financial accounting the impact on decision makers 10th edition free

financial accounting the impact on decision makers 10th edition free

Income Measurement and Accrual Accounting. Inventories and Cost of Goods Sold. Cash and Internal Control. Receivables and Investments. Long-Term Liabilities. The Statement of Cash Flows. Financial Statement Analysis. In the independent auditors' report included with the annual report, management discusses the financial statements and provides the shareholders with explanations for certain amounts reported in the statements. The quality of accounting information that allows a user to analyze two or more companies and look for similarities and differences is known as understandability.

The quality of accounting information that makes it comprehensible to those willing to spend the necessary time is consistency. The quality of accounting information that allows a user to compare two or more accounting periods for a single company is known as consistency.

There is a standard threshold for materiality set by the Financial Accounting Standards Board for all companies. The lack of a common depreciation method makes it impossible to compare the performance companies using different methods.

The amount of a transaction may be immaterial by company standards but still be considered significant by financial statement users. Multiple Choice What is the primary objective of financial reporting? To help investors make credit decisions.

To help management assess cash flows. To protect users from fraudulent financial information. Assets and liabilities b. Which of the following is not an objective of financial reporting? To reflect prospective cash receipts to investors and creditors. To reflect prospective cash flows to an enterprise. To reflect resources and claim to resources. To reflect current stock prices and information concerning stock markets. Which of the following statements is true concerning external users of financial information?

External users need detailed records of the business to make informed decisions. External users are primarily responsible for the preparation of financial statements. External users rely on the financial statements to help make informed decisions. Relevant information can be quantitative or qualitative. In deciding whether to go to college part-time or full-time, which of the following is a qualitative factor for a student? The cost of tuition b. The opportunity to make friends c.

The price of football tickets d. The preparation of financial statements requires that the information be understandable a. Only to CPAs. To those willing to spend the time to understand it.

Only to those who take an accounting course. Only to financial analysts and brokers. Jones, Inc. The company is very profitable and appears to have a sound financial position. Based on a report presented on prime-time television last night, you are aware that Jones is a defendant in several lawsuits related to its defective tires that cause vehicles to overturn. The information presented on television is an example of financial information that is a.

Relevant b. Consistent c. Predictable d. If an investor can use accounting information for two different companies to evaluate the types and amounts of expenses, the information is said to have the quality of a. Comparability b. Consistency c. Neutrality d. Jackson chooses to account for these expenditures as expenses when acquired rather than reporting them as property, plant, and equipment on its balance sheet. The company's accountant and independent CPA agree that no accounting principle has been violated.

What accounting justification allows Jackson to expense the furniture? Conservatism b. Matching c. Materiality d. Tavella Company applies the consistency convention. What does this mean?

Tavella Co. Information that is material means that an error or alternative method of handling a transaction a. Would possibly affect the judgment of someone relying on the financial statements b. Would not affect the decisions of users c. Might cause a company to understate its earnings for the accounting period d.

An accountant is uncertain about the best estimate of an amount for a business transaction. If two amounts are about equally likely, the amount least likely to overstate assets and income is selected. Which of the following qualities is characterized by this action?

Conservatism c. The qualitative characteristics of accounting data include a. Assets reported on the balance sheet b. All accounting information c. Cash flows d. Which of the following is a current asset? Building b. Office supplies c. Land d. Which of the following is a noncurrent asset?

Land b. Accounts receivable c. Cash d. None of these choices. Which of the following include only current assets? Accounts receivable, cash, inventory, office supplies b.

Cash, accounts payable, inventory, office supplies c. Cash, land, accounts receivable, inventory d. To determine the source of a company's noncurrent assets, on which financial statement will you look? Income statement only b.

Balance sheet only c. Both the balance sheet and the income statement d. Capital stock 20, Read the information for Bevco Corporation. Read the information for Bevco Company. Which one of the following items is reported as a current asset on a classified balance sheet? Trucks b. Which of the following accounts are normally reported as noncurrent liabilities on a classified balance sheet?

