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Comprehensive Analysis of Corporate Financial Statements and Accounting Choices - Document preview page 1

Comprehensive Analysis of Corporate Financial Statements and Accounting Choices - Page 1

Document preview content for Comprehensive Analysis of Corporate Financial Statements and Accounting Choices

Comprehensive Analysis of Corporate Financial Statements and Accounting Choices

Analyzes financial statements.

Lily Green
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12 months ago
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Comprehensive Analysis of Corporate Financial Statements and Accounting Choices - Page 1 preview imageComprehensive Analysis of Corporate Financial Statements and Accounting Choices(TCO A) A corporation has which of the following advantages? (Points : 5)Reduced taxesSimple to set upLimited liability for stockholdersOwner maintains controlQuestion 2.2. (TCO A) Dividends flow through which one of the following statements? (Points : 5)The Balance SheetThe Statement of Retained EarningsThe Income StatementNone of the aboveQuestion 3.3. (TCOs A and B) Below is a partial list of account balances for LBJ Company.Cash$12,000Prepaid rent1,300Accounts receivable7,000Accounts payable5,000Notes payable9,000Common stock22,000
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Comprehensive Analysis of Corporate Financial Statements and Accounting Choices - Page 2 preview image
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Comprehensive Analysis of Corporate Financial Statements and Accounting Choices - Page 3 preview imageDividends2,000Revenues45,000Expenses35,000Whatdid LBJ Company show as total debits? (Points : 5)$57,300$81,000$55,300$56,000Question 4.4. (TCO B and E) Under cash-basis accounting, which of the following transactions would notbe recorded? (Points : 5)Cash sales to customersPayments to vendorsSales on accountPayroll payments to employeesQuestion 5.5. (TCO D) If ending inventory of the current year is understated (Points : 5)Cost of goods sold for the current year will be understatedGross profit for the current year will be unaffectedGross profit for the current year will be understatedNet income for the current year will be overstatedQuestion 6.6. (TCO A and E) Equipment was purchased for $27,000. Freight charges amounted to $1,000and there was a cost of $5,000 for building a foundation and installing the equipment. It is estimated that
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Comprehensive Analysis of Corporate Financial Statements and Accounting Choices - Page 4 preview imagethe equipment will have a $5,000 salvage value at the end of its 7-year useful life. Depreciation expenseeach year using the straight-line method will be _____. (Points : 5)$4,714$4,000$3,857$3,285Question 7.7. (TCOs D and G) When the market rate of interest exceeds the stated rate of interest on thebond, the bond will require _____. (Points : 5)a debit to Discount on Bonds Payablea credit to Premium on Bonds Payablea debit to Loss on Bonds Payablea credit to Gain on Bonds PayableQuestion 8.8. (TCO C) Which inventory accounting system does not require a physical count of theinventory at the year end?(Points : 5)Periodic inventory systemPerpetual inventory systemSpecific IdentificationNone of the aboveQuestion 9.9. (TCO F) Horizontal analysis is also known as _____. (Points : 5)ratio analysisvertical analysiscommon-size analysistrend analysisQuestion 10.10. (TCO F) When performing a common-size balance sheet, the 100% figure is _____.(Points : 5)net sales
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Comprehensive Analysis of Corporate Financial Statements and Accounting Choices - Page 5 preview imagetotal liabilitiestotal assetstotal equityQuestion 11.11. (TCO F) Ratios are most useful in expressing _____. (Points : 5)cause-and-effect relationshipsthe relationships between numbersthe delta between numbersthe root cause of the problemQuestion 12.12. (TCO F) Creditors are usually most concerned with analyzing _____. (Points : 5)the company stock priceTurnoverLiquidityProfitabilityQuestion 13.13. (TCO F) Shareholders are usually most interested in evaluating _____. (Points : 5)ProfitabilityLeverageTurnoverTheability to pay debts as they come dueQuestion 14.14. (TCO G) To calculate themarket value of a bond, we need to _____. (Points : 5)Multiplythe stated rate times the bond’s face valueCalculatethe present value of the principal onlyCalculatethe present value of both the principal and the interestCalculatethe present value of the interest only1.TCO A) Below you will find selected information (in millions) from Coca-Cola Co.’s 2012 AnnualReport.
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Finance

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