# Solution. Term: Fall Year: Time Period Start time: 9:00 am End time: 11:30 am

Save this PDF as:

Size: px
Start display at page:

Download "Solution. Term: Fall Year: Time Period Start time: 9:00 am End time: 11:30 am"

## Transcription

1 Solution Term: Fall Year: 2011 Student Name Student ID Number Date of Exam Thursday, December 15, 2011 Time Period Start time: 9:00 am End time: 11:30 am Duration of Exam 2.5 hours Number of Exam Pages (including this cover sheet) Exam Type Special Materials Additional Materials Allowed Marking Scheme: Cordless calculators may be used. The calculator must be standalone with no communication or data storage features. Question Score Question Score 1 (8 marks) 6 (12 marks) 2 (11 marks) 7 (8 marks) 3 (15 marks) 8 (32 marks) 4 (12 marks) 5 (12 marks) Total (110 marks)

2 Question 1 (8 marks) The records for Russell Corporation show the following inventory transactions for the month of December 2011: Date Transactions Number of Units Unit Cost December 1 Beginning inventory 50 \$200 December 10 Purchase 80 \$220 December 17 Purchase 40 \$250 Russell Corporation sold 100 units during December. The company is able to track each unit using a bar code. Russell Corporation knows that 40 of the units sold came from the beginning inventory, 50 units came from the December 10 purchase and the remaining units sold came from the December 17 purchase. Russell Corporation uses a periodic inventory system. Required: Complete the following table: Number of Inventory Method Units FIFO Weighted Average Specific Identification Cost of Sales 100 \$21,000 \$22,118 \$21,500 Ending Inventory 70 \$16,600 \$15,482 \$16,100 FIFO: Cost of sales: 50*\$ * \$220 = \$10,000 + \$11,000 = \$21,000 Ending inventory: 30 * \$ * \$250 = \$6,600 + \$10,000 = \$16,600 Weighted Average: Average cost = (50 * \$ * \$ * \$250) / 170 = \$37,600 / 170 = \$ / unit Cost of sales: 100 * \$ / unit = \$22, Ending inventory: 70 units * \$ / unit = \$15, Specific Identification: Cost of sales: 40 \$ * \$ * \$250 = \$8,000 + \$11,000 + \$2,500 = \$21,500 Ending inventory: 10* \$ * \$ * \$250 = \$2,000 + \$6,600 + \$7,500 = \$16,100

3 Question 2 (11 marks) Assume that you are an accountant at Robson Incorporated. One of your responsibilities is to prepare the bank reconciliation for December, You obtain the following information from the company records and the bank statement: December 31 balance shown on the bank statement was \$31,510 The bank statement showed a total of \$45,250 of cheques cleared during December The bank statement showed deposits during the month totaling \$41,370 The bank reported one NSF cheque in the amount of \$320 that had been received from a customer of Robson Incorporated The December bank statement showed service charges of \$80 and interest revenue of \$35 The bank collected an outstanding note (on behalf of Robson Incorporated) in the amount of \$4,200 (including interest of \$220) from Thompson Inc. which was not recorded in the company records The November bank reconciliation listed outstanding cheques of \$5,640 and a deposit in transit for \$2,190 December 31 cash balance in the records of Robson Incorporated was \$27,908 Company records show deposits for the month of \$43,610 Required: Company records show that a total of \$43,330 of cheques were written in December A cheque written to Vance Company in the amount of \$358 was incorrectly recorded in the Robson Cash Disbursement Journal as \$835 Prepare the bank reconciliation using the following table: Robson Incorporated Bank Reconciliation December 31, 2011 Company s Books Bank Statement Ending cash balance per books \$27,908 Ending cash balance per bank statement \$31,510 Additions Interest revenue 35 Collection of note 4,200 Error in cheque 477 Deductions NSF cheque (320) Service charges (80) Additions Deposits in transit 4,430 (\$43, ,190-41,370) Deductions Outstanding cheques (3,720) (\$43, ,640-45,250) Ending correct cash balance \$32,220 Ending correct cash balance \$32,220

4 Question 3 (15 marks) Condensed financial data for Robinson Limited for December 31, 2010 and 2011 follow: Comparative Statement of Financial Position: Cash balance \$36,250 \$38,700 Trade receivables 43,790 48,210 Inventory 52,120 49,880 Equipment 146, ,400 Accumulated depreciation (53,600) (48,900) \$225,360 \$245,290 Trade payables \$21,650 \$18,490 Income tax payable 5,240 7,770 Long-term notes payable 70,000 80,000 Common shares 80,000 85,000 Retained earnings 48,470 54,030 \$225,360 \$245,290 Income Statement for 2011: Sales \$425,500 Operating expenses (excluding depreciation) \$366,220 Depreciation expense 15,400 Loss on sale of equipment 3, ,120 Income before income taxes 40,380 Income tax expense 12,110 Net income \$28,270 During the year, Robinson Limited purchased new equipment in exchange for a long-term note payable in the amount of \$40,000. The company sold old equipment for cash. Required: Prepare the statement of cash flows for the Robinson Limited for 2011 using the indirect method. Please use the table on the next page to complete this question.

