economic conditions and events that is intended to represent. is capable of making a difference in a decision. is understandable by reasonably informed users of accounting information. is verifiable and neutral