Hi there
Please answer the below in 15 mins, urgent. tahnks in advance:
1.The Tom Root Corporation guarantees its product againstdefects for one year. In what year should the corporation reportthe warranty expense?
Select one:
a. The cost of warranty is included in the product's sellingprice, and therefore warranty expense is never recorded.
b. in the year the product is sold
c. Expense is not disclosed because of the Liability forWarranty.
d. in the year the product becomes defective and is repaired orreplaced
2.Financial accounting focuses on the specific needs of decisionmakers external to the organization. Which of the following wouldnot be an external user?
Select one:
a. Internal Revenue Service
b. Vice President - Marketing
c. banks
d. stockholders
3.
When dividends are paid,
Select one:
a. total assets remain the same.
b. total assets will decrease.
c. total assets will increase.
d. stockholders' equity will increase.
4.
The basic rights usually attached to shares of common stockinclude:
Select one:
a. the guaranteed right to receive dividend payments eachyear.
b. the right to determine CEO's pay rate.
c. the right to vote on the matter brought before the annualshareholder meeting.
d. all of the above.
5.
Outstanding shares of stock are:
Select one:
a. shares of stock owned by unknown individuals.
b. issued shares that are still in circulation.
c. also called treasury shares.
d. authorized shares that have not yet been issued.
6.
Par value:
Select one:
a. specifies the exact amount for which an individual share ofstock must be sold.
b. is the maximum amount for which a share of stock may besold.
c. establishes the minimum price for the stock when issued.
d. is an amount determined by the marketplace when shares ofstock are sold.
6.
Which of the following would not be a source of informationabout the financial condition of a company?
Select one:
a. the auditor's report
b. the company's 10K
c. articles in the business press
d. All of the above are sources.
7.
In making investment and lending decisions:
Select one:
a. there is no relationship between risk and rate of return.
b. alternatives with the highest return generally have thelowest risk.
c. alternatives with the highest risk are selected.
d. alternatives with the lowest return generally have the lowestrisk.
8.ith which of the following would creditors be mostconcerned?
Select one:
a. dividends
b. profitability
c. future security prices
d. none of the above
9.
A fiscal year:
Select one:
a. is any twelve consecutive months.
b. ends on December 31.
c. always ends at the end of the month.
d. end on June 30.
10.
The key components in measuring income are:
Select one:
a. assets and liabilities.
b. revenue and liabilities.
c. retained earnings and expenses.
d. revenue and expenses.
e. expenses and assets.
f. revenue and assets.
11.Which of the following help(s) determine when a sale shouldbe included in the income statement?
Select one:
a. recognition principle
b. cost recovery principle
c. matching principle
d. Both a. and c.
12.
The recording of expenses in the same time period as the relatedrevenues is called:
Select one:
a. matching.
b. accuracy.
c. allocation.
d. recognition.
