Teague Industries Presented below is selected financial data for Teague Industries for the current year: \(\begin{array}{|c|c|c|c|} \hline \text { Current assets: } & & \text { Current liabilities } & \\ \hline \text { Cash and cash equivalents } & \$ 3,583 & \text { Accounts payable } & \$ 5,335 \\ \hline \text { Short-term investments } & 1,595 & \text { Other current liabilities } & \underline{2,882} \\ \hline \text { Receivables, net } & 1,851 & \text { Total current liabilities } & 8,217 \\ \hline \text { Merchandise inventories } & 6,255 & \text { Noncurrent liabilities } & 5,146 \\ \hline \text { Other current assets } & 1,925 & \text { Shareholders' Equity } & 6,290 \\ \hline \text { Total current assets } & 15,209 & \begin{array}{l} \text { Total liabilities and } \\ \text { shareholders' } \\ \text { equity } \end{array} & \$ 19,653 \\ \hline \text { Noncurrent assets } & 4,444 & & \\ \hline \text { Total assets } & \$ 19,653 & & \\ \hline \text { Revenues } & \$ 50,826 & & \\ \hline \text { Costs and Expenses } & 45,963 & & \\ \hline \text { Operating Income } & 4,863 & & \\ \hline \begin{array}{l} \text { Other income/expense (including } \\ \text { interest expense of } \$ 70 \text { ) } \end{array} & (46) & & \\ \hline \text { Income before income tax } & 4,817 & & \\ \hline \text { Income tax expense } & (1,429) & & \\ \hline \text { Net income } & \$ 3,388 & & \\ \hline \end{array}\) Previous Years' Financial Data \[\begin{array} { | l | r | } \hline \text { Total Assets } & \$ 17,320 \\ \hline \text { Shareholders' Equity } & 4,010 \\ \hline \end{array}\] The return on assets for Teague Industries is ________. (Round your answer to two decimal places, X.XX.)

A) 17.24% B) 18.33% C) 27.81% D) 19.56% A) 17.24% B) 18.33% C) 27.81% D) 19.56%

Matthews Company Presented below is selected financial information for Matthews Corporation for the most recent fiscal year ended December 31 ($ millions) \[\begin{array} { | l | r | l | r | } \hline \text { Current assets: } & & \text { Current liabilities: } & \\ \hline \text { Cash and cash equivalents } & \$ 2,432 & \text { Accounts payable } & \$ 5,030 \\ \hline \text { Short-term investment } & 1,456 & \text { Other current liabilities } & 2,767 \\ \hline \text { Receivables, net } & 1,310 & \text { Total current liabilities } & 7,797 \\ \hline \text { Merchandise inventories } & 5,174 & \text { Noncurrent liabilities } & 2,489 \\ \hline \text { Other current assets } & 1,407 & \text { Shareholders' Equity } & 5,020 \\ \hline \text { Total current assets } & 11,779 & \text { Total liabilities and shareholders' equity } & \$ 15,306 \\ \hline \text { Noncurrent assets } & 3,527 & & \\ \hline \text { Total assets } & \$ 15,306 & & \\ \hline \end{array}\] \[\begin{array} { | l | r | } \hline \text { Revenues } & \$ 40,339 \\ \hline \text { Costs and Expenses } &\underline{ 38,889} \\ \hline \text { Operating Income } & 1,450 \\ \hline \begin{array} { l } \text { Other income/expense (including interest expense of } \\ \$ 90 ) \end{array} &\underline{ ( 63 )} \\ \hline \text { Income before income tax } & 1,387 \\ \hline \text { Income tax expense } &\underline{ ( 141 )} \\ \hline \text { Net income } &\underline{ \$ 1,246} \\ \hline \end{array}\] \[\begin{array} { l } \text { Previous Year's Financial Data } \\ \text { Total Assets } &\$14,013\\ \text { Shareholders' Equity }&3,989 \end{array}\] The debt to equity ratio for Matthews Corporation is ________. (Round your answer to two decimal places, X.XX.)

