Info
Warning
Danger

Study Resources (Accounting)

20) Data for Nobell Inc. follow: 20152014 Net Sales$850,000$798,000 Cost of Goods Sold635,000580,000 Selling and Administrative Expenses50,00035,000 Other Expenses20,00015,000 Income Tax40,00055,000 Prepare a horizontal analysis of the comparative income statement of Nobell Inc. Round percentage changes to one decimal place. Please use a multiple step income statement. 21) Atlantis Inc. provides the following historical data: 201620152014201320122011 Net sales$4,970$4,500$3,980$3,270$4,750$4,400 Prepare the trend.
7 Views
View Answer
35) Avatar Company uses the direct method to prepare its statement of cash flows. Refer to the following financial statement information for the year ending December 31, 2015: Avatar Company Comparative Balance Sheet December 31, 2015 and 2014 Increase / 20152014 (Decrease) Cash$33,000$13,000$20,000 Accounts Receivable29,00036,000(7,000) Inventory56,00029,00027,000 Plant and Equipment, net126,00092,00034,000 Total Assets$244,000$170,000$74,000 Accounts Payable$9,000$13,000$(4,000) Accrued Liabilities7,0003,0004,000 Long-term Notes Payable70,00079,000(9,000) Total Liabilities$86,000$95,000$(9,000) Common Stock$55,000$3,000$52,000 Retained Earnings115,00078,00037,000 Treasury Stock(12,000)(6,000)(6,000) Total.
17 Views
View Answer
1) A corporation's income statement includes some unique items that do not often apply to smaller businesses. 2) Income from continuing operations helps investors to make predictions about past performance of the company. 3) The disposal of a financial segment would be reported as discontinued operations. 4) Gains and losses on the sale.
9 Views
View Answer
37) Manufacturing overhead is also referred to as: A) indirect manufacturing costs. B) direct costs. C) prime costs. D) period costs. 38) Anything for which managers want a separate measurement of cost is called: A) a responsibility center. B) a cost object. C) a profit object. D) a conversion cost. 39) Kyanite Corporation, a manufacturer reports costs for 2015 as.
4 Views
View Answer
10) Most public companies use the indirect method to prepare their statement of cash flows because the FASB prefers this method. 11) Interest Expense paid on a Note Payable would be included in the operating activities section of the statement of cash flows. 12) Avatar Company uses the direct method to prepare.
4 Views
View Answer
16) Prepare a vertical analysis report of the income statement shown below. Round off the percentages to two decimal places.   2015 Net Sales$7,000 Cost of Goods Sold3,800 Gross Profit$3,200 Operating Expenses: Selling Expenses$950 Administrative expenses670 Total Expenses$1,620 Operating Income$1,580 Other Revenues and (Expenses): Interest Revenue0 Interest Expense(750) Total Revenues and (Expenses)($750) Income Before Taxes$830 Income Tax Expense150 Net Income$680 17) Prepare the vertical analysis report of the.
6 Views
View Answer
6) Refer to the following information of Harris Inc. Net Cash from operating activities, $25,000 Net Cash from financing activities, $35,000 Net Cash used in investing activities, apart from investment in Long-Term Assets, $12,000. Net Cash used in investing activities, ($20,000) Investment in Long-Term Assets, $12,000 Cash dividend paid $10,000. Calculate free cash flow of Harris Inc. Learning.
5 Views
View Answer
17) Factory rent, taxes, and insurance are included in manufacturing overhead. 18) Transportation costs paid to ship raw materials to a company warehouse are considered product costs. 19) Sales commissions are included in manufacturing overhead. 20) In a manufacturing firm, advertising and marketing costs are examples of period costs. 21) In a manufacturing firm,.
5 Views
View Answer
20) Data for Martin Corp and Tortoize Inc. as follows: Martin Tortoize Net Sales $25,000 $32,500 Cost of Goods Sold 18,500 22,360 Other Expenses 2,150 5,000 Net Income $4,350 $5,140 Prepare a comparative common-size income statement for Martin Corp and Tortoize Inc. for the year ending December 31, 2016. Round off the percentages to two decimal places. Use a multiple step format for the income.
7 Views
View Answer
27) Repair and maintenance costs of vehicles used to deliver products to the customers are included in manufacturing overhead. 28) Direct materials and direct labor are prime costs. 29) In manufacturing, the cost objects are often units of product. A) current assets and liabilities reported on the balance sheet. B) costs that are incurred.
4 Views
View Answer
1) The study of percentage changes in comparative financial statements is called horizontal analysis. 2) Horizontal analysis compares each item in the income statement to the net sales amount. 3) Trend analysis is a form of horizontal analysis. 4) If an analyst wants to see how gross profit of a company has changed.