5 Robinson Limited Statement of Cash Flows For the Year Ended December 31, 2011 Operating Activities: Net income \$28,270 Add (deduct) items not affecting cash Depreciation expense 15,400 Loss on sale of equipment 3,500 Increase in trade receivables (4,420) Decrease in inventory 2,240 Decrease in trade payables (3,160) Increase in income tax payable 2,530 Net cash flow from operating activities \$44,360 Investing Activities: Sale of equipment \$5,800 Net cash flow from investing activities \$5,800 Financing Activities Repayment of long-term note payable (\$30,000) Issue common shares 5,000 Payment of cash dividends (22,710) Net cash flow from financing activities (47,710) Increase in cash 2,450 Cash balance on December 31, ,250 Cash balance on December 31, 2011 \$38,700 Non-cash Investing and Financing Activities Purchase of equipment for \$40,000 in exchange for long-term note payable

6 Question 4 (12 marks) Answer the following independent questions. A) Phillips Company issued a \$1,000,000 bond on November 1, The bond is due in 10 years, has an interest rate of 5% and pays interest annually. The market interest rate is 4%. The company uses the effective interest rate method of amortization. Calculate the issue price of the bond. Using formula: Principal: \$1,000,000 * PV(n=10,i=4%) = \$1,000,000 * \$675, Interest: \$50,000 * PVA(n=10,i=4%) = \$50,000 * , Issue price \$1,081, Using tables: Principal: \$1,000,000 * PV(n=10,i=4%) = \$1,000,000 * \$676,000 Interest: \$50,000 * PVA(n=10,i=4%) = \$50,000 * ,550 Issue price \$1,081,550 B) On January 1, 2011, Lim Company signed a mortgage note for \$1,000,000 at 8 percent interest for a term of 4 years. Mortgage payments are made quarterly. Each mortgage payment is a blend of interest on the unpaid amount and a partial repayment of the principal. Calculate the amount of each mortgage payment. Using formula: \$1,000,000 = payment * PVA(n=16,i=2%) = payment * Payment = \$73, Using tables: \$1,000,000 = payment * PVA(n=16,i=2%) = payment * Payment = \$73,648.55

7 C) Markle Company issued a \$1,000,000 bond on January 1, The bond is due in 10 years and has an interest rate of 7%. Interest is paid annually. The market interest rate is 6%. The issue price was \$1,073,601. The company uses the effective interest rate method of amortization. Complete the following table. Date Interest Payment Interest Expense Amortization of Discount or Premium Book Value January 1, \$1,073,601 December 31, 2011 \$70,000 \$64, \$5, \$1,068, D) Libby Incorporated borrowed \$100,000 from the bank on December 10, 2011, by signing a note. The note is due in 90 days and the interest rate is 8%. Libby Incorporated s fiscal year end is December 31. Prepare the adjusting entry required at December 31, Interest Expense \$ Interest Payable \$ \$100,000 * 8% * 21/365

8 Question 5 (12 marks) Answer the following independent questions. A) Laiken Corporation operates a transit service. The company purchased a new passenger van on January 2, 2011, at a cost of \$75,000. The truck has an estimated useful life of 8 years and the company expects to drive the van for 400,000 kilometers. The salvage value is expected to be \$10,000. Actual kilometers driven in 2011 were 65,000 and 55,000 kilometers were driven in Calculate the amortization expense for 2011 and 2012 under each of the following methods. Assume that the company uses a 20% declining balance rate. Year Straight-line method Units of production Declining balance method method 2011 \$8,125 \$10, \$15, \$8,125 \$8, \$12,000 Straight-line method: (\$75,000-10,000) / 8 years = \$8,125 per year Units of production method: (\$75,000-10,000) / 400,000 km = / km 2011: 65,000 km * / km = \$10, : 55,000 km * / km = \$8, Declining balance method: 2011: \$75,000 * 20% = \$15, : (\$75,000 15,000) * 20% = \$60,000 * 20% = \$12,000 B) The financial statements for Huang Incorporated shows the following information: Trade receivables, net of allowances of \$160 and \$290 \$5,900 \$6,300 Net credit sales 31,000 32,000 Bad debt expense Calculate the cash collected from customers during Trade receivables (gross): 2011: \$6, : \$6,590 Write-off of bad debts = beginning balance + bad debt expense ending balance = \$ = \$450 Cash collected = beginning balance + sales write-offs ending balance = \$6, , ,060 = \$31,080

9 C) The shareholders equity section of the Balance Sheet of Kraft Limited showed the following on January 1, 2011: Common shares (authorized 300,000 shares, \$500,000 outstanding 50,000 shares) Retained earnings 775,000 The following events occurred during 2011: Mar. 1: Issued 10,000 shares at a price of \$15 per share Apr. 15: Issued a cash dividend of \$1.00 per share Jun. 1: Issued a 10% stock dividend; the current market price is \$18 per share Oct 15: Declared a 2-for-1 stock split; the current market price is \$20 per share Dec. 31: Net income for the year was \$115,000 Complete the following table to show the cumulative balances after each event has been recorded: Common Shares Retained Earnings Date Number of shares Dollar Amount Dollar Amount outstanding Jan. 1 50,000 \$500,000 \$775,000 Mar. 1 60,000 \$650,000 \$775,000 Apr ,000 \$650,000 \$715,000 Jun. 1 66,000 \$758,000 \$607,000 Oct ,000 \$758,000 \$607,000 Dec ,000 \$758,000 \$722,000 June 1: Stock dividend = 6,000 shares * \$18 = \$108,000

