FINANCE EXAM 1 1. Which of the following is the fundamental accounting equation? Current assets +…


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FINANCE EXAM 1 1. Which of the following is the fundamental accounting equation? Current assets +… 1 answer below » FINANCE EXAM 1 1. Which of the following is the fundamental accounting equation? Current assets + Current liabilities = Owners’ equity Assets + Owners’ equity = Liabilities Cash = Debts + Common stock Assets = Liabilities + Owners’ equity 2. On December 31, 2004, Track Record Inc.’s sales people have firm outstanding orders totaling $1.66 million, which, it has guaranteed its customers, will be fulfilled during the month of January 2005. If Track Record includes the $1.66 million in its sales figures for 2004, it will be violating the: View complete question » FINANCE EXAM 1 1. Which of the following is the fundamental accounting equation? Current assets + Current liabilities = Owners’ equity Assets + Owners’ equity = Liabilities Cash = Debts + Common stock Assets = Liabilities + Owners’ equity 2. On December 31, 2004, Track Record Inc.’s sales people have firm outstanding orders totaling $1.66 million, which, it has guaranteed its customers, will be fulfilled during the month of January 2005. If Track Record includes the $1.66 million in its sales figures for 2004, it will be violating the: Document Preview: FINANCE EXAM 1 1. Which of the following is the fundamental accounting equation? Current assets + Current liabilities = Owners’ equity Assets + Owners’ equity = Liabilities Cash = Debts + Common stock Assets = Liabilities + Owners’ equity 2. On December 31, 2004, Track Record Inc.’s sales people have firm outstanding orders totaling $1.66 million, which, it has guaranteed its customers, will be fulfilled during the month of January 2005. If Track Record includes the $1.66 million in its sales figures for 2004, it will be violating the: Materiality concept Historical cost concept Dual-aspect concept Realization concept 3. Which one of the following best describes a balance sheet? A description of the entity’s operations over a period of time A snapshot at a point in time of an entity’s assets, liabilities and owners’ equity A reconciliation of an entity’s bank account balance A description of the company’s cash flows over a period of time 4. To be recorded as an asset, an item must meet four specific conditions. Three of them are: it must have been acquired at measurable cost, it must be obtained or controlled by the entity, and it must have been obtained or controlled in a past transaction. Which one of the following is the fourth condition? The item must have a measurable resale value It must be expected to have future economic benefits It must have been fully paid for The entity must have a legal document confirming ownership of the item 5. Neura Pharma, Inc. has purchased a drug patent with a remaining useful life of 13 years. How should this new asset be classified? A current tangible asset A non-current tangible asset A non-current intangible asset A current intangible asset 6. June Smith, a process engineer, has sold her 15-year patent for a new etching process to Silica Labs, Inc. In return, she has received $500,000 in cash and, based on its value on the sale date, $200,000 in common stock in Silica Labs. The stock is forecasted to double in market value… Attachments: Q-Attachment…..docx View less » Jul 30 2015 12:13 PM

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