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WorksheetsAcct 221 Chapter 05
Total questions: 10
Worksheet time: 5mins
Name
Class
Date
1.
Analysts use the balance sheet to assess a company's liquidity, solvency, and financial flexibility.
a)
True
b)
False
2.
The ability of an enterprise to take effective actions to alter the amounts and timing of cash flows so it can respond to unexpected needs and opportunities is
a)
liquidity
b)
solvency
c)
financial flexibility
3.
The amount of time that is expected to elapse until an asset is realized or otherwise converted into cash or until a liability has to be paid
a)
liquidity
b)
solvency
c)
financial flexibility
4.
The ability of a company to pay its debts as they mature
a)
liquidity
b)
solvency
c)
financial flexibility
5.
When a company carries a low level of long-term debt relative to assets, it has lower solvency than a similar company with a high level of long-term debt.
a)
True
b)
False
6.
Major limitations of the balance sheet include
a)
historical cost
b)
unable to measure all items of financial value
c)
use of judgements and estimates
d)
all of these are limitations
7.
Current assets are presented in the balance sheet in order of liquidity
a)
True
b)
False
8.
Land not currently used in operations, such as land held for speculation is classified as
a)
Property, Plant and Equipment
b)
Current Asset
c)
Investment
d)
Other
9.
An obligations that a company reasonably expects to liquidate either through the use of current assets or the creation of other current liabilities
a)
Current Liability
b)
Non Current Liability
c)
Long Term Liability
d)
Current Maturities of Long Term Debt
10.
Techniques of disclosures include:
a)
Parenthetical Explanations
b)
Notes and Supporting Schedules
c)
Cross-Reference and Contra Items
d)
All of these
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