Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN: 9781285595047
Author: Weil
Publisher: Cengage
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
error_outline
This textbook solution is under construction.
Students have asked these similar questions
Here is some financial statement data for Nestlé (in millions of Swiss francs):
After reviewing the information, calculate the following ratios for Nestlé for 2021:1) Inventory turnover2) Profit margin3) Return on assets4) Free cash flowRound all answers to two decimal places. Do not include dollar signs because Nestlé's accounting information is in Swiss francs. Show the calculations for each answer.
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.
d. Moss Corporation closes the books each month and prepares monthly financial statements.
Violation: (Yes/No)
Applicable Assumption/Principle:
e. Carroll Corporation, a US company, purchased a machine from Germany for 10,000 Euros and recorded the machine on their books at $12,000 US
Violation: (Yes/No)
Applicable…
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.
d. Moss Corporation closes the books each month and prepares monthly financial statements.
Violation: (Yes/No)
Applicable Assumption/Principle:
e. Carroll Corporation, a US company, purchased a machine from Germany for 10,000 Euros and recorded the machine on their books at $12,000 US
Violation: (Yes/No)…
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Similar questions
- Can you help with this question plese? The accounting firm of Deloitte & Touche is the largest international accounting firm in the world as ranked by total revenues. For two recent years, Deloitte & Touche reported the following for its U.S. operations: CurrentYear PreviousYear Revenue (in billions) $19.9 $18.6 Number of professional staff (including partners) 79,347 71,212 a. For the current and previous years, determine the revenue per professional staff. Round your answers to the nearest dollar. Revenue per professional staff Current year $fill in the blank 1 Previous year $fill in the blank 2 b. Interpret the trend between the two years. Did the revenues increase or decrease? Did the revenue per professional staff increase or decrease?arrow_forwardAnalyze and compare Kroger and Tiffany The Kroger Company (KR), a national supermarket chain, reported the following data (in millions) in its financial statements for a recent year: a.Compute the asset turnover ratio. Round to two decimal places. b.Tiffany Co. (TIF) is a large North American retailer of jewelry. Tiffanys asset turnover ratio is 0.78. Why would Tiffanys asset turnover ratio be lower than that of Kroger?arrow_forwardTo facilitate accounting comparisons the companies are headquartered in the United States the financial statements are the latest annual financials for their respective fisical years and then in 1999 or 2000 The companies involved are developer of prepackaging software online retailer Warehouse Club for food in general merchandise major passenger airline International Hotel chain temporary staffing agency supermarket grocery retailer pharmaceutical company matterfacturer of electronic communications equipment matter of factor and marketer of consumerarrow_forward
- Need help The accounting firm of Deloitte & Touche is the largest international accounting firm in the world as ranked by total revenues. For two recent years, Deloitte & Touche reported the following for its U.S. operations: CurrentYear PreviousYear Revenue (in billions) $19.9 $18.6 Number of professional staff (including partners) 79,347 71,212 a. For the current and previous years, determine the revenue per professional staff. Round your answers to the nearest dollar. Revenue per professional staff Current year $fill in the blank 1 Previous year $fill in the blank 2arrow_forwardMNO, Inc., a publicly traded manufacturing firm in the United States, has provided the following financial information in its application for a loan. Assets Liabilities and Equity Cash $ 20 Accounts Payable $ 30 Accounts Receivables $ 90 Notes Payable $ 90 Inventory $ 90 Accruals $ 30 Long Term Debt $150 Plant and equipment $500 Equity $400 Total Assets $700 Total Liabilities & Equity $700 Also assume sales = $500, cost of goods sold = $360, taxes = $56, interest payments = $40, net income = $44, the dividend payout ratio is 50 percent, and the market value of equity is equal to the book value. Requirement: What is the Altman z-score value value for MNO, Inc.? Should a bank extend loan to MNO Inc?arrow_forward[The following