Beatrice Equipment sells merchandise only on credit. For the year ended December 31,
2014, the following data is available:
Refer to the data for Beatrice Equipment.
Assume that Beatrice Equipment estimates bad debts at 1% of net credit sales.
A)What amount will Beatrice Equipment record as bad debts expense for 2014?
B)How much is the net realizable value of accounts receivable reported on Beatrice
Equipment’s balance sheet at December 31, 2014?
Debits are good and credits are bad in financial terms.
a.True
b.False
Identify where each of the following accounts would be reported on CocaCola’s
financial statements
a.Balance Sheet – Property, Plant, and Equipment
b.Balance Sheet – Intangible Assets
c.Balance Sheet – Current Assets
d.Balance Sheet – Other Assets
e.Income Statement – Operating Section
f.Income Statement – Other Revenue and Expense Section
g.Statement of Cash Flows
Total amortization since inception
Cost of goods sold is equal to beginning inventory plus the net cost of purchases minus
ending inventory.
a.True
b.False
The following items were reported on the balance sheets and income statement for the
Flying Mullet Company:
How would the change in accounts receivable be reported in the operating activities
section of the statement of cash flows under the indirect method?
a.As an addition to sales
b.As a deduction from sales
c.As an addition to net income
d.As a deduction from net income
Match the following bond and long-term liability related terms to the appropriate
definition.
a.Long-term liability
b.Face value
c.Debenture bonds
d.Serial bonds
e.Callable bonds
f.Face rate of interest
g.Market rate of interest
h.Bond issue price
i.Premium
j.Discount
k.Effective interest method of amortization
l.Carrying value
m.Gain or loss on redemption
The excess of the face value of bonds over the issue price. It occurs when the market
rate on the bonds exceeds the face rate.
For each of the following sentences, select the phrase or group of words that best
completes the statement.
a.Earnings per share
b.Dividend yield ratio
c.Dividend payout ratio
d.Leverage
e.Return on assets ratio
f.Return on common stockholders’ equity ratio
g.Debt-to-equity ratio
h.Price/earnings ratio
The relationship between dividends and the market price of a company’s stock.
Match the following terms with the best definitions for questions 212 through 219.
a.Purchase requisition.
b.Receiving Report.
c.Vendor Invoice.
d.Check.
e.Control procedures.
f.Inventory count.
g.Segregation of duties.
h.Source document control.
Typically sent along with a remittance advice.
When Carson Real Estate Company sells equipment for a loss, the Loss on Sale of
Asset is treated as accumulated depreciation.
a.True
b.False
Identify the classifications of the following accounts as either current or long-term
liabilities for the December 31, 2014 balance sheet.
a.Current liability
b.Long-term liability
Contingent assets may be disclosed in the notes if probable and reasonably estimable.
a.True
b.False
Match each of the following terms related to interest and time value of money
calculations to their appropriate definition.
a.Time value of money
b.Simple interest
c.Compound interest
d.Future value of a single amount
e.Present value of a single amount
f.Annuity
g.Future value of an annuity
h.Present value of an annuity
Interest calculated on the principal plus previous amounts of interest accumulated.
See the transactions to Morton & Associates. The journal entry to record the May 23
transaction will include an increase of $430 to
a.Accounts Receivable
b.Cash
c.Prepaid Expenses
d.Accounts Payable
Match each of the following terms related to interest and time value of money
calculations to their appropriate definition.
a.Time value of money
b.Simple interest
c.Compound interest
d.Future value of a single amount
e.Present value of a single amount
f.Annuity
g.Future value of an annuity
h.Present value of an annuity
The concept that indicates that people should prefer to receive an immediate amount at
the present time over an equal amount in the future.
Padagonian Company
Use the deferred tax account that appears in the financial statements of Padagonian
Company to answer the related questions.
Review the information for Padagonian Company.
REQUIRED:
Where will the Deferred Income Taxes account most likely appear on a classified
balance sheet?
What percent is deferred income taxes of long-term liabilities for the two years? 2016
_________ 2015 __________
What percent is deferred income taxes of total liabilities for the two years? 2016
__________ 2015 ___________
Use the current asset section of the balance sheets of the Breeze Company as of June
30, 2016 and 2015 presented below to answer the questions that follow.
REQUIRED:
In the spaces provided below, complete a vertical analysis of the current asset section of
Breeze Company’s balance sheets for 2016 and 2015. Your answers should be rounded
to one decimal place, e.g., 10.3%.
The three types of analysis that involve ratios are _________ , _________ , and
___________.
PatentCopyright
GoodwillRevenue expenditure
Natural resourcesResearch and development costs TrademarkCapital expenditure
___________________________is(are) a cost(s) that improves an operating asset and
is (are) added to the asset account.