The question is in the pdf attached file. I will like the answers be in a separate sheet

7/15/2017 Take Test: Chapter No.4 - ACCT 610 (Summer 2017 Section 50) Obioma Ubani-Ukoma CSUSB Online H Content Courses Community Chapter No.4 Materials ? Take Test: Chapter No.4 Take Test: Chapter No.4 Test Information Description Chapter No.4 MC Instructions Please select the best correct answer to the MC questions below. Good Luck! Multiple Attempts This test allows multiple attempts. Force Completion This test can be saved and resumed later. Save All Answers Save and Submit 1 points Question 1 Saved Probable future economic benefits obtained or controlled by an entity as a result of past transactions or events defines assets. liabilities. equity. retained earnings. 1 points Question 2 Saved The residual interest in the resources of an entity that remains after deducting its debts to third parties defines assets. liabilities. equity. retained earnings. 1 points Question 3 Saved Probable future sacrifices of economic benefits arising from an entity's present obligations to transfer resources or provide services to other entities in the future as a result of past transactions or events defines assets. liabilities. equity. retained earnings. https://csusb.blackboard.com/webapps/assessment/take/launch.jsp?course_assessment_id=_95424_1&course_id=_93373_1&content_id=_1615774... 1/16 7/15/2017 Take Test: Chapter No.4 - ACCT 610 (Summer 2017 Section 50) 1 points Question 4 Saved The balance sheet provides information on all of the following except how management invested its money. where the money came from. assessing rates of return. the market price of the company's stock. 1 points Question 5 Save Answer Contributed capital might be a negative dollar amount because net losses exceeded net income over the years. excess liabilities reduced contributed capital. treasury stock was in excess of stock originally issued. dividends paid were in excess of net income accumulated in retained earnings. 1 points Question 6 Saved Accrued liabilities represent income that has not yet been recognized on the income statement. expenses that have not yet been recognized on the income statement. expenses that have been recognized on the income statement but not yet been paid. income that has been recognized on the income statement but not yet collected. 1 points Question 7 Save Answer Balance sheet amounts would not be measured as effective value. fair value. present value. historical cost value. 1 points Question 8 Saved Goodwill arising from a business combination is reported on the balance sheet as a(n) current asset. fair value asset. impaired asset. intangible asset. 1 points Question 9 Save Answer Balance sheets prepared in other countries using international accounting standards (IFRS) might use different account titles than are allowed for US. GAAP, such as Capital reserve. Share premium. Hedging reserve. all of these answer choices might be used in balance sheets prepared using IFRS. https://csusb.blackboard.com/webapps/assessment/take/launch.jsp?course_assessment_id=_95424_1&course_id=_93373_1&content_id=_1615774... 2/16 7/15/2017 Take Test: Chapter No.4 - ACCT 610 (Summer 2017 Section 50) all of these answer choices might be used in balance sheets prepared using IFRS. 1 points Saved 1 points Saved Question 10 Balance sheets prepared in compliance with U.S. GAAP reflect a mixture of historical cost and future cash values. current value and discounted future cash flows. discounted cash flows and future values. historical cost, fair value, net realizable value, and discounted present values. Question 11 Current assets are assets expected to be converted to cash within twelve months. be converted to cash within twelve months or one operating cycle if the operating cycle is longer than twelve months. remain on the books for at least twelve months. remain on the books for at least twelve months or one operating cycle if the operating cycle is longer than twelve months. 