Question 1

Which of the following is not a required disclosure for related-party transactions?

Accepted Answer

A)  The nature of the relationship. 
B)  A description of the transactions. 
C)  The amounts due from or to related parties. 
D)  The impact of the transactions on current year's income. 
A)  The nature of the relationship. 
B)  A description of the transactions. 
C)  The amounts due from or to related parties. 
D)  The impact of the transactions on current year's income.

Question 2

A subsequent event for an entity with a December 31, 2018, year-end would not include:

Accepted Answer

A)  A change in the estimated useful lives of equipment in January 2019. 
B)  An issuance of bonds in January 2019. 
C)  An acquisition of another company in January 2019. 
D)  A major uncertainty at December 31, resolved in January 2019. 
A)  A change in the estimated useful lives of equipment in January 2019. 
B)  An issuance of bonds in January 2019. 
C)  An acquisition of another company in January 2019. 
D)  A major uncertainty at December 31, resolved in January 2019.

Question 3

The balance sheet for Altoid Co. is shown below.
 
Required: Compute the following financial statement ratios for 2018:
-Altoid Co.'s long term debt to equity ratio. Round your answer to two decimal places.

Accepted Answer

$600/$1,15

Question 4

The balance sheet reports:

Accepted Answer

A)  Net income at a point in time. 
B)  Cash flows for a period of time. 
C)  Assets and equities at a point in time. 
D)  Assets and liabilities for a period of time. 
A)  Net income at a point in time. 
B)  Cash flows for a period of time. 
C)  Assets and equities at a point in time. 
D)  Assets and liabilities for a period of time.

Question 5

Using borrowed funds to generate additional profits for shareholders is referred to as:

Accepted Answer

A)  Liquidity management. 
B)  Operational expansion. 
C)  Capital budgeting. 
D)  Financial leverage. 
A)  Liquidity management. 
B)  Operational expansion. 
C)  Capital budgeting. 
D)  Financial leverage.

Question 6

The following partial balance sheet ($ in thousands) for Paisano Seafood Inc. is shown below.  
- The acid-test ratio is (Round your answer to two decimal places.):

Accepted Answer

A)  0.25. 
B)  0.88. 
C)  1.17. 
D)  1.58. 
A)  0.25. 
B)  0.88. 
C)  1.17. 
D)  1.58.

Question 7

Bronco Electronics' current assets consist of cash, marketable securities, accounts receivable, and inventories. The following data were abstracted from a recent financial statement:
 
Required: Compute the following for Bronco:
-Long-term liabilities

Accepted Answer

Total debt and equity (1) $1,400,000
Tot

Question 8

Listed below are ten terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Franchise

Accepted Answer

A) Asset recorded when an expense is paid for in advance. 
B) Goods to be sold in the ordinary course of business. 
C) Transactions with owners, managers, and affiliated companies. 
D) An intangible asset. 
E) Management's views on significant events.
F)Net income less dividends since inception of the corporation.
G)Amounts due from customers.
H)Material events that occur after the end of the fiscal year and before the statements are issued.
I)Obligations to suppliers of merchandise or of services purchased on account.
J)Cash received from a customer in advance of providing a good or service. 
A) Asset recorded when an expense is paid for in advance. 
B) Goods to be sold in the ordinary course of business. 
C) Transactions with owners, managers, and affiliated companies. 
D) An intangible asset. 
E) Management's views on significant events.
F)Net income less dividends since inception of the corporation.
G)Amounts due from customers.
H)Material events that occur after the end of the fiscal year and before the statements are issued.
I)Obligations to suppliers of merchandise or of services purchased on account.
J)Cash received from a customer in advance of providing a good or service.

Question 9

Recent financial statement data for Harmony Health Foods (HHF) Inc. is shown below.   
-HHF's times interest earned ratio is (Round your answer to two decimal places.):

Accepted Answer

A)  3.47. 
B)  1.73. 
C)  2.47. 
D)  10.0. 
A)  3.47. 
B)  1.73. 
C)  2.47. 
D)  10.0.

Question 10

Presented below is a partial trial balance for the Messenger Corporation at December 31, 2018.
 
Additional information:
1. The note receivable, along with any accrued interest, is due on November 1, 2019.
2. The note payable is due in 2023. Interest is payable annually.
3. The marketable securities consist of investments in equity securities of other corporations. Management does not intend to sell any of the securities in the next year.
4. Deferred revenue will be recognized equally over the next 18 months.

Required:
Determine the company's working capital at December 31, 2018.

Accepted Answer

Current assets:
Cash and cash equivalent

Question 11

Listed below are year-end account balances ($ in millions) taken from the records of Symphony Stores.   
-What would Symphony report as total shareholders' equity?

Accepted Answer

A)  $323 millions. 
B)  $808 millions. 
C)  $838 millions. 
D)  $928 millions. 
A)  $323 millions. 
B)  $808 millions. 
C)  $838 millions. 
D)  $928 millions.

