Question 1

Information disclosed in a balance sheet about shares of common stock includes the number of shares that are:

Accepted Answer

A) Authorized and Issued. 
B) Issued and Outstanding. 
C) Authorized,Issued,and Outstanding. 
D) Authorized,Issued,Outstanding,and Not Outstanding. 
A) Authorized and Issued. 
B) Issued and Outstanding. 
C) Authorized,Issued,and Outstanding. 
D) Authorized,Issued,Outstanding,and Not Outstanding.

Question 2

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

Accepted Answer

A) 240% 
B) 12% 
C) 5% 
D) 42% 
A) 240% 
B) 12% 
C) 5% 
D) 42%

Question 3

The primary responsibility for the information in a corporation's financial statements lies with the chief executive officer (CEO)and the chief financial officer (CFO).

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements is true?

Accepted Answer

A) A decrease in net income decreases both the net profit margin ratio and the total asset turnover ratio. 
B) An increase in average total assets results in a decrease in both the total asset turnover ratio and the net profit margin ratio. 
C) A decrease in average total assets results in an increase in the total asset turnover ratio and a decrease in the net profit margin ratio. 
D) An increase in net income increases both the net profit margin ratio and the return on assets ratio. 
A) A decrease in net income decreases both the net profit margin ratio and the total asset turnover ratio. 
B) An increase in average total assets results in a decrease in both the total asset turnover ratio and the net profit margin ratio. 
C) A decrease in average total assets results in an increase in the total asset turnover ratio and a decrease in the net profit margin ratio. 
D) An increase in net income increases both the net profit margin ratio and the return on assets ratio.

Question 5

The gross profit percentage decreases when operating expenses increase.

Accepted Answer

A) True 
 B)False

Question 6

Twin Lakes,Inc.reported the following December 31 amounts in its financial statements:
   Compute the following for the 2019 ratios:
A.Gross profit percentage
B.Net profit margin
C.Total asset turnover
D.Return on assets

Accepted Answer

A.($75.0 ÷ $250.0)= .30 or 30.

Question 7

Which of the following is not reported as an operating expense on the income statement?

Accepted Answer

A) Administrative expenses. 
B) Research and development expense. 
C) Interest expense. 
D) Selling expenses. 
A) Administrative expenses. 
B) Research and development expense. 
C) Interest expense. 
D) Selling expenses.

Question 8

Anjou Company had 10,000 shares of common stock outstanding at December 31,2018 and 14,000 shares of common stock outstanding at December 31,2019.Anjou had sales of $3,600,000 in 2019 and net income of $280,000 in 2019.What is the earnings per share amount reported for Anjou in 2019?

Accepted Answer

A) $7.78 
B) $9.36 
C) $20.00 
D) $23.33 
A) $7.78 
B) $9.36 
C) $20.00 
D) $23.33

Question 9

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 income before taxes?

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 10

The Willie Company has provided the following information: Operating expenses were $345,000;
Income from operations was $415,000;
Net sales were $1,100,000;
Interest expense was $71,000;
Loss from sale of investments was $87,000;
Income tax expense was $58,000.
-
What was Willie's gross profit?

Accepted Answer

A) $340,000. 
B) $689,000. 
C) $818,000. 
D) $760,000. 
A) $340,000. 
B) $689,000. 
C) $818,000. 
D) $760,000.

Question 11

Which of the following would be reported in the supplemental cash flows disclosure section of the statement of cash flows?

Accepted Answer

A) Sales on account which have not yet been collected. 
B) Net income. 
C) Cash paid for income taxes. 
D) Depreciation expense. 
A) Sales on account which have not yet been collected. 
B) Net income. 
C) Cash paid for income taxes. 
D) Depreciation expense.

Question 12

The essence of reporting the gains on sales of investments separately on an income statement is that they are not part of the primary operations of the reporting company.

Accepted Answer

A) True 
 B)False

Question 13

The return on assets ratio is affected by both the net profit margin ratio and the total asset turnover ratio.

Accepted Answer

A) True 
 B)False

Question 14

Anthony Inc.reported the following amounts on its 2018 and 2019 income statements:
   A.Compute the gross profit percentage for years 2018 and 2019.
B.Provide at least two potential causes for the change in Anthony's gross profit percentage.

Accepted Answer

A.2019 = 61.1% = ($12,495 ÷ $20,438).
20

Question 15

The Willie Company has provided the following information: Operating expenses were $345,000;
Income from operations was $415,000;
Net sales were $1,100,000;
Interest expense was $71,000;
Loss from sale of investments was $87,000;
Income tax expense was $58,000.
-
What was Willie's income before taxes?

Accepted Answer

A) $344,000. 
B) $199,000. 
C) $257,000. 
D) $286,000. 
A) $344,000. 
B) $199,000. 
C) $257,000. 
D) $286,000.

Question 16

The mission of the Securities & Exchange Commission (SEC)is to develop generally accepted accounting principles.

Accepted Answer

A) True 
 B)False

Question 17

The Securities & Exchange Commission (SEC)oversees the work of the Financial Accounting Standards Board (FASB).