Notes payable due in 5 years and bonds payable b. Interest payable and mortgage payable c. Income taxes payable and salaries payable d. Which one of the following is not a major category for long-term assets? Receivables b. Property, plant, and equipment c. Intangibles d. Which of the following would not be considered to be an intangible asset? Franchises b. Copyrights c. Investments d. Which of the following statements is true concerning intangible assets?

Intangible assets have no economic substance. Intangible assets lack physical existence. Intangible assets appear in the current assets section of the balance sheet. How are assets which are expected to be realized in cash, sold, or consumed within the normal operating cycle of a business or within one year if the operating cycle is shorter than one year reported on a classified balance sheet?

Property, plant, and equipment b. Current assets c. Intangible assets d. Which of the following terms characterizes the time period between the investment of cash in merchandise and the collection of cash from the sale of that merchandise? Operating cycle b. Natural business year c. Accounting period d. Which set of items below are current assets? Accounts receivable, net income, inventory, and dividends b.

Cash, accounts receivable, capital stock, and sales c. Net income, cash, office supplies, and inventory d. One significant difference between a classified and a non-classified balance sheet is the distinction between which of the following items?

Current and noncurrent items c. For several years, Bosco Corporation has had a current ratio that was consistent with other companies in its industry.

What is the best possible explanation for this situation? The other companies in the industry were not as profitable. Bosco has less property, plant and equipment than other companies. Bosco has too much debt. What does this comparison tell you about its liquidity?

It is more liquid than its competitors. It has more long-term assets than its competitors. What is the amount of working capital for Rosu Company? What is the correct method for calculating working capital? Total Assets minus Total Liabilities b. Current Assets minus Total Liabilities c. Current Assets minus Current Liabilities d. Oreo wants to buy new equipment. How much of its existing cash can Oreo use to acquire equipment without allowing its current ratio to decline below 2.

Excursion Corp. To further evaluate the company's short-run liquidity, which one of the following measures should be used? The current ratio b. Which financial statement reports information helpful in assessing working capital? Income statement b. Balance sheet c. Statement of retained earnings d. If the current ratio is 2. For which of the following is the current ratio most useful?

The sale of inventory for cash b. The sale of inventory for credit accounts receivable c. Issuing stock for cash d. The collection of an account receivable b. Selling land for cash.

The discharge of an account payable by signing a short-term note payable d. Liquidity relates to a company's ability to do which of the following? The ability to pay its financial obligations as they become due b.

The ability to stay in business over the long run c. The ability to pay dividends to its stockholders d. Jobston, Inc. The balance sheet of Jobston Inc. Read the information about Jobston, Inc. Which of the following would appear on a multiple-step income statement but not on a single-step income statement? Net income b. Total expenses c. Total revenues d. Which of the following would not appear on an income statement? Sales revenue b.

Cost of goods sold c. Accounts receivable d. Which statement is true concerning an income statement? The income statement shows how much profit the company has earned since it began operations. Net income on the income statement should be equal to the amount of cash on the balance sheet.

The income statement summarizes the results of operations for a point in time. Which statement is true concerning gains and losses? Gains and losses are reported on the balance sheet in the Assets and Liabilities sections, respectively.

Gains and losses are special types of revenues and liabilities that are reported on the income statement. The amounts of gains and losses are included in the calculation of the current ratio, in the numerator and denominator, respectively. Tavella Co. Information that is material means that an error or alternative method of handling a transaction a. Would possibly affect the judgment of someone relying on the financial statements b.

Would not affect the decisions of users c. Might cause a company to understate its earnings for the accounting period d. An accountant is uncertain about the best estimate of an amount for a business transaction. If two amounts are about equally likely, the amount least likely to overstate assets and income is selected. Which of the following qualities is characterized by this action? Conservatism c. The qualitative characteristics of accounting data include a.

