Info
Warning
Danger

Study Resources (Accounting)

Learning Objective 17-3 1) An analysis of a financial statement that reveals the relationship of each statement item to its base amount, which is the 100% figure, is known as vertical analysis. 2) In a vertical analysis of the income statement, each line item is shown as a percentage of net sales. 3).
7 Views
View Answer
8) 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%. Prepare.
6 Views
View Answer
37) Sugar Corp and Syrup Limited have reached an agreement in principle to combine their operations as of October 1, 20X9. However, the Board of directors cannot decide on the best way to accomplish the combination. Below are the alternatives being considered: 1.Sugar acquires the net assets of Syrup for $1,700,000.
6 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. .
4 Views
View Answer
Learning Objective 17-4 1) Working capital measures the ability to meet long-term obligations with current assets. 2) The current ratio is calculated as the total current assets divided by the total current liabilities. 3) A high current ratio indicates that current liabilities are more than current assets. 4) The cash ratio helps to determine.
6 Views
View Answer
36) On January 1, 20X2, Soho Co. purchased 4,000 shares, representing 12%, of Rico Inc. for $78,000. Soho is a publicly traded company. During the next two years, the following information was available for Rico. Net income (loss) Dividends declared Share price December 31 20X2 $65,000 $55,000 $22.20 20X3 $35,000 $10,000 $15.70 Required: a.Assuming Soho classifies this investment as FVTPL, prepare the journal entries.
6 Views
View Answer
34) On February 1, 20X5, Peter Co. purchased 20% of the outstanding shares of Mary Inc. at a cost of $275,000. During the next two fiscal years, Mary Inc. reported the following: Net income Dividends January 31, 20X6 $42,000 $20,000 January 31, 20X7 $35,000 $15,000 Required: a. If Peter uses the cost method for recording its investment in.
7 Views
View Answer
50) The balance sheet of Atlantis Inc. is below: 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 Calculate the current ratio for each year. 51) Partridge Inc. provides the following information for the year.
4 Views
View Answer
11) The goodwill impairment test does not involve ________. A) allocation of goodwill to reporting units B) elimination of all goodwill as a consequence C) estimation and judgement on the part of management D) an opportunity for a "big bath" 12) Piri Ltd. acquired 100% of the commons shares of Golden Co. This business combination.
10 Views
View Answer
38) Hattrick Corp. is a wholly owned, parent-founded subsidiary of Bobby Inc. The unconsolidated statements of income and the statement of changes of retained earnings for the two companies for the year ended December 31, 20X6, are as follows (in 000s): Statements of Income and Retained Earnings For the year ended December.
6 Views
View Answer
11) How should negative goodwill be shown on the consolidated financial statements of the acquirer? A) As a gain on the statement of comprehensive income B) As a loss on the statement of comprehensive income C) As a liability on the statement of financial position D) As a separate amount under shareholders' equity on.
9 Views
View Answer
  1) Which of the following Canadian accounting standards are not included in the CICA Handbook? A) Publicly accountable enterprises B) Private enterprises C) Not-for-profit organizations D) Government 2) Which of the following financial reporting objectives is a user objective? A) Income tax deferral B) Net income maximization C) Cash flow prediction D) Income smoothing 3) Which financial reporting objective is.
13 Views
View Answer
Learning Objective 17-5 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.
3 Views
View Answer
21) As per FASB guidelines, earnings per share should appear on the face of the income statement. 22) The price/earnings ratio shows the market price of $1 of earnings. 23) The dividend payout ratio indicates the amount of the dividend as a proportion of a share's market price. 24) The price/earnings ratio indicates.
4 Views
View Answer
34) On December 31, 20X6, the statements of financial position of the Power Company and the Pro Company are as follows: (in 000s) PowerPro(FV) Cash$  500$  800 Accounts Receivable1,5001,700 Inventories2,0001,500 Capital assets (net)2,5004,000$4,300 Total Assets$6,500$8,000 Current liabilities$  700$  400 Long term liabilities800500$  550 Common shares  2,5001,000 Contributed surplus8001,500 Retained earnings1,7004,600 Total Equities$6,500$8,000 Power Company has 100,000 shares of common stock outstanding. Pro Company.
5 Views
View Answer
19) Prepare a comparative common-size income statement for Nobell Inc. using the 2015 and 2014 data. Round off the percentages to one decimal place. Nobell Inc. Comparative Income Statement Years Ended December 31, 2015 and 2014 20152014 Net Sales$ 6,355$ 4,920 Cost of Goods Sold3,3702,200 Gross Profit2,9852,720      Operating Expenses: Selling Expenses675580 Administrative expenses410425 Total Expenses1,0851,005 Operating Income1,9001,715      Other Revenues and (Expenses): Interest.
4 Views
View Answer
36) Many countries around the world have adopted International Financial Reporting Standards as their accounting standards. As a result, companies competing in the same industry, but operating in different countries should use the same accounting policies. This, in turn, makes interpretation and analysis of peers' statements listed on different exchanges.
8 Views
View Answer
