Blooms: Remember AACSB: Reflective thinking AICPA: BB Critical Thinking AICPA: FN Measurement 102. Which of the following best describes the additional information that companies use to meet the requirements of full disclosure in financial statements? a. Parenthetical comments or modifying comments placed on the face of the financial statements. b. Disclosure notes conveying additional insights about company operations, accounting principles, contractual agreements, and pending litigation. c. Supplemental schedules and tables that report more detailed information than is in the primary financial statements. d. Comments on the face of the financial statements, and schedules, tables, and narrative disclosures in to the financial statements. Answer: d Level of Learning: 2 Medium Learning Objective: 01-09 Topic Area: Concepts―Recognition–Measurement–Disclosure Blooms: Remember AACSB: Reflective thinking AICPA: FN Measurement 103. Ford Motor Company purchases services from suppliers on account and sells its products to distributors on short-term credit. As a result, do each of these events affect net income faster than they affect net operating cash flows? Purchase Services Sell Products a. Yes Yes b. Yes No c. No Yes d. No No Answer: a Level of Learning: 3 Hard Learning Objective: 01-02 Learning Objective: 01-09 Topic Area: Cash versus accrual accounting Topic Area: Concepts―Recognition–Measurement–Disclosure Blooms: Analyze AACSB: Analytical thinking AICPA: BB Critical Thinking AICPA: FN Measurement 104. The revenue/expense approach emphasizes: a. Recognition of revenues. b. Recognition of expenses. c. The income statement. d. All of the above are correct.
Blooms: Remember AACSB: Reflective thinking AICPA: BB Critical Thinking AICPA: FN Measurement 102. Which of the following best describes the additional information that companies use to meet the requirements of full disclosure in financial statements? a. Parenthetical comments or modifying comments placed on the face of the financial statements. b. Disclosure notes conveying additional insights about company operations, accounting principles, contractual agreements, and pending litigation. c. Supplemental schedules and tables that report more detailed information than is in the primary financial statements. d. Comments on the face of the financial statements, and schedules, tables, and narrative disclosures in to the financial statements. Answer: d Level of Learning: 2 Medium Learning Objective: 01-09 Topic Area: Concepts―Recognition–Measurement–Disclosure Blooms: Remember AACSB: Reflective thinking AICPA: FN Measurement 103. Ford Motor Company purchases services from suppliers on account and sells its products to distributors on short-term credit. As a result, do each of these events affect net income faster than they affect net operating cash flows? Purchase Services Sell Products a. Yes Yes b. Yes No c. No Yes d. No No Answer: a Level of Learning: 3 Hard Learning Objective: 01-02 Learning Objective: 01-09 Topic Area: Cash versus accrual accounting Topic Area: Concepts―Recognition–Measurement–Disclosure Blooms: Analyze AACSB: Analytical thinking AICPA: BB Critical Thinking AICPA: FN Measurement 104. The revenue/expense approach emphasizes: a. Recognition of revenues. b. Recognition of expenses. c. The income statement. d. All of the above are correct.
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