17 Views
View Answer
18) Data for Atlantis Inc. is given below: Atlantis Inc. Comparative Balance Sheet December 31, 2015 and 2014 20152014 Assets Current Assets: Cash$12,000$10,200 Accounts Receivable, Net16,10016,800 Merchandise Inventory45,00031,000 Prepaid Expenses6,5003,900 Total Current Assets$79,600$61,900 Property, Plant, and Equipment, Net265,000233,000 Total Assets$344,600$294,900 Liabilities Total Current Liabilities$9,900$11,200 Long-term Liabilities60,00050,000 Total Liabilities69,90061,200 Stockholders' Equity Preferred Stock, 3%75,00075,000 Common Stockholders' Equity, no par$199,700$158,700 Total Liabilities and Stockholders' Equity$344,600$294,900 Prepare a horizontal analysis of the comparative balance sheet.
5 Views
View Answer
1) An annual report provides information about a company's financial condition. 2) A quarterly report filed with the Securities and Exchange Commission is called a Form 10-K. 3) Management's discussion and analysis section of the annual report is the company's attempt to explain its financial statements and to discuss its performance. 4) The.
26 Views
View Answer
23) Donald Corp. reported the following revenues and net income amounts. (In millions)             2017     2016     2015     2014    2013 Revenue$728$675$500$485$452 Cost of goods sold650602456403398 Calculate Donald's trend analysis for revenues and cost of goods sold. Use 2013 as the base year, and round to the nearest percent. 1) An analysis of a financial statement that reveals the relationship of each statement.
4 Views
View Answer
80) Samuel Corp. has provided the following information for the year ended December 31, 2015. Samuel Corp Comparative Balance Sheet December 31, 2015 and 2014 20152014Increase / (Decrease) Assets Current Assets: Cash$33,000$13,000$20,000 Accounts Receivable29,00036,000(7,000) Inventory56,00029,00027,000 Plants Assets, net126,00092,00034,000 Total Assets$244,000$170,000$74,000 Accounts Payable$9,000$13,000$(4,000) Accrued Liabilities7,0003,0004,000 Long-term Notes Payable70,00079,000(9,000) Total Liabilities$86,000$95,000$(9,000) Common Stock$55,000$3,000$52,000 Retained Earnings115,00078,00037,000 Treasury Stock(12,000)(6,000)(6,000) Total Stockholders' Equity$158,000$75,000$83,000 Total Liabilities and Stockholders' Equity$244,000$170,000$74,000 Samuel Corp Income Statement Year ended December 31, 2015 Sales Revenue$291,300 Interest.
4 Views
View Answer
57) For a manufacturing business, which of the following would be included as manufacturing overhead? A) Direct materials cost B) Indirect materials cost C) Direct labor D) Advertising 58) For a manufacturing business, which of the following would be considered a period cost? A) Indirect materials B) Factory utilities C) Direct labor D) Sales salaries 59) Which of the following.
8 Views
View Answer
Learning Objective 16-5 1) Genius Inc. uses the indirect method to prepare its statement of cash flows. Using the worksheet shown below, enter the adjustments needed to record Net Income for the year ended December 31, 2014 of $49,000. Genius Inc. Spreadsheet for Statement of Cash Flows Year Ended December 31, 2014 BalanceTransaction AnalysisBalance Panel A—Balance.
7 Views
View Answer
5) Avatar Company uses the indirect method to prepare its statement of cash flows. Using the worksheet shown below, enter the adjustments needed to record the acquisition of plant assets for $52,000 cash. Avatar Company Spreadsheet for Statement of Cash Flows Year Ended December 31, 2014 BalanceTransaction AnalysisBalance Panel A—Balance Sheet:Dec 31, 2013DebitCreditDec 31, 2014 Cash$18,000$21,000 Accounts.
5 Views
View Answer
31) Best Company, a merchandiser, sells office supplies. The following information summarizes Best's operating activities during 2015: Utilities Expense $6,000 Rent for Store Expense 8,000 Sales Commissions Expense 4,500 Purchases of Merchandise 54,000 Inventory on January 1, 2015 30,000 Inventory on December 31, 2015 20,500 Sales Revenue 108,000 Required: Prepare an income statement for Best Company for the year ended December 31, 2015, using the.
8 Views
View Answer
75) Starfire Company uses the indirect method to prepare the statement of cash flows. Refer to the following income statement: Starfire Company Income Statement Year Ended December 31, 2015 Sales Revenue$275,000 Interest Revenue2,600 Loss on Sale of Plant Assets2,000 Total Revenues and (Losses)$279,600 Cost of Goods Sold135,000 Salary Expense66,500 Depreciation Expense32,000 Other Operating Expenses35,900 Interest Expense2,400 Income Tax Expense6,500 Total Expenses278,300 Net Income/(loss)$1,300 Additional information provided.
