Review Later 3 Where would unearned revenue most likely appear in a set of financial statements? In the Balance Sheet as an asset In the Income Statement after Operating Profit DOOO In the Income Statement before Gross Profit In the Balance Sheet as a liability Page 3 of 10 2. Review Later Which is not a type of note found in a set of financial statements? Significant accounting policies Significant internal controls Direct information Indirect information 1 Review Later Which is the best description of authorized shares? The total amount of shares a company has received cash for The total amount of shares that can be sold The total amount of shares held by the directors The total amount of shares that can be publicly traded Page 1 of 10 Review Later 6 Where would advertising costs normally be found? On the balance sheet, within intangible assets On the income statement, within selling, general and administration Dooo On the balance sheet, within contingent liabilities On the income statement, within cost of sales 7 Review Later What is an advantage to using a multi-step income statement? The fixed costs and variable costs are broken out separately Direct expenses and indirect expenses are broken out separately All income items are grouped in one section, and all expenses in another Net Income is shown before income taxes Page 7 of 10 Review Later 5 What will a contingency note contain? A set of criteria required to be able to recognize revenue A circumstance where a company may have a liability A disclosure of all future commitments of the company A disclosure of future contracts to be performed 5 of 10 10 Review Later 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 List of future actions that the company plans on taking Key risks facing the organization All of the above Page 10 of 10