Question 1

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

Accepted Answer

$600/$1,15...

Question 2

Rent collected in advance is:

Accepted Answer

A)  An asset account in the balance sheet.
B)  A liability account in the balance sheet.
C)  A shareholders' equity account in the balance sheet.
D)  A temporary account, not in the balance sheet at all.E) B) and D)
F) None of the above

Question 3

The balance sheet reports:

Accepted Answer

A)  Net income at a point in time.
B)  Cash flows for a period of time.
C)  Assets and equities at a point in time.
D)  Assets and liabilities for a period of time.E) None of the above
F) All of the above

Question 4

-Noncurrent assets

Accepted Answer

Total assets = Current assets ...

Question 5

The acid-test ratio is (rounded) :

Accepted Answer

A)  0.25.
B)  0.88.
C)  1.17.
D)  1.58.E) B) and D)
F) C) and D)

Question 6

Working capital is equal to:

Accepted Answer

A)  Current assets.
B)  Current liabilities.
C)  Current assets plus current liabilities.
D)  Current assets minus current liabilities.E) A) and C)
F) A) and D)

Question 7

Accrued salaries and wages in a balance sheet represent salary and wages that have been earned by employees but not yet paid.

Accepted Answer

A) True 
 B)False

Question 8

Cash equivalents would include:

Accepted Answer

A)  Highly liquid equity securities.
B)  Accounts receivable from a financial institution.
C)  A sinking fund for bonds that mature in three years.
D)  Debt instruments with maturity dates of less than three months from the date of the purchase.E) B) and D)
F) All of the above

Question 9

Which of the following accounts are closed at the end of the accounting period?

Accepted Answer

A)  Allowance for uncollectible accounts.
B)  Unearned revenue.
C)  Retained earnings.
D)  Income tax expense.E) A) and D)
F) A) and C)

Question 10

The quick ratio is:

Accepted Answer

A)  The liquidity ratio divided by the equity ratio.
B)  Current assets minus inventory divided by current liabilities minus accounts payable.
C)  Current assets minus inventory and prepaid items divided by current liabilities.
D)  Cash divided by accounts payable.E) B) and D)
F) A) and C)

Question 11

The criteria for determining which items comprise cash equivalents often is disclosed in the summary of significant accounting policies.

Accepted Answer

A) True 
 B)False

Question 12

Lack of long-term solvency refers to:

Accepted Answer

A)  Risk of nonpayment relative to liabilities in the capital structure.
B)  The length of time before long-term debt becomes due.
C)  The ability to refinance long-term debt when it becomes due.
D)  Long-term assets.E) None of the above
F) A) and D)

Question 13

Compute the return on shareholders' equity ratio for Marjoram Company. Round your answer to two decimal places.

Accepted Answer

$73,080/($70,000 + 1...

Question 14

Which of the following is not a required disclosure for related-party transactions?

Accepted Answer

A)  The nature of the relationship.
B)  A description of the transactions.
C)  The amounts due from or to related parties.
D)  The impact of the transactions on current year's income.E) A) and C)
F) None of the above

Question 15

Which of the following is never a current liability account?

Accepted Answer

A)  Accrued payroll
B)  Dividends payable
C)  Prepaid rent
D)  Subscriptions collected in advanceE) A) and D)
F) A) and C)

Question 16

The ultimate responsibility for the financial statements lies with the auditors.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not a financing ratio?

Accepted Answer

A)  Times interest earned ratio.
B)  Debt to equity ratio.
C)  Current ratio.
D)  All of the above are financing ratios.E) None of the above
F) C) and D)

Question 18

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

Accepted Answer

($150 + 200 + 300 + ...

Question 19

Subsequent events are significant developments that take place after a firm's year-end, and after the financial statements are issued or available to be issued.

Accepted Answer

A) True 
 B)False

Question 20

What would Symphony report as total assets?

Accepted Answer

A)  $2,338.
B)  $2,323.
C)  $2,318.
D)  $2,303.E) B) and C)
F) A) and D)

Exam 3: The Balance Sheet and Financial Disclosures

What would Symphony report as total assets?

Correct AnswerverifiedShow Answer

Compute the return on shareholders' equity ratio for Marjoram Company. Round your answer to two decimal places.

Correct Answerverified$73,080/($70,000 + 1...View AnswerShow Answer

Which of the following is not a required disclosure for related-party transactions?

Correct AnswerverifiedShow Answer

The quick ratio is:

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Subsequent events are significant developments that take place after a firm's year-end, and after the financial statements are issued or available to be issued.

Correct AnswerverifiedShow Answer

The acid-test ratio is (rounded) :

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Accrued salaries and wages in a balance sheet represent salary and wages that have been earned by employees but not yet paid.

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Lack of long-term solvency refers to:

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

Correct Answerverified$600/$1,15...View AnswerShow Answer

Cash equivalents would include:

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The criteria for determining which items comprise cash equivalents often is disclosed in the summary of significant accounting policies.

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Which of the following accounts are closed at the end of the accounting period?

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Working capital is equal to:

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-Noncurrent assets

Correct AnswerverifiedTotal assets = Current assets ...View AnswerShow Answer

The balance sheet reports:

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Which of the following is never a current liability account?

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The ultimate responsibility for the financial statements lies with the auditors.

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

Correct Answerverified($150 + 200 + 300 + ...View AnswerShow Answer

Which of the following is not a financing ratio?

Correct AnswerverifiedShow Answer

Rent collected in advance is:

Correct AnswerverifiedShow Answer

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$73,080/($70,000 + 1...
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$600/$1,15...
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Total assets = Current assets ...
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($150 + 200 + 300 + ...
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