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5 Written questions

5 Matching questions

  1. Long-Term Investments
  2. Classified Balance Sheet
  3. Intangible Assets
  4. Sole Proprietorship
  5. Periodicity Assumption
  1. a business divided into artificial time periods
  2. b assets turned into cash over a year
  3. c no physical substance; patent, goodwill (one company buys another company), copyrights
  4. d one owner, easy to set up, tax advantages, transfer of ownership is difficult
  5. e Current Assets + Property, Plant and Equipment = Total Assets
    Current Liabilities + Long Term Liabilities + Stockholder's Equity = Total Liabilities and Stockholder's Equity

5 Multiple choice questions

  1. Annual Report: financial statements, update of company to stockholders
  2. within next year
  3. two years of same company
  4. two owners, formed b/c individual doesn't have enough resources to initiate/expand business, shared control
  5. business will remain in operation for forseable future

5 True/False questions

  1. Current Liabilitiesobligations to be paid in coming year; notes/accounts/wages/salaries/bank loans/interest/taxes payable; Notes is always first, then Acct


  2. Relevance1. Predict Future
    2. Confirm or correct prior expectation
    3. Materiality


  3. Sarbanes-Oxley Act (SOX)2002, new regulations for ACC including: top management certifying accuracy of financial info, more severe penalties, increased independence of outside auditor


  4. Cost ContraintCost vs. Benefit


  5. Enhancing1. Comparability: diff co. uses same ACC principles
    2. Consistency: co. uses same ACC principles year to year
    3. Verifiable
    4. Timely
    5. Understandability