ACCT 304 Week 4 Midterm

This work of ACCT 304 Week 4 Midterm comprises:

1. (TCO 1) Which of the following has the authority to set accounting standards in the United States?

2. (TCO 2) The conceptual framework’s qualitative characteristic of faithful representation includes:

3. (TCO 3) A sale on account would be recorded by:

4. (TCO 3) When a tenant makes an end-of-period adjusting entry credit to the “Prepaid rent” account:

5. (TCO 3) Permanent accounts would not include:

6. (TCO 4) Noncurrent assets include:

7. (TCO 4) The acid-test ratio is also known as the:

8. (TCO 5) Popson Inc. incurred a material loss which was not unusual in character, but was clearly an infrequent occurrence. This loss should be reported as:

9. (TCO 5) On June 1, 2013, Romano Inc. changed the estimated useful life of its office equipment from 20 to 12 years. This change would be accounted for:

10. (TCO 5) In the operating activities section of the statement of cash flows, we start with net income:

11. (TCO 5) The Maytag Corporation’s income statement includes income from continuing operations, a loss from discontinued operations, and extraordinary items. Earnings per share information would be provided for:

12. (TCO 5) Expenses in an income statement prepared under International Financial Reporting Standards:

13. (TCO 4) The balance sheet reports:

14. (TCO 4) Which of the following groups is not among the external users for whom financial statements are prepared?

1. (TCO 5) What would be Misty’s net income for the current year?

2. (TCO 4) Listed below are account balances (in $millions) taken from the records of Symphony Stores. All of these are permanent accounts, except the last two that have yet to be closed. The installment receivables are current. Symphony uses

1. (TCO 4) Briefly explain the purpose of the disclosure note on significant accounting policies. Provide two examples of what might be found in this note.

2. (TCO 2) What is the SEC and how is it involved with accounting standard setting?

3. (TCO 5) Give an example of a non-cash financing and investing activity and explain when and how it would be reported in the financial statements

4. (TCO 3) Describe what is meant by unearned revenues and give two examples