Reference no: EM132489722

Problem 1: Which of the following is not a limitation of the Balance Sheet?

a.It does not portray the market value of the firm.
b.It informs users on long-term solvency issues.
c.Some accounts are estimated by methods different from others.
d.It heavily depends on estimates rather than determinable amounts.

Problem 2: Hamer Inc. reports Net Income of $460,000, Revenues of $580,000, and a $5,000 after-tax gain from a postretirement benefit/pension plan. What is Company X's total comprehensive income?

a.$460,000.

b.$5,000.

c.$585,000.

d.$465,000.

Problem 3: Kinnebrew Inc. signed a $200,000 noninterest-bearing note due in five years. Comparable borrowings have carried an 11% interest rate. What is the value of this debt at its inception (rounded to the nearest thousand)?

a.$119,000

b.$222,000

c. $200,000

d.$178,000

Problem 4: Which of the following item is not a part of Other Comprehensive Income or Loss?

a.Deferred gain or losses from derivatives.

b.Unrealized gains and losses.

c.Deferred revenues and expenses.

d.Gains and losses from foreign currency translations.

Problem 5: Choose the option that correctly completes the statement: "The ____________ includes the transfers of all the ____________ into Retained Earnings, producing the _____________."

a.Adjusting entries; temporary accounts; adjusted trial balance.

b.Adjusting entries; permanent accounts; adjusted trial balance.

c.Closing process; permanent accounts; post-closing trial balance.

d.Closing process; temporary accounts; post-closing trial balance.