Reference no: EM132531680

1. Which is not a type of note found in a set of financial statements?

• Indirect information
• Direct information
• Significant accounting policies
• Significant internal controls

2. Where would unearned revenue most likely appear in a set of financial statements?

• In the Balance Sheet as a liability
• In the Balance Sheet as an asset
• In the Income Statement before Gross Profit
• In the Income Statement after Operating Profit

3. What will a contingency note contain?

• A set of criteria required to be able to recognize revenue
• A disclosure of all future commitments of the company
• A circumstance where a company may have a liability
• A disclosure of future contracts to be performed

4. Where would advertising costs normally be found?

• On the balance sheet, within intangible assets
• On the balance sheet, within contingent liabilities
• On the income statement, within selling, general and administration
• On the income statement, within cost of sales

5. What is an advantage to using a multi-step income statement?

• Net Income is shown before income taxes
• All income items are grouped in one section, and all expenses in another
• Direct expenses and indirect expenses are broken out separately
• The fixed costs and variable costs are broken out separately

6. 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