Reference no: EM132499574
Question 1: Which is the best description of authorized shares?
The total amount of shares held by the directors
The total amount of shares that can be sold
The total amount of shares a company has received cash for
The total amount of shares that can be publicly traded
Question 2: Which is not a type of note found in a set of financial statements?
Direct information
Significant internal controls
Significant accounting policies
Indirect information
Question 3: Where would unearned revenue most likely appear in a set of financial statements?
In the Income Statement after Operating Profit
In the Balance Sheet as a liability
In the Income Statement before Gross Profit
In the Balance Sheet as an asset
Question 4: Which is not an example of an intangible asset?
A patent
A trademark
A copyright
A computer
Question 5: Where would advertising costs normally be found?
On the balance sheet, within contingent liabilities
On the balance sheet, within intangible assets
On the income statement, within selling, general and administration
On the income statement, within cost of sales
Question 6: What is an advantage to using a multi-step income statement?
All income items are grouped in one section, and all expenses in another
The fixed costs and variable costs are broken out separately
Direct expenses and indirect expenses are broken out separately
Net Income is shown before income taxes
Question 7: Which of the following is an example of an investing activity?
Purchase of machinery
Issuance of shares
Repayment of long term debt
Prepayment of a contract
Question 8: Which statement does NOT describe operating cash flows?
Cash Paid for New Factory Equipment
Cash Received from Customers
Cash Paid to Suppliers
Employee Salaries
Question 9: What would you find on the Management's Discussion and Analysis (MD&A) Section of an Annual Report?
A review of the company's past performance
List of future actions that the company plans on taking
Key risks facing the organization
All of the above