ACCOUNTING-module1hw

Which of the following is the ratio for calculating the current ratio?

Current Assets / Current Liabilities

Which of the following is an internal stakeholder?

Management

Hoxie Inc is an advertising agency and has the following data for the most recent year. Using this data determine Hoxie's net income. Revenues from Fees $855,000 Cash $25,000 Utilities Expense $52,000 Building $900,000 Notes Payable $300,000 Salaries Expense $125,000 Office Supplies $10,000 Interest Expense $30,000 Office Equipment $200,000 Administrative Expense $75,000

$573,000 Revenues from Fees $855,000 Utilities Expense $ 52,000 Salaries Expense 125,000 Interest Expense 30,000 Administrative Expense 75,000 Total Expense $282,000 Net Income 573,000

Which of the following business organizations has general partner(s) and limited partners that have limited liability?

Limited Partnership

Which of the following is the ratio for calculating the return on sales ratio?

Net Income / Total Sales

Net income is found on which of the following two statements?

Statement of Changes in Stockholders' Equity and Income Statement

One of the following is not one of the financial statements required for external reporting today.

Statement of Changes in Working Capital

All of the following are external stakeholders except:

employees

Investors read the Independent Auditors' Opinion because.

they want some assurance that the financial statements are fairly presented

Match the following with the descriptions below. A) Corporation B) Limited Liability Company C) Limited Liability Partnership D) Limited Partnership E) Mutual Agency F) Limited Liability G) Partnership H) S Corporation I) Sole Proprietorship

*A partnership composed of one or more general partners and one or more=D *A small business corporation owned by no more that 75 individuals; is profits=H *A business entity that is legally separate and distinct from its owners.=A *The business entity eliminates the impact of unlimited liability for all the=B *A situation whereby each partner has the power to act for all and legally=E *A partnership in which the individual partners are liable only for their own=C *A business entity owned by one person whose personal possessions are at risk=I *A situation in which the money invested in a corporation is at risk but investors'=F *A business owned by two or more individuals whose personal possessions are=G

A system used to identify, analyze, measure, record, summarize, and communicate relevant economic information to interested parties is referred to as a(n):

Accounting System

The cash held by a company at the end of the year is found on which of the following two statements?

Balance Sheet and Statement of Cash Flows

Determine each of the following: If your current ratio is 2 and your current assets are $600,000 what is the amount of your current liabilities? If your debt to equity ratio is 1.5 and your total liabilities are $200,000 what is your total stockholders' equity? If your return on sales is 8% and your net income is $2,000,000, how much sales did you generate during the year?

CL: $300,000; SE: $133,333: SALES:$30,000,000 $600,000 / Current Liabilities = 2 therefore CL = $300,000 1.$200,000 / Total Stockholders' Equity = 1.5 Therefore, Total SE = $133,333 2.$2,400,000 / Total Sales = .08 Therefore, Total Sales = $30,000,000

Match the type of firms with the companies below. A) Service Firm B) Manufacturing C) Merchandising

Deloitte-A Xerox-B Macy's-C Southwest Airline-A PepsiCola-B Wendy's-B Union Pacific Railroad-A British Petroleum-B

Match the following with the descriptions below. Assets=A Liability=B Net Assets=C Owners' Equity=D Revenue=E Expense=F Net Income=G

The rights to use resources that have expected future economic benefit.=A The obligation to transfer economic resources to suppliers of goods and=B Assets minus liabilities=C Represents the claims on the business to transfer the residual interest (net assets)=D An amount earned from rendering services or transferring resources to=E An amount incurred from using resources or services in an effort to generate=F A company's total revenues less its total expenses for a period of time.=G

The accounting concept requiring that an accounting system reflect information relating only to those economic events pertaining to a particular entity is the:

business entity concept

For information to be useful, it must be relevant. Information is relevant when it

causes users to reach a different decision.

The business function designed to determine the wants and needs of consumers is referred to as:

marketing

The accounting concept requiring that the profits of a business be determined at regular intervals throughout the life of the business is the:

periodicity concept

Which of the following is an internal stakeholder in a college?

the faculty