10 Question 6 (12 marks) Answer the following independent questions. A) Gunz Corporation has the following shares outstanding during 2011: Preferred shares: \$2, cumulative, 10,000 shares outstanding Preferred shares: \$3, non-cumulative, 15,000 shares outstanding Common shares: 50,000 shares outstanding Gunz Corporation began operations in Retained earnings at the end of 2011 are \$345,000. No dividends were paid in 2009 or The board of directors declared a cash dividend of \$175,000 in Complete the following table showing the amount paid in 2011 to each class of shareholder: Dividends Paid in 2011 Cumulative preferred shares \$60,000 Non-cumulative preferred shares \$45,000 Common shares \$70,000 Cumulative preferred shares: 10,000 shares * \$2 * 3 years = \$60,000 Non-cumulative preferred shares: 15,000 shares * \$3 = \$45,000 Common shares: \$175,000 (60, ,000) = \$70,000 B) Geoffrey Corporation purchased a delivery truck on May 1, 2008, that had an original cost of \$80,000 and an estimated residual value of \$10,000. The useful life was expected to be 7 years and straight-line depreciation is used. Geoffrey Corporation sold the machine for \$40,000 cash on December 1, The company has a December 31 year end. Calculate the gain or loss on sale of the machine. Depreciation expense = (\$80,000 10,000) / 7 years = \$10,000 / year Ownership = 8 months in months in 2011 = 3 years, 7 months Accumulated depreciation = \$10,000 * 3 7/12 = \$35, Net book value = \$80,000-35, = \$44, Loss on sale = \$40,000-44, = \$4,166.67

11 C) Douglas Ltd uses the aging method to estimate bad debt expense. The accountant prepared the following aging of the accounts receivable at year end: Amount Bad Debt Rate Not yet due \$165,600 2% 1-30 days past due 52,200 5% days past due 33,800 10% More than 60 days past due 15,500 30% Total \$267,100 The current balance in the Allowance for Doubtful Accounts is \$850 (debit). Determine the amount to be recorded as bad debt expense for the year. Amount Bad Debt Rate Estimated Uncollectible Not yet due \$165,600 2% \$3, days past due 52,200 5% 2, days past due 33,800 10% 3,380 More than 60 days past due 15,500 30% 4,650 Total \$267,100 \$13,952 Current balance in Allowance for Doubtful Accounts 850 (debit) Amount to record as bad debt expense \$14,802 D) Weaver Mining Company purchased a site containing a mineral deposit in The purchase price was \$820,000, and the site is estimated to contain 400,000 tons of extractable ore. Weaver constructed a building at the site, at a cost of \$500,000, to be used while the ore is being extracted. When the ore reserves are gone, the building will have no further value. Weaver mined 75,000 tons of ore in Prepare the journal entry to record depletion for Depletion rate (on land only) = \$820,000 / 400,000 = \$2.05 / ton Depletion rate (on land and building) = (\$820, ,000) / 400,000 = \$3.30 / ton Mineral Inventory \$153,750 Accumulated Depletion (or Mineral Reserves) \$153,750 75,000 tons * \$2.05 / ton Or Mineral Inventory \$247,500 Accumulated Depletion (or Mineral Reserves) \$247,500 75,000 tons * \$3.30 / ton

12 Question 7 (8 marks) The answers to the following questions must appear in the space provided. Point form may be used. A) The article Backdating Likely More Widespread talks about research regarding the frequency of backdating. Briefly explain the practice of backdating. Setting an issue date for a stock option that is earlier than the actual date in which the exercise price was determined Results in an exercise price that is lower than the market price on the true date that the option was established B) Discuss the impact on the income statement of using the straight line method to amortize a bond discount compared to the effective interest method. The straight line method results in equal interest expense in each year while the interest expense increases over time with the effective interest method The interest expense is smaller with the effective interest method than the straight line method in the early years and larger in the later years C) Briefly discuss the impact on income of using the lower of cost and net realizable value rule for the valuation of inventory. The write-down of inventory to net realizable value will increase cost of sales and reduce income in the current year Sale of the inventory in the subsequent year will result in a lower cost of sales and higher income compared to not using the LCNRV rule D) The article Pension Packages are Getting Fresh Attention compares defined contribution and defined benefit pension plans. Briefly compare the two plans from the perspective of the employer. Defined contribution plans provide less financial risk for the employer as the contribution to the plan is fixed regardless of plan performance

13 Question 8 (32 marks) Question 8 consisted of 32 multiple choice questions. There was no mark penalty for incorrect answers. The answers had to be recorded on a University of Waterloo answer card. The midterm examinations and the 2005 sample final examination provide examples of typical multiple choice questions.

14 Ratios Price-Earnings Ratio Debt to Equity Ratio Total Asset Turnover Ratio Return on Assets Earnings per Share Net Profit Margin Return on Equity Quality of Income Ratio Capital Acquisition Ratio Gross Profit Percentage Receivables Turnover Ratio Average Collection Period or OR Inventory Turnover Ratio Fixed Asset Turnover Ratio Market Price per Share Earnings per Share Total Liabilities Total Shareholders Equity Sales Average Total Assets Profit + Interest Expense (net of tax) Average Total Assets Profit Available to Common Shareholders Average Number of Common Shares Outstanding _Profit_ Net Sales Profit Average Shareholders Equity Cash Flow from Operating Activities Profit Cash Flow from Operating Activities Cash Paid for Property, Plant, and Equipment Gross Profit Net Sales Net Sales Average Net Trade Receivables 365 days Accounts Receivable Turnover Ratio Average Net Trade Accounts Receivable Sales per Day _Cost of Sales_ Average Inventory Net Sales Average Net Fixed Assets

15 Current Ratio Trade Payables Turnover Ratio Average Age of Payables OR Financial Leverage Ratio Times Interest Earned Ratio Dividend Yield Ratio Dividend Payout Ratio Current Assets Current Liabilities Cost of Sales Average Accounts Payable 365 days Trade Payables Turnover Ratio Average Trade Payables Cost of Sales per Day Average Total Assets Average Shareholders Equity Profit before Interest and Taxes Interest Expense Dividends per Share Market Price per Share Dividends Net Income Quick Ratio Cash Ratio Cash Coverage Ratio Cash + Short-Term Investments + Net Trade Receivables Current Liabilities Cash + Cash Equivalents Current Liabilities Cash Flows from Operating Activities before Interest and Taxes Interest Paid

