Why would ratios that include one balance sheet account and one income statement account such as receivable turnover or return on assets, be questionable if they came from quarterly or other interim financial reports? (4%)
Q: Entity A has a cash balance of P30,000 on January 1, 2021. The following were the cash transactions…
A: Cash Flow Statement :— It is one of the financial statement that shows change in cash and cash…
Q: completed in ending work was no beginning work in process inventory in the department. Conversion…
A: Answer : Equivalent units for conversion costs = Completed units + Ending inventory * Percentage…
Q: BU Contractors received a contract to construct an office building for $19,000,000. Construction was…
A: A construction contract is a long-term contract that takes more than a year to finish the…
Q: The following balances were extracted from the books of Any Pet Shop on 31 December 2021: Accounts…
A: 1. Income Statement 2. Balance Sheet The first statement shows the income earned and loss incurred…
Q: FarmCo sold a tractor for $40,000 that they initially purchased for $30,000 cash from John Deere.…
A: The entry which is initially made when tractor was purchased is as follows:- Asset/Tractor a/c…
Q: 6. Quinn Company reports inventory at the lower of cost and net realizable value (NRV). Below is…
A: Inventory is shown by lower of cost and net realizable value. the difference between actual cost and…
Q: How do I find the product cost per unit?
A: Product costing is the computation or determination of the total costs of the product that is…
Q: You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door…
A: The activity variance is the difference between flexible and master budget. The spending variance…
Q: Production and sales estimates for March for Robin Co. are as follows: Estimated inventory (units),…
A: Estimated inventory= 17100 Desired inventory = 19500 Expected total sales = 6500 + 9000 +8000…
Q: Required Information Use the following information for the Exercises below. (Algo) [The following…
A: Depreciation: Depreciation is the decrease in the value of assets due to normal tear & wear, the…
Q: E23-12 In 2014, Leppard Inc. issued 1,000 shares of $10 par value common stock for land (a) Prepare…
A: The cash flow statement refers to the financial statement prepared at the end of an accounting year…
Q: Shown below in T-account format are the changes affecting the retained earnings of Brenner-Jude…
A: Journal Entry is the primary step to record the transaction in the books of accounts. The increase…
Q: Wal-Get Company sells apparel (clothing) to retail customers. Historical results show that about 10%…
A: Ratio of sales returns= 10% Cost of goods sold to sales = 70% Sales = $ 50,00,000 Returns = $…
Q: Problem 1: Pitt Community College has approached East Carolina Health Center for inpatient and…
A: Differential Cost Analysis is one of the most important tools in decision making process. It…
Q: Melon Corporation issued its 1,000 ordinary shares for legal services in forming the said…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: You withdrew $21218 from your line of credit 3.5 years ago at an interest rate of 4% compounded…
A: FUTURE VALUE Future Value is the value of Current asset as on any future date. Future Value =…
Q: When discount should be recognized and recorded. Company sold machinery for $100,000 with terms…
A: The terms "2/10, n/30" means that the customer can receive a 2% discount if they pay within 10 days…
Q: Is a good audit documentation his/her best defense in the courtroom? Explain.