31) Which of the following accurately describes working capital? A) Current assets minus merchandise inventory B) Current assets minus current liabilities C) Total debt minus stockholders' equity D) Cost of goods sold divided by average merchandise inventory 32) Nobell Inc. provides the following data: 2015 2014 Cash $21,000 $18,000 Accounts Receivable, Net 31,000 35,000 Merchandise Inventory 53,000 25,000 Property, Plant, and Equipment, Net 120,000 90,000 Total assets $225,000 $168,000 Net credit sales $240,000 Cost of.
5 Views
View Answer
41) Partridge Inc. provides the following information for the year 2014: Net income $31,200 Market price per share of common stock $12.00/share Dividends paid $0.80/share Common stock outstanding at Jan 1, 2015 110,000 shares Common stock outstanding at Dec 31, 2016 150,000 shares The company has no preferred stock outstanding. Calculate the dividend yield for common stock. A) 6.67% B) 1.67% C) 3.67% D) 4.67% 42).
3 Views
View Answer
47) Extracts from the balance sheet of Atlantis Inc. are as follows: 2015 Assets Current Assets: Cash and Cash Equivalents$30,000 Accounts Receivable, Net65,000 Merchandise Inventory50,000 Total Current Assets$145,000 Long-term Investments150,000 Property, Plant, and Equipment, Net250,000 Total Assets$545,000 Total Current Liabilities$150,000 Compute the quick ratio. 48) From the following details provided by Trinidad Inc. Calculate the Merchandise Inventory turnover ratio for the year 2015. 20152014 Cost.
3 Views
View Answer
17) Prepare the vertical analysis report of the balance sheet data given below: Round off the percentages to two decimal places   Balance Sheet December 31, 2015 2015        Assets Current Assets: Cash and Cash Equivalents$10,000 Accounts Receivable, Net15,600 Merchandise Inventory38,000 Total Current Assets$63,600 Long-term Investments$15,000 Property, Plant, and Equipment, Net195,000 Total Assets$273,600        Liabilities Current Liabilities: Accounts Payable$8,500 Notes Payable1,400 Total Current Liabilities$9,900 Long-term Liabilities$54,000 Total Liabilities$63,900        Stockholders' Equity Common.
3 Views
View Answer
11) How do joint ventures differ from private corporations? A) The joint venturers must share the risks and profits of the joint venture equally. B) There can only be two parties in a joint venture. C) A joint venture does not have a board of directors. D) Venturers cannot make unilateral decisions. 12) On whose.
9 Views
View Answer
Chapter 3  Business Combinations   1) Which of the following is not a business combination? A) Statutory amalgamation B) Joint venture C) A company's purchase of 100% of another company's net assets D) A company's purchase of 80% of another company's voting shares 2) Under IFRS 3, Business Combinations, which method must be used to account for.
15 Views
View Answer
21) Dupuis Ltd. acquired Waul Ltd. through a business combination using the direct method. How should Waul record this on its books? A) Waul should debit an "Investment in Dupuis" account and credit its share capital account. B) Waul should debit an "Investment in Dupuis" account and remove all its asset and.
5 Views
View Answer
21) Which of the following statements about IFRS is true? A) IFRS is more rule-based than pre-IFRS GAAP. B) IFRS reduces the number of management estimates that can be used. C) IFRS requires more judgement in selecting appropriate accounting policies than under pre-IFRS GAAP. D) IFRS does not require as strong an accounting infrastructure.
7 Views
View Answer
37) Hattrick Corp. is a wholly owned, parent-founded subsidiary of Bobby Inc. Both Bobby and Hattrick report under IFRS. The unconsolidated statements of comprehensive income and part of the statement of changes in equity—retained earnings for the two companies for the year ended December 31, 20X6, are as follows (in.
8 Views
View Answer
38) France, Germany, Japan and Canada are four countries that have adopted International Financial Reporting Standards. As a result, auto companies from these nations will have similar statements, statement components, disclosures and measurement methods. Required: Discuss the "invisible differences" that may cause statements from the different countries to be less comparable and.
8 Views
View Answer
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 analysis report Use 2011 as the base year, and round answers to the nearest percent. 22) Donald Corp. reported the following on its comparative income statement: (In millions)              2017     2016     2015 Revenue$728$675$500 Cost of goods sold312258220 Prepare a horizontal analysis of revenues and cost of goods sold,.
6 Views
View Answer
  1) Passive investments can be classified as fair value through profit or loss (FVTPL) or as fair value through other comprehensive income (FVTOCI). Which of the following statements is true? A) Under both FVTPL and FVTOCI, changes in the fair value of the investment are reported as other comprehensive income on.
15 Views
View Answer
11) Which of the following types of financial statement analysis would be used to see how a company's operating expenses as a percentage of net sales have changed from one year to the next? A) vertical analysis B) horizontal analysis C) ratio analysis D) analysis of internal control system 12) The vertical analysis statement of.
6 Views
View Answer
41) Rasor Inc. uses the equity method of reporting its 40% investment in Ivan Co. The balance in the Investment in Ivan was $50,750 at January 1, 20X3. During the next three years, Ivan reported the following net earnings (losses) and dividends paid. Net earnings (loss) $ Dividends paid $ 20X3 135,600 120,000 20X4 15,700 120,000 20X5 (103,400) 0 Required: Calculate the balance of the.
8 Views
View Answer

