Financial Accounting

Which of the following statements is true? Select all that apply: (Points : 3) T

Which of the following statements is true? Select all that apply: (Points : 3) The optimal credit policy minimizes the total cost of granting credit. Firms should avoid offering c…

Which of the following statements is true? The average collection period collect

Which of the following statements is true? The average collection period collection period can be too high or too low An increasing debt ratio is always Indicative of declining fi…

Which of the following statements is true? The fair value option allows, but doe

Which of the following statements is true? The fair value option allows, but does not require, that some types of financial instruments be recorded at amortized cost. The FASB and…

Which of the following statements is true? The higher the discount rate, the hig

Which of the following statements is true? The higher the discount rate, the higher the present value. The process of accumulating interest on interest is referred to as discounti…

Which of the following statements is true? There may be more than one answer: Po

Which of the following statements is true? There may be more than one answer: Possible answers: A segment's contribution margin minus its traceable fixed expenses equals the segme…

Which of the following statements is true? Variable costing treats fixed overhea

Which of the following statements is true? Variable costing treats fixed overhead as a period cost. Absorption costing treats fixed overhead as a period cost. Absorption costing t…

Which of the following statements is true? When calculating the predetermined ov

Which of the following statements is true? When calculating the predetermined overhead rate, estimated amounts are used for the total manufacturing overhead costs and total amount…

Which of the following statements is true? a) The trial balance is a list of all

Which of the following statements is true? a) The trial balance is a list of all accounts from the ledger with their balances at a point in time b) The trial balance is another na…

Which of the following statements is true? a)Closing expense accounts increase t

Which of the following statements is true? a)Closing expense accounts increase total stockholders’ equity. b)Closing the dividend account increases total stockholders’ equity. c)N…

Which of the following statements is true? a. Trade discounts and sales returns

Which of the following statements is true? a. Trade discounts and sales returns and allowances are listed on the income statement as deductions from gross sales. b. Reports to sha…

Which of the following statements is true? a. if a debit entry is made to an acc

Which of the following statements is true? a. if a debit entry is made to an account in the general journal, the same account will receive a credit entry when the amount is posted…

Which of the following statements is(are) true? 1) The material quantity varianc

Which of the following statements is(are) true? 1) The material quantity variance is based on actual output. 2) The material quantity variance is based on standard output 3) The m…

Which of the following statements most accura tely describes the gain from the s

Which of the following statements most accura tely describes the gain from the sale of property that is substantially appr eciated at the time of the sale? A It is never passive a…

Which of the following statements on professional judgment is not true? A) The e

Which of the following statements on professional judgment is not true? A) The exercise of professional judgment requires the availability of benchmarks or explicit criteria by wh…

Which of the following statements pertain to both variable costing and absorptio

Which of the following statements pertain to both variable costing and absorption costing?    A. The income statement discloses the amount of gross margin generated during the rep…

Which of the following statements pertaining to lease accounting is not correct?

Which of the following statements pertaining to lease accounting is not correct? Select one: For a particular lease agreement, the amount of interest expense recorded by the lesse…

Which of the following statements pertaining to lease accounting under ASC 840 i

Which of the following statements pertaining to lease accounting under ASC 840 is not correct? The lessee will depreciate a leased asset either over the lease term or the leased a…

Which of the following statements provide(s) an argument in favor of including o

Which of the following statements provide(s) an argument in favor of including only a plant's net book value rather than gross book value as part of operating assets in the ROI co…

Which of the following statements provide(s) an argument in favor of including o

Which of the following statements provide(s) an argument in favor of including only a plant's net book value rather than gross book value as part of operating assets in the ROI co…

Which of the following statements provide(s) an argument in favor of including o

Which of the following statements provide(s) an argument in favor of including only a plant's net book value rather than gross book value as part of operating assets in the ROI co…

Which of the following statements refers to managerial accounting (as opposed to

Which of the following statements refers to managerial accounting (as opposed to financial accounting)? a. requires reporting information continuously and has a current or future …

Which of the following statements reflects a characteristic of corporations Ther

Which of the following statements reflects a characteristic of corporations There is mutual agency for the stockholders meaning that the stockholders have the power to bind the co…

Which of the following statements reflects the transferability of ownership righ

Which of the following statements reflects the transferability of ownership rights in a corporation? A. A stockholder must obtain permission of the board of directors before selli…

Which of the following statements regarding Company A is incorrect? Multiple Cho

Which of the following statements regarding Company A is incorrect? Multiple Choice If Company A has fixed costs of $720,000, a selling price of $50 per unit, and contribution mar…

Which of the following statements regarding Treasury Regulations is false? Regul

Which of the following statements regarding Treasury Regulations is false? Regulations are binding on all courts except the U.S. Supreme Court. Interpretative regulations are issu…

