finace
corporation
easier to transfer ownership, easier to raise funds, no personal liability
A current asset is
expected to be converted to cash or used in the business within one year or one operating cycle, whichever is longer.
An item is considered material if *
its size is likely to influence the decision of an investor or creditor.
ppose that Morgan Corporation produced and sold 4,800 laptop computers during 2022. It reported $130,000 cash provided by operating activities. In order to maintain production at 4,800 laptops, Morgan invested in $8,600 in equipment. Morgan paid $1,400 in dividends. What is Morgan's free cash flow?
$120,000 cash(130,000) - equipment(8,600) - dividends(1,400)
or 2022, Fielder Inc. reported net income of $42,000, had average shares outstanding of 16,000, paid preferred dividends of $10,000 and common dividends of $5,000. What was 2022 earnings per share?
$2.00 net income - preferred dividends/ shares outstanding
Use the following data to determine the total amount of working capital. Koonce Office Supplies Balance Sheet December 31, 2022 Cash $ 195,000 Accounts payable $ 210,000 Accounts receivable 150,000 Salaries and wages payable 30,000 Inventory 165,000 Mortgage payable 240,000 Prepaid insurance 90,000 Total liabilities 480,000 Stock investments 255,000 Land 270,000 Buildings $315,000 Common stock 360,000 Less: Accumulated Retained earnings 750,000 depreciation (60,000) 275,000 Total stockholders' equity 1,110,000 Goodwill 210,000 Total liabilities and Total assets $1,590,000 stockholders' equity $1,590,000
$360,000 current assets - current liabilities
if total liabilities increased by $69,000 during a period of time and stockholders' equity decreased by $27,000 during the same period, then the amount and direction (increase or decrease) of the period's change in total assets is a(n) *
$42,000 increase 69,000 - 27,0000
Service revenue $840,000 Common stock 180,000 Equipment 240,000 Operating expenses 750,000 Cash 210,000 Dividends 60,000 Supplies 30,000 Accounts payable 120,000 Accounts receivable 90,000 Retained earnings, 1/1/2022 450,000 Elston's retained earnings on December 31, 2022 are *
$480,000 last years retained earingings + revenue - dividends
Based on the following data, what are total liabilities? Accounts payable................................................................. $62,000 Accounts receivable.............................................................. 50,000 Cash.................................................................................. 70,000 Inventory............................................................................ 138,000 Buildings.......................................................... 160,000 Bonds payable............................................................... 500,000 Supplies.......................................................... 8,000 Notes payable...................................................................... 56,000 Equipment................................................... 340,000
$618,000 acc.payable + bond.payable + notes.payable
If services are rendered on account, then *
stockholders' equity will increase.
Which of the following is not a liability?
Accounts Receivable
Which one of the following represents the expanded basic accounting equation? *
Assets + Dividends + Expenses = Liabilities + Common Stock + Revenues
Which of the following financial statements is concerned with the company at a point in time? *
Balance sheet
Comstock Company provided consulting services and billed the client $2,500. As a result
Both assets and equity increased by $2,500.
if a company pays dividends of $10,000
Both retained earnings and total stockholders' equity will be reduced by $10,000.
current ratio
CA/Cl
internal users
Financers, management, human resources, Marketing
4 financial statements
Income statements, retained earrings, balance sheet, statements of cash flow
Net income results when
Revenues > Expenses.
Which financial statement is prepared first?
Which financial statement is prepared first?
The cost of assets consumed or services used is also known as
an expense
CL
acc.payable + sal/wage.payable
CA
acc.rec + inventory + pre insurance
Payments to stockholders are called *
dividends
qualities of useful info
comparability, verifiable, understandability, consistency, timely
In a classified balance sheet, assets are usually classified as
current assets; long-term investments; property, plant, and equipment; and intangible assets.
Liabilities are generally classified on a balance sheet as
current liabilities and long-term liabilities.
An intangible asset
derives its value from the rights and privileges it provides the owner.
business activities
financing, common stock, investing, operating
All of the following are qualities of useful information except *
flexibility
the double-entry system requires that each transaction must be recorded *
in at least two different accounts.
A debit to an asset account indicates a(n)
increase in the asset.
Collection of a $600 Accounts Receivable
increases an asset $600; decreases an asset $600.
A revenue generally
increases assets and stockholders' equity.
external user
investors, creditors
solvency
measures ability of a company to survive over a long period of time
cash flow
net cash operating activities - capital expenditures - cash dividends
Enringing per share
net income - preferred dividends / average common shares out standing
ratios that measure the income or operating success of a company for a given period of time are *
profitability ratios.
An income statement shows *
revenues, expenses, and net income.
sole partnership
simple to establish, owner-controlled, tax advantages
partnership
simple to establish, shared control, more skills/resources, tax advantages
forms of business organization
sole partnership, partnership, corp
The left side of an account is
the debit side.
Sarbares-oxly-act
to protect investors
When collection is made on Accounts Receivable, *
total assets will remain the same.
debt asset ratio
total liabitlies/total assets
