V at the top and ends with at the bottom. Had there been a loss for the In reviewing the income statement of a profitable company, one can see that it begins with year, the final result would have been a What exactly does the word balance mean in the title of the balance sheet? Why do we balance the two halves? (Select all the answers that apply.) O A. The balance sheet balances the firm's assets against its financing, which can be either debt or equity. O B. The total value of all of the firm's assets should equal the sum of its short- and long-term debt plus stockholder's equity. OC. In order for the balance sheet to balance, stockholder's equity must exclude preferred stock, common stock at par value, paid in capital in excess of par on common stock and retained earnings from previous profitable years in which some of the earnings were held back and not paid out as dividends. O D. When the balance sheet does not balance, the difference must be reported as an "off-balance sheet" account for the two halves to balance.

V at the top and ends with at the bottom. Had there been a loss for the In reviewing the income statement of a profitable company, one can see that it begins with year, the final result would have been a What exactly does the word balance mean in the title of the balance sheet? Why do we balance the two halves? (Select all the answers that apply.) O A. The balance sheet balances the firm's assets against its financing, which can be either debt or equity. O B. The total value of all of the firm's assets should equal the sum of its short- and long-term debt plus stockholder's equity. OC. In order for the balance sheet to balance, stockholder's equity must exclude preferred stock, common stock at par value, paid in capital in excess of par on common stock and retained earnings from previous profitable years in which some of the earnings were held back and not paid out as dividends. O D. When the balance sheet does not balance, the difference must be reported as an "off-balance sheet" account for the two halves to balance.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Which of the following statements is correct? a. Any forecast of financial requirements involves determining how much money the firm will need and is obtained by adding together increases in assets and spontaneous liabilities and subtracting operating income. b. The percentage of sales method of forecasting financial needs requires only a forecast of the firm's balance sheet. Although a forecasted income statement helps clarify the need, it is not essential to the percentage of sales method. c. Because dividends are paid after taxes from retained earnings, dividends are not included in the percentage of sales method of forecasting. d. Financing feedbacks describe the fact that interest must be paid on the debt used to help finance AFN and dividends must be paid on the shares issued to raise the equity part of the AFN. These payments would lower the net income and retained earnings shown in the projected financial statements. e. All of the statements above are false.
Which of the following statements is most correct?(a) Working capital measures the company's ability to repay current liabilities using only current assets.(b) The day's sales outstanding (DSO) represents the average length of time that the firm must wait after making a sale before receiving cash.(c) The lower the debt ratio, the more the protection afforded creditors in the event of a liquidation.( d) All of the above.
THIS IS ALL ONE QUESTION, Thanks! The income statement, also known as the profit and loss (P&L) statement, provides a snapshot of the financial performance of a company during a specified period of time. It reports a firm’s gross income, expenses, net income, and the income that is available for distribution to its preferred and common shareholders. The income statement is prepared using the generally accepted accounting principles (GAAP) that match the firm’s revenues and expenses to the period in which they were incurred, not necessarily when cash was received or paid. Investors and analysts use the information given in the income statement and other financial statements and reports to evaluate the company’s financial performance and condition. Consider the following scenario: Cold Goose Metal Works Inc.’s income statement reports data for its first year of operation. The firm’s CEO would like sales to increase by 25% next year. 1. Cold Goose is able to achieve this level…
The second part of question two was missed: It said to calculate the firm's operating return on assets and return on equity.
While you analyze the financial statements of a Company, you notice that it has investedA major part of the Profits outside the Business in the form of Long Term / Short Term FinancialInstruments.a) What does this indicate b) Discuss 2 benefits of this for the investing company c) Discuss 2 negative points of such a method for the investing company Explain Briefly and Fast Please
A. Identify the nature of each account using the letter A for assets, L for liabilities, SE for shareholders’ equity, R for revenue, E for expenses, and NA for not applicable. B. Calculate net income for the period. C. How much has been earned by the company’s operations but not distributed to shareholders? D. What is the total investment by shareholders? E. How much do customers owe the company?
The income statement records all the revenues and expenses for a given period and shows whether the firm is making a profit or is experiencing a loss. True False
Listed below are the current Accounting Assumptions and Principles Economic Entity Assumption Monetary Unit Assumption Historical Cost Principle Going Concern Assumption Revenue Recognition Principle Full Disclosure Principle Time Period Assumption Matching Principle Required: For the following situations, identify whether the situation represents a violation or a correct application of GAAP, and which assumption/principle is applicable. g. Buckner Corp is being sued for $1,000,000. There is a probable chance they will lose. The company disclosed this fact in their notes to their financials. Violation: (Yes/No) Applicable Assumption/Principle: h. Nixon Corp records and maintains their books at cost and/or current value, not at a liquidated value.…
The financial condition of two companies is expressed in the following accounting equation: Assets = Liabilities + Common Stock + Retained Earnings Allen $ 12,000 = $ 8,760 + $ 2,760 + $ 480 White $ 18,150 = $ 4,200 + $ 9,750 + $ 4,200 Requiredc. Assume Allen incurs a $6,100 operating loss. The remaining assets are sold for the value shown on the books, and the cash proceeds are distributed to the creditors and investors. How much money will be paid to creditors and how much will be paid to investors?d. Assume White incurs a $6,100 operating loss. The remaining assets are sold for the value shown on the books, and the cash proceeds are distributed to the creditors and investors. How much money will be paid to creditors and how much will be paid to investors?
Super Corp. has an acid test ratio 1.5 to 1.0 which of the following will causethis ratio to deteriorate?a. Payment of cash dividends previously declared.b. Borrowing short term loan from a bank.c. Sale on inventory on account.fd. Sale of equipment at a loss.
Please quickly answerWhich of the following is / are correct? I. An enterprise established entirely with equity has no financial risk. II. All current and fixed assets owned by the business represent the financial structure of the business. III. Meeting the need for current assets with short-term liabilities and the need for fixed assets with long-term resources is called the “minimum financial balance rule”.
Match (by letter) the following items with the description or example that best fits. Each letter is used only once.Terms_____ 1. Vertical analysis._____ 2. Horizontal analysis._____ 3. Liquidity._____ 4. Solvency._____ 5. Discontinued operations._____ 6. Quality of earnings._____ 7. Conservative accounting practices._____ 8. Aggressive accounting practices.Descriptionsa. A company’s ability to pay its current liabilities.b. Accounting choices that result in reporting lower income, lower assets, and higher liabilities.c. Accounting choices that result in reporting higher income, higher assets, and lower liabilities.d. The ability of reported earnings to reflect the company’s true earnings as well as the usefulness of reported earnings to help investors predict future earnings.e. A tool to analyze trends in financial statement data for a single company over time.f. The sale or disposal of a significant component of a company’s operations.g. A means to express each item in a financial…