Reference no: EM132777104

Problem 1: Which of the following is not an objective of financial reporting?

a. To reflect current stock prices and information concerning stock markets.

b. To reflect resources and claims to resources.

c. To reflect prospective cash receipts to investors and creditors.

d. To reflect prospective cash flows to an enterprise.

Problem 2: Which of the following accounts are normally reported as long-term liabilities on a classified balance sheet?

a. Capital stock and accounts payable

b. Notes payable due in five years and bonds payable

c. Interest payable and mortgage payable

d. Income taxes payable and salaries payable