1.1, 1.2, 1.3, 1.4
Consider Walmart, a large retailer. Classify the following items as an asset (A), a liability (L), or stockholders' equity (S) for Walmart: a. Accounts receivable
asset
Consider Walmart, a large retailer. Classify the following items as an asset (A), a liability (L), or stockholders' equity (S) for Walmart: c. Merchandise inventory
asset
Consider Walmart, a large retailer. Classify the following items as an asset (A), a liability (L), or stockholders' equity (S) for Walmart: d. Prepaid expenses
asset
Consider Walmart, a large retailer. Classify the following items as an asset (A), a liability (L), or stockholders' equity (S) for Walmart f. Equipment
asset
Identify the accounting concept, assumption, or principle that best applies to each of the following situations: a. Burger King, the restaurant chain, sold a store location to McDonald's. How can Burger King determine the sale price of the store —by a professional appraisal, Burger King original cost, or the amount actually received from the sale?
A. Historical cost principle
Identify the financial statement where these decision makers can find the following information about Malcolm Tech, Inc. In some cases, more than one statement will report the needed data. a. Revenue
A. Income statement
Identify the accounting concept, assumption, or principle that best applies to each of the following situations: b. General Motors wants to determine which division of the company —Chevrolet or GMC— is more profitable
B. Entity assumption
Consider Walmart, a large retailer. Classify the following items as an asset (A), a liability (L), or stockholders' equity (S) for Walmart i. Land
asset
Identify the financial statement where these decision makers can find the following information about Malcolm Tech, Inc. In some cases, more than one statement will report the needed data. b. Dividends
B. Statement of retained earnings and Statement of cash flows
Identify the financial statement where these decision makers can find the following information about Malcolm Tech, Inc. In some cases, more than one statement will report the needed data. c. Ending cash balance
C. Balance sheet and Statement of cash flows
Identify the accounting concept, assumption, or principle that best applies to each of the following situations: c. Inflation has been around 5.5% for some time. Woodlake Realtors is considering measuring its land values in inflation-adjusted amounts.
C. Stable-monetary-unit assumption
Identify the financial statement where these decision makers can find the following information about Malcolm Tech, Inc. In some cases, more than one statement will report the needed data. d. Total assets
D. Balance sheet
Identify the accounting concept, assumption, or principle that best applies to each of the following situations: d. You get an especially good buy on a laptop, paying only $300 when it normally costs $800. What is your accounting value for this laptop?
D. Historical cost principle
Identify the financial statement where these decision makers can find the following information about Malcolm Tech, Inc. In some cases, more than one statement will report the needed data. e. Selling, general, and administrative expense
E. Income Statement
Identify the financial statement where these decision makers can find the following information about Malcolm Tech, Inc. In some cases, more than one statement will report the needed data f. Adjustments to reconcile net income to cash provided by operations
F. Statement of cashflow
Identify the financial statement where these decision makers can find the following information about Malcolm Tech, Inc. In some cases, more than one statement will report the needed data g. Cash spent to acquire the building
G. Statement of cashflow
Identify the financial statement where these decision makers can find the following information about Malcolm Tech, Inc. In some cases, more than one statement will report the needed data h. Current liabilities
H. Balance sheet
Identify the financial statement where these decision makers can find the following information about Malcolm Tech, Inc. In some cases, more than one statement will report the needed data i. Income tax expense
I. Income Statement
Identify the financial statement where these decision makers can find the following information about Malcolm Tech, Inc. In some cases, more than one statement will report the needed data j. Net income
J. Income statement, Statement of retained earnings, and Statement of cash flows
Identify the financial statement where these decision makers can find the following information about Malcolm Tech, Inc. In some cases, more than one statement will report the needed data k. Common stock
K. Balance sheet
Identify the financial statement where these decision makers can find the following information about Malcolm Tech, Inc. In some cases, more than one statement will report the needed data l. Ending balance of retained earnings
L. Balance sheet and Statement of retained earnings
Identify the financial statement where these decision makers can find the following information about Malcolm Tech, Inc. In some cases, more than one statement will report the needed data m. Income tax payable
M. Balance sheet
Identify the financial statement where these decision makers can find the following information about Malcolm Tech, Inc. In some cases, more than one statement will report the needed data n. Long-term debt
N. Balance sheet
Compute the missing amount in the accounting equation for each company (amounts in billions): Assets Liabilities Stockholders' Equity Pet Lovers $ ? $44 $40 Northeast Bank $29 ? $16 New Rock Gas $38 $16 ? Requirement 1. Which company appears to have the strongest financial position? Explain your reasoning. Calculate the missing amounts. (Enter amounts in billions.) Assets Liabilities Stockholders' equity Pet Lovers $84 $44 $40 Northeast Bank $29 $13 $16 New Rock Gas $38 $16 $22
New Rock Gas appears to have the strongest financial position because its liabilities make up the smallest percentage of company assets. This percentage is 42.11%.
Troopit, Inc., has current assets of $150 million; property, plant, and equipment of $330 million; and other assets totaling $180 million. Current liabilities are $120 million and long-term liabilities total $350 million.Requirements1. Use these data to write Troopit's accounting equation. 2.How much in resources does Troopit have to work with?3. How much does Troopit owe creditors?4.How much of the company's assets do the TroopitTroopit stockholders actually own?
