Question 1

Altoid Co.'s times interest earned ratio. Round your answer to two decimal places.

Accepted Answer

($350 + 150 + 90)/$9...

Question 2

Current assets include cash and all other assets expected to become cash or be consumed:

Accepted Answer

A)  Within one year.
B)  Within one operating cycle.
C)  Within one year or one operating cycle, whichever is shorter.
D)  Within one year or one operating cycle, whichever is longer.E) A) and B)
F) All of the above

Question 3

Liquidity refers to the riskiness of a company with regard to the amount of liabilities in its capital structure.

Accepted Answer

A) True 
 B)False

Question 4

An example of fraud would be:

Accepted Answer

A)  Issuing a purchase order without first securing bids.
B)  Buying raw materials from an affiliated company.
C)  Knowingly classifying a material noncurrent receivable as a current receivable.
D)  Forgetting to accrue salaries and wages payable.E) A) and B)
F) All of the above

Question 5

Illegal acts will only need to be disclosed if the impact of the act is material.

Accepted Answer

A) True 
 B)False

Question 6

The compensation of top executives is disclosed in the proxy statement.

Accepted Answer

A) True 
 B)False

Question 7

An asset that is not expected to be converted to cash or consumed within one year or the operating cycle is:

Accepted Answer

A)  Goodwill.
B)  Accounts receivable.
C)  Inventory.
D)  Supplies.E) All of the above
F) A) and B)

Question 8

Working capital is:

Accepted Answer

A)  $505.
B)  $265.
C)  $185.
D)  $75.E) A) and B)
F) A) and C)

Question 9

Briefly explain the purpose of the disclosure note on significant accounting policies. Provide two examples of what might be found in this note.

Accepted Answer

There are many areas where management ch...

Question 10

Disclosure notes would not include:

Accepted Answer

A)  Depreciation methods used and estimated useful life.
B)  Definition of cash equivalents.
C)  Details of pension plans.
D)  Data to adjust the financial statements so that they are not misleading.E) A) and B)
F) A) and C)

Question 11

Intangible assets usually are reported in the balance sheet as current assets.

Accepted Answer

A) True 
 B)False

Question 12

-Current assets

Accepted Answer

Current assets (CA/Current Liabilities (...

Question 13

Which of the following is not a characteristic that defines a reportable operating segment according to U.S. GAAP?

Accepted Answer

A)  Operating results are regularly reviewed by the enterprise's chief operating officer.
B)  Discrete financial information is available.
C)  Engages in business activities from which it may earn revenues and incur expenses.
D)  Represents more than 20% of total company revenues, assets, or net income.E) C) and D)
F) All of the above

Question 14

HHF's times interest earned ratio is (rounded) :

Accepted Answer

A)  3.47.
B)  1.73.
C)  2.47.
D)  10.0.E) A) and D)
F) None of the above

Question 15

The acid-test ratio is also known as the:

Accepted Answer

A)  Current ratio.
B)  Debt to equity ratio.
C)  Times interest earned ratio.
D)  Quick ratio.E) A) and B)
F) C) and D)

Question 16

Assume a company's liquidity and financing ratios all are less than 1.0 before it purchases inventory on credit. When it makes the purchase:

Accepted Answer

A)  Its current ratio decreases.
B)  Its quick ratio decreases.
C)  Its current ratio remains unchanged.
D)  Its quick ratio remains unchanged.E) B) and D)
F) None of the above

Question 17

When a company sells land for cash and recognizes a $25,000 gain:

Accepted Answer

A)  Its acid-test ratio decreases.
B)  Its current ratio decreases.
C)  Its debt to equity ratio decreases.
D)  Cannot determine from the given information.E) All of the above
F) None of the above

Question 18

Altoid Co.'s debt to equity ratio. Round your answer to two decimal places.

Accepted Answer

($450 + 600)/$(150 +...

Question 19

Janson Corporation Co.'s trial balance included the following account balances at December 31, 2013:  Investments consist of treasury bills that were purchased in November and mature in January. Prepaid insurance is for the next two years. What amount should be included in the current asset section of Janson's December 31, 2013, balance sheet?

Accepted Answer

A)  $88.000.
B)  $85,000.
C)  $55,000.
D)  $135,000.E) A) and B)
F) None of the above

Question 20

The principal concern with accounting for related-party transactions is:

Accepted Answer

A)  The size of the transactions.
B)  Differences between economic substance and legal form.
C)  The absence of legally binding contracts.
D)  The lack of accurate data to record transactions.E) A) and B)
F) A) and C)

Exam 3: The Balance Sheet and Financial Disclosures

The compensation of top executives is disclosed in the proxy statement.

