Exam 6: Statements of Financial Position and Cash Flows and the Annual Report

When preparing a the operating section of the statement of cash flows using the indirect method,which of the following items are subtracted from net income?

What are current assets for San Marcos Corporation?

Bookworm Booksellers reported sales revenue of $350,000 for the fiscal year ended July 31.The accounts receivable balance at the beginning of the year was $26,000 and $35,000 at the end of the year.On the statement of cash flows,what amount of cash would be shown as collected from customers?

Webb Corporation's trial balance for July 31,the end of its fiscal year,included the following accounts: The investment account consists of marketable securities of which management plans to sell half of by December 31.Prepaid insurance is a two year policy that was purchased on July 31.The note receivable is an installment note that will be paid in three equal installments on December 31 of each year. The amount that should be classified as current assets in the July 31 balance sheet is ________.

In order to be a cash equivalent,an investment must have a maturity date of three months or less.

The Management Discussion and Analysis section of the annual report is a part of the audited financial statements.

The return on assets for Teague Industries is ________.

Hendrickson Corporation's trial balance for July 31,the end of its fiscal year,included the following accounts: Investments are treasury bills that were purchased in May and mature on August 15.Prepaid insurance is a three year policy that was purchased on July 31. The amount that should be classified as current assets in the July 31 balance sheet is ________.

What are three limitations associated with the balance sheet?

Which of the following events would not be treated as a subsequent event?

What is working capital for San Marcos Corporation?

The financial leverage for Teague Industries is ________.

Which of the following is not a cash flow measure?

If an auditor is not able to gather enough evidence to form an opinion on financial statements,the auditor issues a(n)________.

A subsequent event is one that takes place after a company's year end and after the financial statements are issued.

Cash flows from financing activities are ________.

The direct method of reporting cash flows from operating activities begins with net income from the income statement.

The formula for current ratio is ________.