Question 1

What is conservatism and why is it important in accounting?

Accepted Answer

Conservatism is taking the route that wi

Question 2

Identify each of the following items as operating O, investing I, or financing F activities on the statement of cash flowsassuming the indirect method. If an item is not on the statement, please mark it as none of these N. If the item is an inflow, please indicate by a +, e.g. O+, I+ or F+. If the item is an outflow, please indicate by brackets, e.g., for operating outflow, for investing outflow, and for financing outflow: a Paid an account payable for inventory purchased in the previous accounting period. b Amortization of debt issuance costs c Paid a dividend to stockholders. d Paid the interest on a note payable to National Street Bank. e Paid the principal amount due on the note payable to National Street Bank. f Transferred cash from a checking account into a money market fund. g Purchased equipment for cash.

Accepted Answer

a. <O> b. O+ c

Question 3

An objective of financial reporting is to reflect economic information concerning a company's cash flows.

Accepted Answer

A) True 
 B)False

Question 4

Grand Stores, Inc. is concerned about its profitability for the current year, since its profit margin has dropped 10% since last year. Which of the following is the least useful comparison in evaluating the drop in Grand Stores' profit margin?

Accepted Answer

A)  Comparison with the industry average for the current year. 
B)  Comparison with its current ratio for the current year 
C)  Comparison with the profit margins for its major competitors for the current year. 
D)  Comparison with its profit margins for the past five years. 
A)  Comparison with the industry average for the current year. 
B)  Comparison with its current ratio for the current year 
C)  Comparison with the profit margins for its major competitors for the current year. 
D)  Comparison with its profit margins for the past five years.

Question 5

Several items from the financial statements of Standard Tires are listed below. Use the following answer choices to identify the type of account for each item listed. Place your answers in the space provided.
-Cash

Accepted Answer

A) Assets 
B) Liabilities 
C) Revenues 
D) Expenses 
E) Owners' equity 
A) Assets 
B) Liabilities 
C) Revenues 
D) Expenses 
E) Owners' equity

Question 6

If a company has $152,000 of revenues, declares and pays $55,000 in dividends, and has net income of $89,000, how much were expenses for the year?

Accepted Answer

A)  $ 8,000 
B)  $ 63,000 
C)  $144,000 
D)  Unable to determine the amount due to incomplete information. 
A)  $ 8,000 
B)  $ 63,000 
C)  $144,000 
D)  Unable to determine the amount due to incomplete information.

Question 7

Read the information about Fasoli, Inc.
Required:
Compute Fasoli's current ratio. On the basis of your answer, does Fasoli appear to be liquid? What other information do you need to fully answer that question?

Accepted Answer

Current Ratio = Current Assets/Current L

Question 8

The concept that assumes that assets are recorded at the amount to acquire them is called the
_________________________.

Accepted Answer

cost princ

Question 9

Which one of the following business decisions will least likely require financial information?

Accepted Answer

A)  The Gulf Coast Bank is reviewing the loan application from Tuo's Restaurant. 
B)  Tuo's Restaurant is attempting to sell its stock to the public. 
C)  The labor union representing Flaggler's Fitness Spa employees is negotiating a pay raise as part of a new labor agreement. 
D)  Tuo's Restaurant management is deciding whether to wash its catering vans today or tomorrow. 
A)  The Gulf Coast Bank is reviewing the loan application from Tuo's Restaurant. 
B)  Tuo's Restaurant is attempting to sell its stock to the public. 
C)  The labor union representing Flaggler's Fitness Spa employees is negotiating a pay raise as part of a new labor agreement. 
D)  Tuo's Restaurant management is deciding whether to wash its catering vans today or tomorrow.

Question 10

The inflow of assets resulting from the sale of products and services is called an:

Accepted Answer

A)  asset. 
B)  liability. 
C)  revenue. 
D)  expense. 
A)  asset. 
B)  liability. 
C)  revenue. 
D)  expense.

Question 11

The quality of accounting information that makes it comprehensible to those willing to spend the necessary time is consistency.

Accepted Answer

A) True 
 B)False

Question 12

At December 31, 2015, the accounting records of Wyndam Corporation contain the following:   If capital stock is $260,000, what is the December 31, 2015 cash balance?

Accepted Answer

A)  $46,000 
B)  $506,000 
C)  $94,000 
D)  $86,000 
A)  $46,000 
B)  $506,000 
C)  $94,000 
D)  $86,000

Question 13

Read the information for Taryn Corporation. Determine the following amounts for Taryn Corp.
A Total assets at the end of 2014
   B Total liabilities at the end of 2014
   C What parties have a claim on Taryn Corporation's assets? Explain you answer in the terms of the accounting equation.

Accepted Answer

A $110,000
$30,000 Cash + $14,000 Accoun

Question 14

Most financial reports contain the following list of basic elements. For each element identify the persons who prepared the element and describe the information a user would expect to find in each element.

Accepted Answer

The answer of Most financial reports contain the following list...

