Which of the following statements is INCORRECT regarding proprietary theory? All profits and losses become the...
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Which of the following statements is INCORRECT regarding proprietary theory?
All profits and losses become the property of the owners of the company
It does not make a distinction between debt and equity
Financial reporting is based on the owner being the main focus of the financial statements
The equity section of the balance sheet should be shown as: assets- liabilities=proprietorship
Homework Answers
The INCORRECT regarding proprietary theory is:
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It does not make a distinction between debt and equity |
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Which of the following statements is INCORRECT regarding
proprietary theory?
All profits and losses become the...
1. The balance sheet lists which of the following? a. revenues, expenses, gains, and losses b....
1. The balance sheet lists which of the following? a. revenues, expenses, gains, and losses b. assets, liabilities, and owners’ equity c. revenues, expenses, gains, and distributions to owners d. assets, liabilities, and investments by owners 2. Exchanges of assets for assets have what effect on equity? a. There is no relationship between assets and equity b. increase equity c. may have no impact on equity d. decrease equity 3. Identify the correct components of the income statement. a. revenues,...
8. Which statement is incorrect with respect to prop A) The required financial statements of proprietary...
8. Which statement is incorrect with respect to prop A) The required financial statements of proprietary funds include a Stac Position, a Statement of Revenues, Expenses, and Changes in Fund Net Position, and a Statement of Cash Flows. B) The net position (i.e., fund equity) section of the Statement of Net Position is displayed within three categories: (1) Net Investment in Capital Assets, (2) Restricted, and (3) Unrestricted Net Position. C) The Statement of Cash Flows must be prepared using...
Which of the follow statements regarding the primary objective of financial reporting is correct
Which of the follow statements regarding the primary objective of financial reporting is correct? A. To be useful information must follow the Generally Accepted Accounting Principles which are created and governed by the Securities and Exchange Commission B. Information that is faithfully represented is complete, neutral, and free from error C. Relevant information ensures that users of the information will make the correct decisions D. The primary objective of financial reporting is to provide information useful for the acquisition of long-term assets. Adventures Unlimited Company...
Which of the following is an INCORRECT statement regarding community property? A. Upon a divorce, each...
Which of the following is an INCORRECT statement regarding community property? A. Upon a divorce, each spouse has a right to one-half of the community property. Which of the following is NOT true about a condominium? A. Condominiums are a common form of ownership in multiple-dwelling buildings. B. Owners may sell or mortgage their units without the permission of the other owners. C. Usually, condominium owners may not sell or sublease their units without the approval of the other owners....
Please answer the following question(s): The current conceptual distinction between liabilities and equity defines liabilities independently...
Please answer the following question(s): The current conceptual distinction between liabilities and equity defines liabilities independently of assets and equity, with equity defined as a residual amount. The present proliferation of financial instruments that combine features of both debt and equity and the difficulty of drawing a distinction have led many to conclude that the present two-category distinction between liabilities and equity should be eliminated. Two opposing viewpoints are: View #1: The distinction should be maintained. View #2: The distinction...
Regarding a classified balance sheet, which of the following statements regarding liabilities is incorrect? A. Many...
Regarding a classified balance sheet, which of the following statements regarding liabilities is incorrect? A. Many Notes Payable are long−term. B. Liabilities are listed in the order in which they must be paid C. Current liabilities include Accounts Payable and Unearned Revenue. D. Long−term liabilities must be paid either with cash or with goods and services within one year or the entity's operating cycle, if the cycle is longer than one year.
Which of the following statements is incorrect regarding the lower-of-cost-or- market rule? 25. a. It is...
Which of the following statements is incorrect regarding the lower-of-cost-or- market rule? 25. a. It is inconsistent because losses are recognized but not gains. b. It usually understates assets. c. It can increase future income if the expected reductions do not materialize. It incorporates both gains and losses in value that occur during the course of business. d.
Which of the following statements regarding financial reports is correct?
Which of the following statements regarding financial reports is correct?Select one:a. A balance sheet contains assets, liabilities, and stockholders' equity informationb. A statement of stockholders' equity reports revenues, net income, and expense informationc. An income statement shows revenues and dividends.d. A statement of cash flows shows cash inflows and outflows from operating investing, and manufacturing activities
Which of the following statements is false? A)With respect to fund basis financial statements, a government...
Which of the following statements is false? A)With respect to fund basis financial statements, a government may designate any fund to be a major fund if reporting that fund separately would be useful. B)When preparing fund basis financial statements, any funds not reported separately are aggregated and reported in a single column under the label non-major funds. C)When preparing fund basis financial statements, any funds not reported separately are reported by function. D)In addition to the government-wide statements, governments are...
24) Which of the statements below is TRUE regarding CAPITAL STRUCTURE? A) Capital structure deals with...
24) Which of the statements below is TRUE regarding CAPITAL STRUCTURE? A) Capital structure deals with the liability-side of the balance sheet. B) According to the Static Theory of Capital Structure, the optimal capital structure is the one at which the company's weighted average cost of capital ("WACC") is at a maximum. C) Adding debt to the capital structure will always make shareholders worse off. D) Financial leverage is the degree to which a firm utilizes equity financing.
8. Which statement is incorrect with respect to prop A) The required financial statements of proprietary funds include a Stac Position, a Statement of Revenues, Expenses, and Changes in Fund Net Position, and a Statement of Cash Flows. B) The net position (i.e., fund equity) section of the Statement of Net Position is displayed within three categories: (1) Net Investment in Capital Assets, (2) Restricted, and (3) Unrestricted Net Position. C) The Statement of Cash Flows must be prepared using...
Which of the following statements is incorrect regarding the lower-of-cost-or- market rule? 25. a. It is inconsistent because losses are recognized but not gains. b. It usually understates assets. c. It can increase future income if the expected reductions do not materialize. It incorporates both gains and losses in value that occur during the course of business. d.
24) Which of the statements below is TRUE regarding CAPITAL STRUCTURE? A) Capital structure deals with the liability-side of the balance sheet. B) According to the Static Theory of Capital Structure, the optimal capital structure is the one at which the company's weighted average cost of capital ("WACC") is at a maximum. C) Adding debt to the capital structure will always make shareholders worse off. D) Financial leverage is the degree to which a firm utilizes equity financing.
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