Question 1

An investor wants to find the amount of cash and land that a company has. Where will the investor look?

Accepted Answer

A)   Statement of shareholders' equity
B)   Income statement
C)   Balance sheet
D)   Statement of cash flowsE) A) and C)
F) B) and D)

Question 2

All of the following are false regarding international accounting standards (IAS)  except which of the following?

Accepted Answer

A)   The SEC requires all companies to use IAS.
B)   There are no substantive differences between U.S. GAAP and IFRS.
C)   The SEC prohibits U.S. stock exchanges from listing non-U.S. companies who follow IFRS.
D)   All public companies in the European Union are required to report using IFRS and IAS.E) None of the above
F) All of the above

Question 3

What encourages management to refrain from pressuring auditors too strongly?

Accepted Answer

A)   Possible legal liability
B)   Outside investors and creditors
C)   Prospects of higher net income
D)   Economic incentives from outsidersE) A) and D)
F) None of the above

Question 4

Matura, Inc. reported the following activities for the year:
$\bullet$Borrowed $300,000 from the bank to be repaid in 5 years
$\bullet$Issued stock to investors for $35,000 cash
$\bullet$Paid dividends to shareholders totaling $10,000
$\bullet$Purchased equipment by promising to pay $145,000 to a creditor over the next 3 years
A. Identify which activities are debt investments.
B. Identify which activities are equity investments.

Accepted Answer

A. Debt investments: Borrowed $300,000 f...

Exam 1: Financial Accounting and Its Economic Context

All of the following are false regarding international accounting standards (IAS) except which of the following?

Correct Answer
verified

What encourages management to refrain from pressuring auditors too strongly?

Correct Answer
verified

Correct Answer
verified
A. Debt investments: Borrowed $300,000 f...
View Answer

An investor wants to find the amount of cash and land that a company has. Where will the investor look?

Correct Answer
verified

Exam 1: Financial Accounting and Its Economic Context

All of the following are false regarding international accounting standards (IAS) except which of the following?

Correct AnswerverifiedShow Answer

What encourages management to refrain from pressuring auditors too strongly?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedA. Debt investments: Borrowed $300,000 f...View AnswerShow Answer

An investor wants to find the amount of cash and land that a company has. Where will the investor look?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A. Debt investments: Borrowed $300,000 f...
View Answer

Correct Answer
verified