Question 1

Consider the transactions listed. Match them to the financial statement effects listed
-Purchase inventory for cash

Accepted Answer

A)  Decrease assets and decrease equity 
B)  Decrease liabilities and decrease assets 
C)  Increase assets and decrease assets 
D)  Increase assets and increase equity 
A)  Decrease assets and decrease equity 
B)  Decrease liabilities and decrease assets 
C)  Increase assets and decrease assets 
D)  Increase assets and increase equity C

Question 2

Prestige Company has determined the following information for its recent fiscal year.
  Compute Prestige Company's cash conversion cycle.

Accepted Answer

A)  8.2 days 
B)  77.2 days 
C)  105.4 days 
D)  99.5 days 
E)  None of the above 
A)  8.2 days 
B)  77.2 days 
C)  105.4 days 
D)  99.5 days 
E)  None of the above B

Question 3

All companies must file with the SEC a detailed annual report and discussion of their business activities in their Form 10-K.

Accepted Answer

A) True 
 B)False  False

Question 4

In 2016, Kohl's Corporation had net working capital of $2,273 million and current liabilities of $2,974 million.
The firm's current assets are:

Accepted Answer

A)  $ 8,221 million 
B)  $ (8,221) million 
C)  $ 5,247 million 
D)  $ 2,974 million 
E)  None of the above 
A)  $ 8,221 million 
B)  $ (8,221) million 
C)  $ 5,247 million 
D)  $ 2,974 million 
E)  None of the above

Question 5

Consider the effects of the independent transactions, a through g, on a company's balance sheet, income statement, statement of cash flows, and statement of stockholders' equity.
a. The company issued stock in exchange for cash.
b. The company paid cash for rent.
c. The company performed services for clients and immediately received cash.
d. The company performed services for clients and sent a bill with payment due in 30 days.
e. The company compensated its employees with cash for wages.
f. The company received cash as payment on the amount owed from clients.
g. The company paid cash in dividends.
Complete the table below to explain the effects and financial statement linkages. Use "+" to indicate the account increases and "-" to indicate the account decreases.

Accepted Answer

The answer of Consider the effects of the independent transactions,...

Question 6

In its December 31, 2016 financial statements, Harley-Davidson reported the following (in millions):
  At December 31, 2016, current assets amount to:

Accepted Answer

A)  $2,863 million 
B)  $3,854 million 
C)  $7,970 million 
D)  $5,519 million 
E)  None of the above 
A)  $2,863 million 
B)  $3,854 million 
C)  $7,970 million 
D)  $5,519 million 
E)  None of the above

Question 7

Use the accounts below for Stanley Black & Decker, Inc. to prepare an income statement for the year ended December 31, 2016.

Accepted Answer

The answer of Use the accounts below for Stanley Black...

Question 8

Identify the financial statements in which you would find each of the items listed below. Some items may appear on more than one statement. Indicate all financial statements that apply to each item. The possible choices are:
-Cost of goods sold

Accepted Answer

A) Balance Sheet 
B) Statement of Stockholders' Equity 
C) Income Statement 
D) Statement of Cash Flows 
A) Balance Sheet 
B) Statement of Stockholders' Equity 
C) Income Statement 
D) Statement of Cash Flows

Question 9

The book value of stockholders' equity (the amount reported on the balance sheet) is most typically equal to the market value of the equity of a company.

Accepted Answer

A) True 
 B)False

Question 10

The cash conversion cycle is computed as

Accepted Answer

A)  Days sales outstanding + Days inventory outstanding - Days payable outstanding 
B)  Days sales outstanding - Days payable outstanding 
C)  Days sales outstanding - Days inventory outstanding 
D)  Days sales outstanding - Days inventory outstanding + Days payable outstanding 
E)  None of the above 
A)  Days sales outstanding + Days inventory outstanding - Days payable outstanding 
B)  Days sales outstanding - Days payable outstanding 
C)  Days sales outstanding - Days inventory outstanding 
D)  Days sales outstanding - Days inventory outstanding + Days payable outstanding 
E)  None of the above

Question 11

Identify which of the following items would be reported in the income statement.
  Items reported in the income statement would include:

