MULTIPLE CHOICE—Conceptual 1. Which of the following is true about lower of cost or market? a. It is inconsistent because losses are recognized but not gains. b. It usually understates assets. c. It can increase future income. d. All of these. 2. The primary basis of accounting for inventories is cost. A departure from the cost basis of pricing the inventory is required where there is evidence that when the goods are sold in the ordinary course of business their a. selling price will
Premium Inventory
------------------------------------------------- The following questions are meant to help you practice answering multiple choice questions over the A201 material. These questions are not meant to be a substitute for a thorough review of the course material including reading the chapters‚ answering end of chapter exercises‚ and reviewing course notes. 1) Which one of the following groups of accounts contains only assets? a) Equipment‚ patents‚ accounts receivable b) Accounts
Premium Generally Accepted Accounting Principles Balance sheet Revenue
1. Calculate the following ratios for each year during the period 1980-1983. Comment on the trend indicated by each ratio with respect to the financial performance and condition of the Charter Company. A. Profitability: Return on average total assets (assume a 46% income tax rate) = EBIT/Total Assets 1983 = 133896 / 1813199 = .073845 1982 = 108180 / 1628046 = .066448 1981 = 155673 / 1541326 = .100999 1980 = 145485 / 1746260 = .083312 1979 = 446649 / 1728694 = .258373 B. Turnover: i. Accounts
Premium Balance sheet Asset Generally Accepted Accounting Principles
Chapter 1: Environment and Theoretical Structure of Financial Accounting Accounting Principles Board (APB) The Accounting Principles Board (APB) followed the CAP. Asset/liability approach With the asset/liability approach‚ recognition and measurement of assets and liabilities drives revenue and expense recognition. Auditors Auditors express an opinion on the compliance of financial statements with GAAP. Capital markets The capital markets provide a mechanism to help our economy allocate
Premium Balance sheet Generally Accepted Accounting Principles Depreciation
Hudson Bay Company & Target Corp. External size-up Economic The Canadian economy is expected to grow by 1.8% by the end of 2012 and the United States’ economy is expected to grow by 1.5%. With low growth prospects and stagnant consumer spending‚ retail sales are threatened. A strong Canadian dollar poses another potential threat to Canadian retailers‚ as consumers are tempted to shop across the border. In addition‚ the IPO market in Canada is declining‚ with only three issues so far in
Premium Revenue Hudson's Bay Company Inventory
Differences Between GAAP and IFRS The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) are working together to eliminate a variety of difference between the United States generally accepted accounting procedures (U.S. GAAP or GAAP) and International Financial Reporting Standards (IFRS). This convergence project grew out of an agreement reached by the two boards in 2002 (Deloitte‚ 2004). On February 24‚ the SEC unanimously agreed to publish a statement
Premium International Financial Reporting Standards
Analysis of Wal-Mart Managerial Accounting Process Table of Contents Company Description of Wal-Mart Page 3 Budgeting Process Page 3 Management Accounting System Page 4 Costing System Page 5 Capital Decision Making Process Page 6 Capital Structure Page 6 Project Conclusion Page 7 Information Sources and Methodology Page 8 References Page 8 Company Description For the final project of managing finance Wal-Mart Stores
Premium Management accounting Costs Cost
collection items both EFT receipts and collection items Which of the following must be added to beginning Retained Earnings to compute ending Retained Earnings? net income expenses dividends all of these answers are correct The use of the FIFO method increases taxable income: when prices are constant when prices are declining when prices are increasing under all circumstances A company mistakenly destroys a unit of inventory that originally cost $12. The company included the cost
Premium Generally Accepted Accounting Principles Balance sheet Depreciation
by INE 1) If we divide users of ratios into short term lenders‚ long term lenders‚ and stockholders‚ which ratios would each group be most interested I‚ and for what reasons? • Short term lenders o Will be most interested in the firm’s ability to repay debt so they would be interested in the liquidity ratios‚ Current ratio and Quick ratio. • Long term lenders o Will be most interested in ▪ Debt to total assets but also in
Premium Financial ratios Balance sheet Asset
Case #1 Business Ethics Case Studies: e-Health and Commercial Genetic Testing Veritas Diagnostics is a medical diagnostics company specializing in adult genetic susceptibility testing for a range of heritable and complex genetic conditions. Their main business involves testing for the mutations associated with cystic fibrosis‚ hereditary kidney disease‚ as well as breast‚ ovarian and colorectal cancer. They have a well-staffed‚ well-run‚ sophisticated genetics laboratory capable of
Premium Management Health care Health care provider