Question 12

For a balance sheet prepared under IFRS, long-term liabilities typically are listed:

Accepted Answer

A)  Just before the current assets section. 
B)  In the shareholders' equity section. 
C)  In the long-term asset section. 
D)  Just before the current liabilities section. 
A)  Just before the current assets section. 
B)  In the shareholders' equity section. 
C)  In the long-term asset section. 
D)  Just before the current liabilities section.

Question 13

Disclosure notes would not include:

Accepted Answer

A)  Depreciation methods used and estimated useful life. 
B)  Definition of cash equivalents. 
C)  Details of pension plans. 
D)  Data to adjust the financial statements so that they are not misleading. 
A)  Depreciation methods used and estimated useful life. 
B)  Definition of cash equivalents. 
C)  Details of pension plans. 
D)  Data to adjust the financial statements so that they are not misleading.

Question 14

Listed below are four terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Operational risk

Accepted Answer

A) An indication of how adept a company is at withstanding various events and circumstances that might impair its ability to earn profits. 
B) An indication of whether a company won't be able to pay its obligations when they come due. 
C) Each item in the financial statements is expressed as a percentage of an appropriate corresponding total, or base amount, but within the same year. 
D) Each item in a financial statement is expressed as a percentage of that same item in the financial statements of another year (base amount). 
A) An indication of how adept a company is at withstanding various events and circumstances that might impair its ability to earn profits. 
B) An indication of whether a company won't be able to pay its obligations when they come due. 
C) Each item in the financial statements is expressed as a percentage of an appropriate corresponding total, or base amount, but within the same year. 
D) Each item in a financial statement is expressed as a percentage of that same item in the financial statements of another year (base amount).

Question 15

Spartan Sportswear's current assets consist of cash, marketable securities, accounts receivable, and inventories. The following data were abstracted from a recent financial statement:
 
Required: Compute the following for Spartan:
-Current assets

Accepted Answer

Current assets (CA/Current Liabilities (

Question 16

The condensed balance sheet and income statement for Marjoram Company are presented below.
 
-Compute the times interest earned ratio for Marjoram Company. Round your answer to two decimal places.

Accepted Answer

($73,080 + 31,320 +

Question 17

To understand the components of a company's profitability, an analyst may compute the ratio of each major expense classification to total sales. This type of analysis is known as:

Accepted Answer

A)  Cost analysis. 
B)  Horizontal analysis. 
C)  Comparative analysis. 
D)  Vertical analysis. 
A)  Cost analysis. 
B)  Horizontal analysis. 
C)  Comparative analysis. 
D)  Vertical analysis.

Question 18

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Short-term investments

Accepted Answer

A) Goods to be sold in the ordinary course of business 
B) Insurance premiums paid in advance. 
C) Due from customers in the ordinary course of business 
D) Formal agreement that specifies customer's payment terms. 
E) Liquid investments not classified as cash equivalents. 
A) Goods to be sold in the ordinary course of business 
B) Insurance premiums paid in advance. 
C) Due from customers in the ordinary course of business 
D) Formal agreement that specifies customer's payment terms. 
E) Liquid investments not classified as cash equivalents.

Question 19

Recent financial statement data for Harmony Health Foods (HHF) Inc. is shown below.   
-HHF's long-term debt to equity ratio equity is:

Accepted Answer

A)  133.3%. 
B)  75%. 
C)  180%. 
D)  0%. 
A)  133.3%. 
B)  75%. 
C)  180%. 
D)  0%.

Question 20

Listed below are four terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Default risk

Accepted Answer

A) An indication of how adept a company is at withstanding various events and circumstances that might impair its ability to earn profits. 
B) An indication of whether a company won't be able to pay its obligations when they come due. 
C) Each item in the financial statements is expressed as a percentage of an appropriate corresponding total, or base amount, but within the same year. 
D) Each item in a financial statement is expressed as a percentage of that same item in the financial statements of another year (base amount). 
A) An indication of how adept a company is at withstanding various events and circumstances that might impair its ability to earn profits. 
B) An indication of whether a company won't be able to pay its obligations when they come due. 
C) Each item in the financial statements is expressed as a percentage of an appropriate corresponding total, or base amount, but within the same year. 
D) Each item in a financial statement is expressed as a percentage of that same item in the financial statements of another year (base amount).

Which of the following is not a required disclosure for related-party transactions?

A subsequent event for an entity with a December 31, 2018, year-end would not include:

The balance sheet for Altoid Co. is shown below. Required: Compute the following financial statement ratios for 2018: -Altoid Co.'s long term debt to equity ratio. Round your answer to two decimal places.

