Exam 5: Communicating and Interpreting Accounting Information

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

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Question 1

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The balance sheet for Glenwood Corporation at December 31, 2016 showed the following subtotals: Required: Based on the above data, calculate the following amounts: A)Total assets ___ B)Long-term liabilities _ C)Common stock and Additional paid-in capital _____ D)Total liabilities and stockholders' equity

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Question 2

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A. $140,000 + $420,000 + $70,000 = $630,000.
B. $210,000 - $80,000 = $130,000.
C. $420,000 - $120,000 = $300,000.
D. $210,000 + $420,000 = $630,000.

Complete the following balance sheet by entering the appropriate amounts in the blanks provided.

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Question 3

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A. $40,000. ($90,000 Total Assets (F) - $35,000 Book Value of Building - $15,000 Cash)
B. $25,000. ($60,000 Building - $35,000 Book Value)
C. $90,000. (Must equal to F.)
D. $2,000. ($25,000 Current liabilities - $11,000 Accounts Payable - $12,000 Notes payable)
E. $40,000. ($25,000 Common stock + $15,000 Retained earnings)
F. $90,000. ($50,000 Total Liabilities + $40,000 Total Stockholders' Equity)

Which one of the following statements is true when a company sells inventory costing $800 for $1,400 cash, and operating expenses are $500?

(Multiple Choice)

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Question 4

Which of the following would most likely increase the net profit margin ratio?

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Question 5

Which of the following statements is false when a company sells inventory costing $700 for $1,200 cash and operating expenses are $200?

(Multiple Choice)

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Question 6

The fraud triangle conditions necessary for financial statement fraud to occur are the existence of a system of internal control, the ability to invade the system, and rationalization to commit the fraud.

(True/False)

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Question 7

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

(True/False)

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Question 8

The essence of reporting the gains on sales of investments separately on an income statement is that they are do not to primary operations of the reporting company.

(True/False)

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Question 9

Which of the following would not be used to calculate income from operations?

(Multiple Choice)

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Question 10

Comparative financial statements are those of a company in one industry presented with another company in the same industry.

(True/False)

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Question 11

Which of the following items is not part of disclosure notes to the financial statements?

(Multiple Choice)

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Question 12

Financial analysts utilize a company's financial reports to assist them in making earnings forecasts and earnings per share projections.

(True/False)

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Question 13

The Statement of Comprehensive Income includes items in which order?

(Multiple Choice)

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Question 14

Gains and losses on sales of investments are reported on the income statement as a component of income from operations.

(True/False)

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Question 15

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 Retained earnings, 15,500 Trademarks, $12,600 Accounts payable, $8,000 Goodwill, $11,000 How much are Huron's net noncurrent assets?

(Multiple Choice)

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Question 16

Which of the following results in an increase in the return on assets ratio?

(Multiple Choice)

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Question 17

A company has paid cash to repurchase its common stock that was previously issued. Where will this cash flow be reported on the statement of cash flows?

(Multiple Choice)

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Question 18

Panmar Inc. is preparing a statement of stockholders' equity for 2016. On January 1, 2016, Panmar started the year with a $200,000 credit balance in its retained earnings account. During 2016, the company earned net income of $140,000. Panmar declared dividends of $80,000 and paid $50,000 of those dividends. Also, the company received cash of $100,000 for additional shares of common stock issued and then paid $30,000 to repurchase shares of common stock. What is the balance in retained earnings on December 31, 2016?

(Multiple Choice)

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Question 19

Corporate governance refers to the procedures designed to ensure that the company is managed in the interest of the board of directors who oversee management.

(True/False)

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Question 20

Showing 1 - 20 of 119

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

Complete the following balance sheet by entering the appropriate amounts in the blanks provided.

Which one of the following statements is true when a company sells inventory costing $800 for $1,400 cash, and operating expenses are $500?

Which of the following would most likely increase the net profit margin ratio?

Which of the following statements is false when a company sells inventory costing $700 for $1,200 cash and operating expenses are $200?

The fraud triangle conditions necessary for financial statement fraud to occur are the existence of a system of internal control, the ability to invade the system, and rationalization to commit the fraud.

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

The essence of reporting the gains on sales of investments separately on an income statement is that they are do not to primary operations of the reporting company.

Which of the following would not be used to calculate income from operations?

Comparative financial statements are those of a company in one industry presented with another company in the same industry.

Which of the following items is not part of disclosure notes to the financial statements?

Financial analysts utilize a company's financial reports to assist them in making earnings forecasts and earnings per share projections.

The Statement of Comprehensive Income includes items in which order?

Gains and losses on sales of investments are reported on the income statement as a component of income from operations.

Which of the following results in an increase in the return on assets ratio?

A company has paid cash to repurchase its common stock that was previously issued. Where will this cash flow be reported on the statement of cash flows?

Corporate governance refers to the procedures designed to ensure that the company is managed in the interest of the board of directors who oversee management.

Financial Statements and Business Decisions

Investing and Financing Decisions and the Accounting System

Operating Decisions and the Accounting System

Adjustments, Financial Statements, and the Quality of Earnings

Reporting and Interpreting Sales Revenue, Receivables, and Cash

Reporting and Interpreting Cost of Goods Sold and Inventory

Reporting and Interpreting Property, Plant, and Equipment; Intangibles; and Natural Resources

Reporting and Interpreting Liabilities

Reporting and Interpreting Bond Securities

Reporting and Interpreting Stockholders Equity

Statement of Cash Flows

Analyzing Financial Statements

PPA: Reporting and Interpreting Investments in Other Corporations

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