Question 1

Read the information about Crystal, Inc. Which item is most "liquid"? Why is liquidity important?

Accepted Answer

Cash is the most liquid asset.

Question 2

Read the information about Fellsmere Corporation.
Required:
A Did Fellsmere's current ratio increase or decrease from 2013 to 2014? Make any necessary calculations and
explain your answer. Which financial statement users are most concerned with this ratio?
B The balance sheets show a large increase in retained earnings during 2014. Identify the possible reasons for this increase.

Accepted Answer

A Current ratio for 2014 = 1.56 to 1
$2,

Question 3

From the following choices, select the answer that describes the effect on working capital as a result of the transaction.
-Collected an account receivable

Accepted Answer

A) Working capital will increase 
B) Working capital will decrease 
C) Working capital will not change 
A) Working capital will increase 
B) Working capital will decrease 
C) Working capital will not change

Question 4

Match the selected items from a classified balance sheet and multiple-step income statement to the section in which they would appear on the classified balance sheet or the income statement.
-Interest expense

Accepted Answer

A) Current Assets balance sheet 
B) Property, Plant, & Equipment balance sheet 
C) Current Liabilities balance sheet 
D) Long-term Liabilities balance sheet 
E) Stockholders' Equity balance sheet
F)Operating Revenue income statement
G)Operating Expenses income statement
H)Other Revenue & Expenses income statement
I)Income Taxes income statement 
A) Current Assets balance sheet 
B) Property, Plant, & Equipment balance sheet 
C) Current Liabilities balance sheet 
D) Long-term Liabilities balance sheet 
E) Stockholders' Equity balance sheet
F)Operating Revenue income statement
G)Operating Expenses income statement
H)Other Revenue & Expenses income statement
I)Income Taxes income statement

Question 5

is the capacity of information to make a difference in a decision.

Accepted Answer

The answer of is the capacity of information to make...

Question 6

Information that is material means that an error or alternative method of handling a transaction:

Accepted Answer

A)  would possibly affect the judgment of someone relying on the financial statements. 
B)  would not affect the decisions of users. 
C)  might cause a company to understate its earnings for the accounting period. 
D)  could increase the profitability of a company. 
A)  would possibly affect the judgment of someone relying on the financial statements. 
B)  would not affect the decisions of users. 
C)  might cause a company to understate its earnings for the accounting period. 
D)  could increase the profitability of a company.

Question 7

What is the purpose of a statement of stockholders' equity? How does it differ from the statement of retained earnings? Which statement is required?

Accepted Answer

A statement of stockholders' equity summ

Question 8

Identify whether the following investor questions are associated with a primary or b secondary financial reporting objectives.
-How much revenue will Apple generate during the time period in which I own the shares?

Accepted Answer

A) primary financial reporting objective 
B) secondary financial reporting objective 
A) primary financial reporting objective 
B) secondary financial reporting objective

Question 9

Presented below are items from Joplin Shoes statement of cash flows for 2014.
   A Determine whether Joplin Shoes' cash increased or decreased during the year.
B How much cash does Joplin Shoes have at the end of 2014?
C What is the purpose of the statement of cash flows?

Accepted Answer

A $90,000 increase
$75,000 Cash flows pr

Question 10

For each item listed, select the section of the balance sheet in which the item would be reported.
-Accounts receivable

Accepted Answer

A) Current Assets 
B) Property. Plant, and Equipment 
C) Current Liabilities 
D) Long-term Liabilities 
E) Stockholders' Equity 
A) Current Assets 
B) Property. Plant, and Equipment 
C) Current Liabilities 
D) Long-term Liabilities 
E) Stockholders' Equity

Question 11

If the current ratio is 2.5 to 1, net income is $6,000, and current liabilities are $18,000, how much is working capital?

