Other questions in this quiz

2. Which of the following statements is true?

  • Companies typically manipulate general reserves and provisions by increasing them in leaner times and reducing them in more profitable years.
  • Increased accounts receivable that are not accompanied by an increased provision for bad debts could be a sign of earnings management.
  • A company that shows rising revenues without an increase in cash flow is engaging in creative accounting.

3. Which of the following is a noncurrent asset for a shoe manufacturer?

  • Long-term debt
  • Inventory
  • Plant & machinery
  • Accounts receivable
  • Cash

4. Which of the following is the main accounting standard setter in the US?

  • FASB
  • SEC
  • DTCC
  • GAAP
  • IASB

5. Which of the following describes the accounting equation?

  • Liabilities = Short-term Assets + Long-Term Debt
  • Total Debt = Equity + Assets
  • Assets = Liabilities + Equity
  • Equity = Noncurrent Assets + Liabilities
  • Equity = Assets + Liabilities

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