Guinther & Sons, Inc.a retailer of men's clothing, earned a net profit of $77,000 for 2016.The balance sheet for Guinther & Sons includes the following items: \[\begin{array} { l r l r } \text { Cash } & \$ 29,000 & \text { Accounts receivable } & \$ 39,000 \\ \text { Inventory } & 79,000 & \text { Prepaid insurance } & 3,000 \\ \text { Land } & 90,000 & \text { Accounts payable } & 14,000 \\ \text { Taxes payable } & 29,000 & \text { Capital stock } & 50,000 \\ \text { Retained earnings } & 97,000 & \text { Long-term notes payable } & 43,000 \end{array}\] -Read the information for Guinther & Sons, Inc.Calculate the current ratio for Guinther & Sons.

A) 2.58 to 1 B) 2.75 to 1 C) 3.00 to 1 D) 2.00 to 1 A) 2.58 to 1 B) 2.75 to 1 C) 3.00 to 1 D) 2.00 to 1

The following information is given for Camino Company: \[\begin{array} { l r l r } \text { Cash } & \$ 50,000 & \text { Inventory } & \$ 45,000 \\ \text { Land } & 75,000 & \text { Accumulated Depreciation } & 40,000 \\ \text { Plant \& Equipment } & 150,000 & \text { Accounts Payable } & 60,000 \end{array}\] What are the company's current assets?

A) $220,000 B) $155,000 C) $130,000 D) $ 95,000 A) $220,000 B) $155,000 C) $130,000 D) $ 95,000

Harrison Company calculated the following amounts concerning its financial information for the years ending December 31, 2017 and 2016: $\begin{array}{lrr} & \underline{2017} & \underline{2016} \\ \text { Current ratio } & 3.1 \text { to } 1 & 2.0 \text { to } 1 \\ \text { Profit margin } & 22 \% & 18 \% \end{array}$ Required: Examine Harrison's ratios.Is the change in the current ratio favorable or not? Explain.

The current ratio increased from 2.0 to

Selected data from the accounting records of Cobb Company are listed below: \[\begin{array} { l r l r } \text { General \& administrative expenses } & \$ 2,200 & \text { Operating revenues } & \$ 6,000 \\ \text { Selling expenses } & 1,800 & \text { Incometaxes } & 600 \\ \text { Other revenues (expenses) } & 800 & \text { Dividends paid } & 1,200 \end{array}\] -Read the information about Cobb Company.By what amount will net income on a single-step income statement differ from net income on a multi-step income statement if Cobb Company prepares both formats?

A) $ 800 B) $ 600 C) $ 200 D) $ -0- A) $ 800 B) $ 600 C) $ 200 D) $ -0-

Exam 2: Financial Statements and the Annual Report

____________________ is the quality of accounting information that allows a user to analyze two or more companies and look for similarities and differences.

(Short Answer)

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Question 141

Which financial statement reports information helpful in assessing working capital?

(Multiple Choice)

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Question 142

Which of the following items will be found in a corporate annual report?

(Multiple Choice)

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Question 143

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

(Multiple Choice)

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Question 144

Which of the following accounts are normally reported as noncurrent liabilities on a classified balance sheet?

(Multiple Choice)

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Question 145

Equipment is classified as a ____________________ asset on the balance sheet.

(Short Answer)

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Question 146

Which of the following would not be considered to be an intangible asset?

(Multiple Choice)

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Question 147

Guinther & Sons, Inc.a retailer of men's clothing, earned a net profit of $77,000 for 2016.The balance sheet for Guinther & Sons includes the following items: Cash \ 29,000 Accounts receivable \ 39,000 Inventory 79,000 Prepaid insurance 3,000 Land 90,000 Accounts payable 14,000 Taxes payable 29,000 Capital stock 50,000 Retained earnings 97,000 Long-term notes payable 43,000 -Read the information for Guinther & Sons, Inc.Calculate the current ratio for Guinther & Sons.

(Multiple Choice)

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Question 148

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

(Multiple Choice)

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Question 149

"Claims to economic resources" are known as

(Multiple Choice)

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Question 150

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. -Service revenues

(Multiple Choice)

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Question 151

Crystal, Inc.reported $52,000 of net income for 2016.Crystal's balance sheet at December 31, 2016 includes the following amounts: Wages payable \ 1,000 Inventory \ 26,000 Prepaid rent 3,000 Land 40,000 Cash 15,000 Accounts receivable 22,000 Accounts payable 25,000 Capital stock 40,000 Retained earnings 29,000 Income taxes payable 11,000 -Read the information about Crystal, Inc.Which item is most "liquid"? Why is liquidity important?