Assets reported on the balance sheet b. All accounting information c. Cash flows d. Which of the following is a current asset?

Building b. Office supplies c. Land d. Which of the following is a noncurrent asset? Land b. Accounts receivable c. Cash d. None of these choices. Which of the following include only current assets? Accounts receivable, cash, inventory, office supplies b. Cash, accounts payable, inventory, office supplies c.

Cash, land, accounts receivable, inventory d. To determine the source of a company's noncurrent assets, on which financial statement will you look? Income statement only b. Balance sheet only c. Both the balance sheet and the income statement d. Read the information for Bevco Corporation. Read the information for Bevco Company. Which one of the following items is reported as a current asset on a classified balance sheet? Trucks b. Which of the following accounts are normally reported as noncurrent liabilities on a classified balance sheet?

Notes payable due in 5 years and bonds payable b. Interest payable and mortgage payable c. Income taxes payable and salaries payable d. Which one of the following is not a major category for long-term assets? Receivables b. Property, plant, and equipment c. Intangibles d. Which of the following would not be considered to be an intangible asset? Franchises b. Copyrights c. Investments d. Which of the following statements is true concerning intangible assets? Intangible assets have no economic substance.

Intangible assets lack physical existence. Intangible assets appear in the current assets section of the balance sheet.

How are assets which are expected to be realized in cash, sold, or consumed within the normal operating cycle of a business or within one year if the operating cycle is shorter than one year reported on a classified balance sheet?

Property, plant, and equipment b. Current assets c. Intangible assets d. Which of the following terms characterizes the time period between the investment of cash in merchandise and the collection of cash from the sale of that merchandise? Operating cycle b. Natural business year c. Accounting period d. Which set of items below are current assets?

Accounts receivable, net income, inventory, and dividends b. Cash, accounts receivable, capital stock, and sales c. Net income, cash, office supplies, and inventory d. One significant difference between a classified and a non-classified balance sheet is the distinction between which of the following items? Current and noncurrent items c. For several years, Bosco Corporation has had a current ratio that was consistent with other companies in its industry.

What is the best possible explanation for this situation? The other companies in the industry were not as profitable. Bosco has less property, plant and equipment than other companies. Bosco has too much debt. What does this comparison tell you about its liquidity? It is more liquid than its competitors. It has more long-term assets than its competitors. What is the amount of working capital for Rosu Company? What is the correct method for calculating working capital?

Total Assets minus Total Liabilities b. Current Assets minus Total Liabilities c. Current Assets minus Current Liabilities d. Oreo wants to buy new equipment. How much of its existing cash can Oreo use to acquire equipment without allowing its current ratio to decline below 2. Excursion Corp. To further evaluate the company's short-run liquidity, which one of the following measures should be used?

The current ratio b. Which financial statement reports information helpful in assessing working capital? Income statement b. Balance sheet c. Statement of retained earnings d.

What is Rizwi Corp. If the current ratio is 2. For which of the following is the current ratio most useful? The sale of inventory for cash b. The sale of inventory for credit accounts receivable c. Issuing stock for cash d. The collection of an account receivable b. Selling land for cash. The discharge of an account payable by signing a short-term note payable d. Liquidity relates to a company's ability to do which of the following?

The ability to pay its financial obligations as they become due b. The ability to stay in business over the long run c. The ability to pay dividends to its stockholders d. The balance sheet of Jobston Inc. Read the information about Jobston, Inc. Which of the following would appear on a multiple-step income statement but not on a single-step income statement? Net income b. Total expenses c. Total revenues d. Which of the following would not appear on an income statement? Sales revenue b.

Cost of goods sold c. Accounts receivable d. Which statement is true concerning an income statement? The income statement shows how much profit the company has earned since it began operations. Net income on the income statement should be equal to the amount of cash on the balance sheet. The income statement summarizes the results of operations for a point in time. Which statement is true concerning gains and losses?

