Key Accounting Principles and Financial Statement Analysis

★ The Public Reform…furnish to clients. (True)
★ Balance sheet…always changing. (False)
★ Some companies prefer…the prepayment. (True)
★ The single-step…continuing operations. (True)
★ Revenues and expenses…operating activity. (True)
★ One meaning…future earnings. (True)
★ When interest…rate of interest. (False)
★ If you put $200 // 8% per year // two years later // earn interest of $32. (False)
★ Other things being…ordinary annuity. (True)
★ Sellers should…is cancelled. (False)
★ A warranty that…quality-assurance warranty. (False)
★ An option…material right. (False)
★ Accounting for…contingent liability. (False)
★ Inventory shipped // seller’s //…during transit. (False)
★ Shipping charges…selling expenses. (True)
★ FIFO periodic…goods sold. (True)
★ The choice…of the product. (True)
★ Inventory costing…goods sold. (True)
★ In a year…under FIFO. (True)
★ Normal shortages…percentage. (False)
★ For companies…retail method. (False)

An investor…2023? (20%) [$1,500 + (124,500-105,000) ÷ $105,000]
★ The FASB’s…correct order: (R, DP, ED, ASU)
★ The motivation…come from: (Within oneself.)
★ SFAC No.5 focuses on: (Recognition…accounting.)
★ The primary objective…activity to: (Capital providers)
★ Management…it lacks: (Completeness)
★ Management…this approach? (Information…estimate.)
★ Roy…this case? (This does not…he did so.)
★ A constraint…information is: (Cost-effectiveness)
★ Orinoco’s balance//beginning (End of year balance in cash – Net increase in cash for the year)
★ An expense…equation? (Decrease shareholders’ equity)
★ Investments…equation? (Assets…increases)
★ What is the total amount of liabilities following these six transactions? ($12,900) [land + office supplies]
★When a company declares…recorded as: (debit Dividends; credit Cash.)
★ On December 31…Insurance expense for 2024 was: (62k+100k-49k=113,400)
★Cal Farms…during the year? (2.5m) [2.7m-200k]
★ The Hamada Company…activities were: (90,500) [2nd h]
★ Which…market value? (Many…assets.)
★ Symphony//shareholders’ equity (809m) [Additional paid-in capital + Common stock + Retained earnings]
★ What…current liabilities? (40k) [Deferred revenue + Accounts payable + Interest payable ]
★ What…liabilities? (5k) [Accounts payable]
★  Symphony//total assets (2,303m) [all debit numbers – accumulated depreciation]
★ Assets do not include: (Paid-in capital)
★ Janson//current assets (88,600) [Accounts receivable + Inventory + Investments + 1/2prepaid insurance]
★ Which…disclosure note? (no/yes)
★ Quick assets total: (315k) [Total current assets – Inventory – Prepaid expenses]
★ Major Company//25%…net income: ($75,000 and $173,250 respectively) [25% of continuing operations & 75% of continuing operations – 75% of discontinued operations]
★ Foxtrot Company//25% (16.5m) [75% * (80-48-10)]
★ The measure…company is: (Operating income)
★ Anna Beth…amount? (Future value factor)
★ LeAnn…table for the: (present value of a single amount.)
★ An investment…investment? ($19,722) [lowest]
★ What is…compounded annually? ($2,599) [2nd lowest]
★ Davenport Incorporated ($74,010) [2nd lowest]
★ Binz Company (Revenue…performed.)
★ Minarski Electronics ($683.75) [2nd highest]
★ Harvey’s Wholesale Company (cash//AR)
★ Gershwin Wallcovering (Accounts receivable)
★ Tom’s Textiles (Sales returns)
★ Barley Company//uncollectible accounts ($360,000) [18m * 2%]
★ Barley Company//bad debt expense ($502,000k) [2nd h]
★ As of December 31//Gill Company ($1,283) [uncollectible accounts – bad debts ish]
★  Amy Jo’s ($5,250) [lowest]
★ Long-term…will be: (Discounted…rate.)
★ Parson Association…revenue of: ($1,950) [52k*15%*3/12]
★ A company’s inventory…company report as inventory ($405,000) [add all but 2nd number]
★ Cost of goods sold is given by: (NP + BI − EI)

★ Laramie Company’s//5,400 (Overstated, 5400 / No effect, 0 / Overstated, 5400 / No effect, 0)
★ Laramie Company’s//4,000 (Overstated, 4000 / No effect, 0 / Overstated, 4000 / No effect, 0)
★ O’Brian Company’s (Overstated, No effect, Overstated, Overstated)
★ Altoid Company’s acid-test ratio [first 3 assets / inventory]
★ Altoid Company’s debt to equity ratio [(CL+LTL)/(CS+RE)]
★ Altoid Company’s times interest earned ratio [(net income + ITE+IE)/IE]
★ Altoid Company’s long-term debt to equity ratio [LTL/(CS+RE)]
★ Record annual depreciation on office equipment (d,d,i)
★ Issuance of long-term debt for cash (i,i,i)
★ Refinancing currently maturing debt for five more years (i,i,h)
★ Information is considered material to the financial statements if 123 (2 and 3 only)
★ Under accounting…the item must 123 (1 and 3 only.)
★ Are the following ratios useful in assessing the liquidity position of a company? (Yes, No)
★ On a statement…financing activity? (Dividends received from an investment)
★ Which of…Board’s definition? (A web…in advance.)
★Ole factory ($500 total revenue, allocated $463 to the kit and $37 to the service. No deferred revenue recorded)
★ Niwot Company (This is incorrect…service plan)
★ Gil is a Baxley Company (The revenue should…applies.)
★ What…useful? (Faithful representation and relevance)
★ In open market transactions…should report the (The effects of the two transactions in income from continuing operations.)
★ On a statement…financing activity? (Dividends received from an investment) 
★ Which of the…cash flows? (Cash effects of transactions involving the acquisition of property, plant, and equipment.)
★ When preparing interim financial statements, an enterprise should: 123 (1 and 2 only.)
★ A public entity… two customers? (The amount…two customers.)
★ For which type…require disclosure? (All those…business.)
★ Supremo Company ($400 as a current asset, $800 as a noncurrent asset.)
★  LatteBucks (As a current liability on the balance sheet)
★ Which of…note disclosures? (“Historically…sheet date.”)
★ Lenzner Company (Both the current ratio and the quick ratio increase)
★ Peer Incorporated (Both profit and loss and total assets must be reported)