Accepted Answer

A)  $6,000 
B)  $24,000 
C)  $27,000 
D)  $45,000 
A)  $6,000 
B)  $24,000 
C)  $27,000 
D)  $45,000

Question 12

Match the selected items from a classified balance sheet and multiple-step income statement to the section in which they would appear on the classified balance sheet or the income statement.
-Bonds payable

Accepted Answer

A) Current Assets balance sheet 
B) Property, Plant, & Equipment balance sheet 
C) Current Liabilities balance sheet 
D) Long-term Liabilities balance sheet 
E) Stockholders' Equity balance sheet
F)Operating Revenue income statement
G)Operating Expenses income statement
H)Other Revenue & Expenses income statement
I)Income Taxes income statement 
A) Current Assets balance sheet 
B) Property, Plant, & Equipment balance sheet 
C) Current Liabilities balance sheet 
D) Long-term Liabilities balance sheet 
E) Stockholders' Equity balance sheet
F)Operating Revenue income statement
G)Operating Expenses income statement
H)Other Revenue & Expenses income statement
I)Income Taxes income statement

Question 13

Hopper, Inc.
Use the information from Hopper Inc. to answer the following questions.
  
-Read the information about Hopper. Inc. Which statement best represents Hopper's performance?

Accepted Answer

A)  Hopper's profit margin ratio decreased. 
B)  Hopper has become more profitable. 
C)  Hopper's increase in operating revenues increased the company's net income. 
D)  Hopper's operating expenses as a percentage of operating revenues remained the same. 
A)  Hopper's profit margin ratio decreased. 
B)  Hopper has become more profitable. 
C)  Hopper's increase in operating revenues increased the company's net income. 
D)  Hopper's operating expenses as a percentage of operating revenues remained the same.

Question 14

Read the information about Fasoli, Inc.
Required:
Present the current liabilities section including the total of a classified balance sheet.

Accepted Answer

Current li

Question 15

Which one of the following statements is true?

Accepted Answer

A)  The two primary sources of financing available to corporations are borrowed funds and funds invested by owners. 
B)  Financing activities involve the acquisition of property, plant and equipment. 
C)  Borrowed funds are a more permanent source of financing than funds invested by owners. 
D)  Investing activities involve the selling of products or services and the incurring of expenses related to selling these products and services. 
A)  The two primary sources of financing available to corporations are borrowed funds and funds invested by owners. 
B)  Financing activities involve the acquisition of property, plant and equipment. 
C)  Borrowed funds are a more permanent source of financing than funds invested by owners. 
D)  Investing activities involve the selling of products or services and the incurring of expenses related to selling these products and services.

Question 16

Business entities generally carry on:

Accepted Answer

A)  operating, investing, and financing activities. 
B)  operating activities, but only corporations engage in financing and investing activities. 
C)  investing and operating activities, but only corporations engage in financing activities. 
D)  either investing or financing activities, but not both. 
A)  operating, investing, and financing activities. 
B)  operating activities, but only corporations engage in financing and investing activities. 
C)  investing and operating activities, but only corporations engage in financing activities. 
D)  either investing or financing activities, but not both.

Question 17

Which of the following best describes a company's financing activities?

Accepted Answer

A)  Financing activities focus on the sale of products and services. 
B)  Financing activities include selling products. 
C)  Financing activities enable a company to acquire assets needed to run a business. 
D)  Financing activities are represented by the revenues and expenses on the income statement. 
A)  Financing activities focus on the sale of products and services. 
B)  Financing activities include selling products. 
C)  Financing activities enable a company to acquire assets needed to run a business. 
D)  Financing activities are represented by the revenues and expenses on the income statement.

Question 18

Deal Mart
The 2014 income statement of Deal Mart shows operating revenues of $130,800, selling expenses of $37,100, general and administrative expenses of $34,900, interest expense of $900, and income tax expense of $11,430. Deal Mart's stockholders' equity was $280,000 at the beginning of the year and $320,000 at the end of the year. The company has 20,000 shares of stock outstanding at December 31, 2014.
-Read the information about Deal Mart. What is Deal Mart's net income?

Accepted Answer

A)  $80,000 
B)  $92,190 
C)  $130,800 
D)  $46,470 
A)  $80,000 
B)  $92,190 
C)  $130,800 
D)  $46,470

Question 19

What information is provided in an annual report in addition to the financial statements?

