Question 1

In what order are cash flow activities presented on the statement of cash flows?

Accepted Answer

A) Investing activities,Operating activities,Financing activities. 
B) Financing activities,Operating activities,Investing activities. 
C) Operating activities,Investing activities,Financing activities. 
D) Operating activities,Financing activities,Investing activities. 
A) Investing activities,Operating activities,Financing activities. 
B) Financing activities,Operating activities,Investing activities. 
C) Operating activities,Investing activities,Financing activities. 
D) Operating activities,Financing activities,Investing activities.

Question 2

The following data were taken from the adjusted trial balance of Kent Corporation.
Kent Corporation
Adjusted Trial Balance Data
December 31,2019
   Prepare a classified balance sheet in good form at December 31,2019.(Ignore income taxes).

Accepted Answer

@#IMG-DLM& *$23,000 (January 1 retained

Question 3

Which of the following statements is correct?

Accepted Answer

A) Income from operations increases when common stock is sold for more than par value. 
B) The accrual of research and development costs does not affect the net profit margin ratio. 
C) The payment of an accrued liability decreases total asset turnover. 
D) The declaration and payment of a cash dividend increases the return on assets ratio. 
A) Income from operations increases when common stock is sold for more than par value. 
B) The accrual of research and development costs does not affect the net profit margin ratio. 
C) The payment of an accrued liability decreases total asset turnover. 
D) The declaration and payment of a cash dividend increases the return on assets ratio.

Question 4

Which of the following are primarily responsible for the information provided in a company's financial statements?

Accepted Answer

A) The internal and external auditors. 
B) The Securities & Exchange Commission (SE
C) and the external auditors. 
C) The chief executive officer (CEO)and the chief financial officer (CFO). 
D) The external auditors and the board of directors. 
A) The internal and external auditors. 
B) The Securities & Exchange Commission (SE
C) and the external auditors. 
C) The chief executive officer (CEO)and the chief financial officer (CFO). 
D) The external auditors and the board of directors.

Question 5

Which of the following is true about gross profit (gross margin)?

Accepted Answer

A) It is net sales minus operating expenses. 
B) It is net sales minus cost of goods sold. 
C) It is the same as income from continuing operations. 
D) It is net sales minus cost of goods sold and operating expenses. 
A) It is net sales minus operating expenses. 
B) It is net sales minus cost of goods sold. 
C) It is the same as income from continuing operations. 
D) It is net sales minus cost of goods sold and operating expenses.

Question 6

FocusMore,Inc. ,had the following list of accounts taken from its adjusted trial balance at December 31,2019:
   Required:
Prepare a multiple step income statement for the year ended December 31,2019.(Include gross profit,but ignore income taxes. )

Accepted Answer

FocusMore,Inc.
Incom

Question 7

Which of the following statements regarding international financial reporting standards (IFRS)is false?

Accepted Answer

A) Common stock is titled as share capital. 
B) Property,plant,and equipment can be reported on the balance sheet at either fair value or historical cost. 
C) The last-in first-out (LIFO)inventory method is permitted. 
D) Development costs are capitalized. 
A) Common stock is titled as share capital. 
B) Property,plant,and equipment can be reported on the balance sheet at either fair value or historical cost. 
C) The last-in first-out (LIFO)inventory method is permitted. 
D) Development costs are capitalized.

Question 8

The Nellie Company has provided the following information: Operating expenses were $115,000;
Gross profit was $629,000;
Cost of goods sold was $470,000;
Interest expense was $17,000;
Income tax expense was $199,000.
-
What was Nellie's operating income?

Accepted Answer

A) $514,000. 
B) $612,000. 
C) $497,000. 
D) $298,000. 
A) $514,000. 
B) $612,000. 
C) $497,000. 
D) $298,000.

Question 9

The summary of significant accounting policies is typically included as one of the first notes to the financial statements.

Accepted Answer

A) True 
 B)False

Question 10

The Callie Company has provided the following information: Operating expenses were $231,000;
Cost of goods sold was $376,000;
Net sales were $940,000;
Interest expense was $32,000;
Gain on sale of a building was $76,000;
Income tax expense was $151,000.
What was Callie's gross profit?

Accepted Answer

A) $564,000. 
B) $188,000. 
C) $333,000. 
D) $232,000. 
A) $564,000. 
B) $188,000. 
C) $333,000. 
D) $232,000.

Question 11

The Callie Company has provided the following information: Operating expenses were $231,000;
Cost of goods sold was $376,000;
Net sales were $940,000;
Interest expense was $32,000;
Gain on sale of a building was $76,000;
Income tax expense was $151,000.
What was Callie's income before taxes?

Accepted Answer

A) $564,000. 
B) $188,000. 
C) $377,000. 
D) $232,000. 
A) $564,000. 
B) $188,000. 
C) $377,000. 
D) $232,000.

Question 12

Marino Company has provided the following information: Net sales,$480,000
Net income,$24,000
Average total assets,$200,000
-
What is Marino's total asset turnover?

Accepted Answer

A) 12.0 
B) 8.33 
C) 0.42 
D) 2.4 
A) 12.0 
B) 8.33 
C) 0.42 
D) 2.4

Question 13

Determine the effect of the following transactions on the identified financial statement components and ratios.Code your answers as follows:
A: If the transaction results in an increase in the financial statement component or ratio.
B: If the transaction results in a decrease in the financial statement component or ratio.
C: If the transaction does not affect the financial statement component or ratio.
Transaction 1: A company paid for research and development costs incurred to develop a patent.
Net income _____
Property,plant,and equipment _____
Stockholders' equity _____
Net profit margin ratio _____
Transaction 2: Inventory was purchased on account.
Net income _____
Current assets _____
Current liabilities _____
Return on assets ratio _____

Accepted Answer

Transaction 1: A company paid for resear

Question 14

Farrell Company has rent expense,wages expense,and utilities expense.Where will the company present these expenses on the income statement?

Accepted Answer

A) As a component of net sales. 
B) As a component of gross profit. 
C) After income from operations. 
D) Prior to income from operations. 
A) As a component of net sales. 
B) As a component of gross profit. 
C) After income from operations. 
D) Prior to income from operations.

Question 15

Which of the following would not be included on an income statement?

Accepted Answer

A) Accumulated depreciation. 
B) Insurance expense. 
C) Cost of goods sold. 
D) Discontinued operations. 
A) Accumulated depreciation. 
B) Insurance expense. 
C) Cost of goods sold. 
D) Discontinued operations.

Question 16

The following information was taken from the income statement and balance sheet of The Mickey Company for the years 2018 and 2019:
   Compute the following ratios for 2019:
A.Net profit margin
B.Total asset turnover
C.Return on assets

Accepted Answer

A.Net profit margin ($2,345 ÷ $30,752)=

Question 17

Which of the following statements regarding earnings per share is false?

Accepted Answer

A) It is reported on the income statement. 
B) It increases when net income increases. 
C) It is calculated using the average number of common shares outstanding during the period. 
D) It would not be affected by additional shares of common stock issued during the year. 
A) It is reported on the income statement. 
B) It increases when net income increases. 
C) It is calculated using the average number of common shares outstanding during the period. 
D) It would not be affected by additional shares of common stock issued during the year.

Question 18

Corporate governance refers to the procedures designed to ensure that the company is managed in the interest of the board of directors who oversee management.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following would not be included within the operating activities section of a cash flow statement?

Accepted Answer

A) Cash received from customers. 
B) Cash paid for insurance. 
C) Cash paid for interest expense. 
D) Cash paid to acquire a patent. 
A) Cash received from customers. 
B) Cash paid for insurance. 
C) Cash paid for interest expense. 
D) Cash paid to acquire a patent.

Question 20

The gross profit percentage is calculated by dividing net sales by gross profit.

Accepted Answer

A) True 
 B)False

In what order are cash flow activities presented on the statement of cash flows?

The following data were taken from the adjusted trial balance of Kent Corporation. Kent Corporation Adjusted Trial Balance Data December 31,2019 Prepare a classified balance sheet in good form at December 31,2019.(Ignore income taxes).

Which of the following statements is correct?

Which of the following are primarily responsible for the information provided in a company's financial statements?

Which of the following is true about gross profit (gross margin)?

FocusMore,Inc. ,had the following list of accounts taken from its adjusted trial balance at December 31,2019: Required: Prepare a multiple step income statement for the year ended December 31,2019.(Include gross profit,but ignore income taxes. )

Which of the following statements regarding international financial reporting standards (IFRS)is false?

The Nellie Company has provided the following information: Operating expenses were $115,000; Gross profit was $629,000; Cost of goods sold was $470,000; Interest expense was $17,000; Income tax expense was $199,000. - What was Nellie's operating income?

The summary of significant accounting policies is typically included as one of the first notes to the financial statements.

The Callie Company has provided the following information: Operating expenses were $231,000; Cost of goods sold was $376,000; Net sales were $940,000; Interest expense was $32,000; Gain on sale of a building was $76,000; Income tax expense was $151,000. What was Callie's gross profit?