A) 0.50 B) 1.00 C) 1.55 D) 2.05 A) 0.50 B) 1.00 C) 1.55 D) 2.05

Matthews Company Presented below is selected financial information for Matthews Corporation for the most recent fiscal year ended December 31 ($ millions) \[\begin{array} { | l | r | l | r | } \hline \text { Current assets: } & & \text { Current liabilities: } & \\ \hline \text { Cash and cash equivalents } & \$ 2,402 & \text { Accounts payable } & \$ 5,050 \\ \hline \text { Short-term investment } & 1,416 & \text { Other current liabilities } & 2,757 \\ \hline \text { Receivables, net } & 1,310 & \text { Total current liabilities } & 7,807 \\ \hline \text { Merchandise inventories } & 5,174 & \text { Noncurrent liabilities } & 2,479 \\ \hline \text { Other current assets } & 1,407 & \text { Shareholders' Equity } & \underline { 5,000 } \\ \hline \text { Total current assets } & 11,709 & \text { Total liabilities and shareholders' equity } & \$ 15,286 \\ \hline \text { Noncurrent assets } & 3,577 & & \\ \hline \text { Total assets } & \$ 15,286 & & \\ \hline \end{array}\] \[\begin{array} { | l | r | } \hline \text { Revenues } & \$ 40,339 \\ \hline \text { Costs and Expenses } &\underline{ 38,889} \\ \hline \text { Operating Income } & 1,450 \\ \hline \begin{array} { l } \text { Other income/expense (including interest expense of } \\ \$ 90 ) \end{array} &\underline{(63)} \\ \hline \text { Income before income tax } & 1,387\\ \hline \text { Income tax expense } &\underline{ ( 141 )}\\ \hline \text { Net income } &\underline{\$ 1,246 } \\ \hline \end{array}\] $\begin{array}{lrr} \text { Previous Year's Financial Data } &\\ \text { Total Assets } &\underline{\$14,013}\\ \text { Shareholders' Equity } &\underline{\$3,989}\\ \end{array}$ The current ratio for Matthews Corporation is ________. (Round your answer to two decimal places, X.XX.)

A) 0.67 B) 1.50 C) 1.44 D) 4.72 A) 0.67 B) 1.50 C) 1.44 D) 4.72

Valley Mills Enterprises Presented here are cash flows (in $ Millions) for Valley Mills Enterprises' most recent fiscal year. $\begin{array}{lrr} \underline{\text { Cash received from: }}\\ \text { Customers } &\$2,500\\ \text { Interest on investments } &270\\ \text { Sale of old equipment } &240\\ \text { Sale of company's capital stock } &700\\ \text { Long-term debt proceeds} &1,300\\ \end{array}$ $\begin{array}{lr} \underline{\text { Cash paid for: }}\\ \text { Interest on debt } & \$ 60 \\ \text { Income tax } & 140 \\ \text { Principal payments on debt } & 1,100 \\ \text { Purchase of building } &4,000 \\ \text { Purchase of inventory } & 1,600 \\ \text { Dividends on capital stock } & 400 \\ \text { Operating expenses } & 825 \end{array}$ Net cash flows provided (used) by investing activities are ________.

A) ($2,460) B) ($3,490) C) ($3,760) D) ($4,000) A) ($2,460) B) ($3,490) C) ($3,760) D) ($4,000)

Exam 6: Statements of Financial Position and Cash Flows and the Annual Report

Webb Corporation's trial balance for July 31, the end of its fiscal year, included the following accounts: Accounts Receivable \ 34,000 Inventories 52,000 Franchise 38,000 Investments 48,000 Prepaid Insurance 5,000 Note Receivable 96,000 Cash in Bank 6,000 The investments account consists of marketable securities of which management plans to sell half of by December 31. The rest of the securities will be held longer than one year. Prepaid insurance is a two-year policy that was purchased on July 31. The note receivable is an installment note that will be paid in three equal installments on December 31 of each year. The amount that should be classified as current assets in the July 31 balance sheet is ________.

