Exam 9: The Corporate Income Statement and Financial Analysis

Ratio analysis that involves comparing a company's financial ratios with those of competing companies and/or industry norms is called ____, while ratio analysis that focuses on changes in a firm's financial ratios over time is called ____.

Individuals analyzing a company's financial statements compute the same ratios and have the same objectives for the company to meet.

Not all companies using the equity method of accounting for an investment will consolidate the financial statements of investees at year-end.

Which of the following items is a quick asset?

On year-end financial statements, minority interest should be shown as a(an)

In analyzing common-sized financial statements,

A temporary difference is caused by

Extraordinary items are shown on the majority of corporate income statements.

Use the following information to answer questions The following asset and liability accounts are shown on Mason Store's December 31, 2010, balance sheet: -What is Mason's long-term debt to stockholders' equity ratio at December 31, 2010?

The following information is included in Tilden's 2010 income statement: What is Tilden's 2010 income from continuing operations?

Use the following information to answer questions On November 1, 2010, Alejandro Corporation purchased $300,000 of Beluga Corporation's 5%, 10-year bonds payable. Interest is payable on April 30 and October 31. Alejandro's year-end is December 31. Alejandro uses the straight-line method to amortize and bond discounts or premiums. -If the bonds were purchased for $304,200, how much bond interest revenue should Alejandro recognize in 2010?

International financial reporting standards

Which of the following items is not typically included in an annual report?

Using temporary differences to postpone the payment of taxes is illegal.

A bondholder of a corporation would prefer which of the following items to increase?

The portion of ownership interest of a subsidiary not owned by the parent company is

Use the following information to answer questions On November 1, 2010, Alejandro Corporation purchased $300,000 of Beluga Corporation's 5%, 10-year bonds payable. Interest is payable on April 30 and October 31. Alejandro's year-end is December 31. Alejandro uses the straight-line method to amortize and bond discounts or premiums. -If the bonds were purchased for $295,500, how much bond interest revenue should Alejandro recognize in 2010?

An extraordinary item

Determination of an extraordinary item should always be made in reference to the environment in which the business operates.

On October 1, 2010, K Co. purchased $500,000 of Q Co.'s 10%, 5-year bonds for $514,000. On the date of purchase, K Co. should debit which of the following account(s)?