16 Present Value Tables and Formulae Present Value of \$1 = (1 + i) n = 1 _ (1 + i) n Period 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% _ Present Value of an Ordinary Annuity of \$1 = [1 (1+i) n ] / i = (1+i) n i Period 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12%

### Chapter 8 Accounting for Receivables

Chapter 8 Accounting for Receivables Accounts Receivable Accounts Receivables are current assets. They are usually expected to be collected within 30 days. Allowance Method and Bad Debt Expense 2 methods:

### University of Waterloo Final Examination. Term: Fall Year: 2005. Core Concepts of Accounting Information

University of Waterloo Final Examination Term: Fall Year: 2005 Student Name Solution UW Student ID Number Course Abbreviation and Number AFM 101 Course Title Core Concepts of Accounting Information Section(s)

### PROFESSOR S NAME ACC 255 FALL 2011 COVER SHEET FOR COMPREHENSIVE PROBLEM 2 (CHAPTERS 2, 5-8)

COMPREHENSIVE PROBLEM 2 (CHAPTERS 2, 5-8) Page 137 NAME ANSWER KEY PROFESSOR S NAME SECTION SCORE ACC 255 FALL 2011 COVER SHEET FOR COMPREHENSIVE PROBLEM 2 (CHAPTERS 2, 5-8) INSTRUCTIONS: COMPLETE ALL

### Sample Test for entrance into Acct 3110 and Acct 3310

Sample Test for entrance into Acct 3110 and Acct 3310 1. Which of the following financial statements could properly have the following in the date line: For the Year Ended December 31, 2010"? a. Balance

### Income Measurement and Profitability Analysis

PROFITABILITY ANALYSIS The following financial statements for Spencer Company will be used to demonstrate the calculation of the various ratios in profitability analysis. Spencer Company Comparative Balance

### ILLUSTRATION 5-1 BALANCE SHEET CLASSIFICATIONS

ILLUSTRATION 5-1 BALANCE SHEET CLASSIFICATIONS MAJOR BALANCE SHEET CLASSIFICATIONS ASSETS = LIABILITIES + OWNERS' EQUITY Current Assets Long-Term Investments Current Liabilities Long-Term Debt Capital

### Midterm Fall 2012 Solution

Midterm Fall 2012 Solution Instructions: 1) Answers for the multiple-choice questions must be recorded on the UW answer card. All other questions must be answered in the space provided on the examination

### Practice Exam 1 Financial Accounting for IB/E&BE

Practice Exam 1 Financial Accounting for IB/E&BE Exercise 1 On the balance sheet as of December 31, 2014, Groningen Robotics Corporation reported its stockholders' equity as follows: Preferred Stock, 9%

### UNIVERSITY OF WATERLOO School of Accounting and Finance

UNIVERSITY OF WATERLOO School of Accounting and Finance AFM 101 Professor Duane Kennedy Mid-Term Examination Fall 2008 Date and Time: October 16, 2008, 7:15 8:45pm Pages: 16, including cover Name: Student

### Principles of Financial Accounting ACC-101-TE. TECEP Test Description

Principles of Financial Accounting ACC-101-TE TECEP Test Description This TECEP is an introduction to the field of financial accounting. It covers the accounting cycle, merchandising concerns, and financial

### RAPID REVIEW Chapter Content

RAPID REVIEW BASIC ACCOUNTING EQUATION (Chapter 2) INVENTORY (Chapters 5 and 6) Basic Equation Assets Owner s Equity Expanded Owner s Owner s Assets Equation = Liabilities Capital Drawing Revenues Debit

### TOPIC LEARNING OBJECTIVE

Topic Mapping 1 Transaction Analysis Understand the effect of various types of transactions on the accounting equation, accounting journal and accounting ledger. Concepts and Skills Accounting Equation

### ACCOUNTING 105 CONCEPTS REVIEW

ACCOUNTING 105 CONCEPTS REVIEW A note from the tutors: This handout is designed to help you review important information as you study for your cumulative final exam. While it does cover many important

### GBA 521 Midterm Review Dr. Markelevich

GBA 521 Midterm Review Dr. Markelevich Multiple Choice (3 points for each question) Identify the letter of the choice that best completes the statement or answers the question. Wynn Corp. Wynn Corp. reported

### COMPONENTS OF THE STATEMENT OF CASH FLOWS

ILLUSTRATION 24-1 OPERATING, INVESTING, AND FINANCING ACTIVITIES COMPONENTS OF THE STATEMENT OF CASH FLOWS CASH FLOWS FROM OPERATING ACTIVITIES + Sales and Service Revenue Received Cost of Sales Paid Selling

### UNIVERSITY OF WATERLOO School of Accountancy

UNIVERSITY OF WATERLOO School of Accountancy AFM 101 Mid-Term Examination Date & Time: June 13, 2005 1.5 hours Spring 2005 Pages: 15, including cover Professor: G. Stremlaw Name: ID# Instructions: 1) Cordless

### (2) Statement of Cash Flow. The Statement of Financial Position

(2) Statement of Cash Flow 74 The Statement of Financial Position Assets Current Assets Operating Noncurrent Assets Investing Liabilities & Shareholders Equity Current Liabilities Operating Noncurrent

