Liberty University ACCT370 Quiz 1 (100% Correct)
ACCT 370 QUIZ 1 (CH 1-4)
Included many different versions (8 Different versions set, 1000+ MCQ Answers Key) to get an A on your grade.
The below shown few sample Questions.
1. Which of the following is not true regarding the tax note to the financial statements?
a. The tax note is never required to include any information on foreign tax rate implications.
b. The tax note can describe how financial reporting differs from tax accounting.
c. The tax note can describe how tax disputes may affect future tax payments.
d. The tax note can explain how foreign tax rates affect income tax expense.
2. What would Barden report as total stockholders' equity on its balance sheet?
a. $300,000
b. $387,500
c. $637,500
d. $87,500
3. The U.K. Equity account "Share premium" is reported on U.S. GAAP balance sheets as
a. capital reserve.
b. revaluation reserve.
c. capital in excess of par.
d. an accumulated other comprehensive income account.
4. A company’s financial statements can be used for all of the following purposes except
a. as a scorecard on the company’s social responsibility.
b. as a management report card.
c. as an early warning signal.
d. as a measure of accountability.
5. Creditors assess credit risk by comparing a firm’s required principal and interest payments to estimates of the firm’s current and future
a. net assets.
b. gross income.
c. net income.
d. cash flows.
6. Differences between IFRS and U.S. GAAP include all of the following except
a. Reversal of inventory write-downs.
b. Carrying value of investment property.
c. Revenue recognition.
d. Research and development costs.
7. Which one of the following types of disclosure costs is the cost of disclosing the company’s pricing strategies?
a. Political cost
b. Litigation cost
c. Competitive disadvantage cost
d. Information collection, processing, and dissemination cost
8. Which statement below describes efficient market investors?
a.They presume they have no insight beyond the share price.
b.They believe that any new development is quickly and correctly reflected in the stock price.
c.They use financial statements to assess risk and dividend yields to make portfolio decisions.
d.All of these answer choices are correct.
9. The Canon Corporation sells ten copiers to the Title Company on October 15 for $40,000. Canon delivers the copiers to Title on October 20 and Title pays $16,000, agreeing to pay the balance on November 10.
Under the accrual basis, how much revenue should Canon recognize in November?
a. $0
b. $16,000
c. $24,000
d. $40,000
ACCT 370 Financial Statement Analysis
