QUESTION Which is not a required part of an annual report of a publicly traded company?(a) Statement of cash flows.(b) Notes to the financial statements.(c) Management discussion and analysis.(d) All of these are required. Solution: Answerc) Management discussion and analysis. Reason : Annual reportsare used by businesses to record their financial activities that are concerned […]
QUESTION Below are the accounts of Giordanos Pizza. The company has just completed its first year of operations ended September 30, 2010.Accounts Payable .$10,500Accounts Receivable 13,200Cash .. 2,600Delivery Truck Rent Expense .. 7,200Equipment . $6,300Equipment Rental Expense 2,900Marketing Expense 1,500Owners Capital 2,000Pizza Revenue 82,000Salaries Expense 56,000Salaries Payable . 700Supplies . 400Supplies Expense .. 4,100Withdrawals . […]
QUESTION What is a permanent account? On which financial statement are permanent accounts reported? Answer: Accounts are classified into two categories astemporary accounts and permanent accounts. Temporary accounts are periodic accounts and close by transferring to income statement at the end of period while permanent accounts are not closed by transfer to income statement rather […]
QUESTION At the beginning of the current fiscal year, the balance sheet for Davis Co. showed liabilities of $320,000. During the year liabilities decreased by $18,000, assets increased by $65,000, and paid in capital increased from $30,000 to $192,000. Dividends declared and paid during the year were $25,000. At the end of the year, owners […]
QUESTION What accounting policies are disclosed in the notes accompanying a companys financial statements? Why is this disclosure important? The accounting policies that are disclosed in the notes accompanying a companys financial statements includes: General Information The first thing that company usually want people to know is what they do or what they make. If […]
QUESTION The prototype one-period project at the beginning of the chapter was booked at its historical cost of $400. Suppose, instead, that the accountant wrote down the investment to $360 on the balance sheet at the beginning of the period. See the investment as consisting of $360 of plant (booked to the balance sheet) and […]
QUESTION Nordstrom, Inc. operates department stores in numerous states. Selected financial statement data for the year ending February 2, 2008, are shown on the next page.For the year, net sales were $8,828, and cost of goods sold was $5,526 (in millions).Instructions(a) Compute the four liquidity ratios at the end of the year.(b) Using the data […]
QUESTION Listed here are certain accounts of the Jenkins Company at the end of 2007:Account Debit (Credit)Land .$12,000Prepaid insurance . 1,530Cash on hand 1,120Notes receivable (due 2010) . 4,300Cash in bank . 5,400Allowance for doubtful accounts .. (1,100)Marketable securities (short-term) 3,380Accumulated depreciation . (8,700)Accounts receivable .. 15,600Office supplies .. 970Buildings 27,200Inventory 19,700RequiredPrepare the current asset […]
QUESTION Journal entries for borrowing Sappi Limited, a South African paper company, reports non-current Interest-Bearing Borrowings of $1,634 million at September 30, 2006. Sappi Limited applies IFRS, and reports its results in millions of U.S. dollars. At September 30, 2007, this balance had increased to $1,828 million. Assume that on March 30, 2007, Suppi Limited […]
QUESTION Information indicates that a firm will earn a return on common equity above its cost of equity capital in all years in the future, but its shares trade below book value. Those shares must be mispriced. True or false? If each year the return on common equity rises it will mean that the profits […]
