1. Working capital is a. assets which enable the entity to operate profitably c. current assets less current liabilities b. capital which has been reinvested in the business d. unappropriated retained earnings 2. The term "net assets" represents a. retained earnings c. total assets less total liabilities b. total contributed capital d. current assets less current liabilities 3. Notes to financial statements a. must be quantifiable c. must qualify as an element b. amplify/explain items shown on the financial statements d. all of the above 4. The presentation of the notes to financial statements in a systematic manner a. is voluntary c. is mandatory, as far as practicable b. is mandatory d. depends on the industry 5. Disclosure of information about key sources of estimation uncertainty a. is voluntary c. either (a) or (b) b. is mandatory d. depends on the industry 6. Disclosure of information about judgments a. is voluntary c. either (a) or (b) c. is mandatory d. depends on the industry 7. Financial statements must be prepared at least a. quarterly c. semi-annually b. annually d. monthly

8. It is the presentation and classification of financial statement items on a uniform basis from one accounting period to thenext. a. comparable information c. aggregation b. consistency of presentation d. accrual basis 9. Which of the following should be classified as a noncurrent asset? a. plant expansion fund c. prepaid rent b. goods in process d. accrued interest receivable 10. The term "deficit" refers to a. an excess of current assets over current liabilities c. a debit balance in retained earnings b. an excess of current liabilities over current assets d. a prior period error