21 Which of the following assumptions that underlies the preparation of financial statements assumes that companies will continue their operations over time Select one A Separate economic entity B Accounting period C Measuring unit D Going concern 22 Financial accounting is designed primarily for decision makers within the company Select one True False 23 Which statement istrueabout IFRS Select one A It has replaced GAAP financial accounting standards B It has legal authority to impose accounting standards world wide C It is working to reduce diversity in financial reporting practices across the world D It is under the control of the SEC 24 Which of the four basic financial statements would contain a line item for expenses Select one A Balance sheet B Statement of equity C Income statement D Statement of cash flows 25 One key measure of profitability is the debt to equity ratio Select one True False 26 Data from the financial statements of The Kroger Company and SuperValu, Inc , two national grocery chains are presented below (in millions) $ in thousands The Kroger Co SuperValu, Inc Total liabilities, 2012 $19,510 $12,032 Total liabilities, 2011 18,207 12,418 Total assets, 2012 23,476 12,053 Total assets, 2011 23,505 13,758 Revenue, 2012 90,374 36,100 Net income (loss), 2011 602 (1,040) To the nearest hundredth of a percent, what is the return on equity ratio 2012 for SuperValu Select one A 14 45 B 7 00 C (152 83) D Not enough information is provided 27 True, Inc has a debt to equity ratio of 0 52 and Binder Company has 0 98 Which of the following statements istrue Select one A Binder has more total debt than does True B Binder is able to bring its product to market more efficiently than True C Binder reported more dollars of profit than True D True would likely be able to borrow money at a lower interest rate than would Binder 28 Which of the following organizations was established by the Sarbanes Oxley Act to approve auditing standards and monitor the quality of financial statements and audits Select one A The Public Company Accounting Oversight Board B The American Institute of Certified Public Accountants C The Securities and Exchange Commission D The Financial Accounting Standards Board

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 28, 2024

21. Which of the following assumptions that underlies the preparation of financial statements assumes that companies will continue their operations over time? Select one: A.

21. Which of the following assumptions that underlies the preparation of financial statements assumes that companies will continue their operations over time? Select one: A. Separate economic entity B. Accounting period C. Measuring unit D. Going concern

22. Financial accounting is designed primarily for decision makers within the company. Select one: True False

23. Which statement istrueabout IFRS? Select one: A. It has replaced GAAP financial accounting standards B. It has legal authority to impose accounting standards world-wide C. It is working to reduce diversity in financial reporting practices across the world D. It is under the control of the SEC

24. Which of the four basic financial statements would contain a line item for expenses? Select one: A. Balance sheet B. Statement of equity C. Income statement D. Statement of cash flows

25. One key measure of profitability is the debt-to-equity ratio. Select one: True False

26.

Data from the financial statements of The Kroger Company and SuperValu, Inc., two national grocery chains are presented below (in millions):

$ in thousands

The Kroger Co.

SuperValu, Inc.

Total liabilities, 2012 ......	$19,510	$12,032
Total liabilities, 2011 ......	18,207	12,418
Total assets, 2012 ......	23,476	12,053
Total assets, 2011 .......	23,505	13,758
Revenue, 2012 ....	90,374	36,100
Net income (loss), 2011.......	602	(1,040)

To the nearest hundredth of a percent, what is the return on equity ratio 2012 for SuperValu?

Select one:

A. 14.45%B. 7.00%C. (152.83)%D. Not enough information is provided

27. True, Inc. has a debt-to-equity ratio of 0.52 and Binder Company has 0.98. Which of the following statements istrue? Select one: A. Binder has more total debt than does True. B. Binder is able to bring its product to market more efficiently than True. C. Binder reported more dollars of profit than True. D. True would likely be able to borrow money at a lower interest rate than would Binder.

28. Which of the following organizations was established by the Sarbanes-Oxley Act to approve auditing standards and monitor the quality of financial statements and audits? Select one: A. The Public Company Accounting Oversight Board B. The American Institute of Certified Public Accountants C. The Securities and Exchange Commission D. The Financial Accounting Standards Board