Requirement 1. Use the data provided to write Troopit's accounting equation. Assets = Liabilities + Stockholders' equity$ 660 = $ 470 + $ 190 Requirement 2. How much in resources does Troopit have to work with? Troopit has $660 million in resources to work with. Requirement 3. How much does Troopit owe creditors?Troopit owes creditors $470 million. Requirement 4. How much of the company's assets do the Troopit stockholders actually own? The Troopit stockholders actually own $190 million of the company's assets.
Haggerty Company's comparative balance sheet at January 31, 2017, and 2016, reports the following (in millions): Three situations about Haggerty Company's issuance of stock and declaration and payment of dividends during the year ended January 31, 20172017, follow. Read the requirements For each situation, use the accounting equation and the statement of retained earnings to compute the amount of Haggerty's net income or net loss during the year ended January 31, 2017. 1. Haggerty issued $1414 million of stock and declared no dividends. 2. Haggerty issued no stock but declared dividends of $2020 million. 3. Haggerty issued $1515 million of stock and declared dividends of $2222 million. Begin by reviewing the labels for the change in stockholders' equity and then enter the amounts for each situation. (Enter an amount in each input area. Input a "0" when there is no amount to be entered. Enter amounts in millions. Use a minus sign or parentheses when entering net losses or numbers to be subtracted.)
Situation 1 Situation 2 Situation 3 Total stockholders' equity, Jan 31, 2016 $41 $41 $41 Add: Issuance of stock $14 $0 $15 Net income $2 $36 $23 Less: Dividends declared 0 (20) (22) Net loss 0 0 0 Total stockholders' equity, Jan 31, 2017 $57 $57 $57
During February, assets increased by $79,000 and liabilities increased by $32,000. Stockholders' equity must have A .increased by $47,000. B. increased by $111,000. C. decreased by $111,000. D. decreased by $47,000.
a increase by $47,000
Loom Enterprises buys a warehouse for $570,000 to use for its East Coast distribution operations. On the date of the purchase, a professional appraisal shows a value of $580,000 for the warehouse. The seller had originally purchased the building for $525,000. Loom has a similar warehouse on the West Coast that has a book value of $582,000. Under the historical cost principle, Loom should record the building for A. $570,000. B. $525,000. C. $580,000. D. $582,000.
a. $570,000
Suppose you manage a French restaurant. Identify the missing amount for each situation: Total Assets = Total Liabilities + Stockholders' Equity a. $ ? $330,000 $330,000 b. 105,000 55,000 ? c. 390,000 ? 250,000
a. Total assets = $660,000 b. Stockholders' equity = $50000 c. Total liabilities = $140000
During February, assets increased by $82,000 and liabilities increased by $26,000. Stockholders' equity must have A. increased by $56,000. B. increased by $108,000 C. decreased by $108,000 D. decreased by $56,000
a. increased by $56,000
Consider Walmart, a large retailer. Classify the following items as an asset (A), a liability (L), or stockholders' equity (S) for Walmart . l. Supplies
asset
Sarah Zocki is interviewing next week for a job at Rainbow Inks Corporation. Which financial statement should she examine to evaluate how well Rainbow Inks Corporation performed last year? A. Balance sheet B. Income statement C. Statement of retained earnings D. Statement of cash flows
b Income statement
Corporation holds cash of $5,000 and owes $30,000 on accounts payable. Sebastapol has accounts receivable of $48,000, inventory of $34,000, and land that cost $75,000. How much are Sebastapol's total assets and liabilities? Total assets Liabilities . A. $162,000 and $64,000 B. $162,000 and $30,000 C. $128,000 and $64,000 D. $87,000 and $105,000
b. $162,000 and $30,000
Which type of business organization provides the least amount of protection for bankers and other creditors of the company? A. Proprietorship B. Corporation C. Partnership D. Both a and c
b. Corporation
Which of the following is a true statement about International Financial Reporting Standards? A. They are not being applied anywhere in the world yet, but soon they will be. B. They are converging gradually with U.S. standards. C. They are more exact (contain more rules) than U.S. generally accepted accounting principles. D. They are not needed for U.S. businesses since the United States already has the strongest accounting standards in the world.
b. They are converging gradually with U.S. standards
Assets are usually reported at their A. current market value. B. historical cost. C. appraised value. D. none of the above.
b. historical cost
Revenues are A. decreases in liabilities resulting from paying off loans. B. increases in retained earnings resulting from selling products or performing services. C. increases in paid-in capital resulting from the owners investing in the business. D. all of the above
b. increases in retained earnings resulting from selling products or performing services
The primary objective of financial reporting is to provide information A. about the profitability of the enterprise. B. useful for making investment and credit decisions. C. to the federal government. D. on the cash flows of the company.
