58.Investors and creditors are interested in the probability that their original investment or loan will eventually be returned, and that they will receive a reasonable return while their funds are invested or borrowed. These expectations are collectively referred to as:
A. Expected profitability.
B. The objectives of financial reporting.
C. Cash flow prospects.
D. Financial position.
59.A complete set of financial statements for Citywide Company, at December 31, 2014, would include each of the following, except:
A. Balance sheet as of December 31, 2014.
B. Income statement for the year ended December 31, 2014.
C. Statement of projected cash flows for 2015.
D. Notes containing additional information that is useful in interpreting the financial statements.
60.The general purpose financial statements prepared annually by a corporation would not include the:
A. Balance sheet.
B. Income tax return.
C. Income statement.
D. Statement of cash flows.
61.Which of the following is a characteristic of financial accounting information?
A. Its preparation requires judgment.
B. It is more about the future than it is about the past.
C. None of it is based on estimates, assumptions, and judgments.
D. Notes and explanations from management are not included.
62.Which of the following statements is considered a “snapshot” of the business in financial or dollar terms?
A. Statement of financial position.
B. Statement of cash flows.
C. Income statement.
D. The federal income tax return.
63.Objectives of financial reporting to external investors and creditors include preparing information about all of the following except:
A. Information used to determine which products to produce.
B. Information about economic resources, claims to those resources, and changes in both resources and claims.
C. Information that is useful in assessing the amount, timing, and uncertainty of future cash flows.
D. Information that is useful in making investment and credit decisions.
64.Financial accounting information is characterized by all of the following except:
A. It is historical in nature.
B. It results from inexact and approximate measures.
C. It is factual, so it does not require judgment to prepare.
D. It is enhanced by management's explanation.
65.It is the function of management accounting to perform the following activities, except:
A. Financial forecasts.
B. Cost accounting.
C. Internal audits.
D. Audited financial statements.
66.All of the following are characteristics of management accounting, except:
A. Reports are used primarily by insiders rather than by persons outside of the business entity.
B. Its purpose is to assist managers in planning and controlling business operations.
C. Information must be developed in conformity with generally accepted accounting principles or with income tax regulations.
D. Information may be tailored to assist in specific managerial decisions.
67.Internal users of financial accounting information include all of the following except:
A. Investors.
B. Managers.
C. Chief Financial Officer.
D. Chief Executive Officer.