(Essay)

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Question 152

Match the following characteristics with the statements about each qualitative characteristic's importance. -Accounting information should use the least optimistic estimate.

(Multiple Choice)

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Question 153

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

(True/False)

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Question 154

The following information is given for Camino Company: Cash \ 50,000 Inventory \ 45,000 Land 75,000 Accumulated Depreciation 40,000 Plant \& Equipment 150,000 Accounts Payable 60,000 What are the company's current assets?

(Multiple Choice)

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Question 155

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

(Multiple Choice)

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Question 156

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

(Multiple Choice)

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Question 157

A company is not required to prepare both a(n)

(Multiple Choice)

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Question 158

Harrison Company calculated the following amounts concerning its financial information for the years ending December 31, 2017 and 2016: Current ratio 3.1 to 1 2.0 to 1 Profit margin 22\% 18\% Required: Examine Harrison's ratios.Is the change in the current ratio favorable or not? Explain.

(Essay)

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Question 159

Selected data from the accounting records of Cobb Company are listed below: General \& administrative expenses \ 2,200 Operating revenues \ 6,000 Selling expenses 1,800 Incometaxes 600 Other revenues (expenses) 800 Dividends paid 1,200 -Read the information about Cobb Company.By what amount will net income on a single-step income statement differ from net income on a multi-step income statement if Cobb Company prepares both formats?

(Multiple Choice)

4.9/5

(44)

Question 160

____________________ is the quality of accounting information that allows a user to analyze two or more companies and look for similarities and differences.

Which financial statement reports information helpful in assessing working capital?

Which of the following items will be found in a corporate annual report?

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

Which of the following accounts are normally reported as noncurrent liabilities on a classified balance sheet?

Equipment is classified as a ____________________ asset on the balance sheet.

Which of the following would not be considered to be an intangible asset?

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

"Claims to economic resources" are known as

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. -Service revenues

Match the following characteristics with the statements about each qualitative characteristic's importance. -Accounting information should use the least optimistic estimate.

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

The following information is given for Camino Company: Cash \ 50,000 Inventory \ 45,000 Land 75,000 Accumulated Depreciation 40,000 Plant \& Equipment 150,000 Accounts Payable 60,000 What are the company's current assets?

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

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

A company is not required to prepare both a(n)

Harrison Company calculated the following amounts concerning its financial information for the years ending December 31, 2017 and 2016: Current ratio 3.1 to 1 2.0 to 1 Profit margin 22\% 18\% Required: Examine Harrison's ratios.Is the change in the current ratio favorable or not? Explain.

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 True Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Exploring Accounting Standards and Differences around the World

Filters

Exam 2: Financial Statements and the Annual Report

____________________ is the quality of accounting information that allows a user to analyze two or more companies and look for similarities and differences.

Which financial statement reports information helpful in assessing working capital?

Which of the following items will be found in a corporate annual report?

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

Which of the following accounts are normally reported as noncurrent liabilities on a classified balance sheet?

Equipment is classified as a ____________________ asset on the balance sheet.

Which of the following would not be considered to be an intangible asset?

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

"Claims to economic resources" are known as

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. -Service revenues

Match the following characteristics with the statements about each qualitative characteristic's importance. -Accounting information should use the least optimistic estimate.

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

The following information is given for Camino Company: Cash \ 50,000 Inventory \ 45,000 Land 75,000 Accumulated Depreciation 40,000 Plant \& Equipment 150,000 Accounts Payable 60,000 What are the company's current assets?

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

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

A company is not required to prepare both a(n)

Harrison Company calculated the following amounts concerning its financial information for the years ending December 31, 2017 and 2016: Current ratio 3.1 to 1 2.0 to 1 Profit margin 22\% 18\% ​ Required: Examine Harrison's ratios.Is the change in the current ratio favorable or not? Explain.

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 True Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Exploring Accounting Standards and Differences around the World

Filters

Harrison Company calculated the following amounts concerning its financial information for the years ending December 31, 2017 and 2016: Current ratio 3.1 to 1 2.0 to 1 Profit margin 22\% 18\% Required: Examine Harrison's ratios.Is the change in the current ratio favorable or not? Explain.