b. useful for making investment and credit decisionds
The accounting equation can be expressed as A. Owners' equity −Assets = Liabilities. B. Assets + Liabilities = Owners' equity. C. Assets−Liabilities = Owners' equity. D. Assets = Liabilities -Owners' equity
c assets - liabilities = owners' equity
During the year, CleanDry Corporation has $260,000 in revenues, $135,000 in expenses, and $6,000 in dividend declarations and payments. Stockholders' equity changed by A. $131,000 B. $125,000 C. $119,000 D. $254,000
c. $119,000
During the year, Amos Company's stockholders' equity increased from $97,000 to $107,000. Amos earned net income of $12,000. Assume no changes in the capital stock accounts. How much in dividends did Amos declare during the year? A. $10,000 B. $12,000 C. $2,000 D. $0
c. $2,000
Young Company had total assets of $1,555,000 and total stockholders' equity of $53,000 at the beginning of the year. During the year, assets increased by $48,000 and liabilities increased by $9,000. Stockholders' equity at the end of the year is A. $116,000. B. $110,000. C. $92,000. D. $101,000.
c. $92,000
How would net income be mostly to affect the accounting equation A. Increase assets and increase liabilities B. Decrease assets and decrease liabilities C. Increase assets and increase stockholders' equity D. Increase liabilities and decrease stockholders' equity
c. Increase assets and increase stockholder's equity
The nature of an asset is best described as A. something owned by a business that has a ready market value. B. something with physical form that's valued at cost in the accounting records. C. an economic resource that's expected to benefit future operations. D. an economic resource representing cash or the right to receive cash in the future.
c. an economic resource that's expected to benefit future operations
Suppose you are starting a medical data analytics firm. Which form of business will limit your liability for the business to the amount you have invested? A. Partnership B. Proprietorship C. Corporation D. None of the above.
c. corporation
The stockholders' equity of Virinsky Company at the beginning and end of 2016 totaled $117,000 and $135,000, respectively. Assets at the beginning of 2016 were $154,000. If the liabilities of Virinsky Company increased by 65,000 in 2016, how much were total assets at the end of 2016? Use the accounting equation. A. $71,000 B. $224,000 C. $219,000 D. 237,000
d $237,000
During February, assets increased by $80,000 and liabilities increased by $24,000. Stockholders' equity must have A. decreased by $104,000 B. increased by $104,000 C. decreased by 56,000 D. increased by $56,000
d increase by $56,000
During the year, EcoWash Corporation has $270,000 in revenues, $150,000 in expenses, and $7,000 in dividend declarations and payments. Stockholders' equity changed by A. $127,000 B. $120,000 C. $263,000 D. $113,000
d. $113,000
Murphy had no stock transactions in 2016; thus, the change in stockholders' equity for 2016 was due to net income and dividends. If dividends were $65,000, how much was Murphy's net income for 2016? Use the accounting equation and the statement of retained earnings. A. $426,000 B. $621,000 C. $491,000 D. $556,000
d. $556,000
Paulson had no stock transactions in 2016; thus, the change in stockholders' equity for 2016 was due to net income and dividends. If dividends were $45,000, how much was Paulson's net income for 2016? Use the accounting equation and the statement of retained earnings. . A. $527,000 B. $617,000 C. $482,000 D. $572, 000
d. $572,000
Morris Enterprises buys a warehouse for $600,000 to use for its East Coast distribution operations. On the date of the purchase, a professional appraisal shows a value of $640,000 for the warehouse. The seller had originally purchased the building for $485,000. Morris has a similar warehouse on the West Coast that has a book value of $612,000. Under the historical cost principle, Morris should record the building for A. $485,000 B. $612,000 C. $640,000 D. $600,000
d. $6000,000
Kilbride Company had total assets of $235,000 and total stockholders' equity of $55,000 at the beginning of the year. During the year, assets increased by $39,000 and liabilities increased by $13,000. Stockholders' equity at the end of the year is A. $107,000 B. $116,000 C. $94,000 D. $81,000
d. $81,000
Which item(s) is(are) reported on the balance sheet? A.Inventory B. Retained earnings C. Accounts payable D. All of the listed choices
d. All of the listed choices
During the year, FastWash Corporation has $240,000 in revenues, $140,000 in expenses, and $4,000 in dividend declarations and payments. FastWash Corporation had A. net income of $144,000 B. net income of $376,000 C. net income of $236,000 D. net income of $100,000
d. net income of $100,000
Consider Walmart, a large retailer. Classify the following items as an asset (A), a liability (L), or stockholders' equity (S) for Walmart g.Notes payable
liability
Consider Walmart, a large retailer. Classify the following items as an asset (A), a liability (L), or stockholders' equity (S) for Walmart j. Accounts payable
liability
Consider Walmart, a large retailer. Classify the following items as an asset (A), a liability (L), or stockholders' equity (S) for Walmart: b. Long-term debt
liability
Consider Walmart, a large retailer. Classify the following items as an asset (A), a liability (L), or stockholders' equity (S) for Walmart: e.Accrued expenses payable
liability
Consider Walmart, a large retailer. Classify the following items as an asset (A), a liability (L), or stockholders' equity (S) for Walmart h. Retained earnings
stockholders' equity
Consider Walmart, a large retailer. Classify the following items as an asset (A), a liability (L), or stockholders' equity (S) for Walmart k. Common stock
stockholders' equity