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Study Resources (Accounting)

87) Avatar Company uses the indirect method to prepare its statement of cash flows.  Please refer to the following sections of the comparative balance sheet:   2014 2013 Increase/decrease Accounts payable $   4,000 $   6,000 $ (2,000) Accrued liabilities 2,000 1,000 1,000 Long-term notes payable 84,000 90,000 (6,000)     Total liabilities $ 90,000 $ 97,000 $ (7,000)         Common stock 30,000 2,000 28,000.
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21) Avatar Company uses the indirect method to prepare the statement of cash flows.  Please refer to the following section of the comparative balance sheet: 2014 2013 Increase/decrease Cash $ 33,000 $ 18,000 $15,000 Accounts receivable 22,000 35,000 (13,000) Inventory 170,000 115,000 55,000     Total assets $225,000 $168,000 $57,000 The change in inventory will be shown as a positive.
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21) La Paz Company reported the following data: (Dollar amounts in millions) 2014 2013 Amount of Increase (Decrease) Percentage Revenues $6,355 $4,920 $1,435 29.2% Cost of revenues 3,370 2,200 1,170 53.2% Gross profit 2,985 2,720 265 9.7% Operating expenses:    Sales and marketing expense 675 580 95 16.4%    General and administrative expense 410 425 (15) -3.5%    Research and development expense 470 390 80 20.5%    Other expense 400 695.
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11) Companies sometimes obtain financing other than cash.  Although such transactions do not directly involve cash, they still must be reported in the financing section of the cash flow statement. 12) Partisan Services purchased 10 delivery vehicles by issuing a 10-year installment note payable for $320,000.  This transaction would be shown.
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83) Avatar Company uses the indirect method to prepare its statement of cash flows. Please refer to the following portion of the comparative balance sheet: 2014 2013 Increase/decrease Cash $  21,000 $  18,000 $  3,000 Accounts receivable 31,000 35,000 (4,000) Inventory 53,000 25,000 28,000 PP&E, net 120,000 90,000 30,000     Total assets $225,000 $168,000 $57,000 Additional information provided: •Equipment costing.
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6) Avatar Company uses the indirect method to prepare its statement of cash flows. Using the worksheet shown below, please enter the adjustments needed to record the following transactions: ?Issued common stock for $28,000. ?Issued new long-term notes payable for $34,000. ?Repaid long-term notes payable for $40,000. .
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41) A payment of interest on a loan would be considered a: A) cash outflow from operating activities. B) cash outflow from investing activities. C) cash outflow from financing activities. D) noncash activity. 42) Cash received from selling merchandise would be considered a: A) cash inflow from investing activities. B) cash inflow from operating activities. C) cash inflow.
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81) Starfire Company uses the indirect method to prepare the statement of cash flows.  Please refer to the following income statement: Sales revenue $140,000 Interest revenue 5,000 Loss on sale of plant assets (4,000)    Total revenues and (losses) $141,000 Cost of goods sold 100,000 Salary expense 23,000 Depreciation expense 8,000 Other operating expenses 9,000 Interest expense 2,000 Income tax.
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11) A company reported the following amounts of net income: 2011 $18,000 2012 $24,000 2013 $26,000 Which of the following is the percentage change in net income from 2011 to 2012? A) 33.33% B) 8.33% C) 10.00% D) 30.00% 12) The following is a summary of information presented on the financial statements of The Cake Company on December 31, 2014. Account 2014 2013 Current assets $  65,000 $ .
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21) Which of the following would NOT appear on a statement of cash flows prepared using the direct method? A) Collections from customers B) Payments to suppliers C) Interest received D) Increase/decrease in current liabilities 22) The only part that differs in a statement of cash flows using the direct method from one using the.
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11) Avatar Company uses the direct method to prepare its statement of cash flows.  Please refer to the following information reported for the year 2014: •Sales revenue:$240,000 •Accounts receivable beginning balance:$35,000 •Accounts receivable ending balance:$31,000 In the operating activity section of the statement of cash flows, what amount would be shown for collections from.
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31) Which of the following sections from the statement of cash flows includes purchases and sales of long-term assets? A) The financing section B) The operating section C) The investing section D) The noncash investing and financing section 32) Which of the following sections from the statement of cash flows includes activities that increase and.
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Learning Objective 15-3 1) Benchmarking is often done by comparing a company against either a key competitor or against the industry average. 2) A common-size statement reports only percentages—no dollar amounts. 3) The common-size statement percentages are the same percentages that appear in horizontal analysis. 4) Common-size statements allow the comparison of two or.
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28) Please complete a vertical analysis on the balance sheet data shown in the format below: (Dollar amounts in millions) 2014     Amount % of total Assets Current assets: Cash $  10,000 Accounts receivable, net 15,600 Inventory 38,000    Total current assets 63,600 Property, plant and equipment, net 195,000 Other long-term assets 15,000 Total assets $273,600 Liabilities Current liabilities: Accounts payable $   8,500 Other current liabilities 1,400    Total.
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24) Olivera Company provides the following data for the year 2013: Net sales revenue$398,000 Cost of goods sold$255,000 Operating expenses$95,000 Income tax expense$9,000 On a vertical analysis, what percentage would be shown for net income? A) 12.1% B) 8.8% C) 9.8% D) 27.3% 25) Oglethorpe Company reports the following information from the vertical analysis of their income statement: Net income: 4.2 %.
