Question 1

Some analysts properly refer to a company's profit margin as its return on assets.

Accepted Answer

A) True 
 B)False

Question 2

During 2014,Wimbrow Images reported $60,000 of net income and generated $80,000 of cash from operations.During the year,Wimbrow Images paid $15,000 to purchase a new delivery truck and also paid dividends in the amount of $30,000.Wimbrow Images borrowed $40,000 cash from the bank.At the beginning of the year,cash amounted to $50,000.

Accepted Answer

A)
Wimbrow Images
St

Question 3

____________________ have claims to an entity's economic resources

Accepted Answer

Creditors

Question 4

Dividends declared and paid reduce a company's retained earnings balance.

Accepted Answer

A) True 
 B)False

Question 5

Which one of the following equations represents retained earnings activity?

Accepted Answer

A) Beginning balance + net income + dividends = profits for the year 
B) Beginning balance + cash inflows - cash outflows = ending balance 
C) Beginning balance + dividends - net income = ending balance 
D) Beginning balance + net income - dividends = ending balance 
A) Beginning balance + net income + dividends = profits for the year 
B) Beginning balance + cash inflows - cash outflows = ending balance 
C) Beginning balance + dividends - net income = ending balance 
D) Beginning balance + net income - dividends = ending balance

Question 6

Schneider,Inc. ,a manufacturer of tires,has given you its most recent annual report in an effort to obtain a sizable loan.The company is very profitable and appears to have a sound financial position.Based on a report presented on prime-time television last night,you are aware that Schneider is a defendant in several lawsuits related to its defective tires that cause vehicles to overturn.The information presented on television is an example of financial information that is

Accepted Answer

A) Relevant 
B) Consistent 
C) Predictable 
D) Comparable 
A) Relevant 
B) Consistent 
C) Predictable 
D) Comparable

Question 7

On the statement of cash flows,the ______________________________ section involves the acquisition and sale of long-term assets.

Accepted Answer

Investing

Question 8

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 single-step income statement for the year ended December 31,2014.

Accepted Answer

BURKE COMPANY
INCOME

Question 9

______________________________ is a liquidity measure that is calculated by subtracting current assets from current liabilities.

Accepted Answer

The answer of ______________________________ is a liquidity measure that is...

Question 10

The current ratio is irrelevant in liquidity analysis for service companies because they do not have inventories among their current assets

Accepted Answer

A) True 
 B)False

Question 11

A company is not required to prepare both a(n)

Accepted Answer

A) Income statement and statement of stockholders' equity 
B) Income statement and statement of retained earnings 
C) Statement of stockholders' equity and statement of retained earnings 
D) Statement of cash flows and statement of retained earnings 
A) Income statement and statement of stockholders' equity 
B) Income statement and statement of retained earnings 
C) Statement of stockholders' equity and statement of retained earnings 
D) Statement of cash flows and statement of retained earnings

Question 12

Independent auditors (CPAs)render an opinion that the financial statements do or do not fairly present a company's financial position,operating results,and cash flows.

Accepted Answer

A) True 
 B)False

Question 13

During its fifth year of operations,Bright Creations Company reports a beginning cash balance of $132,000,cash inflows from investing activities of $210,000,cash outflows for financing activities of $79,000,and cash outflows for operating activities of $13,000.What was Bright Creations' cash balance at the end of the fifth year?

Accepted Answer

A) $ 250,000 
B) $ 434,000 
C) $ 276,000 
D) $ 132,000 
A) $ 250,000 
B) $ 434,000 
C) $ 276,000 
D) $ 132,000

Question 14

Which of the following statements is trueregarding the multiple-step income statement?

Accepted Answer

A) The multiple-step income statement is used only by companies that sell products,not those that provide services. 
B) The multiple-step income statement is helpful in determining a company's working capital 
C) The multiple-step income statement reports the same net income as the single-step income statement. 
D) The multiple-step income statement is required under generally accepted accounting principles. 
A) The multiple-step income statement is used only by companies that sell products,not those that provide services. 
B) The multiple-step income statement is helpful in determining a company's working capital 
C) The multiple-step income statement reports the same net income as the single-step income statement. 
D) The multiple-step income statement is required under generally accepted accounting principles.

Question 15

Hopper,Inc. Use the information from Hopper Inc.to answer the following question(s).
  Read the information about Hopper,Inc.Which of the following statements is the best answer regarding the company's profit margin?

