Exam 1: Accounting and the Financial Statements

The first step in preparing the classified balance sheet is to list the assets in order of liquidity.

The following balances were taken from the company's records: -Refer to Bass Tours. Calculate the total current assets.

The ending cash balance is shown on the Balance Sheet and the Statement of Retained Earnings.

Which one of the following items appears on a balance sheet?

Provided is a list of important users of accounting information. Also provided are descriptions of a major need for accounting information that may be experienced by the various users. Identify the one user group that is most likely to have the need described. (Choices may be used more than once.) a.Investors b.Management c.Supplier d.Banker e.Government f.Employees g.Labor Union h.Investors and Banker i.Supplier and Banker -The exact amount of profit on each product of the company.

Provided is a list of important users of accounting information. Also provided are descriptions of a major need for accounting information that may be experienced by the various users. Identify the one user group that is most likely to have the need described. (Choices may be used more than once.) a.Investors b.Management c.Supplier d.Banker e.Government f.Employees g.Labor Union h.Investors and Banker i.Supplier and Banker -The prospects for future dividend payments.

-Refer to Baker's Pride Bakery. How much of the company is financed by owners at the end of December 2013?

External users and outside decision makers use ____________________ accounting.

Presented below are selected data from the accounting records for 2013:

Classify the following items according to the financial statements on which each belongs, either the income statement (IS), statement of retained earnings (RE), or the balance sheet (BS). Also indicate whether each is a revenue (R), expense (E), asset (A), liability (L), or stockholders' equity (SE)item.

Several items from the financial statements of Fireside Tires are listed. Use the following choices to identify the type of account for each item listed. (Choices may be used more than once.) a.Assets b.Liabilities c.Revenues d.Expenses e.Stockholders' Equity -Common stock

Prepare an Income Statement for Backus Tractor Sales in good form.

Provided is a list of important users of accounting information. Also provided are descriptions of a major need for accounting information that may be experienced by the various users. Identify the one user group that is most likely to have the need described. (Choices may be used more than once.) a.Investors b.Management c.Supplier d.Banker e.Government f.Employees g.Labor Union h.Investors and Banker i.Supplier and Banker -The effectiveness of the last advertising campaign.

External users of financial information

Match each statement to the item listed below. a.Current assets e.Intangible assets b.Current liabilities f.Long-term investments c.Gross margin g.Long-term liabilities d.Income from operations h.Net profit margin -Cash and other resources that are expected to become cash or used up within a year's time or less

Determine the following amounts for Backus Tractor Sales:

Which financial statement reports information helpful in assessing working capital?

Which one of the following is not a major category for long-term assets?

How is the Balance Sheet linked to the other financial statements?

The only financial statement that reports the retained earnings balance at the end of the period is the Statement of Retained Earnings.