(Multiple Choice)

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Question 41

Presented below are selected accounts for San Marcos Corporation for December 31 of the current year. What are current assets for San Marcos Corporation?

(Multiple Choice)

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Question 42

If a company's financial statements are not fairly presented, which type of opinion will the auditor issue?

(Multiple Choice)

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Question 43

Classify the following accounts as assets (A), liabilities (L), or shareholders' equity (SE) and whether they are current (C), non-current (NC), or not applicable (N/A). Account A, L, SE C,NC,N/A Merchandise Inventory Unearned Rent (one-year lease) Prepaid Insurance Bonds Payable (due in 5 years) Investment in B Company (to be held 5 years) Goodwill Additional Paid-in Capital Accumulated Other Comprehensive Income Equipment Income Tax Payable

(Essay)

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Question 44

Teague Industries Presented below is selected financial data for Teague Industries for the current year: Current assets: Current liabilities Cash and cash equivalents \ 3,583 Accounts payable \ 5,335 Short-term investments 1,595 Other current liabilities Receivables, net 1,851 Total current liabilities 8,217 Merchandise inventories 6,255 Noncurrent liabilities 5,146 Other current assets 1,925 Shareholders' Equity 6,290 Total current assets 15,209 Total liabilities and shareholders' equity \ 19,653 Noncurrent assets 4,444 Total assets \ 19,653 Revenues \ 50,826 Costs and Expenses 45,963 Operating Income 4,863 Other income/expense (including interest expense of \ 70 ) (46) Income before income tax 4,817 Income tax expense (1,429) Net income \ 3,388 Previous Years' Financial Data Total Assets \ 17,320 Shareholders' Equity 4,010 The return on assets for Teague Industries is ________. (Round your answer to two decimal places, X.XX.)

(Multiple Choice)

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Question 45

All of the following activities are classified as operating activities on a statement of cash flows except ________.

(Multiple Choice)

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Question 46

Explain the additional footnote disclosures to financial statements that are required by IFRS.

(Essay)

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Question 47

Which of the following is considered a financing activity when preparing the statement of cash flows?

(Multiple Choice)

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Question 48

If there is substantial doubt as to whether an entity will continue to operate within one year after the financial statements are issued and management has devised plans that will probably alleviate the conditions that raise the going concern doubts, then which of the following must be disclosed:

(Multiple Choice)

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Question 49

Matthews Company Presented below is selected financial information for Matthews Corporation for the most recent fiscal year ended December 31 ($ millions) Current assets: Current liabilities: Cash and cash equivalents \ 2,432 Accounts payable \ 5,030 Short-term investment 1,456 Other current liabilities 2,767 Receivables, net 1,310 Total current liabilities 7,797 Merchandise inventories 5,174 Noncurrent liabilities 2,489 Other current assets 1,407 Shareholders' Equity 5,020 Total current assets 11,779 Total liabilities and shareholders' equity \ 15,306 Noncurrent assets 3,527 Total assets \ 15,306 Revenues \ 40,339 Costs and Expenses Operating Income 1,450 Other income/expense (including interest expense of \ 90) Income before income tax 1,387 Income tax expense Net income Previous Year's Financial Data Total Assets \1 4,013 Shareholders' Equity 3,989 The debt to equity ratio for Matthews Corporation is ________. (Round your answer to two decimal places, X.XX.)

