Question :
71. _____ measure the outflow of assets (or increases in liabilities) : 1245644
71. _____ measure the outflow of assets (or increases in liabilities) used in generating revenues.
A. Revenues
B. Expenses
C. Cash inflows
D. Cash-outflows
E. Shareholder equity
72. The income statement and statement of cash flows provide information about the _____, respectively, of a firm during a period.
A. asset and equity position at a moment in time and profitability
B. asset and equity position at a moment in time and liquidity
C. liquidity and profitability
D. profitability and liquidity
E. none of the above
73. _____ reports information about cash generated from (or used by) operating, investing, and financing activities during specified time periods.
A. Statement of sources and uses of cash
B. Statement of cash flows
C. Statement of cash receipts and disbursements
D. Funds flow statement
E. Balance sheet
74. The financial statements present aggregated information, for example, the total amount of land, buildings, and equipment. Financial reports provide more detail for some of the items reported in the financial statements, and they provide additional explanatory material to help the user to understand the information in the financial statements. This information appears in _____ that are an integral part of the financial reports.
A. management’s discussion and analysis
B. external auditors report
C. internal auditors report
D. press releases
E. schedules and notes
75. To increase the margin between selling price and manufacturing cost, a manufacturing company might:
A. negotiate a lower purchase price with suppliers of raw materials.
B. substitute more efficient manufacturing equipment for work now done by employees.
C. increase selling prices.
D. all of the above
E. none of the above
76. What is the best definition of an accounting period?
A. Any 12-month period
B. The calendar year
C. The period between any two balance sheet dates
D. The period in which the major income-producing activity occurs
E. The period between any two income statement dates
77. A natural business year
A. is the calendar year.
B. records activities for a period less than a year.
C. refers to an interim accounting period.
D. ends when most activities in an operating cycle have been substantially concluded.
E. none of the above
78. The _____ is the government agency that enforces the securities laws of the U.S., including those that apply to financial reporting.
A. Government Accountability Office (GAO)
B. Public Company Accounting Oversight Board (PCAOB)
C. International Accounting Standards Board (IASB)
D. Financial Accounting Standards Board (FASB)
E. U.S. Securities and Exchange Commission (SEC)
79. Who evaluates the accounting system, including its ability to record transactions properly and its operational effectiveness, and also determines whether the financial reports prepared conform to the requirements of the applicable authoritative guidance?
A. management
B. general counsel
C. independent auditor
D. financial vice-president
E. controller
80. Who under the oversight of the firm’s governing board, prepares the financial statements?
A. independent auditor
B. Securities and Exchange Commission
C. Public Companies Accounting Oversight Board
D. general counsel
E. management