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Learning Objective 16-3 1) The IMA standards of ethical practice provide that accountants should continually develop their knowledge and skills. 2) Maintaining confidentiality of company information is a key element of ethical professional practice. 3) The accountant for Spiral Supplies deliberately post-dated a check to pay for business expenses in order to.
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30) Avatar Company uses the direct method to prepare its statement of cash flows.  Please refer to the following financial statement information for the year 2014: Please prepare the operating activities section of the statement of cash flows, using the direct method.  Please use the following format: Operating activities: Net cash from operating.
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32) The income statement and a partial balance sheet for Jefferson Company is presented below. Prepare the operating activities section of the statement of cash flows using the direct method. Jefferson Company Income Statement For the Year Ended December 31, 2013 Sales $500,000 Cost of goods sold   390,000 Gross profit $110,000 Operating expenses: Salaries $70,000 Depreciation expense 20,000 Miscellaneous 10,000 100,000 Net income $ 10,000 Jefferson Company Partial Balance.
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89) Avatar Company uses the indirect method to prepare its statement of cash flows.  Please refer to the following information for the year 2014. Additional information provided: •Equipment costing $52,000 was purchased for cash. •Equipment with a net asset value of $10,000 was sold for $14,000 •Depreciation expense of $12,000 was recorded during the.
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Learning Objective 14-4 1) Which of the following sections from the statement of cash flows would include the purchase of a building totally financed by a mortgage? A) The investing section B) The operating section C) The financing section D) The noncash investing and financing section 2) Which of the following sections from the statement of.
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Learning Objective 16-2 1) During the past century, many developed economies have shifted their focus from a service economy to a manufacturing economy. 2) Increased global competition has resulted in many companies moving their operations to other countries to be closer to new markets. 3) Which of the following is a philosophy.
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11) Which of the following is the definition of benchmarking? A) Benchmarking is the study of percentage changes in financial statement line items year to year. B) Benchmarking is the analysis of a financial statement that shows each item as a percentage of net sales or total assets. C) Benchmarking is the practice.
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Learning Objective 16-1 1) Managerial accounting's focus is to provide information for internal planning and control. 2) Management accounting often requires forward-looking data because of the futuristic nature of many business decisions. 3) Management accounting is influenced significantly by rules of GAAP and guidelines of the Securities Exchange Commission. 4) Budget preparation is.
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79) Avatar Company uses the indirect method to prepare the statement of cash flows.  Please refer to the following income statement: Sales revenue $240,000 Interest revenue 1,000 Gain on sale of plant assets 4,000    Total revenues and gains $245,000 Cost of goods sold 110,000 Salary expense 45,000 Depreciation expense 12,000 Other operating expenses 23,000 Interest expense 1,000 Income tax.
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20) The Arlington Company wishes to compare its performance with industry averages.  Please refer to the data below: Arlington Co. Industry Revenues $8,000 $98,000 Cost of goods sold $3,500 $38,900 Gross Profit $4,500 $59,100 Operating expenses:    Sales and marketing expense $1,450 $21,000    General and administrative expense $960 $13,900    Research and development expense $330 $3,880 Total operating expenses $2,740.
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46) Peartree Company provides the following data: BALANCE SHEET Dec 31, 2014 Dec 31, 2013 Cash $ 21,000 $ 18,000 Accounts receivable, net 31,000 35,000 Inventory 53,000 25,000 PP&E, net 120,000 90,000     Total assets $225,000 $168,000 Accounts payable $4,000 $  6,000 Accrued liabilities 2,000 1,000 Long-term notes payable 84,000 90,000     Total liabilities $ 90,000 $ 97,000 Common stock $ 30,000.
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Learning Objective 15-1 1) Investors and creditors generally evaluate a company by using one year's data. 2) Horizontal analysis compares each item in the income statement to the net sales amount. 3) Benchmarking is the comparison of a company's current year results with an earlier year's performance. 4) If an analyst wishes to see.
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11) Management is accountable to its suppliers and vendors in which of the following ways? A) Providing products to customers that are safe and free of defects B) Repaying loans in a timely manner C) Providing a return on the owner's shareholders' investment D) Making timely payments and complying with contract terms 12) Management is.
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6) The times-interest-earned ratio shows a creditor the firm's ability to pay interest on debt. 7) The current ratio is a key indicator of a company's ability to pay current liabilities. 8) Quick assets do NOT include inventory. 9) Merchandise inventory is NOT counted when computing the acid-test ratio. 10) The ratio of the.
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56) Days in inventory is a ratio measure that addresses: A) how well a company is positioned to pay its current liabilities. B) how quickly a company can collect its receivables. C) how profitable a company is. D) how quickly a company can sell its inventory. 57) When comparing one company to another, what kind.
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16) The debt-to-equity ratio shows how much the company relies on borrowing to finance its business. 17) The times-interest-earned ratio measures the number of times that operating income can pay interest expense. 18) The rate of return on total assets is a way to measure a company's profitability. 19) The asset turnover rate.
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76) The acid-test ratio is used for which kind of evaluation? A) The ability of a company to pay its current liabilities B) The ability of a company to collect its receivables C) The overall profitability of a company D) Evaluating stock in a company from an investor's perspective 77) The accounts receivable turnover is.
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26) A company has $510,000 in Average common stockholders' equity, Net income of $312,000, and Preferred dividends paid of $15,000.  What is the rate of return on common stockholders' equity? A) 58.2% B) 61.2% C) 59.3% D) 62.0% 27) Which of the following signifies that a company may be unable to pay its current liabilities.
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