Correct Answer
verified

Liquidity refers to the riskiness of a company with regard to the amount of liabilities in its capital structure.

Correct Answer
verified

When a company sells land for cash and recognizes a $25,000 gain:

Correct Answer
verified

Correct Answer
verified

Altoid Co.'s debt to equity ratio. Round your answer to two decimal places.

Correct Answer
verified
($450 + 600)/$(150 +...
View Answer

Illegal acts will only need to be disclosed if the impact of the act is material.

Correct Answer
verified

Briefly explain the purpose of the disclosure note on significant accounting policies. Provide two examples of what might be found in this note.

Correct Answer
verified
There are many areas where management ch...
View Answer

Working capital is:

Correct Answer
verified

Assume a company's liquidity and financing ratios all are less than 1.0 before it purchases inventory on credit. When it makes the purchase:

Correct Answer
verified

The principal concern with accounting for related-party transactions is:

Correct Answer
verified

-Current assets

Correct Answer
verified
Current assets (CA/Current Liabilities (...
View Answer

Which of the following is not a characteristic that defines a reportable operating segment according to U.S. GAAP?

Correct Answer
verified

Altoid Co.'s times interest earned ratio. Round your answer to two decimal places.

Correct Answer
verified
($350 + 150 + 90)/$9...
View Answer

An example of fraud would be:

Correct Answer
verified

Disclosure notes would not include:

Correct Answer
verified

Current assets include cash and all other assets expected to become cash or be consumed:

Correct Answer
verified

An asset that is not expected to be converted to cash or consumed within one year or the operating cycle is:

Correct Answer
verified

The acid-test ratio is also known as the:

Correct Answer
verified

Intangible assets usually are reported in the balance sheet as current assets.

Correct Answer
verified

HHF's times interest earned ratio is (rounded) :

Correct Answer
verified

Exam 3: The Balance Sheet and Financial Disclosures

The compensation of top executives is disclosed in the proxy statement.

Correct AnswerverifiedShow Answer

Liquidity refers to the riskiness of a company with regard to the amount of liabilities in its capital structure.

Correct AnswerverifiedShow Answer

When a company sells land for cash and recognizes a $25,000 gain:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Altoid Co.'s debt to equity ratio. Round your answer to two decimal places.

Correct Answerverified($450 + 600)/$(150 +...View AnswerShow Answer

Illegal acts will only need to be disclosed if the impact of the act is material.

Correct AnswerverifiedShow Answer

Briefly explain the purpose of the disclosure note on significant accounting policies. Provide two examples of what might be found in this note.

Correct AnswerverifiedThere are many areas where management ch...View AnswerShow Answer

Working capital is:

Correct AnswerverifiedShow Answer

Assume a company's liquidity and financing ratios all are less than 1.0 before it purchases inventory on credit. When it makes the purchase:

Correct AnswerverifiedShow Answer

The principal concern with accounting for related-party transactions is:

Correct AnswerverifiedShow Answer

-Current assets

Correct AnswerverifiedCurrent assets (CA/Current Liabilities (...View AnswerShow Answer

Which of the following is not a characteristic that defines a reportable operating segment according to U.S. GAAP?

Correct AnswerverifiedShow Answer

Altoid Co.'s times interest earned ratio. Round your answer to two decimal places.

Correct Answerverified($350 + 150 + 90)/$9...View AnswerShow Answer

An example of fraud would be:

Correct AnswerverifiedShow Answer

Disclosure notes would not include:

Correct AnswerverifiedShow Answer

Current assets include cash and all other assets expected to become cash or be consumed:

Correct AnswerverifiedShow Answer

An asset that is not expected to be converted to cash or consumed within one year or the operating cycle is:

Correct AnswerverifiedShow Answer

The acid-test ratio is also known as the:

Correct AnswerverifiedShow Answer

Intangible assets usually are reported in the balance sheet as current assets.

Correct AnswerverifiedShow Answer

HHF's times interest earned ratio is (rounded) :

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
($450 + 600)/$(150 +...
View Answer

Correct Answer
verified

Correct Answer
verified
There are many areas where management ch...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Current assets (CA/Current Liabilities (...
View Answer

Correct Answer
verified

Correct Answer
verified
($350 + 150 + 90)/$9...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified