MCQ Exam - Mid-Semester

Immediately after we are born, we start picking up sounds; the sound of our mother’s voice, the music playing in the elevator on the way to the car, and the happy cheers from a small child seeing their new sibling for the first time. We are always listening–picking up on conversations not meant for our ears, eavesdropping on the gossip of the adult world, and finding the meaning in the portentous silence. From all these auditory stimuli, we piece together the world around us to better understand what is happening to us, around us, and the secret happenings that were not for us to know. Great writers are the ones who listen and say nothing–who take it all in and save their classified information for a day when all the right words flow and form one epic story of the wondrous world we live in.

Managements are required to make judgments, estimates and assumptions that affect the application of policies; assets, liabilities, income and expenses in order to prepare consolidated financial statements. These assumptions and estimates are critical and they are made in

As the health care delivery system developed in the US, it emphasized specialization over primary care.

The knowledge of accounting concepts and terminology is useful to anyone in a business activity is due to the following reasons;

11. Investors and creditors are particularly interested in this financial statement because it tells them what is happening to the company’s most important resource?

Accounting is commonly described as the language of business. It is very important for all business owners to have very good understanding of their finances. Having the knowledge of your business finance, you will know where the money is going. Every business owner should have a good understanding of finance. To have a good understanding business owners needs to understand basic accounting steeps, how does accounting play a role in their business, how to define a financial statement and how the omission of any of these steps would affect the success of a business. Once you have an understanding of accounting/finance and the how it plays

1. For the year-end December 31, 2007, financial statements, what amount should M record as a liability?

3. On the basis of the responses to Question 1 and 2, what are the units of accounting in this arrangement?

1. This is a closed book exam. You may only have pens, pencils , a calculator and one cheat sheet double sided on 8 ½ by 11 paper at your desk.

f) To evaluate the material misstatement in the accounts, I think both of the consolidated income statement and the three financial statements are useful. We need to use the information properly from all the financial statements. However the consolidated income statement is the most useful one. If there is a significant change in an account balance comparing with preceding two years, the auditor will examine whether there a material misstatement exists. For instance, the bad debt expense as a percent of net sales in 2011, 2010 and 2009 are 0.56%, 0.70% and 0.69%, respectively. There should

1a) What should the auditor consider when determining whether an account should be considered significant?

6. Governmental accounting and reporting with direct impact on entities ability to collect financial information accurately,

These areas include • accounting choices, estimates, and judgments • changes in accounting methods and assumptions • discretionary expenditures •

Feedback: The primary purpose of accounting is to provide information that is useful for decision-making purposes. Accounting is 'not an end', but rather it is a 'means to an end.' LO 1

Midterm Instructions: Answer each question below in essay form, based on the principles and cases that we have reviewed so far this semester (i.e., Recognizing the Opportunity, Marshalling Resources).