1 points Saved 1 points Saved Question 12 Cash is always measured for the balance sheet at future transaction value. current market value. realizable future value. net transaction value. Question 13 Joe Carie, head accountant, is using the indirect method and the account balance from the balance sheet and income statement to prepare a statement of cash flows. He notices that the Retained Earnings account increased from the beginning of the year. This information is used to increase cash flow from financing as it indicates receipt of payments from customers. decrease cash flow from investing as it indicates payment of debt. increase cash flow from operations as it signifies a net income. decrease cash flow from operations as it indicates a net loss. 1 points Question 14 Save Answer Joe Carie, head accountant, is using the indirect method and the account balance from the balance sheet and income statement to prepare a statement of cash flows. Joe would use an increase in Accumulated Depreciation to increase cash flow from operating activities. increase cash flow from investing activities. decrease cash flow from investing activities. decrease cash flow from operating activities. Question Completion Status: 1 points Question 15 Save Answer https://csusb.blackboard.com/webapps/assessment/take/launch.jsp?course_assessment_id=_95424_1&course_id=_93373_1&content_id=_1615774... 3/16 7/15/2017 Question 15 Take Test: Chapter No.4 - ACCT 610 (Summer 2017 Section 50) Joe Carie, head accountant, is using the indirect method and the account balance from the balance sheet and income statement to prepare a statement of cash flows. An increase in the Computer Equipment account would decrease cash flow from financing activities. decrease cash flow from investing activities. increase cash flow from operating activities. decrease cash flow from investing activities. 1 points Question 16 Save Answer Joe Carie, head accountant, is using the indirect method and the account balance from the balance sheet and income statement to prepare a statement of cash flows. A decrease in the balance of the Accounts Receivable account would decrease cash flow from financing activities. increase cash flow from investing activities. decrease cash flow from operating activities. increase cash flow from operating activities. 1 points Saved 1 points Saved 1 points Saved Question 17 Net property, plant and equipment are reported on the balance sheet at current market value. historical cost. historical cost minus accumulated depreciation. net realizable value. Question 18 Current liabilities are reported on the balance sheet at current market value. historical cost. discounted present value. future value. Question 19 Long-term debt is reported on the balance sheet at current market value. net realizable value. present value. future value. 1 points Question 20 Save Answer Cash interest from investments is recorded as BLANK1 in statements of cash flows for U.S. GAAP, but can be recorded as BLANK2 when using IFRS. cash flows from investing activities / cash flows from financing activities cash flows from financing activities / cash flows from operating activities cash flows from operating activities / cash flows from financing activities cash flows from operating activities / cash flows from investing activities https://csusb.blackboard.com/webapps/assessment/take/launch.jsp?course_assessment_id=_95424_1&course_id=_93373_1&content_id=_1615774... 4/16 7/15/2017 Take Test: Chapter No.4 - ACCT 610 (Summer 2017 Section 50) cash flows from operating activities / cash flows from investing activities Question 21 1 points Save Answer 1 points Save Answer 1 points Save Answer 1 points Save Answer 1 points Save Answer Balance sheets developed under US GAAP may, but are not required to, list assets from most liquid to least liquid. must list assets from most liquid to least liquid. must list assets from least liquid to most liquid. must list assets in alphabetical order. Question 22 Balance sheets prepared under IFRS may list assets and liabilities from least liquid to most liquid. must list assets, but not liabilities in order of liquidity. must list assets and liabilities from least liquid to most liquid. must list liabilities, but not assets, from most to least liquid. Question 23 The Common Stock account is reported on the balance sheet at the par value of the stock. current market value of the stock. net realizable value of the stock. discounted present value of the future dividends. Question 24 The Additional Paid-In Capital account is reported on the balance sheet at the current market value of the stock minus par value. original sales price of the stock minus the par value. net realizable value of the stock minus par value. discounted present value of the future dividends minus par value. Question 25 The Retained Earnings account is comprised of cash retained in the business. cash reinvested in the business by shareholders. the cumulative earnings less dividends since the inception of the corporation. the earnings of the corporation for the current year. 1 points Question 26 Save Answer Retained earnings are reported on the balance sheet at historical cost. current market value. net realizable value. a mixture of different measurement bases. https://csusb.blackboard.com/webapps/assessment/take/launch.jsp?course_assessment_id=_95424_1&course_id=_93373_1&content_id=_1615774... 