Question 15

Read the information about Fellsmere Corporation.
Required:
A Explain the change in Fellsmere's working capital from 2013 to 2014. Why do users believe the current ratio provides more information than the dollar amount of working capital? Explain.
B Fellsmere Corporation's creditors need to know whether its working capital position improved during the year. How would you evaluate this?

Accepted Answer

A Working Capital, 2013 = $1,540,777
$2,

Question 16

The ability of a company to pay its debt as it comes due relates to .

Accepted Answer

The answer of The ability of a company to pay...

Question 17

Read the information for Taryn Corporation. Prepare an income statement for Taryn Corporation in good form.

Accepted Answer

Taryn Corporation
In

Question 18

Presented below are condensed data from the financial statements of Laugh Factory for 2015 and 2014. The figures are expressed in thousands. Use this information to answer the questions that follow.
   Required: Was Laugh Factory profitable both years? What are the amounts of the total revenues and total expenses, respectively, for 2015? Which financial statement provides this information to you?

Accepted Answer

The company was profitable in both 2015

Question 19

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

Accepted Answer

Current liabilities:
Accounts

Question 20

Which one of the following financial statements reports an entity's financial position at a specific date?

Accepted Answer

A)  Balance sheet 
B)  Statement of retained earnings 
C)  Income statement 
D)  Both the income statement and the balance sheet 
A)  Balance sheet 
B)  Statement of retained earnings 
C)  Income statement 
D)  Both the income statement and the balance sheet

What is conservatism and why is it important in accounting?

An objective of financial reporting is to reflect economic information concerning a company's cash flows.

Grand Stores, Inc. is concerned about its profitability for the current year, since its profit margin has dropped 10% since last year. Which of the following is the least useful comparison in evaluating the drop in Grand Stores' profit margin?

Several items from the financial statements of Standard Tires are listed below. Use the following answer choices to identify the type of account for each item listed. Place your answers in the space provided. -Cash

If a company has $152,000 of revenues, declares and pays $55,000 in dividends, and has net income of $89,000, how much were expenses for the year?

Read the information about Fasoli, Inc. Required: Compute Fasoli's current ratio. On the basis of your answer, does Fasoli appear to be liquid? What other information do you need to fully answer that question?

The concept that assumes that assets are recorded at the amount to acquire them is called the _________________________.

Which one of the following business decisions will least likely require financial information?

The inflow of assets resulting from the sale of products and services is called an:

The quality of accounting information that makes it comprehensible to those willing to spend the necessary time is consistency.

At December 31, 2015, the accounting records of Wyndam Corporation contain the following: If capital stock is $260,000, what is the December 31, 2015 cash balance?

Read the information for Taryn Corporation. Determine the following amounts for Taryn Corp. A Total assets at the end of 2014 B Total liabilities at the end of 2014 C What parties have a claim on Taryn Corporation's assets? Explain you answer in the terms of the accounting equation.

Most financial reports contain the following list of basic elements. For each element identify the persons who prepared the element and describe the information a user would expect to find in each element.

The ability of a company to pay its debt as it comes due relates to .

Read the information for Taryn Corporation. Prepare an income statement for Taryn Corporation in good form.

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 financial statements reports an entity's financial position at a specific date?

Financial Statements and the Annual Report

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

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Exam 1: Accounting As a Form of Communication

What is conservatism and why is it important in accounting?

An objective of financial reporting is to reflect economic information concerning a company's cash flows.

Grand Stores, Inc. is concerned about its profitability for the current year, since its profit margin has dropped 10% since last year. Which of the following is the least useful comparison in evaluating the drop in Grand Stores' profit margin?

Several items from the financial statements of Standard Tires are listed below. Use the following answer choices to identify the type of account for each item listed. Place your answers in the space provided. -Cash

If a company has $152,000 of revenues, declares and pays $55,000 in dividends, and has net income of $89,000, how much were expenses for the year?

Read the information about Fasoli, Inc. Required: Compute Fasoli's current ratio. On the basis of your answer, does Fasoli appear to be liquid? What other information do you need to fully answer that question?

The concept that assumes that assets are recorded at the amount to acquire them is called the _________________________.

Which one of the following business decisions will least likely require financial information?

The inflow of assets resulting from the sale of products and services is called an:

The quality of accounting information that makes it comprehensible to those willing to spend the necessary time is consistency.

At December 31, 2015, the accounting records of Wyndam Corporation contain the following: If capital stock is $260,000, what is the December 31, 2015 cash balance?

Read the information for Taryn Corporation. Determine the following amounts for Taryn Corp. A Total assets at the end of 2014 B Total liabilities at the end of 2014 C What parties have a claim on Taryn Corporation's assets? Explain you answer in the terms of the accounting equation.

Most financial reports contain the following list of basic elements. For each element identify the persons who prepared the element and describe the information a user would expect to find in each element.

The ability of a company to pay its debt as it comes due relates to .

Read the information for Taryn Corporation. Prepare an income statement for Taryn Corporation in good form.

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 financial statements reports an entity's financial position at a specific date?

Financial Statements and the Annual Report

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