X Chapter 2 Assign .php?file=%2F1026503%2Fmod_assign%2Fintroattachment%2F%2FAcct%20%20theory%20final%20%20Exam%20spring PART (II) Multiple Choice ( 18 points) 1) Major limitations of the balance sheet include all of the following except A. Most assets and liabilities are stated at historical cost. B. Judgments and estimates are used in determining many of the items reported. C. It omits many items that are of financial value but cannot be measured. objectively D. Only amounts known with certainty are reported. 2) Investors and creditors can use the information in the income statement to A. Evaluate the past performance of the enterprise. B. Provide a basis for predicting future performance C. Help assesses the uncertainty of future cash flows. D. All of these 3) Which of the following statement is the most truet A) Accounting for change in accounting method applied retro-actively. And require the restatement of prior year financial statement. B) a change in accounting estimate applied prospectively and did not require restatement of prior year financial statements C) Accounting for prior year accounting errors required restatement of prior year financial statements D) All of the above statement are true. 4) Which of the following statement is the most truet A) Unpaid dividends on cumulative preferred stock usually reported as current liability in the B/S B) Paid in capital include the amount of contributed capital plus Retained Earnings C) Redeemable preferred stock should be reported as liabilities D) A&B E) all of the above 5) Which of the following statement is the most true: Andersins rising Itendateve higher value foienter high