Exam 5: Financial Reporting and Analysis

Use this balance sheet and income statement for the first year of operations for Layton Novelties,Inc.to answer the following question.Use ending balances whenever average balances are required for computing ratios. The debt to equity ratio for Layton Novelties is

Use this balance sheet and income statement to answer the following question.Use ending balances whenever average balances are required for computing ratios. The profit margin of Isanti Systems is

Use this balance sheet and income statement to answer the following question.Use ending balances whenever average balances are required for computing ratios. The return on equity for Isanti Systems is

Contributed capital is shown on a corporate balance sheet as two amounts: the par value of the issued stock and additional paid-in capital.

A debt to equity ratio of 1.0 means that half of the company's assets are financed by creditors.

Which of the following items is not shown on a single-step income statement?

The owner's capital for a sole proprietorship is similar in nature to which of the following for corporations?

Natural resources,such as coal mines and oil wells,are classified as property,plant,and equipment.

The Securities and Exchange Commission instituted rules requiring the chief executive officers and chief financial officers of all publicly traded companies to certify that,to their knowledge,the quarterly and annual statements that their companies file with the SEC are

According to the FASB,the usefulness of accounting is judged by which of the following two prime qualitative characteristics of accounting information?

Accounting information should make a difference to the outcome of a decision,according to the qualitative characteristic of

The other revenues and expenses section of a multistep income statement could include all the following except

A company should classify land held for a planned manufacturing facility as

In which category would office salaries expense be included?

Match each definition with the correct term below. -Long-term liabilities

Although a stapler that costs $15 is a long-term asset,it can be expensed because the amount is immaterial and will not affect anyone's decision making.

When no errors have been made,accounting is always 100 percent accurate.

The lower-of-cost-or-market method of accounting for inventories follows the convention of

Which of the following accounting conventions would an accountant most likely apply when facing major uncertainties?

Which of the following is expressed in terms of a percentage?