ASHWORTH A04 ONLINE EXAM 1

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ASHWORTH A04 ONLINE EXAM 1

Question # 00177248 Posted By: paul911 Updated on: 01/21/2016 02:13 AM Due on: 01/22/2016

Subject Business Topic General Business Tutorials:

Question

Question 1 of 20

5.0/ 5.0 Points

When a company changes from LIFO to another inventory method, the change is reported:

A. prospectively because it is impractical to determine the effects of this change on prior years’ net income.
B. as an error correction.
C. as a change in an accounting estimate.
D. using the retrospective approach.

Question 2 of 20

5.0/ 5.0 Points

Net income recognition always increases:

A. assets.
B. net assets.
C. liabilities.
D. net liabilities.

Question 3 of 20

5.0/ 5.0 Points

When reporting a change in an accounting principle, the general rule requires that the current year’s income from continuing operations reflect:

A. use of the newly adopted principle for the current year recognition.
B. use of the old principle for the current year recognition.
C. management’s choice of either the old or newly adopted principle for the current year recognition.
D. FASB’s designation of either the old or newly-adopted principle based on the item being changed.

Question 4 of 20

5.0/ 5.0 Points

To recognize revenue after the time of sale, there must be extreme uncertainty regarding the amount of cash to be collected or:

A. there must be substantial future services required whose costs cannot be reasonably estimated.
B. units are heterogeneous.
C. the product is immediately salable at quoted market prices.
D. a formal contract must be signed.

Question 5 of 20

5.0/ 5.0 Points

Financial statements follow:

A. rigid guidelines that require specific adherence to regulated procedures.
B. generally accepted guidelines that allow management to choose among different procedures.
C. general guidelines with little choice among different procedures.
D. legal requirements for uniform presentation and disclosure.

Question 6 of 20

5.0/ 5.0 Points

A company’s financial statements can be used for all of the following
purposes EXCEPT as a/an:

A. scorecard on the company’s social responsibility.
B. management report card.
C. early warning signal.
D. measure of accountability.

Question 7 of 20

5.0/ 5.0 Points

On the income statement, income from discontinued operations is shown:

A. as a separate section of income from continuing operations.
B. as an accounting principle change.
C. without any income tax effect.
D. net of taxes after income from continuing operations.

Question 8 of 20

5.0/ 5.0 Points

Companies offering higher risk securities have incentives to mask their true condition by:

A. supplying overly optimistic financial information.
B. not having their financial statements audited.
C. listing on foreign exchanges where reporting requirements are less stringent than those in the U.S.
D. including testimonials from well-known executives in their financial statements.

Question 9 of 20

5.0/ 5.0 Points

When transitory earnings are present, which of the following correctly depicts the order used on the income statement?

A. Income from continuing operations, income tax expense, extraordinary loss, discontinued operations, net income.
B. Income from continuing operations, extraordinary loss, discontinued operations, income tax expense, net income.
C. Income from continuing operations, income tax expense, discontinued operations, extraordinary loss, net income.
D. Income tax expense, income from continuing operations, discontinued operations, extraordinary loss, net income.

Question 10 of 20

5.0/ 5.0 Points

In 2009, the FASB completed a five-year effort to distill the existing GAAP literature into a single database known as:

A. the accounting standards database.
B. international financial reporting standards.
C. the converged accounting standards.
D. the accounting standards codification.

Question 11 of 20

5.0/ 5.0 Points

GAAP requires that each set of EPS numbers includes separately reported numbers for all of the following EXCEPT:

A. special or unusual items.
B. income from continuing operations.
C. discontinued operations.
D. extraordinary items.

Question 12 of 20

5.0/ 5.0 Points

The change in equity of an entity during a period from transactions and other events from non-owner sources is known as:

A. net income.
B. net operating income.
C. comprehensive income.
D. net change in assets.

Question 13 of 20

5.0/ 5.0 Points

The “critical event” for revenue recognition is:

A. defined by generally accepted accounting principles for every situation.
B. the same for every industry.
C. dependent upon the exact nature of the business and industry.
D. easily defined by the FASB.

Question 14 of 20

5.0/ 5.0 Points

The best measure of a firm’s sustainable income is:

A. income from continuing operations.
B. income before extraordinary items.
C. income before extraordinary item and change in accounting principle.
D. net income.

Question 15 of 20

5.0/ 5.0 Points

A company’s financial statements reflect information about:

A. future projections of sales, expenses, and other future economic events.
B. product information and competitive positions.
C. the general economy of the industry in which the company operates.
D. economic events that affect a company that can be translated into accounting numbers.

Question 16 of 20

5.0/ 5.0 Points

Traceable costs are also called __________ costs.

A. period
B. expired
C. product
D. administrative

Question 17 of 20

5.0/ 5.0 Points

Differences between IFRS and U.S. GAAP include all of the following EXCEPT:

A. reversal of inventory write-downs.
B. extraordinary items.
C. lease capitalization.
D. research and development costs.

Question 18 of 20

0.0/ 5.0 Points

The type of analysis that uses financial statements to assess valuation of current market price is __________ analysis.

A. valuation
B. efficient market
C. fundamental
D. technical

Question 19 of 20

5.0/ 5.0 Points

Using the same accounting methods to record and report similar events from period to period demonstrates:

A. consistency.
B. comparability.
C. neutrality.
D. faithful representation.

Question 20 of 20

5.0/ 5.0 Points

The statement “linkage between these costs and individual sales is difficult to establish” refers to __________ costs.

A. period
B. expired
C. product
D. traceable

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score 3 · Accepted Answer · 01/21/2016 02:13 AM

Solution: ASHWORTH A04 ONLINE EXAM 1

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