information applies to the questions displayed below.] Summary information from the financial statements of two companies competing in the same industry follows. BarcoCompany KyanCompany BarcoCompany KyanCompany Data from the current year-end balance sheets Data from the current year’s income statement Assets Sales $ 770,000 $ 914,200 Cash $ 21,000 $ 34,000 Cost of goods sold 587,100 642,500 Accounts receivable, net 34,400 59,400 Interest expense 9,100 17,000 Merchandise inventory 84,940 132,500 Income tax expense 14,800 25,238 Prepaid expenses 5,400 7,350 Net income 159,000 229,462 Plant assets, net 310,000 307,400 Basic earnings per share 3.79 5.08 Total assets $ 455,740 $ 540,650 Cash dividends per share 3.82 4.01 Liabilities and Equity Beginning-of-year balance sheet data Current…arrow_forward
- The following information applies to the questions displayed below.] Summary information from the financial statements of two companies competing in the same industry follows. BarcoCompany KyanCompany BarcoCompany KyanCompany Data from the current year-end balance sheets Data from the current year’s income statement Assets Sales $ 770,000 $ 914,200 Cash $ 21,000 $ 34,000 Cost of goods sold 587,100 642,500 Accounts receivable, net 34,400 59,400 Interest expense 9,100 17,000 Merchandise inventory 84,940 132,500 Income tax expense 14,800 25,238 Prepaid expenses 5,400 7,350 Net income 159,000 229,462 Plant assets, net 310,000 307,400 Basic earnings per share 3.79 5.08 Total assets $ 455,740 $ 540,650 Cash dividends per share 3.82 4.01 Liabilities and Equity Beginning-of-year balance sheet data Current…arrow_forwardWhen new accounting standards are introduced or changes to existingaccounting standards are made, this can have a substantial impact on anorganisation’s financial reporting, as well as on investors and otherstakeholders.Soosa Ltd is an independent shoemaker that uses two identical pieces ofmachinery in its factory.Both were acquired for use on the same day, as follows: Machine 1 was rented from Brema at a cost of €250 per month,payable in advance and terminable at any time by either party. Machine 2 was rented from Bianco at a cost of eight half-yearlypayments in advance of €1,500.Required: Are the two machines rented by operating or finance lease? You arerequired to critically analyse the differences (if any) identified in theaccounting and reporting treatment (effect on financial statements)under both of these options. Identify the recent changes under IFRS 16 ‘leases’, then criticallyanalyse and discuss the consequences that the new standard has for thecompany under the terms of…arrow_forwardPiston Motor Company of Japan is a leading international manufacturer of automobiles, motorcycles, all-terrain vehicles, and personal watercraft. As a Japanese company, it follows Japanese GAAP and reports its financial statements in billions of yen (the sign for yen is ¥). A simplified version of its recent balance sheet contained the following items (in billions). Cash and cash equivalents ¥ 760 Common stock 369 Accounts payable and other current liabilities 4,267 Inventories 1,424 Investments 819 Long-term debt 2,013 Net property, plant, and equipment 2,268 Other assets 6,294 Other liabilities 1,689 Retained earnings 4,151 Total assets 12,489 Total liabilities and stockholders’ equity ? Trade accounts, notes, and other receivables 924 Prepare a balance sheet as of March 31, current year, solving for the missing amount. (Enter your answers in billions.)arrow_forward
- the following information was drawn from the balance sheets of the kansas and montana companies: current assets: kansas-54,000 montana- 76,000 current liabilites: kansas-27000 montana-30400 a. compute the current ration for each company. b. which company has the greater likelihood of being able to pay its bills? c. assume that both companies have the same amount of total assets. Speculate as to which company would produce the higher return on assets ratio?arrow_forwardHasbro, Inc. and Mattel, Inc. are the two largest toy companies in North America. Condensed liabilities and stockholders’ equity from a recent balance sheet are shown for each company as follows (in thousands): Please see the attachment for details: a. Determine the ratio of liabilities to stockholders’ equity for both companies. Round toone decimal place.b. Determine the times interest earned ratio for both companies. Round to one decimalplace.c. Interpret the ratio differences between the two companies.arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub