What item is probably the least useful for an investor when analyzing financial statements?
The notes to the financial statements
The statement of cash flows
Public relations materials
The management report
Which of the following events that bring about a change in equity, do not affect comprehensive income:
Dividend paid to shareholders
A loss from discontinued operations
A remeasurement at fair value of PP&E
Salaries earned by employees
Which of the following should be disclosed in a summary of significant accounting policies?
Basis of profit recognition on long-term construction contracts
Future minimum lease payments in the aggregate and for each of the five succeeding fiscal years
Depreciation expense
Composition of sales by operating segment
Which of the following items is not classified as "other comprehensive income?"
Extraordinary gains from extinguishment of debt
Foreign currency translation adjustments
Actuarial gains and losses of a defined-benefit plan (alternative to the corridor approach)
Unrealized gains for the year on available-for-sale marketable securities
Which of the following statements is correct regarding reporting comprehensive income?
Accumulated other comprehensive income is reported in the shareholders' equity section of the statement of financial position
Both a statement of comprehensive income and an income statement are always required
Comprehensive income must include all changes in shareholders' equity for the period
Comprehensive income must include all changes in shareholders' equity for the period resulting from transactions with owners in their capacity as owners
Which of the following statements is not true regarding comprehensive income?
Net income is part of comprehensive income;
Other comprehensive income represents other changes in owners' equity not involving transactions with owners;
Finance costs are specifically excluded from comprehensive income;
Accumulated other comprehensive income is shown in the owners' equity section.
Where in its financial statements should a company disclose information about its concentration of credit risks?
No disclosure is required;
The notes to the financial statements;
Audit report;
Management's report to shareholders.
What types of information cannot be found in the financial statements?
Disclosures about the fair value of financial instruments
Disclosures about operating segments of the company
Reputation of the company, morale of employees and prestige in the community
Nature and terms of off-balance sheet financing arrangements