6 Views
View Answer
9) Baskins Corporation's accounting records include the following items, listed in no particular order, for the year ending December 31, 2015: Other Revenues and (Expenses)Gain on Discontinued Operations$75,000 Gain on sale of Equipment$12,000Extraordinary Loss15,000 Loss on disposal of Equipment5,000Cost of Goods Sold285,000 Net Sales650,000Operating Expenses120,000 The income tax rate for the company is 45%. The.
8 Views
View Answer
11) Which of the following is an objective of management accounting? A) to generate financial statements of a company for tax reporting B) to provide information to business managers to assist them in controlling their business C) to provide information to shareholders to assist them with their investment decisions D) to ensure that the.
8 Views
View Answer
8) For external reporting purposes, GAAP requires companies to treat period costs as assets. 9) The primary activity of manufacturing businesses is to purchase goods from a wholesaler and resell them. 10) Service companies include companies that provide health care, communication, banking, and other important benefits to society. 11) The income statement of.
9 Views
View Answer
11) The following is summary of information presented on the financial statements of a company on December 31, 2015. Account 2015 2014 Current Assets $82,000 $70,000 Accounts Receivable 60,000 68,000 Merchandise Inventory 62,000 53,000 Current Liabilities 52,000 46,000 Long-term Liabilities 39,000 45,000 Common Stock 70,000 50,000 Retained Earnings 65,000 40,000 What would a horizontal analysis report show with respect to long-term liabilities? A) long-term liabilities decreased by $30,000 B) long-term liabilities decreased by 40% C) long-term liabilities decreased.
4 Views
View Answer
4) Avatar Company uses the indirect method to prepare its statement of cash flows. Using the worksheet shown below, enter the adjustments needed to record the increases and decreases in current assets (other than cash) and current liabilities. Avatar Company Spreadsheet for Statement of Cash Flows Year Ended December 31, 2014 BalanceTransaction AnalysisBalance Panel A—Balance.
6 Views
View Answer
8) Avatar Company uses the indirect method to prepare its statement of cash flows. Refer to the partially completed worksheet below. Complete the worksheet, including the data showing the net change in cash, plus all control totals. Avatar Company Spreadsheet for Statement of Cash Flows Year Ended December 31, 2014 BalanceTransaction AnalysisBalance Panel A—Balance Sheet:Dec.
11 Views
View Answer
6) Avatar Company uses the indirect method to prepare its statement of cash flows. Using the worksheet shown below, 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 Avatar Company Spreadsheet for Statement of Cash Flows Year Ended.
9 Views
View Answer
7) Benchmarking is often done by comparing a company against either a key competitor or against the industry average. 8) Which of the following is the base amount when performing vertical analysis of an income statement? A) total expenses B) net sales C) sales revenue D) gross profit 9) A common-size statement reports only percentages that.
4 Views
View Answer
18) Which of the following would appear as a line item on the income statements of both, a merchandiser and a manufacturer? A) Direct Labor B) Cost of Goods Manufactured C) Direct Materials D) Cost of Goods Sold 19) Damsel Inc. is a large manufacturer of auto tires. Damsel has provided the following information: Sales Revenue $45,500 Beginning.
4 Views
View Answer
6) The merchandise inventory turnover ratio measures how profitably a company sells its average level of merchandise inventory during a year. 7) To calculate the acid-test ratio, merchandise inventory and prepaid expenses are ignored. 8) The current ratio is a key indicator of a company's ability to pay current liabilities. 9) Days' sales.
6 Views
View Answer
21) Which of the following is the primary objective of managerial accounting? A) providing information that managers need to make operational decisions B) providing historical data to investors and creditors C) providing summarized results of operations D) providing information to comply with laws and regulations of government bodies 22) Which of the following is the.
6 Views
View Answer
47) The following information relates to Webster Inc.: Advertising Costs $10,270 Sales Salary 4,500 Sales Revenue 450,000 President's Salary 40,300 Office Rent 61,100 Manufacturing Equipment Depreciation 2,080 Indirect Materials 9,360 Indirect Labor 11,700 Factory Repair and Maintenance 910 Direct Materials 28,080 Direct Labor 35,100 Delivery Vehicle Depreciation 1,027 Administrative Salaries 24,700 How much were Webster's product costs? A) $141,897 B) $697,127 C) $229,127 D) $87,230 48) The following information relates to Webster Inc.: Advertising Costs $10,270 Sales Salary 4,500 Sales Revenue 450,000 President's Salary 40,300 Office Rent 61,100 Manufacturing Equipment Depreciation 2,080 Indirect Materials 9,360 Indirect Labor 11,700 Factory.
