31. A _____ item is expected to result in a cash receipt or a cash payment within approximately one year or less.   
A. illiquid
B. long-term
C. current
D. noncurrent
E. liquid


32. A(n) _____ item is expected to generate cash over periods longer than a year or use cash over periods longer than a year.   
A. illiquid
B. long-term
C. liquid
D. current
E. noncurrent


33. _____ are the amounts at which items entered the firm’s balance sheet and reflect economic conditions at the time the firm obtained assets or obtained financing.   
A. Past amounts
B. Present amounts
C. Valuation amounts
D. Historical amounts
E. Current amounts


34. _____ reflect values at the balance sheet date, so they reflect that day’s economic conditions.   
A. Historical amounts
B. Current amounts
C. Present amounts
D. Liquidation amounts
E. Discounted cash flow amounts


35. An income statement connects two successive _____ through its effect on retained earnings.   
A. balance sheets
B. cash flow statements
C. cash receipts and disbursement statements
D. funds flow statements
E. financing statements


36. Net income that is not paid to shareholders as dividends increases _____. 
A. cash receipts
B. retained earnings
C. cash disbursements
D. long-term liabilities
E. current liabilities


37. A _____ connects two successive balance sheets because it explains the change in cash from operating, financing, and investing activities.   
A. statement of cash receipts and disbursements
B. income statement
C. funds flow statement
D. statement of cash flows
E. statement of retained earnings


38. The _____ shows the relation between net income and cash flows from operations, and changes in assets and liabilities that involve cash flows. 
A. balance sheet
B. statement of cash flows
C. income statement
D. funds flow statement
E. cash receipts and cash disbursement statement


39. The _____ is the government agency that enforces the securities laws of the U.S., including those that apply to financial reporting.   
A. Government Accountability Office (GAO)
B. Public Company Accounting Oversight Board (PCAOB)
C. International Accounting Standards Board (IASB)
D. Financial Accounting Standards Board (FASB)
E. U.S. Securities and Exchange Commission (SEC)


40. The _____ is the private-sector financial accounting standard setter in the U.S., but has no enforcement powers. 
A. Financial Accounting Standards Board (FASB)
B. Government Accountability Office (GAO)
C. International Accounting Standards Board (IASB)
D. Public Company Accounting Oversight Board (PCAOB)
E. Accounting Standards Board



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