The Callie Company has provided the following information: Operating expenses were $231,000; Cost of goods sold was $376,000; Net sales were $940,000; Interest expense was $32,000; Gain on sale of a building was $76,000; Income tax expense was $151,000. What was Callie's income before taxes?

Marino Company has provided the following information: Net sales,$480,000 Net income,$24,000 Average total assets,$200,000 - What is Marino's total asset turnover?

Farrell Company has rent expense,wages expense,and utilities expense.Where will the company present these expenses on the income statement?

Which of the following would not be included on an income statement?

The following information was taken from the income statement and balance sheet of The Mickey Company for the years 2018 and 2019: Compute the following ratios for 2019: A.Net profit margin B.Total asset turnover C.Return on assets

Which of the following statements regarding earnings per share is false?

Corporate governance refers to the procedures designed to ensure that the company is managed in the interest of the board of directors who oversee management.

Which of the following would not be included within the operating activities section of a cash flow statement?

The gross profit percentage is calculated by dividing net sales by gross profit.

Financial Statements and Business Decisions

Investing and Financing Decisions and the Accounting System

Operating Decisions and the Accounting System

Adjustments,financial Statements,and the Quality of Earnings

Reporting and Interpreting Sales Revenue,receivables,and Cash

Reporting and Interpreting Cost of Goods Sold and Inventory

Reporting and Interpreting Property,plant,and Equipment;intangibles;and Natural Resources

Reporting and Interpreting Liabilities

Reporting and Interpreting Bond Securities

Reporting and Interpreting Stockholders Equity

Statement of Cash Flows

Analyzing Financial Statements

Reporting and Interpreting Investments in Other Corporations

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Exam 5: Communicating and Interpreting Accounting Information

In what order are cash flow activities presented on the statement of cash flows?

The following data were taken from the adjusted trial balance of Kent Corporation. Kent Corporation Adjusted Trial Balance Data December 31,2019 Prepare a classified balance sheet in good form at December 31,2019.(Ignore income taxes).

Which of the following statements is correct?

Which of the following are primarily responsible for the information provided in a company's financial statements?

Which of the following is true about gross profit (gross margin)?

FocusMore,Inc. ,had the following list of accounts taken from its adjusted trial balance at December 31,2019: Required: Prepare a multiple step income statement for the year ended December 31,2019.(Include gross profit,but ignore income taxes. )

Which of the following statements regarding international financial reporting standards (IFRS)is false?

The Nellie Company has provided the following information: Operating expenses were $115,000; Gross profit was $629,000; Cost of goods sold was $470,000; Interest expense was $17,000; Income tax expense was $199,000. - What was Nellie's operating income?

The summary of significant accounting policies is typically included as one of the first notes to the financial statements.

The Callie Company has provided the following information: Operating expenses were $231,000; Cost of goods sold was $376,000; Net sales were $940,000; Interest expense was $32,000; Gain on sale of a building was $76,000; Income tax expense was $151,000. What was Callie's gross profit?

The Callie Company has provided the following information: Operating expenses were $231,000; Cost of goods sold was $376,000; Net sales were $940,000; Interest expense was $32,000; Gain on sale of a building was $76,000; Income tax expense was $151,000. What was Callie's income before taxes?

Marino Company has provided the following information: Net sales,$480,000 Net income,$24,000 Average total assets,$200,000 - What is Marino's total asset turnover?

Farrell Company has rent expense,wages expense,and utilities expense.Where will the company present these expenses on the income statement?

Which of the following would not be included on an income statement?

The following information was taken from the income statement and balance sheet of The Mickey Company for the years 2018 and 2019: Compute the following ratios for 2019: A.Net profit margin B.Total asset turnover C.Return on assets

Which of the following statements regarding earnings per share is false?

Corporate governance refers to the procedures designed to ensure that the company is managed in the interest of the board of directors who oversee management.

Which of the following would not be included within the operating activities section of a cash flow statement?

The gross profit percentage is calculated by dividing net sales by gross profit.

Financial Statements and Business Decisions

Investing and Financing Decisions and the Accounting System

Operating Decisions and the Accounting System

Adjustments,financial Statements,and the Quality of Earnings

Reporting and Interpreting Sales Revenue,receivables,and Cash

Reporting and Interpreting Cost of Goods Sold and Inventory

Reporting and Interpreting Property,plant,and Equipment;intangibles;and Natural Resources

Reporting and Interpreting Liabilities

Reporting and Interpreting Bond Securities

Reporting and Interpreting Stockholders Equity

Statement of Cash Flows

Analyzing Financial Statements

Reporting and Interpreting Investments in Other Corporations

Filters