5/16 7/15/2017 Take Test: Chapter No.4 - ACCT 610 (Summer 2017 Section 50) Question 27 1 points Save Answer In a common-size balance sheet, each balance sheet account is expressed as a percentage of total liabilities. assets. shareholders' equity. assets plus shareholders' equity. 1 points Save Answer 1 points Save Answer Question 28 Common-size balance sheets may be used for all the following except gaining insights into the nature of a company's operations. analyzing a company's asset and financial structure. determining how management assesses the risks a company faces. learning about the underlying economics of an industry. Question 29 Under U.S. GAAP, assets are presented in decreasing order of liquidity. Under IFRS, tangible assets may be presented first followed by the current assets displayed in increasing order of liquidity. the current assets are displayed in increasing order of liquidity. investments are listed first in descending order of maturity. a company may present its assets in alphabetical order if it so desires. 1 points Question 30 Save Answer The term "consolidated" is used in financial statements under U.S. GAAP to refer to the financial reporting for a parent and its subsidiaries. The equivalent term used on balance sheets in the United Kingdom is cooperative. satellite. consolidated. group. 1 points Question 31 Save Answer All the following disclosures would appear in the Summary of Significant Accounting Policies except inventory method. depreciation method. revenue recognition method. financing method. 1 points Question 32 Notes to the financial statements typically contain all the following except a summary of significant accounting policies. disclosure of important subsequent events. management's discussion and analysis. Save Answer https://csusb.blackboard.com/webapps/assessment/take/launch.jsp?course_assessment_id=_95424_1&course_id=_93373_1&content_id=_1615774... 6/16 7/15/2017 Take Test: Chapter No.4 - ACCT 610 (Summer 2017 Section 50) management's discussion and analysis. related-party transactions. 1 points Question 33 Save Answer Which one of the following equations explains why successive balance sheets can be used to prepare a firm's cash flow statement? Assets = Liabilities - Equity Cash - Noncash assets = Liabilities - Equity Change Cash = Change Liabilities - Change Noncash assets + Change Stockholders' equity Change Cash = Change Liabilities + Change Stockholders' equity 1 points Question 34 Save Answer The change in a firm's cash position between successive balance sheet dates will not equal the reported net income for that period for all the following reasons except: Reported net income usually will not equal cash flow from operating activities because noncash revenues and expenses are often recognized as part of accrual income. Reported net income usually will not equal cash flow from operating activities because certain operating cash inflows and outflows are not recorded as revenues or expenses under accrual accounting in the same period the cash flows occur. Changes in cash are also caused by nonoperating investing activities like the purchase of treasury stock. Additional changes in cash are caused by financing activities like the repayment of a bank loan. 1 points Save Answer 1 points Save Answer Question 35 Operating activities result from the cash effects of producing and delivering goods and services. purchasing and disposing of fixed assets used in production of revenue. borrowing and repaying loans used in the production of revenue. selling stocks and bonds to raise capital for the generation of revenue. Question 36 Investing activities include the cash effects of producing and delivering goods and services. purchasing and disposing of productive assets used in production of revenue. borrowing and repaying loans used to purchase equipment. selling stocks and bonds to raise capital to purchase land. 1 points Question 37 Save Answer Financing activities include the cash effects of producing and delivering goods and services. purchasing and disposing of productive assets used in production of revenue. purchasing and disposing of debt securities of other companies. selling stocks and bonds to raise capital used to produce revenue. 1 points Saved Question 38 https://csusb.blackboard.com/webapps/assessment/take/launch.jsp?course_assessment_id=_95424_1&course_id=_93373_1&content_id=_1615774... 7/16 7/15/2017 Take Test: Chapter No.4 - ACCT 610 (Summer 2017 Section 50) 1 points Question 38 Cash flows from operating activities include: cash payments received from customers. increases in Accumulated Depreciation. deferred income taxes. All of these would be included in cash flows from operating activities. 