ACC 300 final exam Essay

776 Words Jan 31st, 2014 4 Pages
1) Which of the following statements is true? D. A Management Discussion and Analysis section is required in annual reports to shareholders even when financial results are positive.
2) Notes to the financial statements include which of the following: A. An independent auditors report.
3) Which of the following financial statements is divided into major categories of operating, investing, and financing activities? D. The statement of cash flows.
4) If the retained earnings account increases from the beginning of the year to the end of the year, then D. net income is greater than dividends.
5) If services are rendered on account, then. C. stockholders’ equity will increase.
6) An investment by the stockholders in a business increases
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$430,000. 14) Use the following data to calculate the current ratio. Koonce Office Supplies Balance Sheet December 31, 2012 Cash $130,000 Accounts Payable $140,000 Prepaid Insurance 60,000 Salaries Payable 20,000 Accounts Receivable 100,000 Mortgage Payable 160,000 Inventory 140,000 Total Liabilities $320,000 Land held for Investment 150,000 Land 180,000 Buildings $200,000 Common Stock $240,000 Less Accumulated Retained Earnings 500,000 Depreciation (40,000) 160,000 Total Stockholders’ Equity $740,000 Trademarks 140,000 Total Liabilities and Total Assets $1,060,000 Stockholders’ Equity $1,060,000
D. 2.69 : 1.
15) In horizontal analysis, each item is expressed as a percentage of the. D. base-year amount.
16) When a change in depreciation method occurs: B. the change should be reported in current and future years.
17) Which of the following statements is true with respect to financial statement reporting for all cases when a company changes from one acceptable accounting method to anotherD. Management must indicate that the accounting method change is preferable to the old method.

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