### Accounting Skills Assessment Practice Exam Page 1 of 10

NAU ACCOUNTING SKILLS ASSESSMENT PRACTICE EXAM & KEY 1. A company received cash and issued common stock. What was the effect on the accounting equation? Assets Liabilities Stockholders Equity A. + NE +

### TRANSACTIONS ANALYSIS EXAMPLE. Maxwell Partners Medical Diagnostic Services report the following information for 2011, their first year of operations:

TRANSACTIONS ANALYSIS EXAMPLE Maxwell Partners Medical Diagnostic Services report the following information for 2011, their first year of operations: 1. Billings to clients for services provided: \$350,000

### 3,000 3,000 2,910 2,910 3,000 3,000 2,940 2,940

1. David Company uses the gross method to record its credit purchases, and it uses the periodic inventory system. On July 21, 20D, the company purchased goods that had an invoice price of \$ with terms

### Cash in bank checking account \$22,500 U.S. treasury bills 5,000 Cash on hand 1,350 Undeposited customer checks 1,840 Total \$30,690 Requirement 2

Chapter 7 Solutions EXERCISES Exercise 7 2 Cash and cash equivalents includes: Cash in bank checking account \$22,500 U.S. treasury bills 5,000 Cash on hand 1,350 Undeposited customer checks 1,840 Total

### Accounting 1010 Sample Exam 3 Chapters 7, 8, and 9

Accounting 1010 Sample Exam 3 Chapters 7, 8, and 9 Name Multiple Choice: Circle the letter corresponding to the best answer for each question. Only circle one answer per question. Problems: Show ALL work

### Assuming office supplies are charged to the Office Supplies inventory account when purchased:

Adjusting Entries Prepaid Expenses Second Bullet Example - Assuming office supplies are charged to the Office Supplies inventory account when purchased: Office supplies expense 7,800 Office supplies 7,800

### Principles of Accounting Competency Exam (PACE) (MULTIPLE CHOICE REVIEW)

Principles of Accounting Competency Exam (PACE) (MULTIPLE CHOICE REVIEW) 1. What is the appropriate format in which to write a journal entry? 2. What is the basic purpose of a trial balance? 3. What is

### UNIVERSITY OF WATERLOO School of Accounting and Finance

UNIVERSITY OF WATERLOO School of Accounting and Finance AFM 101 Professor Shari Mann Professor Donna Psutka Professor Mindy Wolfe Mid-Term Examination Fall 2010 Date and Time: October 21, 2010, 6:30 8:00pm

### Chapter 17: Financial Statement Analysis

FIN 301 Class Notes Chapter 17: Financial Statement Analysis INTRODUCTION Financial ratio: is a relationship between different accounting items that tells something about the firm s activities. Purpose

Advanced Placement (AP) Accounting The Advanced Placement (AP) Accounting Course is a full academic year course. The course is based on high school teachers having 120 contact hours with students from

### ACCOUNTING COMPETENCY EXAM SAMPLE EXAM. 2. The financial statement or statements that pertain to a stated period of time is (are) the:

ACCOUNTING COMPETENCY EXAM SAMPLE EXAM 1. The accounting process does not include: a. interpreting d. observing b. reporting e. classifying c. purchasing 2. The financial statement or statements that pertain

### ACCOUNTING: TOOLS FOR BUSINESS DECISION MAKING, FIFTH EDITION

CHECKLIST OF KEY FIGURES For Exercises and Problems in Kimmel, Weygandt, Kieso FINANCIAL ACCOUNTING: TOOLS FOR BUSINESS DECISION MAKING, FIFTH EDITION Chapter 1 1-4 Net income \$8,400. 1-5 Net income \$4,576.1.

### PART I -- MULTIPLE CHOICE

-- Corporate Law Curriculum PART I -- MULTIPLE CHOICE Instructions: For each of the following questions, circle the best answer. 1. Convertible bonds are best described as a. debentures that the holder

### Accounting 303 Exam 3, Chapters 7-9 Fall 2011 Section Row

Accounting 303 Name Exam 3, Chapters 7-9 Fall 2011 Section Row I. Multiple Choice Questions. (2 points each, 34 points in total) Read each question carefully and indicate your answer by circling the letter

### ACCOUNTING ENTRANCE EXAMINATION PRACTICE QUESTION SET J.M. TULL SCHOOL OF ACCOUNTING ENTRANCE EXAMINATION PRACTICE QUESTION SET

ACCOUNTING ENTRANCE EXAMINATION PRACTICE QUESTION SET J.M. TULL SCHOOL OF ACCOUNTING ENTRANCE EXAMINATION PRACTICE QUESTION SET Important: PRINT your response (A,B,C,D or E) that best completes the statement

### 2-8. Identify whether each of the following items increases or decreases cash flow:

Problems 2-8. Identify whether each of the following items increases or decreases cash flow: Increase in accounts receivable Increase in notes payable Depreciation expense Increase in investments Decrease

### Consolidated Balance Sheets

Consolidated Balance Sheets March 31 2015 2014 2015 Assets: Current assets Cash and cash equivalents 726,888 604,571 \$ 6,057,400 Marketable securities 19,033 16,635 158,608 Notes and accounts receivable:

### Analyzing the Statement of Cash Flows

NACM Central Region Credit Conference 2012 Analyzing the Statement of Cash Flows John A. Jaeger, CCE Manager Credit & Accounts Receivable Follett Higher Education Group 1 1 Analyzing the Statement of Cash

### CH 23 STATEMENT OF CASH FLOWS SELF-STUDY QUESTIONS

C H 2 3, P a g e 1 CH 23 STATEMENT OF CASH FLOWS SELF-STUDY QUESTIONS (note from Dr. N: I have deleted questions for you to omit, but did not renumber the remaining questions) 1. The primary purpose of

### Accounting Cheat Sheet

DIAGRAM OF TACCOUNTS Assets = Balance Sheet as of 12/31/20 Liabilit ies + = + Equity METHODS & ORGS Accrual basis Follows the matching principle and recognizes transactions as they occur (GAAP Method)

### Accounting 303 Final Examination. Part I True-False (1 point each, 12 points total) If true, circle "T" on the answer sheet, if false, circle "F".

