Intermediate Accounting Chapters
1, 2, and 3 Questions with
Accurate Answers
3 inventories correct answer finished goods; raw material inventory; work in
progress inventory
Accounting Standards Updates correct answer These Updates amend the
Accounting Standards Codification, which represents the source of authoritative
accounting standards, other than standards issued by the SEC.
Accrual Basis accounting correct answer Measurement of revenues and expenses,
regardless of when cash is received or paid
Difference is net income or net loss
Accruals correct answer involve cash flows that occur after either expense or
revenue recognition
Accrued Liabilities correct answer expenses that have been incurred but have not
been paid at the end of the accounting period
accumulated depreciation correct answer A contra asset account representing the
total depreciation taken to date.
acid test ratio (quick ratio) correct answer quick assets/ current liabilities
adjusted entries are needed primarily for correct answer accrual accounting
, adverse opinion correct answer a report issued when the auditor believes the
financial statements are so materially misstated or misleading as a whole that
they do not present fairly the entity's financial position or the results of its
operations and cash flows in conformity with GAAP
Assets= correct answer liabilities + stockholders equity
auditor correct answer expert who expresses an opinion about the fairness of a
company's financial statements through GAAP
auditors report correct answer examine financial statements and the internal
control procedures
Balance Sheet correct answer assets, liabilities, owner's equity. Accounting
equation.
Cash basis of accounting correct answer -Measurement of cash receipts and cash
payments from transactions related to providing goods and service
-Difference is net operating cash flow
cash equivalent correct answer some type of investment that has an original life
less than a 90 day investment
comparative financial statement correct answer presented for the preceding year
and often the previous two years; progress check
1, 2, and 3 Questions with
Accurate Answers
3 inventories correct answer finished goods; raw material inventory; work in
progress inventory
Accounting Standards Updates correct answer These Updates amend the
Accounting Standards Codification, which represents the source of authoritative
accounting standards, other than standards issued by the SEC.
Accrual Basis accounting correct answer Measurement of revenues and expenses,
regardless of when cash is received or paid
Difference is net income or net loss
Accruals correct answer involve cash flows that occur after either expense or
revenue recognition
Accrued Liabilities correct answer expenses that have been incurred but have not
been paid at the end of the accounting period
accumulated depreciation correct answer A contra asset account representing the
total depreciation taken to date.
acid test ratio (quick ratio) correct answer quick assets/ current liabilities
adjusted entries are needed primarily for correct answer accrual accounting
, adverse opinion correct answer a report issued when the auditor believes the
financial statements are so materially misstated or misleading as a whole that
they do not present fairly the entity's financial position or the results of its
operations and cash flows in conformity with GAAP
Assets= correct answer liabilities + stockholders equity
auditor correct answer expert who expresses an opinion about the fairness of a
company's financial statements through GAAP
auditors report correct answer examine financial statements and the internal
control procedures
Balance Sheet correct answer assets, liabilities, owner's equity. Accounting
equation.
Cash basis of accounting correct answer -Measurement of cash receipts and cash
payments from transactions related to providing goods and service
-Difference is net operating cash flow
cash equivalent correct answer some type of investment that has an original life
less than a 90 day investment
comparative financial statement correct answer presented for the preceding year
and often the previous two years; progress check
