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Balance Sheet quiz level 2

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Balance Sheet level 2

30 questions in 30 minutes

Pass Score 70%

The questions change when you repeat the exam

1 / 30

Under IFRS, firms may report an investment in the equity securities of other companies at fair value through :

2 / 30

Earlier this year, Slayton Corporation repurchased 5% of its total shares outstanding. At the time, the book value of Slayton shares exceeded their market value. The shares are expected to be reissued in the future when the market price of Slayton's stock increases. Do Slayton's repurchased shares continue to have voting rights and to pay cash dividends ?

3 / 30

SF Corporation has created employee goodwill by reorganizing its retirement benefit package. An independent management consultant estimated the value of the goodwill at $2 million. In addition, SF recently purchased a patent that was developed by a competitor. The patent has an estimated useful life of five years. Should SF report the goodwill and patent on its balance sheet ?

4 / 30

The common shareholders’ equity reported on a company’s balance sheet is seldom an appropriate measure of the market or intrinsic value of the company’s common shares. The most likely reason for this fact is that the balance sheet:

5 / 30

Under IFRS, a firm may report the value of property, plant, and equipment using :

6 / 30

For financial assets classified as available for sale, how are unrealized gains and losses reflected in shareholders’ equity?

7 / 30

Which of the following characteristics are required for recognition of a balance sheet asset ?

Characteristic #1: Future economic benefits to the firm are probable.

Characteristic #2: The asset is tangible and is obtained at a cost.

8 / 30

How should the proceeds received from the advance sale of tickets to a sporting event be treated by the seller, assuming the tickets are nonrefundable ?

9 / 30

Consider the following:

Statement #1 – Copyrights and patents are tangible assets that can be separately identified.

Statement #2 – Purchased copyrights and patents are amortized on a straight line basis over 30 years.

With respect to the statements about copyrights and patents acquired from an independent third party:

10 / 30

The most appropriate measurement base for unimpaired goodwill is :

11 / 30

A liquidity-based balance sheet, on which assets and liabilities are not classified as current or non-current, is permitted under :

12 / 30

For financial assets classified as trading securities, how are unrealized gains and losses reflected in shareholders’ equity?

13 / 30

The balance sheet is most likely to provide an analyst with information about a firm's :

14 / 30

Which of the following inventory valuation methods is required by the accounting standard setting bodies ?

15 / 30

A firm's balance sheet prepared under IFRS is least likely to include :

16 / 30

For which of the following balance sheet items is a change in market value most likely to affect net income?

17 / 30

The statement of changes in equity is least likely to provide information on the firm's :

18 / 30

The average number of days that it takes to turn raw materials into cash proceeds is a firm's :

19 / 30

Which of the following statements is most accurate?

20 / 30

A vertical common-size balance sheet expresses each category of the balance sheet as a percentage of:

21 / 30

Consider the following statements.

Statement #1: Par value is a nominal dollar value assigned to shares of stock in a corporation's charter.

Statement #2: The par value of common stock represents the amount the corporation received when the stock was issued.

With respect to these statements :

22 / 30

Which of the following transactions is most likely to be recognized on a firm's statement of changes in equity?

23 / 30

Under IFRS, the statement of shareholders’ equity presents information about the:

24 / 30

For financial assets classified as held to maturity, how are unrealized gains and losses reflected in shareholders’ equity?

25 / 30

Trade receivables are most commonly reported at:

26 / 30

Defining total asset turnover as revenue divided by average total assets, all else equal, impairment write-downs of long-lived assets owned by a company will most likely result in an increase for that company in:

27 / 30

Which of the following would an analyst most likely be able to determine from a common-size analysis of a company’s balance sheet over several periods?

28 / 30

According to International Financial Reporting Standards, how do cash dividends received from trading securities and financial securities measured at fair value through OCI affect net income?

29 / 30

Which of the following best describes a limitation of the balance sheet in determining a company’s intrinsic value?

A company’s balance sheet:

30 / 30

Which of the following items is most likely to appear near the top of the asset section in a liquidity-based presentation of a balance sheet?

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MORE EXAM in the Balance Sheet :

Balance Sheet quiz level 1

Balance Sheet Calculation quiz level 1

Balance Sheet Calculation quiz level 2

 

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