The ratios that reflect financial strength are A) activity and coverage ratios. B) liquidity and coverage ratios. C) liquidity and profitability ratios. D) profitability and activity ratios.

Changes in accounting principles that are adopted in interim periods are A) prorated over the four quarters. B) disclosed only by note. C) omitted from the quarterly net income. D) applied retroactively to prior interim periods.

The full disclosure principle, as adopted by the accounting profession, is best described by which of the following? A) Disclosure is required of any financial facts significant enough to influence the judgment of an informed reader. B) Information about each account balance appearing in the financial statements is to be included in the notes to the financial statements. C) Enough information should be disclosed in the financial statements so a person wishing to invest in the shares of the company can make a profitable decision. D) All information related to an entity's business and operating objectives is required to be disclosed in the financial statements.

Under IFRS, related party transactions should be remeasured when A) IFRS does not require the remeasurement of related party transactions. B) there is a lack of economic substance. C) the transaction is not in the normal course of operations. D) the transaction does not result in a significant change in ownership.

When using the discrete view to prepare interim statements, two exceptions that are permitted deal with the calculation of A) depreciation and income tax expense. B) income tax expense and employer's payroll tax expense C) depreciation and unearned revenue. D) unearned revenue and employer's payroll tax expense.