C. the cash outlay only, even if part of the consideration given was something other than cash
D. the best estimate of a certified internal auditor
E. current replacement cost
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Hard
Learning Objective: 01-05 Identify, explain, and apply accounting principles.
Topic: 01-18 GAAP for Public vs. Private Enterprises
174. Profit is
A. assets minus liabilities
B. the excess of revenues over expenses
C. the excess of expenses over revenues
D. a revenue
E. the same as equity
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-06 Identify and explain the content and reporting aims of financial statements.
Topic: 01-20 Previewing Financial Statements
175. If financial information is relevant, this means that
A. decision makers can depend on it
B. it can affect the types of decisions made by users
C. the information is prepared using the same accounting procedures from one accounting period to the next
D. users are able to compare different companies, if all the companies use similar accounting practices
E. the financial statements have not been prepared according to GAAP
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Hard
Learning Objective: 01-05 Identify, explain, and apply accounting principles.
Topic: 01-18 GAAP for Public vs. Private Enterprises
176. Financial information that is verifiable means that
A. information is clear and concise
B. knowledgeable users agree that the financial information is faithfully represented
C. the information is useful to users with reasonable knowledge of accounting as well as business and economic activities
D. users are able to compare different companies, if all the companies use similar accounting practices
E. the financial statements have not been prepared according to GAAP
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Hard
Learning Objective: 01-05 Identify, explain, and apply accounting principles.
Topic: 01-18 GAAP for Public vs. Private Enterprises
177. A statement of financial position is another name for
A. the income statement
B. the balance sheet
C. the statement of cash flows
D. the statement of changes in equity
E. the accounting equation
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-06 Identify and explain the content and reporting aims of financial statements.
Topic: 01-20 Previewing Financial Statements
178. A statement of profit and loss is another name for
A. the income statement
B. the balance sheet
C. the statement of cash flows
D. the statement of changes in equity
E. the accounting equation
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-06 Identify and explain the content and reporting aims of financial statements.
Topic: 01-20 Previewing Financial Statements
179. A balance sheet lists
A. the types and amounts of the revenues and expenses of a business
B. only the information about what happened to equity during a specific time period
C. the types and amounts of assets, liabilities, and equity of a business at a specific date
D. the inflows and outflows of cash during a specific time period
E. the assets and liabilities of a business but not the equity
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Medium
Learning Objective: 01-06 Identify and explain the content and reporting aims of financial statements.
Topic: 01-20 Previewing Financial Statements
180. Which of the following statements is true about assets?
A. They are the properties or economic resources owned by the business.
B. They are available to provide future benefits to the business.
C. They can be intangible rights.
D. Ownership is shared between creditors and owners.
E. All of these
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Hard
Learning Objective: 01-06 Identify and explain the content and reporting aims of financial statements.
Topic: 01-20 Previewing Financial Statements
181. The primary objective of GAAP is to provide accounting information that is