Accepted Answer

A)  b, e, g, and h 
B)  a, b, d, and i 
C)  b, e, f, and g 
D)  d, f, g, and h 
E)  b, d, g, and i 
A)  b, e, g, and h 
B)  a, b, d, and i 
C)  b, e, f, and g 
D)  d, f, g, and h 
E)  b, d, g, and i

Question 12

Identify the financial statements in which you would find each of the items listed below. Some items may appear on more than one statement. Indicate all financial statements that apply to each item. The possible choices are:
-Revenue

Accepted Answer

A) Balance Sheet 
B) Statement of Stockholders' Equity 
C) Income Statement 
D) Statement of Cash Flows 
A) Balance Sheet 
B) Statement of Stockholders' Equity 
C) Income Statement 
D) Statement of Cash Flows

Question 13

Intel reports retained earnings at the end of fiscal 2016 of $40,747 million and retained earnings at the end of fiscal 2015 of $37,614 million. The company reported dividends of $4,925 million and other transactions with shareholders that reduced retained earnings during the year by $2,258 million.
How much net income did the firm report in fiscal 2016?

Accepted Answer

A)  $ 3,133 million net income 
B)  $ 3,133 million net loss 
C)  $10,316 million net income 
D)  $10,316 million net loss 
E)  None of the above 
A)  $ 3,133 million net income 
B)  $ 3,133 million net loss 
C)  $10,316 million net income 
D)  $10,316 million net loss 
E)  None of the above

Question 14

Following is information for Goodyear Tire & Rubber Company for three recent years. Reconcile the retained earnings account for the three-year period.

Accepted Answer

The answer of Following is information for Goodyear Tire &...

Question 15

Identify the financial statements in which you would find each of the items listed below. Some items may appear on more than one statement. Indicate all financial statements that apply to each item. The possible choices are:
-Inventories

Accepted Answer

A) Balance Sheet 
B) Statement of Stockholders' Equity 
C) Income Statement 
D) Statement of Cash Flows 
A) Balance Sheet 
B) Statement of Stockholders' Equity 
C) Income Statement 
D) Statement of Cash Flows

Question 16

choose the best match from the following:
-Unearned revenue

Accepted Answer

A) Assets 
B) Liabilities 
C)  Equity 
A) Assets 
B) Liabilities 
C)  Equity

Question 17

A customer's prepayment for services not yet rendered is initially recorded as unearned revenue (a liability). Then, at the end of the accounting period, the unearned revenue is moved from the balance sheet to the income statement. This is an example of the revenue recognition principle.

Accepted Answer

A) True 
 B)False

Question 18

Super Style Clothing begins operations in November. During the month the company receives $46,000 from a shareholder for common stock and gets a $6,000 loan from a bank. The company buys $38,000 of inventory for cash and sells half of the inventory for $30,000 on credit. The company had no other transactions in November. Fill in the missing amounts below.

Accepted Answer

The answer of Super Style Clothing begins operations in November....

Question 19

Assets are reported on the balance sheet at their current market value.

Accepted Answer

A) True 
 B)False

Question 20

Caterpillar Inc.'s statement of stockholders' equity for 2016 and 2015 shows the following amounts. Fill in the missing items to show how retained earnings articulate across the years.

Accepted Answer

The answer of Caterpillar Inc.'s statement of stockholders' equity for...

Consider the transactions listed. Match them to the financial statement effects listed -Purchase inventory for cash

Prestige Company has determined the following information for its recent fiscal year. Compute Prestige Company's cash conversion cycle.

All companies must file with the SEC a detailed annual report and discussion of their business activities in their Form 10-K.

In 2016, Kohl's Corporation had net working capital of $2,273 million and current liabilities of $2,974 million. The firm's current assets are:

In its December 31, 2016 financial statements, Harley-Davidson reported the following (in millions): At December 31, 2016, current assets amount to:

Use the accounts below for Stanley Black & Decker, Inc. to prepare an income statement for the year ended December 31, 2016.