1 points Question 39 Save Answer Selected data for Kris Corporation's comparative balance sheets for Year 1 and Year 2 are as follows: REFER TO: Ref. 04_01. Using the indirect method to create the operating activities section of the statement of cash flows, the cash flow from accounts receivable would be recorded as an increase of $50,000 an increase of $150,000 a decrease of $50,000 a decrease of $150,000 1 points Question 40 Save Answer Selected data for Kris Corporation's comparative balance sheets for Year 1 and Year 2 are as follows: Assets Cash Accounts receivable (net) Inventory Equipment (net) Total assets Year 1 $100,000 50,000 100,000 300,000 $550,000 Year 2 $(50,000) 100,000 250,000 350,000 $650,000 Liabilities and Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total liabilities and Equity $150,000 80,000 100,000 100,000 120,000 $550,000 $100,000 30,000 80,000 200,000 240,000 $650,000 Using the indirect method to create the operating activities section of the statement of cash flows, the cash flow recorded based on the change in inventory would be a decrease of $400,000 an increase of $400,000 an increase of $150,000 a decrease of $150,000. 1 points Question 41 Save Answer Selected data for Kris Corporation's comparative balance sheets for Year 1 and Year 2 are as follows: Assets Cash Accounts receivable (net) Inventory Year 1 $100,000 50,000 100,000 Year 2 $(50,000) 100,000 250,000 https://csusb.blackboard.com/webapps/assessment/take/launch.jsp?course_assessment_id=_95424_1&course_id=_93373_1&content_id=_1615774... 8/16 7/15/2017 Take Test: Chapter No.4 - ACCT 610 (Summer 2017 Section 50) Equipment (net) Total assets 300,000 $550,000 350,000 $650,000 Liabilities and Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total liabilities and Equity $150,000 80,000 100,000 100,000 120,000 $550,000 $100,000 30,000 80,000 200,000 240,000 $650,000 The change in the balance of the common stock account would be recorded on the statement of cash flows as an increase of $100,000 under financing activities. an increase of $100,000 under investing activities. an increase of $100,000 under operating activities. an increase of $300,000 under financing activities. 1 points Question 42 Save Answer Selected data for Kris Corporation's comparative balance sheets for Year 1 and Year 2 are as follows: Assets Cash Accounts receivable (net) Inventory Equipment (net) Total assets Year 1 $100,000 50,000 100,000 300,000 $550,000 Year 2 $(50,000) 100,000 250,000 350,000 $650,000 Liabilities and Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total liabilities and Equity $150,000 80,000 100,000 100,000 120,000 $550,000 $100,000 30,000 80,000 200,000 240,000 $650,000 The changes in the Accounts Payable balance would be recorded on the statement of cash flows as an increase of $50,000 under financing activities. a decrease of $50,000 under financing activities. an increase of $50,000 under operating activities. an decrease of $50,000 under operating activities. 1 points Question 43 Save Answer Selected data for Kris Corporation's comparative balance sheets for Year 1 and Year 2 are as follows: Assets Year 1 Year 2 https://csusb.blackboard.com/webapps/assessment/take/launch.jsp?course_assessment_id=_95424_1&course_id=_93373_1&content_id=_1615774... 9/16 7/15/2017 Take Test: Chapter No.4 - ACCT 610 (Summer 2017 Section 50) Assets Cash Accounts receivable (net) Year 1 $100,000 50,000 Year 2 $(50,000) 100,000 Inventory Equipment (net) Total assets 100,000 300,000 $550,000 250,000 350,000 $650,000 Liabilities and Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total liabilities and Equity $150,000 80,000 100,000 100,000 120,000 $550,000 $100,000 30,000 80,000 200,000 240,000 $650,000 The change in the equipment balance would be recorded on the statement of cash flows as a decrease of $50,000 under investing activities. am increase of $50,000 under investing activities. a decrease of $150,000 under investing activities. an increase of $150,000 under operating activities. 1 points Question 44 Save Answer Selected data for Kris Corporation's comparative balance sheets for Year 1 and Year 2 are as follows: Assets Cash Accounts receivable (net) Inventory Equipment (net) Total assets Year 1 $100,000 50,000 100,000 300,000 $550,000 Year 2 $(50,000) 100,000 250,000 350,000 $650,000 Liabilities and Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total liabilities and Equity $150,000 80,000 100,000 100,000 120,000 $550,000 $100,000 30,000 80,000 200,000 240,000 $650,000 The change in the balance of the Bonds Payable account would be recorded on the statement of cash flows as an increase of $20,000 under financing activities. an increase of $80,000 under investing activities. a decrease of $20,000 under financing activities. a decrease of $80,000 under operating activities. 