GB 112/212 MANAGERIAL ACC. W/ACCESS >C<
17th Edition
ISBN: 9781260218831
Author: Libby
Publisher: MCG CUSTOM
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Question
Chapter 1, Problem 7MCQ
To determine
Identify from the given statements, the typical note not included in the annual report.
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Which of the following is not a typical note included in the notes to financial statements?
Group of answer choices
A note describing the auditors’ opinion of management’s future financial plans
A note describing the accounting rules applied in the financial statements
A note describing possible financial obligations not included in the financial statements
A note providing more detail about specific items shown in the financial statements
Which of the following is least likely to be a procedure included in an accountant’s review of interim financial information of a public entity?
a.Compare disaggregated revenue data by month to that of the previous interim period.
b.Read available minutes of meetings of stockholders.
c.Inquire of management concerning significant journal entries and other adjustments.
d.Observe counting of physical inventory.
What is the main purpose of information presented in notes to the financial statements?
• To provide disclosures required by generally accepted accounting principles.
To correct improper presentation in the financial statements.
To provide recognition of amounts not included in the totals of the financial statements.
To present management's responses to auditor comments.
Chapter 1 Solutions
GB 112/212 MANAGERIAL ACC. W/ACCESS >C<
Ch. 1 - Define accounting.Ch. 1 - Briefly distinguish financial accounting from...Ch. 1 - Prob. 3QCh. 1 - Prob. 4QCh. 1 - Prob. 5QCh. 1 - Complete the following: Name of Statement...Ch. 1 - What information should be included in the heading...Ch. 1 - What are the purposes of (a) the income statement,...Ch. 1 - Explain why the income statement and the statement...Ch. 1 - Prob. 10Q
Ch. 1 - Prob. 11QCh. 1 - Explain the equation for the income statement....Ch. 1 - Explain the equation for the balance sheet. Define...Ch. 1 - Explain the equation for the statement of cash...Ch. 1 - Explain the equation for retained earnings....Ch. 1 - The financial statements discussed in this chapter...Ch. 1 - Prob. 17QCh. 1 - Prob. 18QCh. 1 - (Supplement A) Briefly differentiate between a...Ch. 1 - Prob. 20QCh. 1 - Which of the following is not one of the four...Ch. 1 - Prob. 2MCQCh. 1 - Prob. 3MCQCh. 1 - Which of the following regarding retained earnings...Ch. 1 - Which of the following is not one of the four...Ch. 1 - Prob. 6MCQCh. 1 - Prob. 7MCQCh. 1 - Which of the following is true regarding the...Ch. 1 - Prob. 9MCQCh. 1 - Prob. 10MCQCh. 1 - Matching Elements with Financial Statements M1-1...Ch. 1 - Matching Financial Statement Items to Financial...Ch. 1 - Prob. 1.3MECh. 1 - Prob. 1.1ECh. 1 - Matching Financial Statement Items to Financial...Ch. 1 - Matching Financial Statement Items to Financial...Ch. 1 - Preparing a Balance Sheet Honda Motor Corporation...Ch. 1 - Completing a Balance Sheet and Inferring Net...Ch. 1 - Prob. 1.6ECh. 1 - Preparing an Income Statement and Inferring...Ch. 1 - Prob. 1.8ECh. 1 - Inferring Values Using the Income Statement and...Ch. 1 - Inferring Values Using the Income Statement and...Ch. 1 - Preparing an Income Statement and Balance Sheet...Ch. 1 - Preparing an Income Statement and Balance Sheet...Ch. 1 - Preparing a Statement of Stockholders Equity...Ch. 1 - Focus on Cash Flows: Matching Cash Flow Statement...Ch. 1 - Preparing an Income Statement, Statement of...Ch. 1 - Analyzing a Student's Business and Preparing an...Ch. 1 - Comparing Income with Cash Flow (Challenging)...Ch. 1 - Evaluating Data to Support a Loan Application...Ch. 1 - Preparing an Income Statement, Statement of...Ch. 1 - Analyzing a Students Business and Preparing an...Ch. 1 - Prob. 1.3APCh. 1 - Prob. 1.1CONCh. 1 - Finding Financial Information LO1-1 Refer to the...Ch. 1 - Prob. 1.2CPCh. 1 - Comparing Companies within an Industry Refer to...Ch. 1 - Using Financial Reports: Identifying and...Ch. 1 - Prob. 1.5CPCh. 1 - Prob. 1.6CPCh. 1 - Prob. 1.7CP
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- 16. What is the purpose of information presented in notes to financial statements? a. To present management's responses to auditor comments b. To correct improper presentation in the financial statements c. To provide disclosures required by generally accepted accounting principles d. To provide recognition of amounts not included in the total of the financial statements  17. Proper application of accounting principles is most dependent upon a. Existence of specific guidelines b. Oversight of regulatory bodies c. External audit function d. Professional judgment of the accountant  18. Which of the following is not a correct variation of the basic accounting equation? a. Asset = Liabilities +Equity b. Asset - Liabilities = Equity c. Asset - Equity = Liabilities d. Asset + Liabilities = Equity  19. Entity A's total liabilities are P50M, while its total equity is P10. Entity A's total assets are a. P60M b. P50M c. P40M d. Any of these  20. What is the effect on an entity's financial…arrow_forwardDiscuss the significance of accounting policies in financial reporting and their influence on the presentation of financial statements. Explain the process and implications of changes in accounting estimates, including how they are applied and disclosed in financial statements. Additionally, explore the types of errors that can occur in accounting, their effects on financial statements, and the appropriate methods for rectifying these errors while maintaining the integrity of financial reportingarrow_forwardThe subject matter of information in auditing includes what? A. The financial statements of the enterprise (e.g. Balance Sheet, Income Statement, Statement of Cash Flow, Statement of Changes in Shareholder’s Equity and the notes to financial statements) B. Financial reporting framework C. Assets and Liabilities D. Income and Expensesarrow_forward
- 13. Which of the following is NOT an obligation or duties of an auditor? a. Inspect account books and accounting systems for efficiency b. Prepare detailed reports on audit findings c. Examine and evaluate financial and information systems d. Helps to prepare the financial statements of companiesarrow_forwardStatements 1. Revenue and expense accounts are audited in conjunction with related 2. 3. The 4. 5. 6. 7. Material fluctuations revealed by analytical procedures should be investigated to determine whether they are indicative of material in the financial statements. When paper paychecks are issued, the company's of the company. A 11 accounts. department of the company should authorize changes in employee pay rates. should distribute them to the employees is a list of all specific disclosures required by financial accounting standards. The primary purpose of the primarily responsible for the fairness of the financial statements. The auditors should obtain a letter from the client's attorneys describing is to have the client's principal officers acknowledge that they are 8. In estimating the total likely misstatement in the financial statements, the auditors should combine misstatements, projected misstatements, and judgmental misstatements. 9. If the auditors conclude that the total…arrow_forwardHow does the concept of consistency aid in the analysis of financial statements? Why type of accounting disclosure is required if this concept is not applied? Answer:arrow_forward
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