(Multiple Choice)

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Question 50

Matthews Company Presented below is selected financial information for Matthews Corporation for the most recent fiscal year ended December 31 ($ millions) Current assets: Current liabilities: Cash and cash equivalents \ 2,402 Accounts payable \ 5,050 Short-term investment 1,416 Other current liabilities 2,757 Receivables, net 1,310 Total current liabilities 7,807 Merchandise inventories 5,174 Noncurrent liabilities 2,479 Other current assets 1,407 Shareholders' Equity Total current assets 11,709 Total liabilities and shareholders' equity \ 15,286 Noncurrent assets 3,577 Total assets \ 15,286 Revenues \ 40,339 Costs and Expenses Operating Income 1,450 Other income/expense (including interest expense of \ 90) Income before income tax 1,387 Income tax expense Net income Previous Year's Financial Data Total Assets Shareholders' Equity The current ratio for Matthews Corporation is ________. (Round your answer to two decimal places, X.XX.)

(Multiple Choice)

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Question 51

Liquidity measures a company's ability to meet its long-term obligations as they become due.

(True/False)

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Question 52

Details about the composition of intangible assets are located in the summary of significant accounting policies.

(True/False)

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Question 53

Under IFRS, companies are required to disclose information about the assumptions and estimates made ________.

(Multiple Choice)

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Question 54

Which of the following is not a cash equivalent?

(Multiple Choice)

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Question 55

Which of the following would probably not be a related party?

(Multiple Choice)

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Question 56

Valley Mills Enterprises Presented here are cash flows (in $ Millions) for Valley Mills Enterprises' most recent fiscal year. Customers \2 ,500 Interest on investments 270 Sale of old equipment 240 Sale of company's capital stock 700 Long-term debt proceeds 1,300 Interest on debt \ 60 Income tax 140 Principal payments on debt 1,100 Purchase of building 4,000 Purchase of inventory 1,600 Dividends on capital stock 400 Operating expenses 825 Net cash flows provided (used) by investing activities are ________.

(Multiple Choice)

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Question 57

The formula for working capital is ________.

(Multiple Choice)

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Question 58

Which of the following is used to arrive at ending retained earnings?

(Multiple Choice)

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Question 59

Redemption of bonds payable is classified as a financing activity on the statement of cash flows.

(True/False)

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Question 60

Presented below are selected accounts for San Marcos Corporation for December 31 of the current year. What are current assets for San Marcos Corporation?

If a company's financial statements are not fairly presented, which type of opinion will the auditor issue?

All of the following activities are classified as operating activities on a statement of cash flows except ________.

Explain the additional footnote disclosures to financial statements that are required by IFRS.

Which of the following is considered a financing activity when preparing the statement of cash flows?

If there is substantial doubt as to whether an entity will continue to operate within one year after the financial statements are issued and management has devised plans that will probably alleviate the conditions that raise the going concern doubts, then which of the following must be disclosed:

Liquidity measures a company's ability to meet its long-term obligations as they become due.

Details about the composition of intangible assets are located in the summary of significant accounting policies.

Under IFRS, companies are required to disclose information about the assumptions and estimates made ________.

Which of the following is not a cash equivalent?

Which of the following would probably not be a related party?

The formula for working capital is ________.

Which of the following is used to arrive at ending retained earnings?

Redemption of bonds payable is classified as a financing activity on the statement of cash flows.

The Financial Reporting Environment

Financial Reporting Theory

Judgment and Applied Financial Accounting Research

Review of the Accounting Cycle

Statements of Net Income and Comprehensive Net Income

Accounting and the Time Value of Money

Revenue Recognition

Extenssion: Ol Revenue Recognition Previous Standard

Short-Term Operating Assets: Cash and Receivables

Short-Term Operating Assets: Inventory

Long-Term Operating Assets: Acquisition, Cost Allocation

Long-Term Operating Assets: Departures From Historical Cost

Operating Liabilities and Contingencies

Financing Liabilities

Accounting for Stockholders Equity

Investing Assets

Accounting for Income Taxes

Accounting for Leases

Extension: Ol Accounting for Leases Current Standard

Accounting for Employee Compensation and Benefits

Earnings Per Share

Accounting Corrections and Error Analysis

The Statement of Cash Flows

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