Gains and losses are reported on the balance sheet in the Assets and Liabilities sections, respectively. Gains and losses are special types of revenues and liabilities that are reported on the income statement.

The amounts of gains and losses are included in the calculation of the current ratio, in the numerator and denominator, respectively. Which one of the following subtotals or totals would appear in a multiple-step, but not a single-step income statement? Income tax expense b. Income from operations c. Cost of goods sold d. What are the two subtotals that distinguish the multi-step income statement from the single-step income statement? Income before taxes and income taxes b.

Total operating revenues and total operating expenses c. Income from operations and income before taxes d. A question asked by stockholders is, "How much profit did the company make? The balance sheet, because retained earnings represents current profits b. The statement of cash flows, as cash inflows and outflows represents current profits c.

The income statement, since it shows the revenues and expenses for the period d. Under current accounting principles, how is net income on the income statement measured? Excess of revenues over expenses during the period c. Net change in the cash balance during the period d. Which of the following statements is true regarding the multiple-step income statement? The multiple-step income statement is used only by companies that sell products, not those that provide services.

The multiple-step income statement is helpful in determining a company's working capital. The multiple-step income statement reports the same net income as the single-step income statement. The multiple-step income statement is required under generally accepted accounting principles.

How is income from operations determined? By subtracting the total operating expenses from gross profit. By subtracting the total operating expenses from sales c. By subtracting the cost of goods sold from sales. The following list contains several items that appear on an income statement. Select the choice that lists the items in the order they would appear on a multi-step income statement. Read the information about Cobb Company. By what amount will net income on a single-step income statement differ from net income on a multi-step income statement if Cobb Company prepares both formats?

The company has 20, shares of stock outstanding at December 31, Read the information about Seikoson. Forman, Inc. On which financial statement s will you find the dollar amount of the profit earned by the company? Balance sheet and income statement b. Income statement only c. Statement of retained earnings only d.

Lottony, Inc. Comparison with the industry average for the current year b. Comparison with its current ratio for the current year c. Comparison with the profit margins for its major competitors for the current year d. Assume that you want to determine the profit margin for a company. Which one of the following financial statements is the best source of this information?

Statement of retained earnings b. Statement of cash flows c. Use the information from Hopper Inc. Read the information about Hopper. Hopper has become more profitable.

Read the information about Hopper, Inc. The profit margin was Which ratio are you able to calculate given only the information provided by Hopper? Profit margin b. Current ratio c. Working capital d. Which one of the following equations represents retained earnings activity? Read the information about Moore Industries. Reduce the amount of capital stock reported by the company.

Are part of Moore Industries' operating costs. Are reported on the statement of retained earnings. Are an expense of Moore Industries. A company is not required to prepare both a n a. Income statement and statement of retained earnings. Statement of cash flows and statement of retained earnings. In preparing the financial statements for December 31, , an accountant improperly classified the payment of prepaid rent as rent expense.

Which of the following amounts would not be affected by this improper classification? Retained earnings, January 1, b. Retained earnings, December 31, c. Net income d. Carnival then hired a contractor to build a new Jonesie distribution outlet. Operating Activities b.

Investing Activities c. Financing Activities d. Which of the following categories on a statement of cash flows is used to report the cash flow effects of transactions involving a company's stock? Which one of the following categories on a statement of cash flows is used to report the cash flow effects of buying and selling property, plant, and equipment? Which one of the following is considered a financing activity?

The payment of interest on a note payable to the bank b. Selling products to customers c. Paying wages to employees d. Which one of the following statements is true?

The two primary sources of financing available to corporations are borrowed funds and funds invested by owners. Financing activities involve the acquisition of property, plant and equipment. Borrowed funds are a more permanent source of financing than funds invested by owners. Investing activities involve the selling of products or services and the incurring of expenses related to selling these products and services.

