Question 1

have claims to an entity's economic resources.

Accepted Answer

The answer of have claims to an entity's economic resources....

Question 2

In a -step income statement, all expenses and losses are added together, then deducted from the sum of all revenues and gains.

Accepted Answer

The answer of In a -step income statement, all expenses...

Question 3

On the statement of cash flows, the section involves the acquisition and sale of long-term assets.

Accepted Answer

The answer of On the statement of cash flows, the...

Question 4

is the quality of accounting information that makes it comprehensible to those willing to spend the necessary time.

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The answer of is the quality of accounting information that...

Question 5

is a liquidity measure that is calculated by subtracting current assets from current liabilities.

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The answer of is a liquidity measure that is calculated...

Question 6

On the statement of cash flows, the section involves the purchase and sale of products and services.

Accepted Answer

The answer of On the statement of cash flows, the...

Question 7

Read the information about Cargo Corporation.
Required:
Prepare the long-term asset section of Cargo Corp.'s balance sheet at December 31, 2015. You may omit the heading. Why are these amounts classified as "long-term"?

Accepted Answer

The answer of Read the information about Cargo Corporation.
Required:
Prepare the...

Question 8

Read the information about Cargo Corporation.
Required:
Prepare the current liabilities section of the balance sheet for Cargo Corp. at December 31, 2015. You may omit the heading. If the amount of current liabilities were larger, what effect would this have on the current ratio?

Accepted Answer

The answer of Read the information about Cargo Corporation.
Required:
Prepare the...

Question 9

The statement of explains changes in the components of owners' equity during the
period.

Accepted Answer

The answer of The statement of explains changes in the...

Question 10

____________________ is the process of writing off the cost of tangible assets and ____________________ is the process of writing off the cost of intangible assets.

Accepted Answer

The answer of ____________________ is the process of writing off...

Question 11

Property, plant and equipment are classified as assets on the balance sheet.

Accepted Answer

The answer of Property, plant and equipment are classified as...

Question 12

Read the information about Cargo Corporation.
Required:
Prepare the current assets section of the balance sheet for Cargo Corp. at December 31, 2015. You may omit the heading. How does the concept of liquidity apply?

Accepted Answer

The answer of Read the information about Cargo Corporation.
Required:
Prepare the...

Question 13

is the quality of accounting information that makes it dependable in representing the events that it purports to represent.

Accepted Answer

The answer of is the quality of accounting information that...

Question 14

is the quality of accounting information that allows a user to compare two or more accounting periods for a single company.

Accepted Answer

The answer of is the quality of accounting information that...

Question 15

The ability of a company to pay its debt as it comes due relates to .

Accepted Answer

The answer of The ability of a company to pay...

Question 16

is the quality of accounting information that allows a user to analyze two or more companies and look for similarities and differences.

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The answer of is the quality of accounting information that...

Question 17

____________________ is the practice of using the least optimistic estimate when two estimates of amounts are about equally likely.

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The answer of ____________________ is the practice of using the...

Question 18

are cash and other assets that are reasonably expected to be realized in cash during the normal operating cycle of the business.

Accepted Answer

The answer of are cash and other assets that are...

Question 19

On the statement of cash flows, the section involves the issuance and repayment of long term liabilities and stock transactions.

Accepted Answer

The answer of On the statement of cash flows, the...

Question 20

is the capacity of information to make a difference in a decision.

Accepted Answer

The answer of is the capacity of information to make...

Quiz 1: Accounting As a Form of Communication

have claims to an entity's economic resources.

In a -step income statement, all expenses and losses are added together, then deducted from the sum of all revenues and gains.

On the statement of cash flows, the section involves the acquisition and sale of long-term assets.

is the quality of accounting information that makes it comprehensible to those willing to spend the necessary time.

is a liquidity measure that is calculated by subtracting current assets from current liabilities.

On the statement of cash flows, the section involves the purchase and sale of products and services.

Read the information about Cargo Corporation. Required: Prepare the long-term asset section of Cargo Corp.'s balance sheet at December 31, 2015. You may omit the heading. Why are these amounts classified as "long-term"?

Read the information about Cargo Corporation. Required: Prepare the current liabilities section of the balance sheet for Cargo Corp. at December 31, 2015. You may omit the heading. If the amount of current liabilities were larger, what effect would this have on the current ratio?

The statement of explains changes in the components of owners' equity during the period.

is the process of writing off the cost of tangible assets and is the process of writing off the cost of intangible assets.

Property, plant and equipment are classified as assets on the balance sheet.

Read the information about Cargo Corporation. Required: Prepare the current assets section of the balance sheet for Cargo Corp. at December 31, 2015. You may omit the heading. How does the concept of liquidity apply?

is the quality of accounting information that makes it dependable in representing the events that it purports to represent.

is the quality of accounting information that allows a user to compare two or more accounting periods for a single company.

The ability of a company to pay its debt as it comes due relates to .

is the quality of accounting information that allows a user to analyze two or more companies and look for similarities and differences.

____________________ is the practice of using the least optimistic estimate when two estimates of amounts are about equally likely.

are cash and other assets that are reasonably expected to be realized in cash during the normal operating cycle of the business.

On the statement of cash flows, the section involves the issuance and repayment of long term liabilities and stock transactions.

is the capacity of information to make a difference in a decision.