Question 1

Profit margin answers the question: how much net income does a company generate from each dollar of gross profit?

Accepted Answer

A) True 
 B)False

Question 2

Fran Company has beginning equity of $300,000, net income of $50,000, dividends of $30,000 and investments by owners in exchange for stock of $10,000. Its ending equity is:

Accepted Answer

A)  $223,000 
B)  $240,000 
C)  $268,000 
D)  $330,000 
A)  $223,000 
B)  $240,000 
C)  $268,000 
D)  $330,000

Question 3

Compute the missing amounts for each of the last 3 years for the Cummins Company. Compute the current ratio and debt-to-total-assets ratio for each year.

Accepted Answer

The answer of Compute the missing amounts for each of...

Question 4

Which one of the following does not impact retained earnings directly?

Accepted Answer

A)  Net income 
B)  Net loss 
C)  Dividends 
D)  Stock issuances 
A)  Net income 
B)  Net loss 
C)  Dividends 
D)  Stock issuances

Question 5

The balance sheet format that reports assets first and then, beneath the assets, reports the liabilities and stockholders' equity is called the:

Accepted Answer

A)  Account form 
B)  Stack form 
C)  Classified form 
D)  Report form 
E)  None of the above 
A)  Account form 
B)  Stack form 
C)  Classified form 
D)  Report form 
E)  None of the above

Question 6

Fields Company presented the following data for the current year:
 
 Determine the company's profit margin (rounded)

Accepted Answer

A)  31% 
B)  28% 
C)  33% 
D)  30% 
A)  31% 
B)  28% 
C)  33% 
D)  30%

Question 7

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
-Wages payable

Accepted Answer

A)  Current asset 
B)  Property, Plant, and Equipment 
C)  Current liability 
D)  Long-term liability 
E)  Stockholders' equity
F) Not a balance sheet account 
A)  Current asset 
B)  Property, Plant, and Equipment 
C)  Current liability 
D)  Long-term liability 
E)  Stockholders' equity
F) Not a balance sheet account

Question 8

Data from the financial statements of Kroger King and SuperDeal, Inc., are presented below (in millions):
 
 To the nearest hundredth, what is the 2019 debt-to-total-assets ratio for SuperDeal, Inc.?

Accepted Answer

A)  0.21 
B)  0.79 
C)  4.96 
D)  4.69 
A)  0.21 
B)  0.79 
C)  4.96 
D)  4.69

Question 9

Prepare an income statement for the month ended July 31, 2019 for Wiseman Toys. Wiseman's account balances for the month ending July 31, 2019 are:

Accepted Answer

The answer of Prepare an income statement for the month...

Question 10

Financial statements are comparable when they:

Accepted Answer

A)  Are available to users in time to influence their decisions. 
B)  Faithfully report the events and transactions they purport to represent. 
C)  Allow users to identify similarities in, and differences between, two or more items or companies. 
D)  Present information clearly and concisely. 
A)  Are available to users in time to influence their decisions. 
B)  Faithfully report the events and transactions they purport to represent. 
C)  Allow users to identify similarities in, and differences between, two or more items or companies. 
D)  Present information clearly and concisely.

Question 11

As of December 31, 2018, Brookshire Company had assets of $925,000 and liabilities of $285,000. During 2019, the stockholders invested an additional $50,000 and paid dividends of $30,000 from the business.
What is the net income for the company during 2019, assuming that as of December 31, 2019, assets were $980,000, and liabilities were $255,000?

Accepted Answer

A)  $ 85,000 
B)  $ 65,000 
C)  $105,000 
D)  $ 20,000 
A)  $ 85,000 
B)  $ 65,000 
C)  $105,000 
D)  $ 20,000

Question 12

The current ratio is computed as:

Accepted Answer

A)  Current liabilities divided by current assets 
B)  Current assets divided by current liabilities 
C)  Current assets minus current liabilities 
D)  Current assets divided by total assets 
E)  None of the above 
A)  Current liabilities divided by current assets 
B)  Current assets divided by current liabilities 
C)  Current assets minus current liabilities 
D)  Current assets divided by total assets 
E)  None of the above

Profit margin answers the question: how much net income does a company generate from each dollar of gross profit?

Fran Company has beginning equity of $300,000, net income of $50,000, dividends of $30,000 and investments by owners in exchange for stock of $10,000. Its ending equity is:

Compute the missing amounts for each of the last 3 years for the Cummins Company. Compute the current ratio and debt-to-total-assets ratio for each year.

Which one of the following does not impact retained earnings directly?

The balance sheet format that reports assets first and then, beneath the assets, reports the liabilities and stockholders' equity is called the:

Fields Company presented the following data for the current year: Determine the company's profit margin (rounded)

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 -Wages payable

Data from the financial statements of Kroger King and SuperDeal, Inc., are presented below (in millions): To the nearest hundredth, what is the 2019 debt-to-total-assets ratio for SuperDeal, Inc.?

Prepare an income statement for the month ended July 31, 2019 for Wiseman Toys. Wiseman's account balances for the month ending July 31, 2019 are:

Financial statements are comparable when they:

The current ratio is computed as:

Financial Accounting and Business Decisions

Processing Accounting Information

Accrual Basis of Accounting

Internal Control and Cash

Receivables

Inventory

Property, Plant and Equipment and Intangible Assets

Liabilities

Stockholders Equity

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Appendix A: The Language of Accountants: Debits and Credits

Appendix B: Accounting for Investments and Consolidated Financial Statements

Appendix C: Accounting and the Time Value of Money

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Exam 4: Understanding Accounting Information

Profit margin answers the question: how much net income does a company generate from each dollar of gross profit?

Fran Company has beginning equity of $300,000, net income of $50,000, dividends of $30,000 and investments by owners in exchange for stock of $10,000. Its ending equity is:

Compute the missing amounts for each of the last 3 years for the Cummins Company. Compute the current ratio and debt-to-total-assets ratio for each year.

Which one of the following does not impact retained earnings directly?

The balance sheet format that reports assets first and then, beneath the assets, reports the liabilities and stockholders' equity is called the:

Fields Company presented the following data for the current year: Determine the company's profit margin (rounded)

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 -Wages payable

Data from the financial statements of Kroger King and SuperDeal, Inc., are presented below (in millions): To the nearest hundredth, what is the 2019 debt-to-total-assets ratio for SuperDeal, Inc.?

Prepare an income statement for the month ended July 31, 2019 for Wiseman Toys. Wiseman's account balances for the month ending July 31, 2019 are:

Financial statements are comparable when they:

The current ratio is computed as:

Financial Accounting and Business Decisions

Processing Accounting Information

Accrual Basis of Accounting

Internal Control and Cash

Receivables

Inventory

Property, Plant and Equipment and Intangible Assets

Liabilities

Stockholders Equity

Statement of Cash Flows

Analysis and Interpretation of Financial Statements

Appendix A: The Language of Accountants: Debits and Credits

Appendix B: Accounting for Investments and Consolidated Financial Statements

Appendix C: Accounting and the Time Value of Money

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