b.Accounts receivable. c.Investment in negotiable securities (Trading securities). d.Inventory for sale. Which of the following statements are used to analyze the liquidity of the company? a. Statement of Income and Expenses along with a statement of financial position b. Statement of Cash Flows c. Statement of Situation together with statement of retained earnings d. Statement of Retained Earnings Financial reports prepared in accordance with GAAP require a management report. In this report, who has primary responsibility for the preparation and integrity of financial reports: a.the external auditors. b. the management. c. the internal auditors. d.the audit committee of the board of directors Which of the following statements is correct regarding the statement of income and expenses? a. The income and expense statement summarizes the result of operations for a period of time. b.The net income presented in the statement of income and expenses must be equal to the amount of cash that is presented in the statement of financial position. c. The statement of income and expenses indicates the liquidity of the company on an annual basis. d.The income and expense statement reports the company's profit since it began operations. An investment in shares of another company for 51% of the total outstanding voting shares will generally be accounted for at the date of the financial statements as: a FIFO method b.Consolidation method. c. Economic method (equity method). d.LIFO method. When a business sells equipment for more than its book value, this difference is reported on the multi-step Income and Expense Statement as a. Revenue. b.Net income. c. Gain d. Gross profit. The Statement of Cash Flows has as its purpose all of the following, EXCEPT a inform the sources and uses of cash of the company b. report investment and financing activities c.evaluate the performance of employees d.predict future cash flows The main objective of corporate governance is a.promote management to be accountable (more accountable) to employees, shareholders and other parties (stakeholders) with an interest in the company. b.reduce the use of internal controls throughout the company c. ensure that the company's share price is not overestimated. d.ensure that employees work as efficiently as possible. The interest expense incurred is $55,000. The balance of interest payable at the beginning and end of the period was $1,000 and $3,000, respectively. The interest payment was: a $59,000 b.$53,000 C. $51,000. d.$57,000 ABC sold a piece of land that cost $10,000 for $12,000. ABC will report: a. Investing cash flow of $12,000. b.Financing cash flow of $12,000. c. Operating cash flow of $12,000. d.Financing cash flow of $2,000. Which of the following is one of the arguments for accounting for an investment under the equity method? a. He owns more than 50% of the total shares with voting rights of the company in which he has invested. b. The investment is in debt of another company. c. It has the capacity to exercise control in the decision-making process of the company in which it has invested, d. You have the ability to influence the decision-making process of the company in which you have invested. Which of the following companies is most likely to have the highest inventory turnover a.Fine Garment Jewelry b. Supermarket c.Law firm d. Aircraft manufacturer