Which of the following statements regarding \"quality\" is false? Answer a. Impr

Which of the following statements regarding "quality" is false? Answer a. Improving quality often falls under the customer perspective of the balanced scorecard. b. Quality is oft…

Which of the following statements regarding auditor documentation of the client\

Which of the following statements regarding auditor documentation of the client's system of internal control is CORRECT? (Points : 2)        No one particular form of documentatio…

Which of the following statements regarding client acceptance/continuance decisi

Which of the following statements regarding client acceptance/continuance decisions is false? An audit firm's client portfolio is impacted by both audit firm decisions and client …

Which of the following statements regarding decision making \"rules of thumb\" i

Which of the following statements regarding decision making "rules of thumb" is correct? 0 A. O B. O C. O D. O E. Information considered relevant to a decision is information that…

Which of the following statements regarding differential costs is (are) false? (

          Which of the following statements regarding differential costs is (are) false? (A). The full cost fallacy occurs when a decision-maker fails to include fixed manufacturi…

Which of the following statements regarding increases in the value of plant asse

Which of the following statements regarding increases in the value of plant assets under U.S. GAAP and IFRS is true? U.S. GAAP allows companies to record increases in the value of…

Which of the following statements regarding investments in real property is FALS

Which of the following statements regarding investments in real property is FALSE? An investor in undeveloped land can choose to capitalize interest expense incurred to purchase t…

Which of the following statements regarding liquidity ratios is true? Question 3

Which of the following statements regarding liquidity ratios is true? Question 35 options: A low acid-test ratio generally indicates the abiltiy to pay current liabilities on a ti…

Which of the following statements regarding managerial accounting reports is tru

Which of the following statements regarding managerial accounting reports is true? The SEC requires an independent CPA to audit reports generated by managerial accounting systems …

Which of the following statements regarding periodic and perpetual inventory sys

Which of the following statements regarding periodic and perpetual inventory systems is correct? Periodic inventory systems require a greater investment in technology. Perpetual i…

Which of the following statements regarding posting and classification is correc

Which of the following statements regarding posting and classification is correct? 1- Posting journal entries involves copying the dollar amounts from the ledger into the journal.…

Which of the following statements regarding special orders is (are) false? (A) T

Which of the following statements regarding special orders is (are) false? (A) The primary decision for special orders is determining whether the differential revenue is greater t…

Which of the following statements regarding stock splits is incorrect? O A. A st

Which of the following statements regarding stock splits is incorrect? O A. A stock split increases total owners' equity. O B. A stock split decreases the market price of the shar…

Which of the following statements regarding the assessment of penalties is corre

Which of the following statements regarding the assessment of penalties is correct? (1) section 6651 provides for penalties for both late filing and late payment. (2) penalties ap…

Which of the following statements regarding the auditor’s use of inferential sta

Which of the following statements regarding the auditor’s use of inferential statistics is correct? a. An auditor needs to estimate the dollar amount of the standard deviation of …

Which of the following statements regarding the calculation of the breakeven poi

Which of the following statements regarding the calculation of the breakeven point for a company that sells many different types of products is true? sales mix does not affect the…

Which of the following statements regarding the difference in target costing and

Which of the following statements regarding the difference in target costing and cost-plus pricing is TRUE.    A. Target costing starts with the target cost and then determines th…

Which of the following statements regarding the home office expense deduction is

Which of the following statements regarding the home office expense deduction is correct? A) The amount of home office expense allowed under the simplified method of computing hom…

Which of the following statements regarding the home office expense deduction is

Which of the following statements regarding the home office expense deduction is correct? Multiple Choice a. A taxpayer is not allowed to deduct any depreciation associated with a…

Which of the following statements regarding the income statements of corporation

Which of the following statements regarding the income statements of corporations is not correct? a.Some corporations include cost of goods sold with the operating expenses. b.Som…

Which of the following statements regarding the installment sale of entire busin

Which of the following statements regarding the installment sale of entire business is FALSE? The sales price and expense of sale of an entire business must be allocated because: …

Which of the following statements regarding the instalment sale of an entire bus

Which of the following statements regarding the instalment sale of an entire bussiness is false? the sale price and expense of sale of an entire bussiness must be allocated becaus…

Which of the following statements regarding the instalment sale of an entire bus

Which of the following statements regarding the instalment sale of an entire bussiness is false? the sale price and expense of sale of an entire bussiness must be allocated becaus…

Which of the following statements regarding the primary responsibilities of mana

Which of the following statements regarding the primary responsibilities of managers is true? Planning means overseeing the company's day-to-day operations. Budgeting is the proce…

Which of the following statements regarding the sale of a partnership interest i

Which of the following statements regarding the sale of a partnership interest is false? a. The seller's primary tax concern in a partnership interest sale is calculating the amou…