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Accounting Multiple Choice

48. Which of the following is not a source of industry information?
A) SEC manuals
B) Standard and Poor's
C) Trade Journals
D) Robert Morris Associates

49. Which of the following information would not be filed with the SEC by a publicly traded company?
A) 10-K report
B) Prospectus
C) Proxy statement
D) Tax return

50. Accounting Standards are best described as:
A) the result of a political process among groups with diverse interest
B) presentation standards mandated by the Securities and Exchange Commission
C) the state-of-the-art presentation of the science of accounting
D) measuring the quality of safeguarding assets

51. The majority of financing for most companies comes from which of the following sources?
A) owners and customers
B) creditors and customers
C) owners and managers
D) creditors and owners

52. Which of the following would not be found listed a liability on a company's balance sheet?
A) operating lease obligations
B) capital lease obligations
C) bonds payable
D) taxes payable

53. Which of the following would be found listed as a liability on a company's balance sheet?
A) operating lease obligations
B) projected benefit obligation
C) purchase commitment obligation
D) post-retirement benefits other than pension obligation

54. Which of the following is not a criterion for defining a lease as a capital lease?
A) Ownership is transferred by the end of the lease agreement
B) The lease contains an option to purchase the asset at a bargain price.
C) The present value of the lease payments at the beginning of the lease is 75% or more than the value of the asset
D) The lease term is at least 75% of the economic life of the asset.

55. Which of the following is true concerning bond covenants?
A) bond covenants are restrictions placed on bondholders to protect rights of equity holders
B) violations of a bond covenant requires that a company declare bankruptcy
C) if a company violates a bond covenant it means it has failed to make interest or principal repayments on debt in a timely manner
D) bond covenants are legal restrictions placed in order to minimize the risk of default on bonds.

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ACCT

48. Which f the following is not a source of industry information?
A) SEC manuals
B) Standard and Poor's
C) Trade Journals
D) Robert Morris Associates

49. Which of the following information would not be filed with the SEC by a publicly traded company?
A) 10-K report
B) Prospectus
C) Proxy statement
D) Tax return

50. Accounting Standards are best described as:
A) the result of a political process among groups with diverse interest
B) presentation standards mandated by the Securities and Exchange Commission
C) the state-of-the-art ...

Solution Summary

Answers to accounting multiple choice questions.

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