4-With 100% Correct Answers
Auditors Report - CORRECT ANSWERS-management responsible for financials.
Unqualified, qualified, adverse, and disclaimer.
Proxy Statement - CORRECT ANSWERS-election of board members. 1992 (SOX)-
must include Executive pay, benefits, and options- compensation package
working capital - CORRECT ANSWERS-current assets less current liab. shows ability
to pay short term debts
current ratio - CORRECT ANSWERS-current assets divided by current liab.
Acid test (quick) Ratio - CORRECT ANSWERS-Quick assets includes all current assets
except inventories and prepaid. Quick Assets divided by current liab.
single step income statement - CORRECT ANSWERS-all revenues and gains, all
expenses and losses, = net income
Multi-step income statement - CORRECT ANSWERS-more complex income statement
earnings per share (EPS) - CORRECT ANSWERS-start at income from continuing
operations / shares of commons stock. each category from that point on until final net
income/shares of common.
unusual event - CORRECT ANSWERS-material event unusual and infrequent
Change in Accounting Estimate - CORRECT ANSWERS-not usual, do not change
previous years- just from this point on
change in reporting equity - CORRECT ANSWERS-if company A and B merge, Restate
all prior year statements included in financials
Accounting Error - CORRECT ANSWERS-Correct if in this year, if prior year-RE
Comprehensive Inc - CORRECT ANSWERS-reported at the bottom of income state of
its own statement
Matching Principal - CORRECT ANSWERS-revenues when earn, expenses when
incurred in period belong
revenue recognition - CORRECT ANSWERS-when earned and reasonably certain of
Collect ability