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The Financial Statements

Review of file after client was convicted of financial statement fraud

Question You have been assigned the peer review of an audit file after the client was convicted of financial statement fraud. The client, Grande Stores, a large store chain, materially overstated net income by understating accounts payable and recording fictitious supplier credits that reduced accounts payable. You have bee

CEO Ford's Future Positives

Ford Motor: Use recent balance sheet and other information to answer the following questions: Who is the CEO? Is his view of Ford's future positive? What are the challenges as he sees them? What was the Revenue for 2010? From what sources did Ford make their Revenue? What was the Net Income for 2010? What w

put together a Balance Sheet and a Financial Statement

Introduction Calvary Baptist Church School have suffered from two civil wars thus the country has in adequate infrastructure and few number of educational institutions. The project aims to provide information to students in the country by establishing a public library. This will enable CBSC Students to have access to informatio

I have the five ratios to conduct ratio analysis. I just need help to figure out whether to use common size income statements or regular income statements. And how to figure whether to use income statements for the analysis or the balance sheet. Balance sheet or trial balance. The five ratios I will be using are: current ratio gross profit margin Operating margin/ROS Debt to equity Inventory turnover

I have the five ratios to conduct ratio analysis. I just need help to figure out whether to use common size income statements or regular income statements. And how to figure whether to use income statements for the analysis or the balance sheet. Balance sheet or trial balance. The five ratios I will be using are: current

Thurston's Department store: Journalize transactions

Review of Accounting Thurston's Department store had the following transactions during 2010 (the company's fiscal year is Jan, 1- Dec. 31). Jan 1 The company issued common stocks for $300,000 cash to start the business. (#of stock issued: 10,000 par value :$25/sh) Jan 1 Issued bonds for $300,000. (Par value of bond =$3

Adjusting entries, bal statement, income statement

On September 1, 2005, Kelly Randolf and Paul Simple started a comic book industry newsletter called Comic Times. They produced the first month's edition during September. The following transactions occurred during their first month of operations: Sept 1: Comic Times, Inc., was formed when Kelly and Paul filed with the State

Financial Statement Classification of Accounts

Indicate which of the following items would be classified as assets on the balance sheets a. Raw Materials b. Goodwill c. Post-retirement health obligations d. Deferred revenues e. Foreign currency translation adjustments f. All software development costs g. Loans to employee h. Purchased trademarks i. Cost of deve

Trend Analysis and Common-Sized Financial Statements

Why is trend just as important if not more important than information that pertains to only one year? What is meant by "presentation of financial statement information in common-size amounts rather than dollar amounts?" Why is this type of presentation sometimes more meaningful than use of actual dollar amounts?

The Torre Company has the following balances in stockholders equity on

The Torre Company has the following balances in stockholders equity on December 31st. Common Stock - $5.00 par, 60,000 issued $300,000 Additional paid in capital - common 600,000 Preferred stock - $100 par, 5,000 issued 500,000 Additional paid in capital - preferred 100,000 Retained earnings 200,000 Treasury stock

Retained Earning Restrictions Statements

Which of the following statements about retained earnings restrictions is incorrect? Retained earnings restrictions are generally disclosed through a journal entry on the books of a company. Many states require a corporation to restrict retained earnings for the cost of treasury stock purchased. Long-term debt con

Financial Accounting Topics: Explain the meaning of GAAP and identify the key items of the FASB's conceptual framework. Identify the principles of internal control. Identify and calculate the tools of financial statement analysis. Evaluate the collection of accounts receivable.

Resources: Chapters 7, 8, and 15 of Financial Accounting Chapter 7: Accounting Principles 1. (a) What are generally accepted accounting principles (GAAP)? (b)What bodies provide authoritative support for GAAP? 2. What elements comprise the FASB's conceptual framework? Chapter 8: Internal Control E8-5 Listed bel

Adjusting entries and financial statement

At the end of the fiscal year, the following adjusting entries were omitted: (a) No adjusting entry was made to transfer the $3,000 of prepaid insurance from the asset account to the expense account. (b) No adjusting entry was made to record accrued fees of $500 for services provided to customers. Assuming that financial st

Fin 534

4. Which of the following statements is CORRECT? a. If a firm follows the residual dividend policy, then a sudden increase in the number of profitable projects is likely to reduce the firm's dividend payout. b. The clientele effect can explain why so many firms change their dividend policies so often. c. One advantage of a

Prepare a Balance Sheet and Income Statement

Balance Sheet Project Account balances at 12/31/2010: Debit Credit Cash $50,000 Accounts Receivable, net 38,500 Inventories 65,300 Equipment, net 104,000 Patents 20,000 Notes and Accounts P

Google Financial Statement - Annual Report: Liabilities

Prepare a 400 word paper in which the following questions are answered by using Googles , information contained in the companyâ??s balance sheet and income statement, answering the following questions, noting that annual reporting period and fiscal year mean year-end numbers. o What amount of accounts payable did the

Explain the items found on the 3 financial statements

Course is Corporate Finance The CFO will soon want you to look at the financial statements of the firm and analyze a capital project submitted by the manufacturing division, which the company is considering. The financial statements the CFO wants you to look at are the income statement, balance sheet, and statement of cash f

Charles Company balance sheet; Elliot Company overhead rate

1) As of December 31, Charles Company had $12,000 in cash, held $95,000 of inventory and owned other items that originally cost $13,000. Charles company also had borrowed $40,000 from First City Bank. Prepare a balance sheet for Charles Company as of December 31. Be sure to label each item and each column with appropriat