Welcome Back!

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Forgot?
Login
Don't have an account? Signup

Join ScholarOn

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Signup
By registering, I agree to the Terms and Privacy Policies
Already have an account? Log in

Verify Your Email

Check your inbox & click on the link to activate your account.

Resend Email
Verification Mail Send Successfully. Please Check Your Email.

Forgot Password

Please enter your registered email to recieve the password reset link.

Send reset link
Already have an account? Log in
Did you know?

ScholarOn has more than 2 Million+ answers, textbook solutions & flashcards. Explore Now!

d
Let us boost your grade together!

Get 24/7 homework help from Experts

Let our knowledge be your backup

1

Submit your homework question or assignment

2

Receive a quote & Make the Payment

3

Sit Back & Relax to Earn Better Grades!

Drag files here or Browse your Device

Maximum file size 10MB
17,475 Accounting Questions Answered! Get Answer

We are The Best Because

  • On Time Delivery
  • Plagiarism ReportFree
  • Unlimited RevisionsFree
  • 100% Privacy & Confidential
  • 24/7 Live Chat Support
4.9 (16678 Ratings)
You can communicate directly with your expert until the solution quality is delivered to your complete satisfaction.
Looking for writing help?
Did you know?

ScholarOn has more than 2 Million+ answers, textbook solutions & flashcards. Explore Now!