Exam 4: Understanding Accounting Information

The following items and amounts are taken from the 2019 financial records of Cynatech: There was no issuance of common stock during the year. Prepare a statement of stockholders' equity for Cynatech for the year ending December 31, 2019.

Which one of the following is included in current assets?

Gross profit on sales is obtained by deducting selling expenses from sales.

According to the FASB's Conceptual Framework, who are the primary users of external financial reports?

Listed below are selected accounts for Tercek Company, Inc. Select a letter from the following key and place it in the space to the left of the account title to indicate the proper balance sheet classification for the accou -Equipment

The report form of the balance sheet displays assets on the left side and liabilities and stockholders' equity on the right side.

Which of the following is not a category for classifying cash flows in a statement of cash flows?

Presented below are income statement data for Pink & Company for the current year: Prepare a multi-step income statement for the current year and calculate the company's profit margin. If Pink's profit margin was 26 percent in the prior year, did the company's profitability increase or decrease?

Listed below are selected accounts for Tercek Company, Inc. Select a letter from the following key and place it in the space to the left of the account title to indicate the proper balance sheet classification for the accou -Supplies

Listed below are selected accounts for Tercek Company, Inc. Select a letter from the following key and place it in the space to the left of the account title to indicate the proper balance sheet classification for the accou -Retained earnings

Listed below are selected accounts for Tercek Company, Inc. Select a letter from the following key and place it in the space to the left of the account title to indicate the proper balance sheet classification for the accou -Dividends

Identify the following as an asset (A), liability (L), or equity (E) by writing the letter of the correct classification in the space provided.

Accutune Audio reported the following amounts in its December 31, 2019, and 2018 financial statements. Calculate to the nearest hundredth: a. Profit margin for 2019 b. Debt-to-total-assets ratio as of December 31, 20139

If Morton Company paid $100,000 cash dividends to its shareholders, retained earnings would be reduced by $100,000.

Russell Company presented the following data on December 31: Determine the debt-to-total assets ratio for Russell Company (rounded).

The Securities and Exchange Commission (SEC) mandates that public companies

Traynham Tractors has a debt-to-total-assets ratio of 0.61 and Adel Automotive has 0.99. Which of the following statements is true?

For the two unrelated situations below, compute the unknown amounts indicated by the letters (a) and (b).

Which statement is true of the statement of stockholders' equity?

Listed below are selected accounts for Tercek Company, Inc. Select a letter from the following key and place it in the space to the left of the account title to indicate the proper balance sheet classification for the accou -Prepaid rent