Chapter 2: Financial Statements and the Annual Report Marvel Shoes Marvel Shoes reported the following items on its statement of cash flows for the current year: Net cash inflows from operating activities Net cash outflows from investing activities Net cash outflows from financing activities Cash balance at the beginning of the year.

Read the information about Marvel Shoes.

Financial statements are intended to tell the reader the value of a company. True b. Accountants are the main reason financial statements are prepared. The SEC created the objectives of financial reporting. The purpose of financial reporting is to provide economic information to external decision makers only. An objective of financial reporting is to reflect economic information concerning a company's cash flows. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 2: Financial Statements and the Annual Report 6. The concept of conservatism is the capacity of information to make a difference in a decision. Colors live tv online free hd watch deals with the insignificance of an error in accounting information. Most businesses have an operating cycle of greater than one year. Current assets, other than cash, are expected to be father we declare that we love you free mp3 download or consumed beyond a company's normal operating cycle. Obligations related to operating activities that will be paid within the company's operating cycle financial accounting the impact on decision makers 10th edition free be reported as current liabilities on a classified balance sheet. Chapter 2: Financial Statements and the Annual Report The operating cycle for all businesses is one year. A construction company that builds skyscrapers is likely to have an operating cycle longer than one year. Three common categories of long-term assets are: 1 property, plant, and equipment, 2 investments, and 3 intangibles. In the stockholders' equity section of a classified balance sheet, a distinction is made between amounts invested by owners and amounts accumulated from business financial accounting the impact on decision makers 10th edition free. One primary purpose of a classified balance sheet is to financial accounting the impact on decision makers 10th edition free users evaluate the liquidity of a company. Companies prepare classified financial statements because they are required by international accounting principles. The current ratio is irrelevant in liquidity analysis for service companies because they do not have inventories among their current assets a. An advantage of the current ratio is that it considers the makeup financial accounting the impact on decision makers 10th edition free the current assets. The excess of current assets over current liabilities is referred to as working capital. The current ratio is 2. financial accounting the impact on decision makers 10th edition free Financial Accounting: The Impact on Decision Makers | 10th Edition. Gary A. Textbook/eBook from $ Whether you're eBook $ Tell me about. Financial Accounting: The Impact on Decision Makers 10th Edition. by Gary A. Porter FREE return shipping at the end of the semester. Access codes and. -accounting-impact-decision-makersthedition-porter-test-bank/ on decision makers 10th edition pdf financial accounting the impact on. that the statements are free of material misstatement. ▫ Ethical responsibility of management and auditors to stockholders. ○ Stockholders need assurances that​. Financial Accounting The Impact on Decision Makers 10th Edition pdf download Financial Accounting The Impact on Decision Makers 10th Edition Financial. Included with your book. Feel free to highlight your book; Free eTextbook with 7-​day access; Free shipping on rental returns; day refund guarantee Learn. Find Financial Accounting: The Impact on Decision Makers 10th Edition by Gary Porter et al at over 30 bookstores. Buy, rent or sell. Download at: elmarkinninger.biz financial accounting the impact on decision makers 10th edition pdf financial accounting the impact on. Glover, Douglas F. Prawitt Digital PDF Book Paperback: pages Publisher: Pearson; 6 edition (November 2, ) Language: English ISBN My concepts were clear after reading this book. Income Measurement and Accrual Accounting. It is very helpful. Financial Statements and the Annual Report. Thank you so much crazy for study for your amazing services. The focus on financial statements and decision-making carries through to the end-of-chapter with a suite of case materials that have students reading and interpreting financial statements. The focus on financial statements and decision-making carries through to the end-of-chapter with a suite of case materials so you can practice reading and interpreting financial statements. You will be guided to the product download page immediately once you complete the payment. Get Solutions. Marisa Tanga. Processing Accounting Information. Add to Cart. Sep 12, All fundamentals are deeply explained with examples. Your email address will not be published. financial accounting the impact on decision makers 10th edition free