Question : 131. Risk is: A. Net income divided by average total assets. B. The reward for : 1256320

 

 

131. Risk is: 

A. Net income divided by average total assets.

B. The reward for investment.

C. The uncertainty about the expected return that will be earned from an investment.

D. Unrelated to expected return.

E. Derived from the idea of getting something back from an investment.

 

 

132. Consider the risk of the following investments. Choose the answer that lists the investments in order from highest expected return to lowest expected return. 

A. Drilling exploration to discover oil, stock in a secure “blue chip” corporation, government bonds.

B. Stock in a secure “blue chip” corporation, government bonds, drilling exploration to discover oil.

C. Government bonds, drilling exploration to discover oil, stock in a secure “blue chip” corporation.

D. Drilling exploration to discover oil, government bonds, stock in a secure “blue chip” corporation.

E. Government bonds, stock in a secure “blue chip” corporation, drilling exploration to discover oil.

 

 

133. The statement of cash flows reports on cash flows for: A. Operating activities

B. Revenue activities

C. Expense activities

D. Planning activities

E. Equity activities

 

 

 

134. The statement of cash flows reports information on: 

A. Revenue activities

B. Expense activities

C. Financing activities

D. Equity activities

E. Asset activities

 

 

135. The statement of retained earnings: 

A. Reports how retained earnings changes at a point in time.

B. Reports how retained earnings changes over a period of time.

C. Reports on cash flows for operating, financing and investing activities over a period of time.

D. Reports on cash flows for operating, financing and investing activities at a point in time

E. Reports on amounts for assets, liabilities and equity at a point in time.

 

 

136. The financial statement that reports whether the business earned a profit and also lists the types and amounts of the revenues and expenses is called a(n): 

A. Balance sheet.

B. Statement of retained earnings.

C. Statement of cash flows.

D. Income statement.

E. Statement of financial position.

 

 

137. A balance sheet lists: 

A. The types and amounts of the revenues and expenses of a business.

B. Only the information about what happened to retained earnings during a time period.

C. The types and amounts of assets, liabilities and equity of a business as of a specific date.

D. The cash inflows and outflows during the period.

E. The assets and liabilities of a company, but not the equity.

 

 

138. A financial statement providing information that helps users understand a company’s financial status and lists the types and amounts of assets, liabilities, and equity as of a specific date is called a(n): 

A. Balance sheet.

B. Income statement.

C. Statement of cash flows.

D. Statement of retained earnings.

E. Financial status statement.

 

 

139. The financial statement that describes where a company’s cash came from and how it was spent during the period is the: 

A. Statement of financial position.

B. Statement of cash flows.

C. Balance sheet.

D. Income statement.

E. Statement of retained earnings.

 

 

140. The financial statement that shows beginning and ending retained earnings balances and the effects of net income (loss) and a dividend for the period is the: 

A. Statement of financial position.

B. Statement of cash flows.

C. Balance sheet.

D. Income statement.

E. Statement of retained earnings.