Fa Analysis
ASSIGNMENT
Subject: Financial Statement Analysis
Date: October 1, 2012
Topic: Balance Sheet
MULTIPLE CHOICE
1. The balance sheet reports: a. | the assets, liabilities, gains, and losses for a period of time | b. | the changes in assets, liabilities, and equity for a period of time | c. | the assets, expenses, and liabilities as of a certain date | d. | the probable future benefits, probable future sacrifices, and residual interest for a period of time | e. | the financial condition of an accounting entity as of a particular date |
2. Which of the following would not appear on a conventional balance sheet? a. | income taxes payable | b. | funds from operations | c. | cash surrender value of life insurance | d. | appropriation for contingencies (restriction of retained earnings) | e. | patents |
3. At the beginning of the year, Execon Company had total assets of $200,000, total liabilities of $110,000, and shareholders' equity of $90,000. For the year, Execon Company earned net income of $75,000 and declared cash dividends of $30,000. At the end of the year, the company had total assets of $300,000 and its shareholders' equity was at $135,000. At the end of the year, Execon Corporation had total liabilities of: a. | $0 | b. | $45,000 | c. | $50,000 | d. | $165,000 | e. | none of the answers are correct |
4. Ownership of debt instruments of the government and other companies that can be readily converted to cash are best reported as: a. | long-term investments | b. | cash | c. | marketable securities | d. | intangibles | e. | inventory of near-cash items |
5. Tangible assets on the balance sheet should include: a. | equipment | b. | taxes payable | c. | trademarks | d. | bonds payable | e. | none of the answers are correct | 6. The current asset section of the balance sheet should include: a. | land | b. | trademarks | c. | investment in C Company (for purposes of control) |
Subject: Financial Statement Analysis
Date: October 1, 2012
Topic: Balance Sheet
MULTIPLE CHOICE
1. The balance sheet reports: a. | the assets, liabilities, gains, and losses for a period of time | b. | the changes in assets, liabilities, and equity for a period of time | c. | the assets, expenses, and liabilities as of a certain date | d. | the probable future benefits, probable future sacrifices, and residual interest for a period of time | e. | the financial condition of an accounting entity as of a particular date |
2. Which of the following would not appear on a conventional balance sheet? a. | income taxes payable | b. | funds from operations | c. | cash surrender value of life insurance | d. | appropriation for contingencies (restriction of retained earnings) | e. | patents |
3. At the beginning of the year, Execon Company had total assets of $200,000, total liabilities of $110,000, and shareholders' equity of $90,000. For the year, Execon Company earned net income of $75,000 and declared cash dividends of $30,000. At the end of the year, the company had total assets of $300,000 and its shareholders' equity was at $135,000. At the end of the year, Execon Corporation had total liabilities of: a. | $0 | b. | $45,000 | c. | $50,000 | d. | $165,000 | e. | none of the answers are correct |
4. Ownership of debt instruments of the government and other companies that can be readily converted to cash are best reported as: a. | long-term investments | b. | cash | c. | marketable securities | d. | intangibles | e. | inventory of near-cash items |
5. Tangible assets on the balance sheet should include: a. | equipment | b. | taxes payable | c. | trademarks | d. | bonds payable | e. | none of the answers are correct | 6. The current asset section of the balance sheet should include: a. | land | b. | trademarks | c. | investment in C Company (for purposes of control) |