C213 Final Accounting Exam 2022/2023

1. Which of the following activities would internal auditors NOT typically perform in a large company?: Detect fraud Evaluate internal controls *Prepare the primary financial statements Assist with increasing the efficiency of operation 2. Correct Answer: $3,800 Beginning cash balance: x + $309,800 - $118,000 - $190,000 = $5,600 x = $3,800: The following financial information is available for the year 2012: Operating activities $ 309,800 Investing activities ($118,000) Financing activities ($190,000) Ending cash balance $ 5,600 Given this information, what is the beginning cash balance? 3. Net Income: What is typically viewed as the fundamental measure of a company's profitability, but there are also a variety of other measures of "income." The best measure of sustainable profitability is income from continuing operations. 4. What are the three primary categories of an Income Statement?: The primary categories of income statement items are revenues, expenses, gains, and losses. 5. Income from continuing operations and extraordinary items: Income statement items that do not relate to a company's continuing operations are incomefrom what? 6. Multi-step Income Statement: When revenue and expense items are arranged to highlight important profit relationships, the resulting income statement format is called a? 7. The Matching Concept: Revenue should be recognized when value has been delivered to customers which is typically only after the required work has been performed and after the collection of cash is reasonably assured. What method is used to decide when to recognize exp