Accepted Answer

A) The profit margin was 15.8% in 2014. 
B) The profit margin was 15.8% in 2013. 
C) The profit margin was 31.5% in 2014. 
D) The profit margin was 31.5% in 2013. 
A) The profit margin was 15.8% in 2014. 
B) The profit margin was 15.8% in 2013. 
C) The profit margin was 31.5% in 2014. 
D) The profit margin was 31.5% in 2013.

Question 16

An objective of financial reporting is to reflect economic information concerning a company's cash flows.

Accepted Answer

A) True 
 B)False

Question 17

What is the purpose of a statement of cash flows? Give an example of one of each of the three activities.

Accepted Answer

A statement of cash flows summarizes the

Question 18

Income from operations does not include interest revenue and interest expense because these items are considered to be non-operating in nature.

Accepted Answer

A) True 
 B)False

Question 19

Read the information about Webb Company.By what amount will net income on a single-step income statement differ from net income on a multi-step income statement if Webb Company prepares both formats?

Accepted Answer

A) $ 800 
B) $ 600 
C) $ 200 
D) $ -0- 
A) $ 800 
B) $ 600 
C) $ 200 
D) $ -0-

Question 20

What is the operating cycle of a business? How does this impact the classification of assets into current and noncurrent categories?

Accepted Answer

The operating cycle depends on the natur

Some analysts properly refer to a company's profit margin as its return on assets.

____________________ have claims to an entity's economic resources

Dividends declared and paid reduce a company's retained earnings balance.

Which one of the following equations represents retained earnings activity?

On the statement of cash flows,the ______________________________ section involves the acquisition and sale of long-term assets.

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 single-step income statement for the year ended December 31,2014.

______________________________ is a liquidity measure that is calculated by subtracting current assets from current liabilities.

The current ratio is irrelevant in liquidity analysis for service companies because they do not have inventories among their current assets

A company is not required to prepare both a(n)

Independent auditors (CPAs)render an opinion that the financial statements do or do not fairly present a company's financial position,operating results,and cash flows.

Which of the following statements is trueregarding the multiple-step income statement?

Hopper,Inc. Use the information from Hopper Inc.to answer the following question(s). Read the information about Hopper,Inc.Which of the following statements is the best answer regarding the company's profit margin?

An objective of financial reporting is to reflect economic information concerning a company's cash flows.

What is the purpose of a statement of cash flows? Give an example of one of each of the three activities.

Income from operations does not include interest revenue and interest expense because these items are considered to be non-operating in nature.

Read the information about Webb Company.By what amount will net income on a single-step income statement differ from net income on a multi-step income statement if Webb Company prepares both formats?

What is the operating cycle of a business? How does this impact the classification of assets into current and noncurrent categories?

Accounting As a Form of Communication

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, plant, and Equipment, and Intangibles

Current Liabilities, contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

Filters

Exam 2: Financial Statements and the Annual Report

Some analysts properly refer to a company's profit margin as its return on assets.

____________________ have claims to an entity's economic resources

Dividends declared and paid reduce a company's retained earnings balance.

Which one of the following equations represents retained earnings activity?

On the statement of cash flows,the ______________________________ section involves the acquisition and sale of long-term assets.

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 single-step income statement for the year ended December 31,2014.

______________________________ is a liquidity measure that is calculated by subtracting current assets from current liabilities.

The current ratio is irrelevant in liquidity analysis for service companies because they do not have inventories among their current assets

A company is not required to prepare both a(n)

Independent auditors (CPAs)render an opinion that the financial statements do or do not fairly present a company's financial position,operating results,and cash flows.

Which of the following statements is trueregarding the multiple-step income statement?

Hopper,Inc. Use the information from Hopper Inc.to answer the following question(s). Read the information about Hopper,Inc.Which of the following statements is the best answer regarding the company's profit margin?

An objective of financial reporting is to reflect economic information concerning a company's cash flows.

What is the purpose of a statement of cash flows? Give an example of one of each of the three activities.

Income from operations does not include interest revenue and interest expense because these items are considered to be non-operating in nature.

Read the information about Webb Company.By what amount will net income on a single-step income statement differ from net income on a multi-step income statement if Webb Company prepares both formats?

What is the operating cycle of a business? How does this impact the classification of assets into current and noncurrent categories?

Accounting As a Form of Communication

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, plant, and Equipment, and Intangibles

Current Liabilities, contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

International Financial Reporting Standards

Filters