Explore BrainMass
Share

The Financial Statements

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

Segmented Income Statement

Segmented Income Statement Vega Foods, Inc., has recently purchased a small mill that it intends to operate as one of its subsidiaries. The newly acquired mill has three products that it offers for sale-wheat cereal, pancake mix, and flour. Each product sells for $10 per package. Materials, labor, and other variable production

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

Nike May 2011 financial statements: ratio analysis

Problem attached for Nike May 2011 financial statements: For the company for 2011, compute the (a) Current ratio (b) Acid-test ratio (c) Accounts receivable turnover (d) Inventory turnover (e) Days' sales in inventory (f) Days' sales uncollected (g) Profit margin ratio (h) Return on total assets (i) Return on co

financial statements for balance sheets

THE following financial data was taken from a balance sheet. account payable-140,000 bonds payable-100,00 common stock($25 par value)200,000 retianed earnings-230, market price of the common stock on dec 31 was $50.. 1) the ratio of stockholders equity to total liabilites is? 2)the ratio of stockholders equity to tota

Completing Financial Statements for Tanner Company Using Ratios

See attached file. Incomplete financial statements for Tanner Company are given in the spreadsheet. a. Selected financial ratios computed from the statements above are also given. b. All sales during the year were on account. c. The interest expense on the income statement relates to the bonds payable; the amount of bon

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

Income Statements using IFRS and U.S GAAP

What are the differences that would occur on the income statements prepared using IFRS and one prepared using U.S. GAAP. What are the differences seen on the balance sheet between the two methods?

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?

Income Statement and Statement of Retained Earnings

Requirement: Using the financial statement templates attached, prepare in good form the Income Statement, Statement of Retained Earnings, and Balance Sheet for the year. Be sure the 3-line headings of each financial statement are presented properly. Note: The company uses the periodic inventor

Income statement, retained earnings statement, and balance sheet.

On August 31, the balance sheet of Nashville Veterinary Clinic showed Cash $9,000, Accounts Receivable $1,700, Supplies $600, Office Equipment $6,000, Accounts Payable $3,600, Common Stock $13,000, and Retained Earnings $700. During September the following transactions occurred. 1. Paid $2,900 cash on accounts payable.

Stockholders' Equity category of a Company's Balance Sheet

Ch. 11-1 Peeler Company was incorporated as a new business on January 1, 2010. The corporate charter approved on the date authorized the issuance of 1,000 shares of $100 par, 7% cumulative, non-participating preferred stock and 10,000 shares of $5 par common stock. On January 10, Peeler issued for cash 500 shares of prefe

Projecting a Cash Balance

A firm has projected sales of $65,000 in January, $76,000 in February, and $84,000 in March. November's sales were $68,000, and December's sales were $72,000. The firm makes 60% of their sales on credit. Of these credit sales, 70% is collected in one month, and 27% in two months. Purchases average 65% of sales. Purchases are mad

Role of investment banker; Brimstone balance sheet

What are the key roles of an investment banker? The stockholders' equity portion of Brimstone Tire Company follows: Common Stock (2.0 million shares at $10 par) $20,000,000 Capital in excess of par 17,000,000 Retained earnings 33,000,000

Financial Statement effect of change in amount of provision for doubtful accounts

You have recently landed a job in the Accounting Department of a public company listed on the NASDAQ exchange. You have been asked to prepare year-end adjusting entries, including an appropriate adjustment to the Allowance for Doubtful Accounts. According to the Aged Accounts Receivable analysis, the Allowance should be $200,000

Cash Flow Statements: Michelson Ltd and Hooker Corporation

See attached files. Cash Flow Statements Practice Questions Question 1 Complete the Statement of Cash Flows. Show workings. Mickelson Ltd manufactures golf clubs for professional golfers. Mickelson Ltd's balance sheets for the years ended 30 June 2010 and 2011. Question 2) Hooker Corporation collapsed in Ju