Exam 2: Financial Statements and the Annual Report

The purchase of inventory for cash will cause the current ratio to decrease.

The quality of accounting information that allows a user to compare two or more accounting periods for a single company is known as consistency.

Which financial statement reports the sources and uses of an entity's cash resources?

Moore Industries began operations on January 2, 2016, with an investment of $50,000 by each of its two stockholders.Net income for its first year of business was $240,000.Moore Industries paid a total of $100,000 in dividends to its stockholders during the year. ​ -Read the information about Moore Industries.If the company's revenues were $500,000 for the year ended December 31, 2016, how much were total expenses?

Which statement is true concerning gains and losses?

Which one of the following is considered a financing activity?

On the statement of cash flows, the ______________________________ section involves the acquisition and sale of long-term assets.

In the stockholders' equity section of a classified balance sheet, a distinction is made between amounts invested by owners and amounts accumulated from business earnings.

____________________ and ____________________ have claims to an entity's economic resources.

The purpose of financial reporting is to provide economic information to external decision makers only.

Dividends paid appears on both the income statement and the statement of retained earnings.

One significant difference between a classified and a non-classified balance sheet is the distinction between which of the following items?

Matching Identify whether the following investor questions are associated with (a) primary or (b) secondary financial reporting objectives. -How much has Apple invested in research and development projects?

For which of the following is the current ratio most useful?

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

The following balance sheet items from Fasoli, Inc.are listed for December 31, 2016: Accounts payable \ 32,650 Interest payable 2,200 Accounts receivable 26,500 Land 250,000 Accumulated depreciation-buil dings 40,000 Marketable securities 15,000 Merchandise inventory 112,900 Accumulated depreciation-equipment 12,500 Notes payable, due April 15,2017 6,500 Office supplies 200 Notes payable, due December 31,2020 251,630 Paid-in capital in excess of par value 75,000 Buil dings 150,000 Patents 45,000 Capital stock, \ 1 par value 200,000 Prepaid rent 3,800 Cash 60,990 Retained earnings 113,510 Equipment 84,500 Sal aries payable 7,400 Income taxes payable 7,500 -Read the information about Fasoli, Inc. Required: Present the current liabilities section (including the total) of a classified balance sheet.

From the following list, select the proper section from the statement of cash flows in which it would be classified. -Paid a cash dividend on capital stock