Term
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· Which of the following is not one of the classifications in owners’ equity? |
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Definition
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o Noncontrolling interest
o Retained earnings
o Accumulated capital
Capital stock |
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Term
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A general description of the depreciation methods applicable to major classes of depreci-able assets |
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Definition
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should be included in corporate financial statements or notes thereto |
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Term
| Accumulated depreciation is a contra asset |
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Definition
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Term
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· A company excludes from the current assets section, the amount of cash restricted for purposes other than payment of current obligations or for use in current operations |
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Definition
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Term
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· The balance sheet is sometimes referred to as the Statement of Net Resources |
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Definition
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Term
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· Companies may use parenthetical explanations, notes, cross references, and supporting schedules to disclose pertinent information |
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Definition
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Term
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The correct order to present current assets is |
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Definition
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cash, accounts receivable, inventories, prepaid items |
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Term
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Long-term liabilities include |
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Definition
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o obligations not expected to be liquidated within the operating cycle
o all of these answer choices are correct
o obligations payable at some date beyond the operating cycle
o deferred income taxes and most lease obligations |
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Term
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· The statement of cash flows provides answers to all of the following questions except |
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Definition
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o what was the change in the cash balance during the period?
o what was the cash used for during the period?
o where did the cash come from during the period?
o what is the impact of inflation on the cash balance at the end of the year? |
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Term
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· Significant accounting policies may not be |
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Definition
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o omitted from financial-statement disclosure |
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Term
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Other assets include all of the following except |
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Definition
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o Timberlands
o Assets in special funds
o Restricted cash
Property held for sale
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Term
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· Which of the following is not a method of disclosing pertinent information? |
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Definition
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o Parenthetical explanations
o Supporting schedules
o Cross reference and contra items
o All of these are methods of disclosing pertinent information |
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Term
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· The stockholders' equity section is usually divided into what three parts? |
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Definition
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stock, additional paid-in capital, retained earnings |
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Term
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· Financial flexibility is a company’s ability to respond and adapt to financial adversity and unexpected needs and opportunities |
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Definition
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