Q Full disclosure is desirable for all of the following reasons except
it helps to prevent the inappropriate use of insider information
it helps financial markets to operate more efficiently
it helps financial markets to operate more cost effectively
it eliminates the need for financial analysis
Q. In the Management Report contained in the audited annual report, management acknowledges its responsibility for all of the following except
preparing and presenting the financial statements
correcting all internal control deficiencies prior to issuance of the financial statements
designing and maintaining appropriate internal controls
evaluating the effectiveness of the internal controls
Q. Extensible Business Reporting Language (XBRL)
is limited to the manual comparison of data reported in the SEC 10K report.
is expected to complete the development of its system of "tags" for all U.S. GAAP in 10 years.
enables recognition and extraction of items of information for various analytical purposes
has been applied extensively by financial analysts for over 30 years
Q. A difference between the segment disclosures required by IFRS and GAAP is that
under GAAP, each segment's liabilities must be disclosed under certain circumstances, while under IFRS, liabilities by segment need not be disclosed
under IFRS, each segment's cash balances must be disclosed under certain circumstances, while under GAAP, cash balances by segment need not be disclosed
under IFRS, each segment's total assets must be disclosed under certain circumstances, while under GAAP, total assets by segment need not be disclosed
under IFRS, each segment's liabilities must be disclosed under certain circumstances, while under GAAP, liabilities by segment need not be disclosed
Q. On September 1, 2010, the Baker Company received $44,940 from 4-Most Finance Company. To pay off this loan, the Baker Company will have to pay 4-Most $10,000 each year for 10 years. The first payment is due September 1, 2011. Which interest rate compounded annually is Baker paying on this loan?
12%
15%
18%
24%
Q. In the present value of an annuity table, the factors
increase as the interest rates increase
decrease as the periods increase
remain the same as the periods increase
decrease as the interest rates increase
Q. On January 31, 2010, Richie Company acquired a new machine by paying $40,000 cash and agreeing to pay $20,000 annually for three years, beginning on January 31, 2011. Assuming an interest rate of 10%, Richie should record the acquisition cost of the machine on January 31, 2010, at
$100,000
$94,712
$89,738
$62,092
Q. Paul's Painting Co. acquired a new $800,000 press on April 1, 2010. Paul's will make six equal payments based upon 8% compound interest, starting on March 31, 2011. How much will each payment be?
$504,136
$173,056
$160,234
$109,052
Q. An advantage of basing bad debt expense on the historical relationship between bad debts and net credit sales is that
it provides the best estimate of the net realizable value of accounts receivable
it provides the best information to the credit department to use in its collection activities
it best adheres to the matching concept
it considers the balance in the allowance account when making the bad debt expense estimate