44.A statement of retained earnings shows:
A. The changes in the Cash account occurring during the accounting period.
B. The revenue, expense, and dividends of the period.
C. The types of assets which have been purchased with the earnings retained during the accounting period.
D. The changes in the Retained Earnings account occurring during the accounting period.
45.Declaring a dividend will:
A. Increase net income.
B. Decrease net income.
C. Not change net income.
D. Increase the net worth of a company.
46.Dividends will have what effect upon retained earnings?
A. Increase.
B. Decrease.
C. No effect.
D. Depends upon if there is income or loss.
47.Net income from the Income Statement appears on:
A. The Balance Sheet.
B. The Retained Earnings Statement.
C. Neither the Balance Sheet nor the Retained Earnings Statement.
D. Both the Balance Sheet and the Retained Earnings Statement.
48.All of the following statements are true regarding the Income Statement
except?
A. The Income Statement may also be called the Earnings Statement.
B. The measurement of income is not absolutely accurate or precise due to assumptions and estimates.
C. The Income Statement only includes those events that have been evidenced by actual business transactions.
D. The net income (or net loss) appears at the bottom of the Income Statement and also in the company's year-end balance sheet.
49.Assets are considered current assets if they are cash or will usually be converted into cash:
A. Within a month or less.
B. Within 3 months.
C. Within a year or less.
D. Within 6 months or less.
50.In the notes to financial statements, adequate disclosure would typically
not
include:
A. The accounting methods in use.
B. Lawsuits pending against the business.
C. Customers that account for 10 percent or more of the company's revenues.
D. The optimism of the CFO regarding future profits.
51.The adequacy of a company's disclosure is based on:
A. Laws established by Congress.
B. IRS rules and FASB requirements.
C. A combination of official rules, tradition, and professional judgment.
D. The needs of stockholders and creditors.
52.The concept of adequate disclosure:
A. Demands a "good faith effort" by management.
B. Grants users of the financial statements access to a company's accounting records.
C. Does not apply to events occurring after the balance sheet date.
D. Specifies which accounting methods must be used in a company's financial statements.
53.The concept of adequate disclosure requires a company to inform financial statement users of each of the following,
except:
A. The accounting methods in use.
B. The due dates of major liabilities.
C. Destruction of a large portion of the company's inventory on January 20, three weeks after the balance sheet date, but prior to issuance of the financial statements.
D. Income projections for the next five years based upon anticipated market share of a new product; the new product was introduced a few days before the balance sheet date.