1 points Save Answer https://csusb.blackboard.com/webapps/assessment/take/launch.jsp?course_assessment_id=_95424_1&course_id=_93373_1&content_id=_161577... 10/16 7/15/2017 Take Test: Chapter No.4 - ACCT 610 (Summer 2017 Section 50) 1 points Question 45 Save Answer Which of the following statements is not true? The indirect method begins with net income. Cash flows from operating activities will differ between the direct and indirect methods. Most firms use the indirect method to prepare the statement of cash flows. The direct method presents cash inflows and outflows. 1 points Question 46 Save Answer The Barden Company provides the following trial balance as of December 31, 2018. Debit Cash and cash equivalents Credit $345,000 Accounts receivable 115,000 Inventory 120,000 Prepaid insurance Prepaid rent Equipment 7,500 40,000 265,000 Accumulated depreciation - Equipment 65,000 Accounts payable 45,000 Accrued liabilities 10,000 Notes payable, due in 2020 135,000 Common stock 300,000 Additional paid-in capital 87,500 Retained earnings Total 250,000 $892,500 $892,500 What would Barden report as current assets on its balance sheet? $460,000 $580,000 $892,500 $627,500 1 points Question 47 Save Answer The Barden Company provides the following trial balance as of December 31, 2018. Debit Cash and cash equivalents Accounts receivable Credit $345,000 115,000 https://csusb.blackboard.com/webapps/assessment/take/launch.jsp?course_assessment_id=_95424_1&course_id=_93373_1&content_id=_161577... 11/16 7/15/2017 Accounts receivable Take Test: Chapter No.4 - ACCT 610 (Summer 2017 Section 50) Inventory 115,000 120,000 Prepaid insurance Prepaid rent Equipment 7,500 40,000 265,000 Accumulated depreciation - Equipment 65,000 Accounts payable 45,000 Accrued liabilities 10,000 Notes payable, due in 2020 135,000 Common stock 300,000 Additional paid-in capital 87,500 Retained earnings Total 250,000 $892,500 $892,500 What would Barden report as total stockholders' equity on its balance sheet? $300,000 $387,500 $637,500 $87,500 1 points Question 48 Save Answer A consolidated balance sheet includes the net assets of the parent company and all of its subsidiaries. reports separately the net assets of the parent company and its subsidiaries includes the net assets of the parent company and all components in which it owns more than 75% of the outstanding voting stock. includes the net assets of only the subsidiary companies. 1 points Question 49 Save Answer Which of the following statements about retained earnings is not true? Retained earnings reflect the net income of previous accounting periods only. Retained earnings measures the cumulative earnings of the company since inception, minus dividends distributed. Retained earnings represents cumulative earnings that have been reinvested in the business. Retained earnings may represent a large portion of stockholders' equity. 1 points Question 50 Save Answer Information found on a company's balance sheet can tell a story about the company and its strategies. https://csusb.blackboard.com/webapps/assessment/take/launch.jsp?course_assessment_id=_95424_1&course_id=_93373_1&content_id=_161577... 12/16 7/15/2017 Take Test: Chapter No.4 - ACCT 610 (Summer 2017 Section 50) the company's industry. the company's performance. All of these can be derived from the information on the balance sheet. 1 points Question 51 Save Answer The U.K. Equity account "Share premium" is reported on U.S. GAAP balance sheets as capital reserve. revaluation reserve. capital in excess of par. an accumulated other comprehensive income account. 1 points Question 52 Save Answer The U.K. Equity account "Hedging reserve" is reported on a U.S. GAAP balance sheet as capital reserve. revaluation reserve. capital in excess of par. an accumulated other comprehensive income account. 1 points Question 53 Save Answer When adjusting accrual earnings to obtain cash flows from operations, an increase in Accounts Payable is added to determine cash flow from operations. a decrease in Accounts Payable is added to determine cash flow from operations. an increase in Accounts Payable is deducted to determine cash flows from operations. it is not necessary to consider any changes to Accounts Payable. 