Accepted Answer

A) True 
 B)False

Question 18

Complete the following balance sheet by entering the appropriate amounts in the blanks provided.

Accepted Answer

A.$40,000.($90,000 Total Assets (F)- $35

Question 19

Components of other comprehensive income can be reported in combination with the:

Accepted Answer

A) Balance sheet. 
B) Statement of cash flows. 
C) Statement of stockholders' equity. 
D) Income statement. 
A) Balance sheet. 
B) Statement of cash flows. 
C) Statement of stockholders' equity. 
D) Income statement.

Question 20

Which of the following is not included as a primary part of the financial disclosure in Form 10-K?

Accepted Answer

A) Summarized financial data for a 5-year period. 
B) Management's opinion of the financial statements. 
C) Business operations and strategy. 
D) Four basic financial statements. 
A) Summarized financial data for a 5-year period. 
B) Management's opinion of the financial statements. 
C) Business operations and strategy. 
D) Four basic financial statements.

Information disclosed in a balance sheet about shares of common stock includes the number of shares that are:

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

The primary responsibility for the information in a corporation's financial statements lies with the chief executive officer (CEO)and the chief financial officer (CFO).

Which of the following statements is true?

The gross profit percentage decreases when operating expenses increase.

Twin Lakes,Inc.reported the following December 31 amounts in its financial statements: Compute the following for the 2019 ratios: A.Gross profit percentage B.Net profit margin C.Total asset turnover D.Return on assets

Which of the following is not reported as an operating expense on the income statement?

Anjou Company had 10,000 shares of common stock outstanding at December 31,2018 and 14,000 shares of common stock outstanding at December 31,2019.Anjou had sales of $3,600,000 in 2019 and net income of $280,000 in 2019.What is the earnings per share amount reported for Anjou in 2019?

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 income before taxes?

The Willie Company has provided the following information: Operating expenses were $345,000; Income from operations was $415,000; Net sales were $1,100,000; Interest expense was $71,000; Loss from sale of investments was $87,000; Income tax expense was $58,000. - What was Willie's gross profit?

Which of the following would be reported in the supplemental cash flows disclosure section of the statement of cash flows?

The essence of reporting the gains on sales of investments separately on an income statement is that they are not part of the primary operations of the reporting company.

The return on assets ratio is affected by both the net profit margin ratio and the total asset turnover ratio.

Anthony Inc.reported the following amounts on its 2018 and 2019 income statements: A.Compute the gross profit percentage for years 2018 and 2019. B.Provide at least two potential causes for the change in Anthony's gross profit percentage.

The mission of the Securities & Exchange Commission (SEC)is to develop generally accepted accounting principles.

The Securities & Exchange Commission (SEC)oversees the work of the Financial Accounting Standards Board (FASB).

Complete the following balance sheet by entering the appropriate amounts in the blanks provided.

Components of other comprehensive income can be reported in combination with the:

Which of the following is not included as a primary part of the financial disclosure in Form 10-K?

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

Information disclosed in a balance sheet about shares of common stock includes the number of shares that are:

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

The primary responsibility for the information in a corporation's financial statements lies with the chief executive officer (CEO)and the chief financial officer (CFO).

Which of the following statements is true?

The gross profit percentage decreases when operating expenses increase.

Twin Lakes,Inc.reported the following December 31 amounts in its financial statements: Compute the following for the 2019 ratios: A.Gross profit percentage B.Net profit margin C.Total asset turnover D.Return on assets

Which of the following is not reported as an operating expense on the income statement?

Anjou Company had 10,000 shares of common stock outstanding at December 31,2018 and 14,000 shares of common stock outstanding at December 31,2019.Anjou had sales of $3,600,000 in 2019 and net income of $280,000 in 2019.What is the earnings per share amount reported for Anjou in 2019?

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 income before taxes?

The Willie Company has provided the following information: Operating expenses were $345,000; Income from operations was $415,000; Net sales were $1,100,000; Interest expense was $71,000; Loss from sale of investments was $87,000; Income tax expense was $58,000. - What was Willie's gross profit?

Which of the following would be reported in the supplemental cash flows disclosure section of the statement of cash flows?

The essence of reporting the gains on sales of investments separately on an income statement is that they are not part of the primary operations of the reporting company.

The return on assets ratio is affected by both the net profit margin ratio and the total asset turnover ratio.

Anthony Inc.reported the following amounts on its 2018 and 2019 income statements: A.Compute the gross profit percentage for years 2018 and 2019. B.Provide at least two potential causes for the change in Anthony's gross profit percentage.

The mission of the Securities & Exchange Commission (SEC)is to develop generally accepted accounting principles.

The Securities & Exchange Commission (SEC)oversees the work of the Financial Accounting Standards Board (FASB).

Complete the following balance sheet by entering the appropriate amounts in the blanks provided.

Components of other comprehensive income can be reported in combination with the:

Which of the following is not included as a primary part of the financial disclosure in Form 10-K?

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