Financial Statement

QUESTION 1

1. "According to the company's expense recognition note, we capitalize advertising and promotional costs."

   True.

   False.

2.5 points  

QUESTION 2

1. "The company's earned operating revenues for the most recent reporting period were $4,968,301,000"

   True.

   False.

2.5 points  

QUESTION 3

1. Which of the company's expense accounts on the most recent income statement includes prepaid expenses?

   Product development

   Sales and marketing

   General and administrative

   Not enough information to determine

2.5 points  

QUESTION 4

1. "According to the company's revenue recognition note, revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service is performed, and collectability of the related fee is reasonably assured."

   True.

   False.

2.5 points  

QUESTION 5

1. Which of the company's balance sheet accounts represents future cash inflows from customers for revenue already earned?

   Accounts receivable

   Prepaid expenses and other current assets

   Deferred revenue

2.5 points  

QUESTION 6

1. "The company's most recent balance sheet states deferred revenue of $134,031,000. This deferred revenue amount is included in the revenue account on the company's most recent income statement. "

   True.

   False.

2.5 points  

QUESTION 7

1. Which of the company's balance sheet accounts represents future cash outflows for expenses already incurred?

   Accounts payable

   Accounts receivable

   Prepaid expenses and other current assets

   Deferred revenue

2.5 points  

QUESTION 8

1. Which of the company's balance sheet accounts represents expenses that will appear on next year's income statement?

   Accounts receivable

   Prepaid expenses and other current assets

   Other accrued expenses and current liablities

2.5 points  

QUESTION 9

1. Does the operating activities of the company's most recent statement of cash flows include cash inflows from revenues that were accrued at the end of the most recent reporting period?

   Yes.

   No.

2.5 points  

QUESTION 10

1. The amount of cash that the company had collected from customers in advance of providing goods and services that will be earned revenue on next year's income statement was:

   "$134,031,000"

   "$208,691,000"

   "$602,792"

   "$1,047,504,000"