ACCT 566 Financial Accounting for Managers Exam.

Question 1

0 out of 2 points



Which of the following would not be classified as a long-term liability?

Selected Answer:

Lease liabilities

Correct Answer:

Current maturities of long-term debt

Question 2

2 out of 2 points



A concentration of credit risk is a threat of nonpayment from a single customer or class of
customers that could adversely affect the financial health of the company.

Selected Answer: True

Correct Answer: True

Question 3

2 out of 2 points



Which of the following is not a common way that managers use the balance sheet?

Selected
Answer:
To analyze the balances of assets, liabilities, and stockholders’ equity
throughout the accounting period

Correct
Answer:
To analyze the balances of assets, liabilities, and stockholders’ equity
throughout the accounting period

Question 4

2 out of 2 points

, The revenue recognition principle dictates that revenue be recognized in the accounting period
in which the performance obligation is satisfied.

Selected Answer: True

Correct Answer: True

Question 5

2 out of 2 points



Solvency ratios measure the short-term ability of the company to pay its maturing obligations.

Selected Answer: False

Correct Answer: False

Question 6

2 out of 2 points



Expense recognition is tied to revenue recognition.

Selected Answer: True

Correct Answer: True

Question 7

2 out of 2 points



Management may choose any inventory costing method it desires as long as the cost flow
assumption chosen is consistent with the physical movement of goods in the company.

Selected Answer: False

Correct Answer: False

Question 8

2 out of 2 points