STUDENT NAME: PARTI-MULTPLECHOICE 1. Which of the following is true of accounting for changes in estimates? A. Cha 8. Changes in estimate are recorded on the Statement of Retained Earnings. C. Changes in estimates are not carried back to adjust prior years. nges in estimate are recorded by making a retrospective adjustment to the financial statement D. Changes in estimates are considered errors. 2. The basis for classifying assets as current or noncurrent is conversion to cash within the accounting cycle or one year, whichever is longer. the accounting cycle or one year, whichever is shorter. the operating cycle or one year, whichever is longer. the operating cycle or one year, whichever is shorter A. B. C. D. 3. The correct order to present current assets on the Balance Sheet is A. cash, inventories, accounts receivable, prepaid items, marketable securities. B. cash, marketable securities, accounts receivable, inventories, prepaid items. C. cash, marketable securities, accounts receivable, prepaid items, inventories. D. cash, marketable securities, inventories, prepaid items, accounts receivable 4. What is meant by comparability when discussing financial accounting information? Information has predictive or confirmatory value. b. a. Information is reasonably free from error. Information that is measured and reported in a similar fashion across companies. d. c. Information is timely. 5. Which of the following equals "Income from Continuing Operations" on the Income Statement? A. Net sales-cost of goods sold-operating expenses. B. Net sales-cost of goods sold -operating expenses+ other revenues-other expenses. C. Net sales- cost of goods sold -operating expenses+ other revenues-other expenses-incom D. Net sales-cost of goods sold -operating expenses-income taxes+ gain on separately repor separately reported items. 6. In classifying the elements of financial statements, the primary distinction between revenue the materiality of the amounts involved the likelihood that the transactions involved will recur in the future the nature of the activities that gave rise to the transactions involved. the costs versus the benefits of the alternative methods of disclosing the transactions invo a. b. c. d. 7. The occurrence that most likely would have no effect on 2017 net income is the sale in 2017 of an office building contributed by a stockholder in 1964. collection in 2017 of a dividend from an investment. b. ered subsequen STUDENT NAME: PARTI-MULTPLECHOICE 1. Which of the following is true of accounting for changes in estimates? A. Cha 8. Changes in estimate are recorded on the Statement of Retained Earnings. C. Changes in estimates are not carried back to adjust prior years. nges in estimate are recorded by making a retrospective adjustment to the financial statement D. Changes in estimates are considered errors. 2. The basis for classifying assets as current or noncurrent is conversion to cash within the accounting cycle or one year, whichever is longer. the accounting cycle or one year, whichever is shorter. the operating cycle or one year, whichever is longer. the operating cycle or one year, whichever is shorter A. B. C. D. 3. The correct order to present current assets on the Balance Sheet is A. cash, inventories, accounts receivable, prepaid items, marketable securities. B. cash, marketable securities, accounts receivable, inventories, prepaid items. C. cash, marketable securities, accounts receivable, prepaid items, inventories. D. cash, marketable securities, inventories, prepaid items, accounts receivable 4. What is meant by comparability when discussing financial accounting information? Information has predictive or confirmatory value. b. a. Information is reasonably free from error. Information that is measured and reported in a similar fashion across companies. d. c. Information is timely. 5. Which of the following equals "Income from Continuing Operations" on the Income Statement? A. Net sales-cost of goods sold-operating expenses. B. Net sales-cost of goods sold -operating expenses+ other revenues-other expenses. C. Net sales- cost of goods sold -operating expenses+ other revenues-other expenses-incom D. Net sales-cost of goods sold -operating expenses-income taxes+ gain on separately repor separately reported items. 6. In classifying the elements of financial statements, the primary distinction between revenue the materiality of the amounts involved the likelihood that the transactions involved will recur in the future the nature of the activities that gave rise to the transactions involved. the costs versus the benefits of the alternative methods of disclosing the transactions invo a. b. c. d. 7. The occurrence that most likely would have no effect on 2017 net income is the sale in 2017 of an office building contributed by a stockholder in 1964. collection in 2017 of a dividend from an investment. b. ered subsequen