Accepted Answer

An annual report contains the reports of

Question 20

The 2014 income statement of Nasir Inc. shows operating revenues of $135,800, selling expenses of $40,310, general and administrative expenses of $33,990, interest expense of $880, and income tax expense of $13,090. Nasir's stockholders' equity was $250,000 at the beginning of the year and $345,000 at the end of the year. The company has 10,000 shares of stock outstanding at December 31, 2014.
REQUIRED:
Compute Nasir's profit margin. What other information would you need in order to comment on
whether this ratio is favorable?

Accepted Answer

Profit margin:
Net Income/Revenues = $47

Read the information about Crystal, Inc. Which item is most "liquid"? Why is liquidity important?

From the following choices, select the answer that describes the effect on working capital as a result of the transaction. -Collected an account receivable

Match the selected items from a classified balance sheet and multiple-step income statement to the section in which they would appear on the classified balance sheet or the income statement. -Interest expense

is the capacity of information to make a difference in a decision.

Information that is material means that an error or alternative method of handling a transaction:

What is the purpose of a statement of stockholders' equity? How does it differ from the statement of retained earnings? Which statement is required?

Identify whether the following investor questions are associated with a primary or b secondary financial reporting objectives. -How much revenue will Apple generate during the time period in which I own the shares?

Presented below are items from Joplin Shoes statement of cash flows for 2014. A Determine whether Joplin Shoes' cash increased or decreased during the year. B How much cash does Joplin Shoes have at the end of 2014? C What is the purpose of the statement of cash flows?

For each item listed, select the section of the balance sheet in which the item would be reported. -Accounts receivable

If the current ratio is 2.5 to 1, net income is $6,000, and current liabilities are $18,000, how much is working capital?

Match the selected items from a classified balance sheet and multiple-step income statement to the section in which they would appear on the classified balance sheet or the income statement. -Bonds payable

Hopper, Inc. Use the information from Hopper Inc. to answer the following questions. -Read the information about Hopper. Inc. Which statement best represents Hopper's performance?

Read the information about Fasoli, Inc. Required: Present the current liabilities section including the total of a classified balance sheet.

Which one of the following statements is true?

Business entities generally carry on:

Which of the following best describes a company's financing activities?

What information is provided in an annual report in addition to the financial statements?

Accounting As a Form of Communication

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, Plant, and Equipment, and Intangibles

Current Liabilities, Contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International-Financial-Reporting-Standards

Filters

Exam 2: Financial Statements and the Annual Report

Read the information about Crystal, Inc. Which item is most "liquid"? Why is liquidity important?

From the following choices, select the answer that describes the effect on working capital as a result of the transaction. -Collected an account receivable

Match the selected items from a classified balance sheet and multiple-step income statement to the section in which they would appear on the classified balance sheet or the income statement. -Interest expense

is the capacity of information to make a difference in a decision.

Information that is material means that an error or alternative method of handling a transaction:

What is the purpose of a statement of stockholders' equity? How does it differ from the statement of retained earnings? Which statement is required?

Identify whether the following investor questions are associated with a primary or b secondary financial reporting objectives. -How much revenue will Apple generate during the time period in which I own the shares?

Presented below are items from Joplin Shoes statement of cash flows for 2014. A Determine whether Joplin Shoes' cash increased or decreased during the year. B How much cash does Joplin Shoes have at the end of 2014? C What is the purpose of the statement of cash flows?

For each item listed, select the section of the balance sheet in which the item would be reported. -Accounts receivable

If the current ratio is 2.5 to 1, net income is $6,000, and current liabilities are $18,000, how much is working capital?

Match the selected items from a classified balance sheet and multiple-step income statement to the section in which they would appear on the classified balance sheet or the income statement. -Bonds payable

Hopper, Inc. Use the information from Hopper Inc. to answer the following questions. -Read the information about Hopper. Inc. Which statement best represents Hopper's performance?

Read the information about Fasoli, Inc. Required: Present the current liabilities section including the total of a classified balance sheet.

Which one of the following statements is true?

Business entities generally carry on:

Which of the following best describes a company's financing activities?

What information is provided in an annual report in addition to the financial statements?

Accounting As a Form of Communication

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, Plant, and Equipment, and Intangibles

Current Liabilities, Contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International-Financial-Reporting-Standards

Filters