A: Auditing is defined as an on-site verification activity, such as an inspection or examination, to…
Q: Margin of safety a. If Kirwan Company, with a break-even point at $308,000 of sales, has actual…
A: The margin of safety must be divided by the total quantity of sales in order to calculate the margin…
Q: The difference between debt and equity in an entity’s statement of financial position is not easily…
A: “Since you have posted multiple questions, we will provide the solution only to the first question…
Q: Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes…
A: Variances are the differences between the standard and actual costs. These are determined to know…
Q: equired information. Skip to question [The following information applies to the questions displayed…
A: Answer:- Absorption costing:- A managerial accounting technique known as "absorption costing" is…
Q: trial balance of Swifty at December 31 shows Inventory $22,900, Sales Revenue $158,000, Sales…
A: The closing entries ate posted when the company closes its temporary account. The revenues and…
Q: Clarence is an employee at the Drake Candy Corporation, an S corporation. Clarence and other…
A: An insurance plan known as a disability income plan offers financial security to a person in the…
Q: On March 31, 2023, Capital Investment Advisers paid $4,570,000 for land with two buildings on it.…
A: Journal entries refers to the entries which are made at the end of the period or year and it records…
Q: Problem 8-34 (LO 8-1, 8-2) Kelvin owns and lives in a duplex. He rents the other unit for $790 per…
A: For tax purposes, Schedule A records the expenses related to mortgage or home loan interest, state…
Q: January 1, Year 1, for $37,700. It is expected to have a five-year useful life and a $4,000 salvage…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: CFL Corporation is a civil engineering company that makes traffic lights. The company must decide…
A: Expected Monetary Value (EMV) is a statistical tool used to estimate the average outcome of a future…
Q: If you had the opportunity to interview Rita Crundwell, what would you ask her and why? 2. Should…
A: Rita Crundwell is a former comptroller and treasurer of the city of Dixon, Illinois. She worked for…
Q: Accounting for Merchandising Operations Question 1 The following adjusted trial balance is shown…
A: The closing entries are prepared to close the temporary accounts of the business. The important…
Q: Bank The company's accounting intern has prepared the end-of-January bank reconciliation from the…
A: Ideally cash balance as per books and bank balance as per bank statement must reconcile with each…
Q: 3. Which of the following is inappropriate aggregation? A. Cash and cash equivalents (Cash on hand…
A: Ans. D Provisions (Liability from pending litigation and purchase
Q: Required information The following information applies to the questions displayed below) The Village…
A: A journal entry known as an accounting closing entry is made at the conclusion of an accounting…
Q: administrative expenses 2 Compute the cost of ending finished goods inventory reported on the…
A: To compute the cost of ending finished goods inventory using variable costing, we need to calculate…
Q: The Colin Division of Sunland Company sells its product for $32 per unit. Variable costs per unit…
A: The income statement tells about the profitability of the business for the current period. Using…
Q: The acquisition of a used machine with a purchase price of $43,163, requiring an overhaul costing…
A: Ans. All the acquisition costs that are incurred to bring the asset to it's usable condition are…
Q: Required Prepare a GAAP-based income statement and balance sheet for Wang Company for Year 1, under…
A: The income statement and balance sheet are the most important financial statements of the business.
Q: Bramble Company sold $8,170 of its specialty shelving to Elkins Office Supply Co. on account.…
A: Given in the question: Bramble Company sold goods whose value is $8,170 on credit basis to the…
Q: Required: Prepare a pension spreadsheet to show the relationship among the PBO, plan assets, prior…
A: Computation of a pension spreadsheet to show the relationship among the PBO, plan assets, prior…
Q: VERTICAL ANALYSIS ( Requirement: The statement of comprehensive income is shown below. Perform a…
A: Vertical analysis of the financial statements means the comparison of each item of the statement…
Q: c. Prepare a schedule of the right-of-use asset for the 4-year lease term. Note: Round each amount…
A: As per IFRS 16 To calculate Right-of-use asset (at lease commencement),the following steps to be…
Q: A company's inventory records indicate the following data for the month of January: Date Units…
A: LIFO (last in Frist out) As per the name shown under this valuation inventory units purchased latest…
Q: Q4 Financial Activities during Jan 2020 (Only these transactions during the month) AR Payments…
A: Balance sheet - is the financial statement that is also called a statement of financial position. It…
Q: Frankfurt corporation purchased land for $90,000. The company also paid $15,000 in accrued property…
A: Property, plant, and equipment (PP&E) are tangible, long-term assets that are used to generate…
Q: Textbook Ref LO 12.1 Following is a list of current liabilities on a balance sheet. Match each…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: 1. Prepare the 5-year amortization schedule for the bonds issued by Slinger. Payment 7.75% Interest…
