1. Which of the following activities would internal auditors NOT typically
perform in a large company?: Detect fraud
Evaluate internal
... [Show More] controls
*Prepare the primary financial statements
Assist with increasing the efficiency of operation
2. Correct Answer: $3,800
Beginning cash balance:
x + $309,800 - $118,000 - $190,000 = $5,600
x = $3,800: The following financial information is available for the year 2012:
Operating activities
$ 309,800
Investing activities
($118,000)
Financing activities
($190,000)
Ending cash balance
$ 5,600
Given this information, what is the beginning cash balance?
3. Net Income: What is typically viewed as the fundamental measure of a company's profitability, but there are also a variety of other measures of "income." The
best measure of sustainable profitability is income from continuing operations.
4. What are the three primary categories of an Income Statement?: The primary categories of income statement items are revenues, expenses, gains, and
losses.
5. Income from continuing operations and extraordinary items: Income statement items that do not relate to a company's continuing operations are income
from what?
6. Multi-step Income Statement: When revenue and expense items are arranged
to highlight important profit relationships, the resulting income statement format is
called a?
7. The Matching Concept: Revenue should be recognized when value has been
delivered to customers which is typically only after the required work has been
performed and after the collection of cash is reasonably assured. What method is
used to decide when to recognize expenses?
8. Assets = Liabilities + Paid-in Capital + (Revenues - Expenses - Dividends)-
: Individual transactions impacting income can be analyzed using the expanded
accounting equation, which is:
9. Forecast income for future periods.: What is an important use of an income
statement? It requires an understanding of what underlying factors determine the
level of a revenue or an expense.
10. Accrual Accounting: What is th [Show Less]