Homework Analyzing Financial Position Assignment

Which of the following is not an element of the financial statements? Group of answer choices 1.future potential sales price of inventory 2.assets 3.liabilities 4.equity

For purposes of adjusting financial statements for changes in the general price level, monetary items consist of:  a. Assets and liabilities whose amounts are fixed by contract or otherwise in terms of pesos b. Assets and liabilities classified as current c. Cash and cash equivalents plus all receivables d. Cash, other assets expected to be converted into cash and current liabilities

choose: When a balance sheet amount is related to an income statement amount in comparing a ratio  a. The ratio losses its historical perspective because at the beginning of the year amount is combined with an end of the year amount.  b. The income statement amount should be converted to an average for the year.  c. Comparisons should be converted to market value  d. The balance sheet amount should be converted to an average for the year.

Please help: options for matching answers are trend analysis, vertical analysis, retained analysis prepaid expense, net sales, net purchase, net income merchandise inventory, long term liabilities, income statement, horizontal analysis, gross profit, current ratio, current liabilities, current assets, cost of merchandise sold, comparative statements, common size statements, balance sheet, assets, asset turnover, acid test, accounts receivable, accounts payable.

Listed below are several information characteristics and accounting principles and assumptions.  Match the letter of each with the appropriate phrase that states its application.  (Items a through k may be used more than once or not at all.) Economic entity assumption g.   Matching principle Going concern assumption h.   Full disclosure principle Monetary unit assumption i.    Relevance characteristic Periodicity assumption j.    Reliability characteristic Historical cost principle k.   Consistency characteristic Revenue recognition principle     ____    1.    Stable-dollar assumption (do not use historical cost principle). ____    2.    Earning process completed and realized or realizable. ____    3.    Presentation of error-free information with representational faithfulness. ____    4.    Yearly financial reports. ____    5.    Accruals and deferrals in the adjusting and closing process. (Do not use going concern.) ____    6.    Useful standard measuring unit for business…

Indicate the effect of the transactions listed in the following table on total current assets, current ration, and net income. Use (+) to indicate an increase, (-) to indicate a decrease, and (0) to indicate either no effect or an indeterminate effect. Be prepared to state any necessary assumptions and assume an initial current ratio of more than 1.0. Merchandise is sold on credit.

A bank that is examining the ratio of annual costs of goods sold to average inventory, is examining which category of ratios?  a.Profit measures b.Operating efficiency measures c.Liquidity measures d.Expense control measures

Several accounts are listed below a. Purchases Returns and Allowances b. Sales Discounts c. Wages Expense d. Allowance for Doubtful Accounts e. Unearned Rent f. Income Taxes Payable g. Dividends Distributed h. Interest Revenue i. Inventory   REQUIRED: List the accounts above that would normally have a credit balance

Which of the following items in the balance sheet does NOT have a constant relationship with sales in general when we use the percent of sale method to construct pro forma financial statements?     Retained earnings     Inventory     Accounts receivables     Accounts payables

Which income statement account(s) would be affected by a policy choice at the same time as the inventory balance sheet account. a. Bad debts expense b. Cost of goods sold expense c. Depreciation or amortisation expense d. Sales revenue

How to calculate the account receivable turnover ratio in a balance Sheet and income statement (explain it with the items on the income statement and balance Sheet eg.inventory, current receivable, current liability..and so on.

. The operating cycle is equal to which one of the following?  A.  Inventory period plus the accounts payable period   B.  Accounts receivable period plus the cash cycle   C.  Inventory period minus the accounts payable period plus the accounts receivable period   D.  Accounts receivable period plus the inventory period   E.  Inventory period plus the cash cycle

Indicate the normal balance and category of each of the following​ accounts:   CATEGORy options ARE: asset, contra-expense, contra-revenue, expense, liability, revenue.     Account Normal Balance Category a. Sales Returns and Allowances     b. Merchandise Inventory     c. Miscellaneous Income     d. Payroll Tax Expense     e. Sales Discounts     f. Cost of Goods Sold     g. Income Tax Payable     h. Prepaid Expenses

10. Choose the options to correctly complete the following statement. Some balance sheet and income statement accounts that vary directly with sales include: 1. Cost of goods sold II. Depreciation III. Accounts payable IV. Accounts receivable O I, II, III only O I, II, IV only O I, III, IV only O I, II, III, and IV

compare the current rate method and the temporal method, evaluate how each aff ects theparent company’s balance sheet and income statement, and determine which method isappropriate in various scenarios;

Which of the following is included in the calculation of the quick (acid-test) ratio?a. Inventory and short-term investmentsb. Inventory and prepaid expensesc. Cash and accounts receivabled. Prepaid expenses and cash

Which of the ratios listed helps to indicate whether current liabilities could be paid without having to sell the inventory? a.Current ratio b.Profit margin c.Quick ratio d.Debt to equity

Options I have for denominator are - average accounts receivable, net average total assets cost of goods sold current assets current liabilities interest expense net sales

Using the worksheet to prepare financial statements Answer the following questions: Requirements What type of normal balance does the Retained Earnings account have—debit or credit? Which type of income statement account has the same type of balance as the Retained Earnings account? Which type of income statement account has the opposite type of balance as the Retained Earnings account? What do we call the difference between total debits and total credits on the income statement section of the worksheet?

What two purposes do firms achieve by estimating future uncollectible accounts?

Determine the adjusted balances of the following: 1. Accounts Receivable 2. Inventories 3. Sales 4. Cost of Sales 5. Effect of errors to net income

Which of the following assumptions is assumed in the percent of sales forecasting method?     All balance sheet assets accounts are tied directly to sales.     Accounts receivables and inventory are tied directly to sales.     Preferred stock and long-term debt are tied directly to sales.     Fixed assets, but not current assets, are tied directly to sales.

How do you calculate the estimate using the percentage of sales and aging of accounts methods

Which of the following is included in the calculation of the acid-test (quick) ratio?        Accounts Receivable           Inventories a.             No                      No b.             No                      Yes c.             Yes                     No d.             Yes                     Yes would it be A the correct answer for this question?

Which of the following is not an element of the financial statements?A. future potential sales price of inventoryB. assetsC. liabilitiesD. equity

Required: a. Assuming that purchases are recorded at net amounts and that discounts lost are treated as financial expenses:1. Prepare general journal entries to enter the transactions.2. Prepare the adjusting entry necessary on August 31 if financial statements are to be prepared at that time.3. Describe how the various items would be shown in the financial statements.b.  Which of the two methods do you prefer and why?

Assess the company’s level of liquidity and comment on its ability to meet its short-termfinancial obligations using the following ratios d. Accounts Receivable Turnover ratioe. Inventory Turnover Ratio