The balance sheet reports:

Using borrowed funds to generate additional profits for shareholders is referred to as:

The following partial balance sheet ($ in thousands) for Paisano Seafood Inc. is shown below. - The acid-test ratio is (Round your answer to two decimal places.):

Bronco Electronics' current assets consist of cash, marketable securities, accounts receivable, and inventories. The following data were abstracted from a recent financial statement: Required: Compute the following for Bronco: -Long-term liabilities

Listed below are ten terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Franchise

Recent financial statement data for Harmony Health Foods (HHF) Inc. is shown below. -HHF's times interest earned ratio is (Round your answer to two decimal places.):

Listed below are year-end account balances ($ in millions) taken from the records of Symphony Stores. -What would Symphony report as total shareholders' equity?

For a balance sheet prepared under IFRS, long-term liabilities typically are listed:

Disclosure notes would not include:

Listed below are four terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Operational risk

Spartan Sportswear's current assets consist of cash, marketable securities, accounts receivable, and inventories. The following data were abstracted from a recent financial statement: Required: Compute the following for Spartan: -Current assets

The condensed balance sheet and income statement for Marjoram Company are presented below. -Compute the times interest earned ratio for Marjoram Company. Round your answer to two decimal places.

To understand the components of a company's profitability, an analyst may compute the ratio of each major expense classification to total sales. This type of analysis is known as:

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Short-term investments

Recent financial statement data for Harmony Health Foods (HHF) Inc. is shown below. -HHF's long-term debt to equity ratio equity is:

Listed below are four terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Default risk

Environment and Theoretical Structure of Financial Accounting

Review of the Accounting Process

The Income Statement, Comprehensive Income, and the Statement of Cash Flows

Revenue Recognition

Time Value of Money Concepts

Cash and Receivables

Inventories: Measurement

Inventories: Additional Issues

Property, Plant, and Equipment and Intangible Assets: Acquisition

Property, Plant, and Equipment and Intangible Assets: Utilization and Disposition

Investments

Current Liabilities and Contingencies

Bonds and Long-Term Notes

Leases

Accounting for Income Taxes

Pensions and Other Postretirement Benefits

Shareholders Equity

Share-Based Compensation and Earnings Per Share

Accounting Changes and Error Corrections

The Statement of Cash Flows Revisited

Filters

Exam 3: The Balance Sheet and Financial Disclosures

Which of the following is not a required disclosure for related-party transactions?

A subsequent event for an entity with a December 31, 2018, year-end would not include:

The balance sheet for Altoid Co. is shown below. Required: Compute the following financial statement ratios for 2018: -Altoid Co.'s long term debt to equity ratio. Round your answer to two decimal places.

The balance sheet reports:

Using borrowed funds to generate additional profits for shareholders is referred to as:

The following partial balance sheet ($ in thousands) for Paisano Seafood Inc. is shown below. - The acid-test ratio is (Round your answer to two decimal places.):

Bronco Electronics' current assets consist of cash, marketable securities, accounts receivable, and inventories. The following data were abstracted from a recent financial statement: Required: Compute the following for Bronco: -Long-term liabilities

Listed below are ten terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Franchise

Recent financial statement data for Harmony Health Foods (HHF) Inc. is shown below. -HHF's times interest earned ratio is (Round your answer to two decimal places.):

Listed below are year-end account balances ($ in millions) taken from the records of Symphony Stores. -What would Symphony report as total shareholders' equity?

For a balance sheet prepared under IFRS, long-term liabilities typically are listed:

Disclosure notes would not include:

Listed below are four terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Operational risk

Spartan Sportswear's current assets consist of cash, marketable securities, accounts receivable, and inventories. The following data were abstracted from a recent financial statement: Required: Compute the following for Spartan: -Current assets

The condensed balance sheet and income statement for Marjoram Company are presented below. -Compute the times interest earned ratio for Marjoram Company. Round your answer to two decimal places.

To understand the components of a company's profitability, an analyst may compute the ratio of each major expense classification to total sales. This type of analysis is known as:

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Short-term investments

Recent financial statement data for Harmony Health Foods (HHF) Inc. is shown below. -HHF's long-term debt to equity ratio equity is:

Listed below are four terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Default risk

Environment and Theoretical Structure of Financial Accounting

Review of the Accounting Process

The Income Statement, Comprehensive Income, and the Statement of Cash Flows

Revenue Recognition

Time Value of Money Concepts

Cash and Receivables

Inventories: Measurement

Inventories: Additional Issues

Property, Plant, and Equipment and Intangible Assets: Acquisition

Property, Plant, and Equipment and Intangible Assets: Utilization and Disposition

Investments

Current Liabilities and Contingencies

Bonds and Long-Term Notes

Leases

Accounting for Income Taxes

Pensions and Other Postretirement Benefits

Shareholders Equity

Share-Based Compensation and Earnings Per Share

Accounting Changes and Error Corrections

The Statement of Cash Flows Revisited

Filters