Identify the financial statements in which you would find each of the items listed below. Some items may appear on more than one statement. Indicate all financial statements that apply to each item. The possible choices are: -Cost of goods sold

The book value of stockholders' equity (the amount reported on the balance sheet) is most typically equal to the market value of the equity of a company.

The cash conversion cycle is computed as

Identify which of the following items would be reported in the income statement. Items reported in the income statement would include:

Identify the financial statements in which you would find each of the items listed below. Some items may appear on more than one statement. Indicate all financial statements that apply to each item. The possible choices are: -Revenue

Following is information for Goodyear Tire & Rubber Company for three recent years. Reconcile the retained earnings account for the three-year period.

Identify the financial statements in which you would find each of the items listed below. Some items may appear on more than one statement. Indicate all financial statements that apply to each item. The possible choices are: -Inventories

choose the best match from the following: -Unearned revenue

A customer's prepayment for services not yet rendered is initially recorded as unearned revenue (a liability). Then, at the end of the accounting period, the unearned revenue is moved from the balance sheet to the income statement. This is an example of the revenue recognition principle.

Assets are reported on the balance sheet at their current market value.

Caterpillar Inc.'s statement of stockholders' equity for 2016 and 2015 shows the following amounts. Fill in the missing items to show how retained earnings articulate across the years.

Financial Accounting for MBAS

Transactions, Adjustments, and Financial Statements

Analyzing and Interpreting Financial Statements

Revenues, Receivables, and Operating Expenses

Inventory, Accounts Payable, and Long-Term Assets

Current Liabilities and Long-Term Liabilities

Stock Transactions, Dividends, and EPS

Intercorporate Investments

Leases, Pensions, and Income Taxes

Cash Flows

Forecasting Financial Statements

Using Financial Statements for Valuation

Filters

Exam 2: Introducing Financial Statements

Consider the transactions listed. Match them to the financial statement effects listed -Purchase inventory for cash

Prestige Company has determined the following information for its recent fiscal year. Compute Prestige Company's cash conversion cycle.

All companies must file with the SEC a detailed annual report and discussion of their business activities in their Form 10-K.

In 2016, Kohl's Corporation had net working capital of $2,273 million and current liabilities of $2,974 million. The firm's current assets are:

In its December 31, 2016 financial statements, Harley-Davidson reported the following (in millions): At December 31, 2016, current assets amount to:

Use the accounts below for Stanley Black & Decker, Inc. to prepare an income statement for the year ended December 31, 2016.

Identify the financial statements in which you would find each of the items listed below. Some items may appear on more than one statement. Indicate all financial statements that apply to each item. The possible choices are: -Cost of goods sold

The book value of stockholders' equity (the amount reported on the balance sheet) is most typically equal to the market value of the equity of a company.

The cash conversion cycle is computed as

Identify which of the following items would be reported in the income statement. Items reported in the income statement would include:

Identify the financial statements in which you would find each of the items listed below. Some items may appear on more than one statement. Indicate all financial statements that apply to each item. The possible choices are: -Revenue

Following is information for Goodyear Tire & Rubber Company for three recent years. Reconcile the retained earnings account for the three-year period.

Identify the financial statements in which you would find each of the items listed below. Some items may appear on more than one statement. Indicate all financial statements that apply to each item. The possible choices are: -Inventories

choose the best match from the following: -Unearned revenue

A customer's prepayment for services not yet rendered is initially recorded as unearned revenue (a liability). Then, at the end of the accounting period, the unearned revenue is moved from the balance sheet to the income statement. This is an example of the revenue recognition principle.

Assets are reported on the balance sheet at their current market value.

Caterpillar Inc.'s statement of stockholders' equity for 2016 and 2015 shows the following amounts. Fill in the missing items to show how retained earnings articulate across the years.

Financial Accounting for MBAS

Transactions, Adjustments, and Financial Statements

Analyzing and Interpreting Financial Statements

Revenues, Receivables, and Operating Expenses

Inventory, Accounts Payable, and Long-Term Assets

Current Liabilities and Long-Term Liabilities

Stock Transactions, Dividends, and EPS

Intercorporate Investments

Leases, Pensions, and Income Taxes

Cash Flows

Forecasting Financial Statements

Using Financial Statements for Valuation

Filters