D) cash flow statement
Answer: A
Diff: 2 Type: MC
L.O.: 1-2
CPA COMPETENCIES: Chapter 1
1.1.1 Evaluates financial reporting needs
1.1.2 Evaluates the appropriateness of the basis of financial reporting
1.1.3 Evaluates reporting processes to support reliable financial reporting
44) Assets are generally divided into:
A) current assets and solvent assets
B) current assets and reliable assets
C) non-current assets and solvent assets
D) current assets and non-current assets
Answer: D
Diff: 1 Type: MC
L.O.: 1-2
CPA COMPETENCIES: Chapter 1
1.1.1 Evaluates financial reporting needs
1.1.2 Evaluates the appropriateness of the basis of financial reporting
1.1.3 Evaluates reporting processes to support reliable financial reporting
45) Current assets are assets expected to be converted to cash, sold, or consumed:
A) within the next 12 months or within the business's normal operating cycle if less than a year
B) within the next 12 months or within the business's normal operating cycle if longer than a year
C) within the next 6 months
D) within the next 24 months
Answer: B
Diff: 2 Type: MC
L.O.: 1-2
CPA COMPETENCIES: Chapter 1
1.1.1 Evaluates financial reporting needs
1.1.2 Evaluates the appropriateness of the basis of financial reporting
1.1.3 Evaluates reporting processes to support reliable financial reporting
46) Equipment would appear on the:
A) income statement with the revenues
B) balance sheet with the non-current assets
C) balance sheet with the current assets
D) income statement with the operating expenses
Answer: B
Diff: 1 Type: MC
L.O.: 1-2
CPA COMPETENCIES: Chapter 1
1.1.1 Evaluates financial reporting needs
1.1.2 Evaluates the appropriateness of the basis of financial reporting
1.1.3 Evaluates reporting processes to support reliable financial reporting
47) Depreciation is normally associated with which asset on the balance sheet?
A) land
B) accounts receivable
C) inventory
D) equipment
Answer: D
Diff: 2 Type: MC
L.O.: 1-2
CPA COMPETENCIES: Chapter 1
1.1.1 Evaluates financial reporting needs
1.1.2 Evaluates the appropriateness of the basis of financial reporting
1.1.3 Evaluates reporting processes to support reliable financial reporting
48) Cash would appear on the:
A) income statement with the revenues
B) retained earnings statement with the net income
C) balance sheet with the current assets
D) balance sheet with the current liabilities
Answer: C
Diff: 1 Type: MC
L.O.: 1-2
CPA COMPETENCIES: Chapter 1
1.1.1 Evaluates financial reporting needs
1.1.2 Evaluates the appropriateness of the basis of financial reporting
1.1.3 Evaluates reporting processes to support reliable financial reporting
49) Accounts payable would appear on the:
A) income statement with the expenses
B) retained earnings statement with the dividends
C) balance sheet with the current assets
D) balance sheet with the current liabilities