Financial information should be neutral and bias free" is the dictation of which one of the following? A. Completeness concept B. Faithful representation Concept C. Objectivity Concept D. Duality Concept 6. Which of the following statements is not an objective of financial reporting? A. Provide information that is useful in investment and credit decisions. B. Provide information regarding policy of organisation C. Provide information that is useful in assessing cash flow prospective D. None of theses 7. A book containing a chronological record of business transaction & original record A. Journal B. Ledger C. Trial balance D. None of these 8. Which of these items would be accounted for as an expense? A. Repayment of bank Loan B. Dividend to stock holders C. The purchase of land D. Payment of current period rent 5.

Financial information should be neutral and bias free" is the dictation of which one of the following? A. Completeness concept B. Faithful representation Concept C. Objectivity Concept D. Duality Concept 6. Which of the following statements is not an objective of financial reporting? A. Provide information that is useful in investment and credit decisions. B. Provide information regarding policy of organisation C. Provide information that is useful in assessing cash flow prospective D. None of theses 7. A book containing a chronological record of business transaction & original record A. Journal B. Ledger C. Trial balance D. None of these 8. Which of these items would be accounted for as an expense? A. Repayment of bank Loan B. Dividend to stock holders C. The purchase of land D. Payment of current period rent 5.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter2: Financial Reporting: Its Conceptual Framework

Section: Chapter Questions

Problem 7C

See similar textbooks

Similar questions

1. Which of the following statements is not an objective of financial reporting? a. To provide information that is useful in investment and credit decisions. b. To provide information about entity resources claims against those resources and changes in those resources. c. To provide information on the liquidation value of an entity. d. To provide information that is useful in assessing cash flow prospects.
6 Which of the following is more true of MANAGERIAL accounting systems than it is of FINANCIAL accounting systems? Use only historical information. Primarily based on the statement of cash flows. Based on debits and credits. Rules established by the FASB. Have substantial competitive value.
Some believe that International Financial Reporting Standards (IFRS) provide too many choices within its accounting guidance. Is this a possible concern in the area of cash flow reporting in your opinion?
Which of the given options, is a limitation of financial reporting? (choose one answer only) a. financial reports can only provided all information needed by its primary users not other users b. financial reports are based on estimates and judgments rather that exact depiction c. financial reports can only provide information to help primary users estimate the value of the entity d. all of these are limitations of financial reporting
Statement I: Users of the funds from finanical institutions and markets have the obligation to return the same without interest. Statement II: Financial instituions and markets are also concerned with creating financial asstes. Statement I is true. Statements I and II are false. Statement II is true. Statements I and II are true.
Identify which one of the following statement is not correct: a. Dividend decision is the primary function of the financial manager b. The financial manager need not concentrate on mobilization of finance c. Cash management plays a major role in the area of finance d. Management control is an emerging role of the financial manager
Which of the following returns is consistent with contractual cash flows that are solely payments of principal and interest or SPPI? I. Return of passage of time II. Return for the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation III. Return for the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset IV. Return for amounts to cover expenses and a profit margin a. I, II, III, and IV b. I, II, and III c. I and IV only d. II and III only
The objective of general financial reporting is to provide financial information about thereporting entity that is useful to existing and potential investors, lenders and other creditorsin making decisions relating to providing resources to the entity. To make the necessarydecisions users need to obtain information and assess those decisions that are NOTrelevant. Which of the following options are not relevant for users to assess?1. Prospects for past net cash inflows to the entity.2. Decisions about providing or settling loans and other forms of credit.3. Decisions about exercising rights to vote on, or otherwise influence, management’sactions that affect the use of the entity’s economic resources.4. Decisions about buying, selling or holding equity and debt instruments.
External decision makers would not look primarily to financial accounting information to assist them in making decisions on: A. Granting credit B. Capital budgeting C. Selecting stocks D. Mergers and acquisitions
Which one of the following items is not a method/tool of analysis of financial statements a. Trend Analysis b. Statement of Affairs c. Cash Flow Statement d. Comparative Statements
Management is a user of financial analysis. Which of the following comments does not represent a fair statement as to the management perspective? A. Management is always interested in maximum profitability. B. Management is interested in the view of investors. C. Management is interested in the financial structure of the entity. D. Management is interested in the asset structure of the entity
Which of the following is not a function of Financial Manager a. Investment Decision b. Planning Financial Requirements c. Acquiring necessary capital d. None