1 points Save Answer 1 points Save Answer 1 points Save Answer Question 54 Cash collected from customers can be derived by analyzing changes in the Accounts Payable balance. by appropriately adjusting revenue for changes in accounts receivable. by appropriately adjusting revenue for changes in accounts payable. by analyzing changes to the reserve for doubtful accounts. Question 55 The sale of productive assets does not impact the period cash flows. is always considered a related party transaction. represents an investing activity. represents an operating activity. Question 56 Paying dividends to stockholders represents an investing activity. https://csusb.blackboard.com/webapps/assessment/take/launch.jsp?course_assessment_id=_95424_1&course_id=_93373_1&content_id=_161577... 13/16 7/15/2017 Take Test: Chapter No.4 - ACCT 610 (Summer 2017 Section 50) does not impact the period cash flows. represents an operating activity. represents a financing activity. 1 points Save Answer 1 points Save Answer Question 57 Operating activities result from the cash effects of paying dividends to shareholders. producing and delivering goods. selling equipment. issuing long-term debt. Question 58 The Summary of Significant Accounting Policies explains the important accounting choices the reporting entity uses to account for selected transactions and accounts. does not contain an explanation of the company's revenue recognition policies. is generally a part of the equity section of the balance sheet. is only required as part of a prospectus for the sale of new shares of stock. 1 points Question 59 Save Answer Subsequent events are those significant events that occur after the financial statements are issued. are subject to optional disclosure based on a recommendation from top management. are required to be disclosed if they are material and likely to influence investors' appraisal of the risk and return prospects of the reporting entity. are those significant events that occur in the last quarter of the reporting period. 1 points Question 60 Save Answer The cash flow from operating activities is required to be presented using the direct method by U.S. GAAP and IFRS. can be presented by using either the direct method or the indirect method. comprises only the increase in cash arising from the firm's profit-making activities. can vary depending on whether the presentation is done under the direct method or the indirect method. 1 points Question 61 Save Answer The balance sheet provides a summary of a firm's assets, liabilities, equity and cash flows as of a specific date. classifies assets as current if they are expected to be converted into cash within 24 months. is an expression of the accounting equation. is comprised of items shown only at historical costs. 1 points Question 62 Save Answer https://csusb.blackboard.com/webapps/assessment/take/launch.jsp?course_assessment_id=_95424_1&course_id=_93373_1&content_id=_161577... 14/16 7/15/2017 Question 62 Take Test: Chapter No.4 - ACCT 610 (Summer 2017 Section 50) The following information is available from Moran Industries' accounting system for the year ended December 31, 2018. Cash received from customers Cash paid to suppliers Cash paid to employees Taxes paid Cash dividends paid $750,000 $300,000 $150,000 $25,000 $50,000 What would the company's statement of cash flows report as cash flow from operations? $225,000 $275,00 $300,000 $250,000 1 points Question 63 Save Answer Liabilities represent amounts that are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events. always classified as current on the balance sheet. never shown on the balance sheet at historical cost. netted against assets on the balance sheet. 1 points Question 64 Save Answer On balance sheets prepared in accordance with U.S. GAAP assets are generally listed from least liquid to most liquid. liabilities are generally netted against assets. assets are generally listed from most liquid to least liquid. both tangible and intangible long-lived assets can be revalued upward periodically. 1 points Question 65 Save Answer A balance sheet prepared in accordance with U.S. GAAP typically includes both "noncurrent liability" and "long-term obligation" sections. reports inventory at historical costs. reports cash at its current market value. reports retained earnings comprised of the cumulative earnings less dividends since the inception of the entity. Save and Submit Save All Answers Save and Submit https://csusb.blackboard.com/webapps/assessment/take/launch.jsp?course_assessment_id=_95424_1&course_id=_93373_1&content_id=_161577... 15/16 7/15/2017 Take Test: Chapter No.4 - ACCT 610 (Summer 2017 Section 50) https://csusb.blackboard.com/webapps/assessment/take/launch.jsp?course_assessment_id=_95424_1&course_id=_93373_1&content_id=_161577... 16/16