6 Views
View Answer
7) Wages and benefits of assembly line workers are included in manufacturing overhead. 8) Wages and benefits of factory managers are considered as product costs. 9) The three categories of period costs are direct materials, direct labor, and manufacturing overhead. 10) Salary of a factory manager will be included in manufacturing overhead. 11) Direct.
7 Views
View Answer
2) Avatar Company uses the indirect method to prepare its statement of cash flows. Using the worksheet shown below, enter the adjustments needed to record Depreciation Expense for the year of 2014 of $12,000. Avatar Company Spreadsheet for Statement of Cash Flows Year Ended December 31, 2014 BalanceTransaction AnalysisBalance Panel A—Balance Sheet:Dec 31, 2013DebitCreditDec 31,.
5 Views
View Answer
28) Amber Corporation has provided the following information of its operating activities for 2015: Merchandise Inventory, January 1, 2015 $150,000 Merchandise Inventory, December 31, 2015 75,000 Purchases 854,000 Selling and Administrative Expenses 65,000 Sales Revenue 1,000,000 Required: Prepare Amber's income statement for the year ended December 31, 2015. Use the format provided below: Sales Revenue Cost of Goods Sold     Beginning Inventory     Purchases     Cost.
27 Views
View Answer
7) Avatar Company uses the indirect method to prepare its statement of cash flows. Using the worksheet shown below, enter the adjustments needed to record the following transactions: Purchased Treasury Stock for $3,000 Paid dividends of $10,000 Avatar Company Spreadsheet for Statement of Cash Flows Year Ended December 31, 2014 BalanceTransaction AnalysisBalance Panel A—Balance Sheet:Dec 31, 2013DebitCreditDec.
6 Views
View Answer
  Learning Objective 18-1 1) Managerial accounting focuses on providing information for internal planning and control. 2) Financial accounting prepares reports for internal purposes, whereas managerial accounting provides information to external stakeholders. 3) The IMA standards of ethical practice require managerial accountants to maintain their professional competence. 4) The accountant for Myra Lido deliberately deferred.
10 Views
View Answer
18) Atlantis Inc. has the following data: Atlantis Inc. Comparative Balance Sheet December 31, 2016 and 2015 20162015        Assets Total Current Assets$200,000$100,000 Property, Plant, and Equipment, Net550,000500,000 Other Assets50,00050,000 Total Assets$800,000$650,000        Liabilities Total Current Liabilities$150,000$100,000 Long-term Debt350,000250,000 Total Liabilities500,000350,000        Stockholders' Equity Total Stockholders' Equity300,000300,000 Total Liabilities and Stockholders' Equity$800,000$650,000 Perform a vertical analysis of Atlantis's balance sheet for each year. Round your percentage answers.
5 Views
View Answer
37) Sentrino Company uses the direct method for its statement of cash flow. Assume Accrued Liabilities relate to Operating Expenses. It reports the following information regarding the year ending December 31, 2014: Income Statement Sales Revenue$312,000 Cost of Goods Sold247,000 Operating expenses:  2,500 Net Income$32,500 Partial Balance Sheet 20132014 Accounts Receivable (net)$15,600$19,500 Inventories28,60023,400 Accrued Liabilities3,9001,560 Accounts Payable (inventory)9,10015,600 Assume that there were.
7 Views
View Answer
36) Peartree Inc. provides the following data: Cash $40,000 $25,000 Accounts Receivable, Net 98,000 62,000 Merchandise Inventory 70,000 50,000 Property, Plant, and Equipment, Net 180,000 120,000 Total assets $388,000 $257,000 Additional information: Net sales $500,000 Cost of Goods Sold 150,000 Interest expense 20,000 Net income 180,000 Calculate the return on total assets for the year 2015. A) 67.25% B) 62.02% C) 72.36% D) 65.00% 37) Peartree Inc. provides the following income statement for the year 2015: 2015 Net Sales $240,000 Cost of Goods Sold 110,000 Gross.
6 Views
View Answer
20) Wellington Company uses the direct method to prepare its statement of cash flows. Refer to the following financial statement information for the year ended December 31, 2015: On Wellington's statement of cash flows, using the direct method, what amount will be shown for total net cash flow from operating activities?.
5 Views
View Answer
36) The income statement and a partial balance sheet of Williams Company for the year ended December 31, 2014 is presented below. Prepare the operating activities section of the statement of cash flows using the direct method. Assume the Accrued Liabilities relate to Miscellaneous Operating Expenses. Income Statement Sales Revenues$1,500,000 Cost of Goods.
9 Views
View Answer