Current assets include cash and all other assets expected to become cash or be consumed:
D. within one year or one operating cycle, whichever is longer
Red Onion Restaurant classifies a six-month prepaid insurance policy as a current asset. Its rationale is based on
An asset that is not expected to be converted to cash or consumed within one year or the operating cycle is
Which of the following accounts are closed at the end of the accounting period
D. Income tax expense
New Oaks Winery requires two months to make wine, two years to age it, one month to bottle it, two months to sell it, and one month the collect the receivable. Its operating cycle is
B. 30 months
Cash equivalents would include
D. Debt instruments with maturity dates of less than three months from the date of the purchase
Janson Corporation Co.'s trial balance included the following account balances at December 31, 2011: Investments consist of treasury bills that were purchased in November and mature in January. Prepaid insurance is for the next two years. What amount should be included in the current asset section of Janson's December 31, 2011, balance sheet?
Janson Corporation Co.'s trial balance included the following account balances at December 31, 2011: What amount should be included in the current liability section of Janson's December 31, 2011, balance sheet?
Which of the following would be disclosed in the summary of significant account policies disclosure note?
A. Option A
Which of the following is not a required disclosure for related party transactions?
D. The impact of the transactions on current year's income
Disclosure notes would not include
D. Data to adjust the financial statements so that they are not misleading
The principal concern with accounting for related party transactions is
B. Difference between economic substance and legal form
A subsequent event for an entity with a Dec 31, 2011 year end would not include
A. A change in the estimated useful lives of equipment in Jan 2012
How are management's responsibility and the auditor's opinion on internal controls represented in the standard auditor's report?
B. Option b (explicit)
The final paragraph of the audit report
B. Provides the auditor's opinion on the effectiveness of internal control
The Management Discussion and Analysis section of the annual report can be best be described as
D. Biased but informative
An example of fraud would be
C. Knowingly classifying a material non-current receivable as a current receivable
An example of an error would be
B. Counting an inventory item twice when taking a physical inventory
An exception that is so serious that even a qualified opinion is not justified would result in
C. An adverse opinion
Lack of long-term solvency refers to
a. Risk of non-payment relative to liabilities in the capital structure
The quick ratio is
C. Current assets minus inventory and prepaid items divided by current liabilities minus accounts payable
When a company pays its bill from a plumber for previous services on account
A. Its debt to equity ratio always decreases
When a company accrues federal income taxes at the end of the accounting period
D. Its debt to equity ratio increases
Assume a company's liquidity and financing ratios all are less than 1.0 before it purchases inventory on credit. When it makes the purchase
B. Its quick ratio decreases
When a company sells land for cash and recognizes a 25000 gain
C. Its debt to equity ratio decreases
Which of the following is not a required segment reporting disclosure according to US GAAP?
C. Segment liabilities
Which of the following is not a required segment reporting disclosure according to IFRS?
D. All are required disclosures