Question

1. The balance sheet provides information about each of the following items, except:

   	a.	operating capability of entity.
   	b.	results of entity's operations.
   	c.	entity's liquidity.
   	d.	financial flexibility of entity.

1 points   

QUESTION 7

1. Which of the following is never a current liability account?

   	a.	accrued payroll.
   	b.	dividends payable.
   	c.	prepaid rent.
   	d.	subscription collected in advance.

1 points   

QUESTION 8

1. Which of the following should be disclosed in the Summary of Significant Accounting Policies?

   	a.	Rent expense account.
   	b.	Maturity dates of long-term debt.
   	c.	Methods of amortizing intangibles.
   	d.	Composition of plant assets.

1 points   

QUESTION 9

1. The final paragraph of the audit report:

   	a.	provides the auditors' opinion on the fairness of the financial statements.
   	b.	provides the auditors' responsibility to express opinion on the effectiveness of internal control.
   	c.	describes the scope of the audit.
   	d.	states management's responsibility for the financial statements.

1 points   

QUESTION 10

1. Liquidity refers to:

   	a.	the amount of cash on hand at a given time.
   	b.	the period until cash is used and refinancing becomes necessary.
   	c.	the readiness of an asset to be converted to cash.
   	d.	financial leverage.

Answer 1

6	Balance Sheet does not provide information about entity's operating capacity. Rest all financial details like results, liqyudity are present in Balance sheet
	A
7	Prepaid Rent is advance payment of rent and is an asset to the organization
	C
8	Summary of Significant policies is mandated by IFRS and it shall include Depreciation methods, amortization of intangibles, Inventory pricing, basis of consolidation etc
	C
9	The final Para of Auditors report provides auditors opinion on the fairness of the financial statements
	A
10	Liquidity refers to value of cash available at a given point of time. It includes items against which cash is readily available
	A