Exam 5: Communicating and Interpreting Accounting Information

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

Which of the following tasks does the Securities & Exchange Commission (SEC)not perform?

Which of the following is not true about the board of directors?

Which of the following statements regarding international financial reporting standards (IFRS)is false?

Additional-paid in capital is reported on the balance sheet as a component of shareholders' equity.

Which of the following statements is true?

Intangible assets are reported on the balance sheet as a current asset.

Which of the following would not typically be disclosed in the notes to the financial statements?

Which of the following would not be included on an income statement?

The Public Company Accounting Oversight Board (PCAOB)sets auditing standards for independent auditors.

Twin Lakes,Inc.reported the following December 31 amounts in its financial statements: 2011 2010 Sales revenue \ 250.0 \ 210.0 Gross profit 75.0 68.0 Net income 28.0 21.0 Total assets 90.0 80.0 Total stockholders' equity 40.0 36.0 Compute the following for the 2011: A.Net profit margin B.Asset turnover C.Return on assets

The form 10-K is the annual report that publically traded companies must file with the Securities & Exchange Commission (SEC).

The following data were taken from the adjusted trial balance of Kent Corporation. $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ Kent Corporation $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ Adjusted Trial Balance Data $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ December 31,2011 Accounts Payable \ 12,000 Accounts Receivable 13,000 Accumulated Depreciation-Building 6,000 Accumulated Depreciation-Furniture \& Fixtures 9,000 Building 60,000 Capital Stock 40,000 Cash 24,000 Copyrights 22,000 Dividends Declared 12,000 Furniture \& Fixtures 15,000 Land 25,000 Note Payable (10\%, due in 5 years) 40,000 Office Supplies 1,000 Prepaid Insurance 3,000 Retained Earnings (January 1, 2011) 23,000 Salaries Payable 2,000 Service Revenue 85,000 Salaries Expense 28,000 Utilities Expense 2,000 Depreciation Expense 5,000 Insurance Expense 2,000 Office Supplies Expense 1,000 Interest Expense 4,000 Required: Prepare a classified balance sheet in good form at December 31,2011.(Ignore income taxes).

Huron has provided the following year-end balances: Cash,$25,000 Patents,$7,900 Accounts receivable,$9,300 Property,plant,and equipment,$98,700 Prepaid insurance,$3,600 Accumulated depreciation,$10,000 Inventory,$37,000 Trademarks,$12,600 Goodwill,$11,000 How much are Huron's net noncurrent assets?

The Callie Company has provided the following information: Operating expenses were $231,000; Cost of goods sold was $376,000; Net sales were $940,000; Interest expense was $32,000; Gain on sale of a building was $76,000; Income tax expense was $151,000. What was Callie's gross profit?

Marino Company has provided the following information: Net sales,$480,000 Net income,$24,000 Average total assets,$200,000 What is Marino's net profit margin ratio?

FocusMore,Inc.,had the following alphabetical list of accounts taken from its adjusted trial balance at December 31,2011: Accounts Payable \ 15,000 Accounts Receivable 18,000 Accumulated Depreciation-Building 26,200 Advertising Expense 12,800 Building 100,000 Common Stock 60,000 Cash 15,000 Cost of Goods Sold 56,500 Depreciation Expense 2,000 Insurance Expense 3,800 Insurance Payable 1,900 Inventory 25,000 Land 30,000 Prepaid Insurance 4,600 Interest Revenue 2,500 Retained Earnings (Jan. 1, 2011) 58,000 Salaries Expense 48,000 Salaries Payable 4,600 Sales 150,000 Supplies Inventory 1,200 Supplies Expense 2,000 Unearned Rent Revenue 700 Required: Prepare a multiple step income statement for 2011.(Include gross profit,but ignore income taxes.)

The Willie Company has provided the following information: Operating expenses were $345,000; Income from operations was $215,000; Net sales were $1,100,000; Interest expense was $71,000; Discontinued operations loss was $87,000; Income tax expense was $58,000. What was Willie's income before taxes?

The Callie Company has provided the following information: Operating expenses were $231,000; Cost of goods sold was $376,000; Net sales were $940,000; Interest expense was $32,000; Gain on sale of a building was $76,000; Income tax expense was $151,000. What was Callie's income from operations?

Which of the following statements is true?