ACC 253- FINAL EXAM Financial Accounting Principles: Income Statement and Revenue Recognition
The final exam tests students� understanding of key financial accounting principles, focusing on income statements and revenue recognition.
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ACC 253- FINAL EXAM Financial Accounting Principles: Income Statement
and Revenue Recognition
ACC 253---- FINAL EXAM
10) Limitations of the income statement include all of the following except
A. items that cannot be measured reliably are not reported.
B. only actual amounts are reported in determining net income.
C. income measurement involves judgment.
D. income numbers are affected by the accounting methods employed.
11) Which of the following would represent the least likely use of an income statement
prepared for a business enterprise?
A. Use by customers to determine a company's ability to provide needed goods and services.
B. Use by labor unions to examine earnings closely as a basis for salary discussions.
C. Use by government agencies to formulate tax and economic policy.
D. Use by investors interested in the financial position of the entity.
12) Which of the following is not a generally practiced method of presenting the income
statement?
A. Including prior period adjustments in determining net income
B. The single-step income statement
C. The consolidated statement of income
D. Including gains and losses from discontinued operations of a component of a business in
determining net income
13) Which of the following is not a reason why revenue is recognized at time of sale?
A. Title legally passes from seller to buyer.
B. Realization has occurred.
C. All of these are reasons to recognize revenue at time of sale.
D. The sale is the critical event.
and Revenue Recognition
ACC 253---- FINAL EXAM
10) Limitations of the income statement include all of the following except
A. items that cannot be measured reliably are not reported.
B. only actual amounts are reported in determining net income.
C. income measurement involves judgment.
D. income numbers are affected by the accounting methods employed.
11) Which of the following would represent the least likely use of an income statement
prepared for a business enterprise?
A. Use by customers to determine a company's ability to provide needed goods and services.
B. Use by labor unions to examine earnings closely as a basis for salary discussions.
C. Use by government agencies to formulate tax and economic policy.
D. Use by investors interested in the financial position of the entity.
12) Which of the following is not a generally practiced method of presenting the income
statement?
A. Including prior period adjustments in determining net income
B. The single-step income statement
C. The consolidated statement of income
D. Including gains and losses from discontinued operations of a component of a business in
determining net income
13) Which of the following is not a reason why revenue is recognized at time of sale?
A. Title legally passes from seller to buyer.
B. Realization has occurred.
C. All of these are reasons to recognize revenue at time of sale.
D. The sale is the critical event.
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Document Details
University
Hult International Business School
Subject
Accounting