c. Lower taxes.d. Most common form of organization.
Which of the following groups uses accounting information to determine whether thecompany’s net income will result in a stock price increase?a.Investors in common stockb.Marketing managersc.Creditorsd.Chief Financial Officer
Dividends paida. increase assets.b. increase expenses.c. decrease revenues.d. decrease retained earnings .
In the annual report, where would a financial statement reader find out if thecompany’s financial statements give a fair depiction of its financial position andoperating results?a.Notes to the financial statementsb.Management discussion and analysis sectionc.
Balance sheetd.Auditor’s report11. In a classified balance sheet, assets are usually classified as:a.current assets; long-term assets; property, plant, and equipment; and
intangible assets.b.current assets; long-term investments; property, plant, and equipment; andcommon stocks.c.current assets; long-term investments; tangible assets; and intangible assets.d.current assets; long-term investments; property, plant, and equipment; andintangible assets.12. An intangible asseta.derives its value from the rights and privileges it provides the owner.b.is worthless because it has no physical substance.c.is converted into a tangible asset during the operating cycle.d.
cannot be classified on the balance sheet because it lacks physical
substance.13. Long-term creditors are usually most interested in evaluatinga.liquidity and profitability.b.consistency and profitability.c.liquidity and solvency.d.consistency and solvency.14. Accounting information should be neutral in order to enhancea.
reliability.b.consistency.c.comparability.d.relevance.15. The time period assumption states that