Accounting 303 Final Examination Name Part I True-False (1 point each, 12 points total) If true, circle "T" on the answer sheet, if false, circle "F". 1. The Financial Accounting Standards Board (FASB)

### Study Guide - Final Exam Accounting I

Study Guide - Final Exam Accounting I True/False Indicate whether the sentence or statement is true or false. 1. Entries in a sales journal affect account balances in both the accounts receivable ledger

### MGMT-026 Intro to Financial Accounting Group Project Kids in Prison Program

MGMT-026 Intro to Financial Accounting Group Project Kids in Prison Program Group #1 Page 2 Problem 1 FIFO Perpetual Date Good Purchased Cost of Goods Sold Balance 1/1 29 @ \$13 = \$377 Beginning 1/6 20

### E2-2: Identifying Financing, Investing and Operating Transactions?

E2-2: Identifying Financing, Investing and Operating Transactions? Listed below are eight transactions. In each case, identify whether the transaction is an example of financing, investing or operating

### Financial Accounting for Decision Makers

Financial Accounting for Decision Makers Gary A. Porter University of St. Thomas - Minnesota Curtis L. Norton Northern Illinois University THOMSON SOUTHWESTERN A u s t r a l i a B r a z i l C a n a d a

### Analyzing the Statement of Cash Flows

Analyzing the Statement of Cash Flows Operating Activities NACM Upstate New York Credit Conference 2015 By Ron Sereika, CCE,CEW NACM 1 Objectives of this Educational Session u Show how the statement of

### Warren, Reeve, and Duchac Accounting (22e) Map to Georgia Accounting Guide. Describe the accounting process. Define related terms.

Warren, Reeve, and Duchac Accounting (22e) Map to Georgia Accounting Guide Competency After completing this section, the student will: Warren, Reeve, Duchac outcomes ACCOUNTING VOCABULARY AND CONCEPTS

### Acct 3110 Qualifying Exam Sample Questions as of May 31, 2016

Acct 3110 Qualifying Exam Sample Questions as of May 31, 2016 1. The primary objective of financial reporting is to provide financial information about the reporting company that is useful: *a. to existing

### Financial Accounting by Michael P. Licata, Ph.D. Course Syllabus and Learning Objectives by Chapter

Financial Accounting by Michael P. Licata, Ph.D. Course Syllabus and Learning Objectives by Chapter Basic Course Description Financial Accounting by Michael P. Licata, Ph.D. is a first accounting course

### Financial Accounting (Sole Proprietorship)

Financial Accounting (Sole Proprietorship) This course covers the topics shown below. Students navigate learning paths based on their level of readiness. Institutional users may customize the scope and

### Accounts Payable are the total amounts your business owes its suppliers for goods and services purchased.

Accounts Payable are the total amounts your business owes its suppliers for goods and services purchased. Accounts Receivable are the total amounts customers owe your business for goods or services sold

### 6. Depreciation is a process of a. asset devaluation. b. cost accumulation. c. cost allocation. d. asset valuation.

1. A company purchased land for \$72,000 cash. Real estate brokers' commission was \$5,000 and \$7,000 was spent for demolishing an old building on the land before construction of a new building could start.

### ICAP GROUP S.A. FINANCIAL RATIOS EXPLANATION

ICAP GROUP S.A. FINANCIAL RATIOS EXPLANATION OCTOBER 2006 Table of Contents 1. INTRODUCTION... 3 2. FINANCIAL RATIOS FOR COMPANIES (INDUSTRY - COMMERCE - SERVICES) 4 2.1 Profitability Ratios...4 2.2 Viability

### Vol. 1, Chapter 7 The Statement of Cash Flows

Vol. 1, Chapter 7 The Statement of Cash Flows Problem 1: Solution Transaction # Identification 1 Operating 2 Investing 3 Noncash transaction 4 Financing 5 Noncash transaction 6 Operating 7 Investing 8

### Statement of Cash Flows

THE CONTENT AND VALUE OF THE STATEMENT OF CASH FLOWS The cash flow statement reconciles beginning and ending cash by presenting the cash receipts and cash disbursements of an enterprise for an accounting

### Agrium Inc. - Company Profile, SWOT & Financial Report

- Company Profile, SWOT & Financial Report ICD Research. This product is licensed and not to be photocopied _ TABLE OF CONTENTS 1 Agrium Inc. - Key Employees... 7 2 Agrium Inc. - Key Employee Biographies...

