Exam 2: Financial Statements and the Annual Report

An investor found the following in an annual report: "The financial statements,in our opinion,present fairly the financial position,operating results,and cash flows,in conformity with accounting principles generally accepted in the United States." In which section of the annual report did the investor find this?

What is the correct method for calculating working capital?

Burke Company The following income statement items are taken from the records of Burke Company for the year ended December 31,2014: Read the information about Burke Company. Required: Prepare a multiple-step income statement for the year ended December 31,2014.

A 12% change in sales will result in a 12% change in net income.

Which one of the following statements is true?

The following list contains several items that appear on an income statement. Select the choice that lists the items in the order they would appear on a multi-step income statement

Dardenelle,Inc.earned $600,000 profit during 2014.On which financial statement(s)will you find the dollar amount of the profit earned by the company?

A question asked by stockholders is,"How much profit did the company make?" What should the stockholder examine to get the most information that will help evaluate the answer to this question?

Business entities generally carry on:

The qualitative characteristics of accounting data include

Which of the following is a current asset?

What financial statement items are investors and creditors most interested in and why?

____________________ is the quality of accounting information that makes it comprehensible to those willing to spend the necessary time

Read the information about Webb Company.What is Webb's net income?

Hopper,Inc. Use the information from Hopper Inc.to answer the following question(s). Read the information about Hopper.Inc.Which statement best represents Hopper's performance?

Ficus Company calculated the following amounts concerning its financial information for the years ending December 31,2014 and 2013: REQUIRED: Examine Ficus' ratios.Is the change in the current ratio favorable or not? Explain.

Which one of the following is considered a financing activity?

Loren Corporation Listed below is information from the financial records of Loren Corporation at December 31,2014: Read the information below about Loren Corporation. Required: Calculate the amount of working capital at December 31,2014 for Loren Corp.What can you learn from the current ratio that you cannot learn from the amount of working capital?

Which of the following best describes a company's financing activities?

As used in accounting,the "Notes to the Financial Statements" should be: