Accounting Exam
Which method of preparing the operating activities section was used
The indirect method
Which of the following is considered a profitability ratio?
The return on equity
The company's 2022 earnings per share is reported as
$1.30
How much cash was paid for insurance during 2023?
$27,700
Lanier Tech was incorporated as...
$42,000
A corporation issued $150,000 of 10-year bonds...
$6,000
The company's total capital stock is
$675,000
A graphics design company issued bonds....
$800,000
Keystone Corporation's balance sheet showed.....
0.55
Current assets are $200,000....
0.6 or 0.6 to 1
Form 10-k for a public company is required to include the following financial statements for the most recent period of time including:
3 years : 2 years
How would the change in accounts payable be reported in operating activities section of the statement of cash flows under the indirect method?
As a deduction from net income
Which of the following is not an operating activity?
Cash payments for dividends to stockholders
Which balance sheet accounts are most affected by operating activities?
Current assets and current liabilities
A company reported net income for the current year. Which of the following business interactions...
Depreciation expense was recorded for the year
Annual reports are filed with the SEC on
Form 10-K
Which of the following financing activities results in a cash inflow?
Issuing bonds
What is the primary reason for a stock split?
To decrease the market value of the stock
Which of the following items is included as part of comprehensive income but not as a part of net income?
Unrealized holding gains or losses
An addition to employee compensation whereby the corporation provides a right to purchase stock at a set price is called
a stock option
A premium on bonds payable would appear on the balance sheet as
an increase to a long-term liability
From the prior year to the current year, the company's efficiency in managing inventory was
declining, because the inventory turnover ratio is decreasing
Time series (or trend) analysis is analysis in which
dollar changes and percentage changes in a company's financial statement lines are compared over several years
If bonds were initially issued at a discount, the carrying value of the bonds on the issuer's books will
increase as the bonds approach their maturity date
When bonds are issued by a company, the accounting entry shows an
increase in assets and an increase in liabilities
Treasury shares represent the
number of previously issued shares that have been repurchased by the corporation
Outstanding shares represent the
number of shares that are currently held by stockholders
In a common size balance sheet to be used in a vertical analysis, the 100% amount is
total assets