### REVIEW FOR EXAM NO. 3, ACCT-2301 (SAC) (Chapters 7-9)

REVIEW FOR EXAM NO. 3, ACCT-2301 (SAC) (Chapters 7-9) A. Chapter 7. 1. Internal Control Objectives. a. Safeguards to protect assets. b. Procedures to insure reliable financial reports. c. Methods to insure

### STATEMENT OF CASH FLOWS AND WORKING CAPITAL ANALYSIS

C H A P T E R 1 0 STATEMENT OF CASH FLOWS AND WORKING CAPITAL ANALYSIS I N T R O D U C T I O N Historically, profit-oriented businesses have used the accrual basis of accounting in which the income statement,

### Financial Statement Analysis

Financial Statement Analysis 1 The Interrelationships of the 4 Financial Statements Statement of Cash Flows For the year ended December 31, 20x2 (000) Net cash flows from operating activities \$ 1,470 Net

### LEBANESE ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS MANAGERIAL ACCOUNTING

LEBANESE ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS MANAGERIAL ACCOUNTING JULY 2015 MULTIPLE CHOICE QUESTIONS (37.5%) Choose the correct answer 1. All of the following statements concerning standard costs

### Statements MAKEorBREAK Sample Questions

Castle 2.3 Statements Got the answer? Be the first to stand with your group s flag. Got it correct? MAKE or BREAK a castle, yours or any other group s. The group with the most castles wins. Enjoy! Question

### Chapter 8 Accounting for Receivable

Chapter 8 Accounting for Receivable Type of receivable: Receivable refers to amounts due from individuals and companies. o Account receivable: Amount customer owe on account, result from sales of goods

### Completed Journals Test. What are the advantages of using special journals?

Advanced Accounting 1 Career Opportunities Recognize the different Workbook types of jobs. Define the education required for each. September Special Journals Discounts Bank Statement Journalize entries

### Advanced Placement (AP) Accounting Course and Exam Pilot Program Course Outline, Learning Objectives and Student Outcomes

Advanced Placement (AP) Accounting Course and Exam Pilot Program Course Outline, Learning Objectives and Student Outcomes Course Overview The Advanced Placement (AP) Accounting Course and Exam Pilot Program

### Advanced Placement (AP) Accounting Course & Exam Pilot Program Course Outline, Learning Objectives and Student Outcomes

Advanced Placement (AP) Accounting Course & Exam Pilot Program Course Outline, Learning Objectives and Student Outcomes Course Overview The Advanced Placement (AP) Accounting Course & Exam Pilot Program

### is any organization for which financial statements are prepared. Reports of the amounts of assets, liabilities and equity as of one point in time.

Accounting Balance Sheet Entity Balance Sheet is any organization for which financial statements are prepared. Reports of the amounts of assets, liabilities and equity as of one point in time. Left side

### Financial Reporting & Analysis Chapter 17 Solutions Statement of Cash Flows Exercises

Financial Reporting & Analysis Chapter 17 Solutions Statement of Cash Flows Exercises Exercises E17-1. Determining cash flows from operations Using the indirect method, cash flow from operations is computed

### Financial Accounting: Assets FA 2 Module 6. Handouts. Current financial assets And current liabilities. Presented by: Laura Dallas, CGA

Accounting: Assets FA 2 Module 6 Handouts Current financial assets And current liabilities Presented by: Laura Dallas, CGA Note: this information is prepared from the best information I have available

### 2. The balance in a deferred revenue account represents an amount that is Earned Collected a. Yes Yes b. Yes No c. No Yes d. No No.

Multiple choice (36%, 2%each): 1. Failure to record the expired amount of prepaid rent expense would not a. understate expense. b. overstate net income. c. overstate owners' equity. d. understate liabilities.

### ! "#\$ %&!& "& ' - 3+4 &*!&-.,,5///2!(.//+ & \$!- )!* & % +, -).//0)& 7+00///2 *&&.4 &*!&- 7.00///2 )!*.//+ 8 -!% %& "#\$ ) &!&.

! "#!""#\$%\$#\$#\$"& \$'"()*+,\$-).,/ 012! "#\$ %&!& "& '!(&)!*&%+,-).//0 -#\$#3-4' &,'1\$1# \$!-!(.//0)& +01+///2 *&& - 3+4 &*!&-.,,5///2!(.//+ &!(!-6%(!(.//.\$(!(.//0)& 01,///2 //+2% &*!&- 5,0///2 //32%!(.//+

### Financial Formulas. 5/2000 Chapter 3 Financial Formulas i

Financial Formulas 3 Financial Formulas i In this chapter 1 Formulas Used in Financial Calculations 1 Statements of Changes in Financial Position (Total \$) 1 Cash Flow (\$ millions) 1 Statements of Changes

Business 2019 Finance I Lakehead University Midterm Exam Philippe Grégoire Fall 2002 Time allowed: 2 hours. Instructions: Calculators are permitted. One 8.5 11 inches crib sheet is allowed. Verify that

### Chapter. How Well Am I Doing? Financial Statement Analysis

Chapter 17 How Well Am I Doing? Financial Statement Analysis 17-2 LEARNING OBJECTIVES After studying this chapter, you should be able to: 1. Explain the need for and limitations of financial statement

### Consolidated Financial Summary For the third quarter of the fiscal year ending March 31, 2009

Monex Group, Inc. Consolidated Financial Summary under Japanese GAAP for the third quarter of the fiscal year ending March 31, 2009 (April 1, 2008-December 31, 2008) This is an English translation of Japanese

### Self-test Comprehensive Problems II 综 合 自 测 题 II

Self-test Comprehensive Problems II 综 合 自 测 题 II Part One (30%) 1. Give the Chinese/English of the following terms: (5%) subsidiary ledger 统 制 账 户 purchase requisition 现 金 溢 缺 petty cash fund 永 续 盘 存 制

### SECTION X. ACCOUNTING FOR SALES REVENUE AND ACCOUNTS RECEIVABLE

SECTION X. ACCOUNTING FOR SALES REVENUE AND ACCOUNTS RECEIVABLE A. IAS 18 AND OTHER ACCOUNTING ISSUES IAS 18 Revenue addresses the accounting treatment of revenue arising from ordinary activities. Revenue