Cash Flow Statements: Allied Company - Indirect Method

PROBLEM 14 - Prepare and Interpret a Statement of Cash Flows; Free Cash Flow [ LO1, LO2, LO3] Sharon Feldman, president of Allied Company, considers $20,000 to be a minimum cash balance for operating purposes. As can be seen from the following statements, only $ 15,000 in cash was available at the end of 2011. Because the compan

Which of the following financial statements reports information about events that occurred during a certain period of time? Balance Sheet Income Statement a. Yes Yes b. Yes No c. No Yes d. No No 2. Cash or other resources expected to be converted to cash or consumed during the next fiscal year would be classified as a. current assets b. plant assets c. liquid assets d. intangible assets 3. The difference between the selling price of goods sold to customers during a period and the cost of the goods sold is a. pretax income b. operating income c. net income d. gross profit 4. Which of the following is used to evaluate liquidity? a. operating expenses b. current assets c. plant, property, and equipment d.other assets 5. Which of the following must be known in order to determine the organization's total amount of working capital? Current Assets Long-Term a. Yes Yes b. Yes No c. No Yes d. No No 6. The term "working capital" describes the a. amount of equity (ownership) capital in the firm b. portion of capital actively employed in generating revenues c. amount of debt (borrowed) capital in the firm d. excess of current resources over current obligations 7. Total assets, liabilities, and owner's equity are reported on which of the following statements? Balance Sheet Income Statement a. Yes Yes b. Yes No c. No Yes d.No No 8. Which of the following accounts might require the use of estimates and allocations in order to determine an amount of an expense to be recorded? a. accounts receivable b. depreciation c. cash d.sales 9. Under the concept of articulation, which of the following is the link between the cash inflow from customers and sales revenue? a. accounts receivable b. cost of goods sold c. inventory d.accounts payable 10. Where, on an income statement, would you expect to find the term Advertising Expense? a. just after gross margin b. grouped with the other operating expenses c. immediately after net sales revenue d. it would not be shown on a multiple-step income statement 11. Comparative financial statements report the combined economic activities of two or more corporations owned by the same stockholders. a. True b. False 12. Which of the following statements about earnings per share is NOT TRUE? a. GAAP require that corporate income statements prepared for external use present earnings per share b. earnings per share is a measure of the earnings performance of each share of common stock during a period c. earnings per share is a measure of the amount of dividends per share distributed to stockholders during a period d. earnings per share is computed by dividing net income by the number of common shares outstanding during a period 13. The financial statement that reports an organization's assets, liabilities, and owners' equity accounts is the a. income statement b.gross profit statement c. balance sheet d. statement of cash flows 14. Which of the following accounts should be classified on the balance sheet as an intangible asset? a. prepaid insurance b. cash c. investment in another company d. stockholders' equity e. trademark 15. The difference between the selling price of goods sold to customers during a period and the cost of the goods sold is gross profit. a. True b. False 16. Comprehensive income is a. another term for operating income b. the change in equity resulting from non-owner transactions and events c. the income earned by a company d. dividend income 17. Which of the following is a false statement? a. operating income is another term for gross profit b. operating expense on an income statement is listed after cost of goods sold c. some revenues and expenses on the income statement may not directly relate to a company's primary operations d.income taxes are generally reported after other revenues and expenses on an income statement 18. The Stable Company reports the following information: Accounts payable$ 600Accounts receivable$ 8,200Cash5,000Mortgage payable4,400Retained earnings7,800Inventory9,200Buildings17,600Office supplies2,600 What is the amount of the firm's current assets? a. $13,200 b. $25,000 c. $22,400 d.$42,600 19. Which of the following sub classifications should be reported LAST in the asset section of the balance sheet? a. other assets b. current assets c. property, plant, and equipment d. long-term investments 20. A statement of stockholders' equity differs from a balance sheet in that a stockholders' equity is not reported on the balance sheet b. the statement of stockholders' equity reports activity for a period of time while the balance sheet reports at a specific point in time c.contributed capital is reported on the statement of stockholders' equity but not on the balance sheet d. retained earnings are added to the balance sheet but deducted from the statement of stockholders' equity

1. Which of the following financial statements reports information about events that occurred during a certain period of time? Balance Sheet Income Statement a. Yes Yes b. Yes No c. No Yes d. No No 2. Cash or other resources expected to be converted to cash or consumed during the next fiscal year would be classified as

ACC/548 Not=for-Profit 2

1. Discuss the the significance of the notes to financial statements and tell me about the benefit of required supplementary information. For example, what are the notes intended to accomplish? What type of information might they include? 2. What notes does this CAFR include? Use the CAFR to provide an example that ties to s

ACC/548 Not=for-Profit 1

Using the CAFR of Cook County, IL, create a presentation, the content of which includes explaining the process by which fund financial statements are converted to government-wide financial statements. Just to review, can someone please briefly and concisely state the difference between fund financial statements and governmen

The balance sheet of an entity: 1. shows the fair market value of the assets at the date of the balance sheet. 2. reflects the impact of inflation on the replacement cost of the assets. 3. shows the cost of replacing the plant and equipment. 4. shows amounts that are not adjusted for changes in the purchasing power of the dollar.

The balance sheet of an entity: 1. shows the fair market value of the assets at the date of the balance sheet. 2. reflects the impact of inflation on the replacement cost of the assets. 3. shows the cost of replacing the plant and equipment. 4. shows amounts that are not adjusted for changes in the purchasing pow

Accounting and Ethics: Accountant Discusses Financial Infomation

What happens if you have an accountant that discusses with others clients financial information or company financial information? Who would be the partial parities that may attempt to influence financial statement outcomes? Do CPAs get held to higher standards for non audit work than other accountants practicing accountancy?