Question
1. Which of the following is most likely to be classified as a current liability? a. three-year notes payable. b. accounts payable. c. bonds payable.
1.
Which of the following is most likely to be classified as a current liability?
a.
three-year notes payable.
b.
accounts payable.
c.
bonds payable.
d.
mortgage payable.
2.
Which of the following is an example of provision?
a.
Notes payable
b.
Interest payable
c.
Legal proceedings against the business for a damages claim
d.
Warranty for motor vehicle repairs
3.
A dividend is a distribution of:
a.
profit by a company to its shareholders.
b.
liabilities of a company to its shareholders.
c.
accrued expenses to a corporations shareholders.
d.
revenue by a corporation to its owners.
4.
An appropriate journal entry to record a cash dividend on declaration date is:
a.
Dr Retained earnings
Cr Dividends payable
b.
Dr Retained earnings
Cr Cash at bank
c.
Dr Cash at bank
Cr Dividend payable
d.
Dr Cash at bank
Cr Retained earnings
5.
Comparisons with other entities that provide insight into an entitys competitive position are:
a.
none of these.
b.
intra-industry comparisons.
c.
industry averages comparisons.
d.
inter-entity comparisons.
6.
In performing vertical analysis, the base for prepaid expenses is:
a.
total assets.
b.
prepaid expenses in a previous year.
c.
total current assets.
d.
total liabilities.
7.
Which of these is an advantage of a partnership over a sole proprietorship?
a.
Unlimited liability
b.
Ease of transferring ownership
c.
Pooling of resources
d.
Mutual agency
8.
Which of the following is NOT a feature of method 1 of accounting for partnership equity?
a.
The profit or loss distribution account is closed to the partners capital accounts.
b.
Interest on capital is credited to the partners retained earnings accounts.
c.
Partners initial assets investment are debited to capital accounts.
d.
Partners drawings are closed to their capital accounts.
9.
The purpose of full disclosure principle is to report:
a.
reliable information.
b.
all information in a timely manner.
c.
information that could affect the decisions of users.
d.
comparable information.
10.
ccording to the Conceptual Framework what are the two fundamental qualitative characteristics of information contained in financial reports?
a.
reliability and comparability.
b.
faithful representation and timeliness.
c.
reliability and relevance.
d.
relevance and faithful representation.
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Internal Auditing For Hospitals
Authors: Seth Allcorn
1st Edition
0894431633, 978-0894431630