A: Given in the question: Face Value of Bonds $1,00,000 Nominal Interest Rate 8%…
Q: 9. Economic Lot Size SM (Soriano-Manuel) Bookstore publishes a book about RFBT. SM prints 5,000…
A: Carrying cost means inventory storage and maintenance cost Annual carrying cost Annual…
Q: The unadjusted trial balance shows a $3,000 credit for Unearned Revenue. One-third remains unearned…
A: JOURNAL ENTRIES Journal Entry is the First stage of Accounting Process. Journal Entry is the Process…
Q: The trial balance before adjustment of Monty Inc. shows the following balances. Accounts Receivable…
A: Adjusting entries are journal entries made at the end of an accounting period to update the accounts…
Q: Ruiz Company provides the following budgeted sales for the next four months. The company wants to…
A: A production budget is a financial plan that outlines the expected quantity and cost of goods to be…
b. Why would ratios that include one
Step by step
Solved in 2 steps
- Which of the following is the incorrect effect of counterbalancing errors?a. None of the statements is incorrect. b. The statement of financial position at the end of the first period is incorrect. c. The income statements for three successive periods are incorrect. d. The statements of financial position at the end of the second period is correct.5. The following items affect the retained earnings account, except Group of answer choices a. net income or loss for the period b. prior period errors c. realization of revaluation surplus d. effect of change in accounting estimate1. Horizontal analysis is a lechnique for evaluating a series of financial statement data over a period of time a. that has been amranged from the loweet number to the highest number. b. to determine which iteme are in error. C to determine the amount and/or percentage increase or decrease that has taken place d. that has been arranged from the highest number to the lowest number
- (a) Notes receivable (b) Accounts receivable (c) Retained earnings (d) Sales (e) Operating expenses (f) Income taxes payable a. b. Using horizontal analysis, show the percentage change and direction (increase or decrease) from Year 1 to Year 2 with Year 1 as the base year. If an item is impossible to compute, enter a "0" in the percentage box and select "Not possible to compute" in the narrative box. C. d. e. f. X % X % X % X % X % Year 2 X % $25,500 $30,000 106,200 90,000 77,000 70,000 654,000 600,000 160,000 200,000 28,000 20,000 Decrease Increase Increase Increase Year 1 Decrease Increase ✓ ✓ ✓ ✓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.Which of the following assumptions is embodied in the AFN equation? a. All balance sheet accounts are tied directly to sales. b. Common stock and long-term debt are tied directly to sales. c. Last year's total assets were not optimal for last year's sales. d. Fixed assets, but not current assets, are tied directly to sales. e. Accounts payable and accruals are tied directly to sales.
- Which of the following would not result in an increase in both the current ratio and the acid-test ratio? A. Increase in inventory B. Increase in accounts receivable C. Increase in cash D. Increase in current investmentsHow do I set this up? This is a few questions stuck together. Count as multiple questions I think. 4-12 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. Table for 4-12 Total Current Assets Current Ratio Effect on Net Income a Cash is acquired through issuance of additional stock. b Merchandise is sold for cash. c Federal income tax due for the previous year is paid. d A fixed asset is sold for less than book value. e A fixed asset is sold for more than book value. f Merchandise is sold on credit. g Payment is made to…Directions: Indicate the effects of the transactions listed in the following table on total current assets, current ratio, 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. (Note: A good accounting background is necessary to answer some of these questions; if yours is not strong, answer just the questions you can.) Total Current Assets Current Ratio Effect on Net Income 4. A fixed asset is sold for less than book value. + + - 5. A fixed asset is sold for more than book value. + + + 6. Merchandise is sold on credit + + + 7. Payment is made to trade creditors for previous purchases. - + 0 8. A cash…
- Directions: Indicate the effects of the transactions listed in the following table on total current assets, current ratio, 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. (Note: A good accounting background is necessary to answer some of these questions; if yours is not strong, answer just the questions you can.) Total current assets Current ratio Effect on net income 1. Cash is acquired through issuance of additional common stock. 2. Merchandise is sold for cash. 3. Federal income tax due for the previous year is paid. 4. A fixed asset is sold for less than book value. 5. A fixed asset is sold for more than book value. 6. Merchandise is sold on credit.…3. Horizontal analysis is a technique for evaluating a financial statement item in the current year with other items in the current year. True FalseThe primary focus of horizontal analysis isa. the income statement only.b. the balance sheet only.c. the percentage changes in line items on the comparative financial statements.d. the individual line items on the financial statements as a percentage of a related base,such as total sales or total assets.