fin 461 test 1| questions and Answers
Providing info about the performance and financial position of companies so that users can
make economic decisions best describes the role of - -financial reporting
-A company's current financial position would best be evaluated using the - -balance sheet
-A company's profitability for a period would best be evaluated using the - -income
statement
-Accounting policies, methods, and estimates used in preparing financial statements are
most likely found in the - -notes to the financial statements
-Information about management and director compensation would least likely be found in
the - -auditor's report
-Information about company's objectives, strategies, and significant risks would most
likely be found in the - -management commentary
-What type of audit opinion is preferred when analyzing financial statements? - -
unqualified
-Ratios are an input into which step in the financial statement analysis framework? - -
analyze/interpret the processed data
-On 30 April 2006, Pinto Products received a cash payment of $30,000 as a deposit on
production of a custom machine to be delivered in August 2006. This transaction would
most likely result in which of the following on 30 April 2006? - -increase of liabilities of
30,000
-Which of the following items would most likely be classified as an operating activity? - -
Sale of automobiles by an automobile dealer.
-Which of the following items would most likely be classified as a financing activity? - -
Issuance of debt
-Which of the following elements represents an economic resource? - -Asset
-Which of the following elements represents a residual claim? - -Owner's equity
-An analyst has projected that a company will have assets of €2,000 at year-end and
liabilities of €1,200. The analyst's projection of total owners' equity should be closest to: - -
€800
Providing info about the performance and financial position of companies so that users can
make economic decisions best describes the role of - -financial reporting
-A company's current financial position would best be evaluated using the - -balance sheet
-A company's profitability for a period would best be evaluated using the - -income
statement
-Accounting policies, methods, and estimates used in preparing financial statements are
most likely found in the - -notes to the financial statements
-Information about management and director compensation would least likely be found in
the - -auditor's report
-Information about company's objectives, strategies, and significant risks would most
likely be found in the - -management commentary
-What type of audit opinion is preferred when analyzing financial statements? - -
unqualified
-Ratios are an input into which step in the financial statement analysis framework? - -
analyze/interpret the processed data
-On 30 April 2006, Pinto Products received a cash payment of $30,000 as a deposit on
production of a custom machine to be delivered in August 2006. This transaction would
most likely result in which of the following on 30 April 2006? - -increase of liabilities of
30,000
-Which of the following items would most likely be classified as an operating activity? - -
Sale of automobiles by an automobile dealer.
-Which of the following items would most likely be classified as a financing activity? - -
Issuance of debt
-Which of the following elements represents an economic resource? - -Asset
-Which of the following elements represents a residual claim? - -Owner's equity
-An analyst has projected that a company will have assets of €2,000 at year-end and
liabilities of €1,200. The analyst's projection of total owners' equity should be closest to: - -
€800
