COMPREHENSIVE EXAMINATION B PART 2 (Chapters 7–9) Problem B-I — Multiple Choice — Cash and Receivables. Choose the best answer for each of the following questions and enter the identifying letter in the space provided. 1. When should the loss on an uncollectible account receivable be recorded as an expense for accrual accounting purposes? a.
INTERMEDIATE ACCOUNTING II/ Intermediate Accounting, Spiceland/Sepe/Nelson Re: Judgment Case 18-5 Requirement 1. The two alternatives Alcoa has for accounting for the repurchase of it’s shares are: 1) The shares can be formally retired. 2) The shares can be named treasury stock Either way, total shareholders’ equity remains the same. Cash is used to repurchase common stock so the effect is to reduce both cash and shareholders’ equity. This choice does, however, affect how individual shareholders’ accounts are reported in the balance sheet.
Explain the rules of debits and credits in a way that will help him understand them. Cite examples for each of the major sections of the balance sheet (assets, liabilities and stockholders' equity) and the income statement (revenues and expenses). (TCOs B & E) The Caltor Company gathered the following condensed data for the year ended December 31, 2010 Click here to
It includes options and warrants as well as debt and stock. "(2) Participation rights – contractual rights of security holders to receive dividends or returns from the security issuer’s profits, cash flows, or returns on investments. " "(3) Preferred Stock – a security that has preferential rights compare to capital stock. " (C) What information about securities must companies disclose? Discuss how Hincapie should report the proposed preferred stock issue.
Interpretation: The Quick ratio is computed by dividing cash plus accounts receivable by total current liabilities. Current liabilities are all the liabilities that fall due within one year. This ratio reveals the protection afforded short-term creditors in cash near-cash assets. It shows the number of liquid assets available to cover each dollar of current debt. Any time this ratio is as much as 1 to 1 (1.0) the business is said to be in a liquid condition.
Normally, a reconciliation is required between the proprietary fund financial statements and the business-type activities column in the government-wide financial statements. C. Statements include the Statement of Net Assets (Balance Sheet); Statement of Revenues, Expenses and Changes in Fund Net Assets: and Statement of Cash Flows. D. The Statement of Cash Flows may be prepared using either the direct or indirect methods. 7. Which of the following choices regarding the fiduciary fund financial statements is true?
| Liquidity RatioCurrent Ratio | Current assets/ Current liabilites | 203,100,000/37,500,000 | 5.416 | a measurement of CanGo to pay off current liabilities using current assets | Liquidity RatioQuick Ratio | current assets-inventory/current liability | 203,100,000-32,000,000/37,500,000 | 4.5627 | Measures CanGo ability to meet its short term obligation MSOT liquid assets. | Profitability RatioReturn On Equity | | | |
In the case of Marriot International, Ernst & Young LLP audited and reports their opinion on Marriot International’s 10-K report. “In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Marriot International, Inc. at December 30, 2011 and December 31, 2010, and the consolidated results of its operations and its cash flows for each of the three fiscal years in the period ended December 30, 2011, in conformity with U.S. generally accepted accounting practices.” References Marriot International, Inc. (2012). Report of independent registered public accounting firms. Retrieved from http://investor.shareholder.com/MAR/marriottAR11/financials/ipafreports_1.html 6) Of what use, if any, are the notes to the financial statements? The notes to the financial statements provide basic details about the statements, on the Marriot International, Inc’s 10-K provided detailed & extensive notes.
Financial Comparison of the Kroger, Target, and Walmart Corporations Finance 300 MW December 2, 2013 Executive Summary Through the evaluation of financial information, gleaned from the publically available financial statements of the identified companies, a comparison is established by converting the data into financial ratios that provide a more accurate and clean side-by-side assessment of the group. These measurements are in turn used to judge which company provides the best investment potential. The Income Statement, Balance Sheet, and Cash Flow Statements from The Kroger Company (KR), Target Corporation (TGT), and Wal-Mart Stores Incorporated (WMT) for their fiscal years ending January or February 2011, 2012, and 2013 were
About Money. Retrieved from http://retailindustry.about.com/od/retailbestpractices/ig/Company-Mission-Statements/Apple-Inc--Mission-Statement.htm Federal Reserve Bank of San Francisco (FRBSF). (2015). What are the differences between debt and equity markets? Retrieved from http://www.frbsf.org /education/publications/doctor-econ/2005/october/debt-equity-market Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2011).