ACCOUNTING CRASH COURSE WALL STREET WSP
ACCOUNTING CRASHCOURSE EXAM QUESTIONS WITH
COMPLETE SOLUTIONS GUARANTEED PASS
The regulating body that oversees the development of accounting
standards in the U.S. is:
SFAS
GAAP
FASB
IASB - ANSWER ->FASB formulates accounting standards through the
issuance of Statements of Financial Accounting Standards (SFAS). These
statements make up the body of accounting rules known as the
Generally Accepted Accounting Principles (GAAP). IASB oversees
international financial reporting standards (IFRS).
Which of the following statements is TRUE?
GAAP requires that firms show recorded values for acquired intangible
assets such as patents and trademarks on their financial statements.
GAAP requires that firms show recorded values for intangible assets
such as employee and customer loyalty.
GAAP requires that financial statements accurately reflects the market
value of internally-developed trademarks such as the value of the
CocaCola brand name.
All of the above. - ANSWER ->GAAP requires that firms show recorded
values for acquired intangible assets such as patents and trademarks on
their financial statements. GAAP requires that firms only show
,measurable activities, such as the value of acquired intangible assets.
Assets such as employee, customer loyalty and internally-developed
trademarks are not shown on financial statements because they're
difficult to quantify.
Which of the following statements is TRUE?
Publicly traded US companies are required to file four 10-Q's and one
10-K annually.
All US companies are required to file three 10-Q's and one 10-K
annually.
Publicly traded US companies are required to file three 10-Q's and one
10-K annually.
Publicly traded US companies are required to file one 10-K annually;
10Q's are typically filed but are technically voluntary. - ANSWER -
>Publicly traded US companies are required to file three 10-Q's and one
10-K annually.
Publicly-traded US companies must file three quarterly (10-Q) reports
at the end of their 1Q, 2Q and 3Q, and a 10-K at the end of their fiscal
year.
he income statement is designed to measure:
The liquidity of a firm.
How solvent a company has been.
The income of a firm at a point in time.
Cash inflows/outflows generated over a period of time.
The profits of a firm over a period of time. - ANSWER ->The profits of a
firm over a period of time. The income statement is designed to show
the profitability of a business (revenues less expenses) over a period of
time (usually a quarter or year). The income statement is an accrual
measure of profits and thus not the best measure of cash flows. It is
also a poor measure of a company's liquidity or solvency, which
, involves an analysis of a company's short term and long term assets and
liabilities, respectively. The balance sheet is designed to show a firm's
financial position, while the cash flow statement shows the amount of
cash generated by a firm.
The "matching principle" states that:
Costs associated with making a product must be recognized at the end
of the production process.
Costs associated with making a product must be recognized
immediately as incurred.
Costs associated with making a product must be recognized during the
same period as revenue generated from that product.
Costs associated with making a product must be recorded during the
same period as the sales, general, and administrative expenses that are
also associated with the product. - ANSWER ->Costs associated with
making a product must be recognized during the same period as
revenue generated from that product.
Jones Company has provided the following information:
Cash sales totaled $255,000.
Credit sales totaled $479,000.
Interest income was $7,700.
Interest expense was $19,900.
Cost of goods sold was $336,000.
Rent expense was $36,000.
Salaries expense was $49,000.
Other operating expenses totaled $79,000.
How much was Jones' operating income? - ANSWER ->234,000
Operating revenues = $734,000 = $255,000 + $479,000.
Operating expenses = $500,000 = $336,000 + $36,000 + $49,000 +
$79,000.
ACCOUNTING CRASHCOURSE EXAM QUESTIONS WITH
COMPLETE SOLUTIONS GUARANTEED PASS
The regulating body that oversees the development of accounting
standards in the U.S. is:
SFAS
GAAP
FASB
IASB - ANSWER ->FASB formulates accounting standards through the
issuance of Statements of Financial Accounting Standards (SFAS). These
statements make up the body of accounting rules known as the
Generally Accepted Accounting Principles (GAAP). IASB oversees
international financial reporting standards (IFRS).
Which of the following statements is TRUE?
GAAP requires that firms show recorded values for acquired intangible
assets such as patents and trademarks on their financial statements.
GAAP requires that firms show recorded values for intangible assets
such as employee and customer loyalty.
GAAP requires that financial statements accurately reflects the market
value of internally-developed trademarks such as the value of the
CocaCola brand name.
All of the above. - ANSWER ->GAAP requires that firms show recorded
values for acquired intangible assets such as patents and trademarks on
their financial statements. GAAP requires that firms only show
,measurable activities, such as the value of acquired intangible assets.
Assets such as employee, customer loyalty and internally-developed
trademarks are not shown on financial statements because they're
difficult to quantify.
Which of the following statements is TRUE?
Publicly traded US companies are required to file four 10-Q's and one
10-K annually.
All US companies are required to file three 10-Q's and one 10-K
annually.
Publicly traded US companies are required to file three 10-Q's and one
10-K annually.
Publicly traded US companies are required to file one 10-K annually;
10Q's are typically filed but are technically voluntary. - ANSWER -
>Publicly traded US companies are required to file three 10-Q's and one
10-K annually.
Publicly-traded US companies must file three quarterly (10-Q) reports
at the end of their 1Q, 2Q and 3Q, and a 10-K at the end of their fiscal
year.
he income statement is designed to measure:
The liquidity of a firm.
How solvent a company has been.
The income of a firm at a point in time.
Cash inflows/outflows generated over a period of time.
The profits of a firm over a period of time. - ANSWER ->The profits of a
firm over a period of time. The income statement is designed to show
the profitability of a business (revenues less expenses) over a period of
time (usually a quarter or year). The income statement is an accrual
measure of profits and thus not the best measure of cash flows. It is
also a poor measure of a company's liquidity or solvency, which
, involves an analysis of a company's short term and long term assets and
liabilities, respectively. The balance sheet is designed to show a firm's
financial position, while the cash flow statement shows the amount of
cash generated by a firm.
The "matching principle" states that:
Costs associated with making a product must be recognized at the end
of the production process.
Costs associated with making a product must be recognized
immediately as incurred.
Costs associated with making a product must be recognized during the
same period as revenue generated from that product.
Costs associated with making a product must be recorded during the
same period as the sales, general, and administrative expenses that are
also associated with the product. - ANSWER ->Costs associated with
making a product must be recognized during the same period as
revenue generated from that product.
Jones Company has provided the following information:
Cash sales totaled $255,000.
Credit sales totaled $479,000.
Interest income was $7,700.
Interest expense was $19,900.
Cost of goods sold was $336,000.
Rent expense was $36,000.
Salaries expense was $49,000.
Other operating expenses totaled $79,000.
How much was Jones' operating income? - ANSWER ->234,000
Operating revenues = $734,000 = $255,000 + $479,000.
Operating expenses = $500,000 = $336,000 + $36,000 + $49,000 +
$79,000.