### Century 21 Accounting, 8e General Journal Chapter Outlines

Century 21 Accounting, 8e General Journal Chapter Outlines PART 1 Chapter 1 ACCOUNTING FOR A SERVICE BUSINESS ORGANIZED AS A PROPRIETORSHIP Starting A Proprietorship: Changes that Affect the Accounting

### Understanding A Firm s Financial Statements

CHAPTER OUTLINE Spotlight: J&S Construction Company (http://www.jsconstruction.com) 1 The Lemonade Kids Financial statement (accounting statements) reports of a firm s financial performance and resources,

### Gold Run Snowmobile. Adjusting Entries and Closing Entries For The Quarter Ended December 31. Final Project Evaluation. 5 th Edition.

Gold Run Snowmobile 5 th Edition Adjusting Entries and Closing Entries For The Quarter Ended December 31 and the Final Project Evaluation Page 1 ADJUSTING ENTRIES FOR THE QUARTER Using a copy of the December

### ACCT 335 Chapter 7 Pre-Assigned Problems Suggested Solutions

ACCT 335 Chapter 7 Pre-Assigned Problems Suggested Solutions PROBLEM 7-2 (a) Sales \$1,980,000 Sales discounts 4,400 Sales returns and allowances 60,000 Net sales 1,915,600 Percentage 1 1/2% Bad debt expense

### Advanced Placement (AP) Accounting Course & Exam Pilot Program Course Outline, Learning Objectives and Student Outcomes

Advanced Placement (AP) Accounting Course & Exam Pilot Program Course Outline, Learning Objectives and Student Outcomes Course Overview The Advanced Placement (AP) Accounting Course & Exam Pilot Program

### RATIO ANALYSIS FORMULAS + THEORIES

A) Cash Position Ratio : - 1) Absolute Cash Ratio = Cash Reservoir Current Liabilities 2) Cash Position to Total asset Ratio = Cash Reservoir * 100 (Measure liquid layer of assets) Total Assets 3) Interval

### Understanding Cash Flow Statements

Understanding Cash Flow Statements 2014 Level I Financial Reporting and Analysis IFT Notes for the CFA exam Contents 1. Introduction... 3 2. Components and Format of the Cash Flow Statement... 3 3. The

### Regulation G Reconciliations

Regulation G Reconciliations Reconciliation of Global Rolled Products Adjusted EBITDA to ATOI (\$ in millions, except per metric ton amounts) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

### CONSOLIDATED STATEMENT OF INCOME

CONSOLIDATED STATEMENT OF INCOME 4 th quarter (a) 3 rd quarter 4 th quarter 2014 Sales 37,749 40,580 52,511 Excise taxes (5,457) (5,683) (5,777) Revenues from sales 32,292 34,897 46,734 Purchases, net

### Score: Pass/Fail. Purchase Returns and Allowances. Sales Returns and Allowances. Journal entries The accounting equation Treasury Stock

Walsh College Fundamental Financial Accounting Student Name: Practice Evaluation Exam Phone/Email: Date: This evaluation exam will be used to determine your knowledge of Financial Accounting and to assist

### Chapter 8: account receivable

Chapter 8: account receivable Three accounting issues associated with accounts receivable are: 1. Recognizing accounts receivable 2. Valuing accounts receivable 3. Disposing of accounts receivable Recognizing

### CONSOLIDATED STATEMENT OF INCOME

CONSOLIDATED STATEMENT OF INCOME 4 th quarter (a) 3 rd quarter 4 th quarter 2009 Sales 40,157 40,180 36,228 Excise taxes (4,397) (4,952) (4,933) Revenues from sales 35,760 35,228 31,295 Purchases, net

### FACULTEIT DER ECONOMISCHE WETENSCHAPPEN EN BEDRIJFSKUNDE Afdeling ACCOUNTING DECEMBER 23, 2005

FACULTEIT DER ECONOMISCHE WETENSCHAPPEN EN BEDRIJFSKUNDE Afdeling ACCOUNTING (FAB) DECEMBER 23, 2005 Read this first before you start the exam. The exam contains 9 pages and 5 assignments. The duration

### The Statement of Cash Flows Direct Method

23 The Statement of Cash Flows Direct Method DEMONSTRATION PROBLEM The financial statements of Bolero Corporation follow. Copyright Houghton Mifflin Company. All rights reserved. 1 Bolero Corporation Income

### ACC 255 FINAL EXAM REVIEW PACKET (NEW MATERIAL)

Page 1 ACC 255 FINAL EXAM REVIEW PACKET (NEW MATERIAL) Complete these sample exam problems/objective questions and check your answers with the solutions at the end of the review file and identify where

### Dr. M.D. Chase Accounting Principles Examination 2J Page 1

Accounting Principles Examination 2J Page 1 Code 1 1. The term "net sales" refers to gross sales revenue reduced by sales discounts and transportation-in. 2. The cost of goods available for sale in a given

### Profit (loss) for the period = Revenues - Expenses

ADDITIONAL NOTES FOR TEI MBA (CHAPTER ) THE PROFIT and LOSS ACCOUNT (INCOME STATEMENT) Measures and reports the profit or loss generated during a period. Profit (loss) for the period = Revenues - Expenses

### Consolidated Financial Statements

Consolidated Financial Statements For the year ended February 20, 2016 Nitori Holdings Co., Ltd. Consolidated Balance Sheet Nitori Holdings Co., Ltd. and consolidated subsidiaries As at February 20, 2016