Show:
Thrilling Theory
Trend Analysis
Common-Size Statements
Comparing Statements
6-Column Worksheet
100
Office equipment is classified as...
A current asset.
100
When completing a trend analysis on sales the base amount (denominator) is the...
First year sales.
100
On a common-size income statement the base amount (denominator) should be the...
Sales
100
On the Balance Sheet "Mortgage Payable" would be classified as a...
Long Term Liability
100
What is a worksheet?
An informal business paper.
200
On the worksheet the GST payable account is extended to the...
Balance Sheet Credit column.
200
While completing a Trend Analysis for your company you notice that Year 1 is 108.9%. Is this ok?
No, Year 1 should ALWAYS be 100%.
200
On a common-size balance sheet the base amount (denominator) should be the...
Total Assets
200
What is Working Capital?
The difference between current assets and current liabilities of a company.
200
What is the balancing figure?
Net Income
300
On the work sheet the telephone expense is extended to...
The Income Statement Debit column.
300
A Trend Analysis shows financial data over a number of _____________ periods.
consecutive
300
We use common-size statements to...
Compare different companies that might have very different numbers.
300
What are Accounts Recievable/Accounts Payable control accounts?
Represents the sum of all the balances in the A/R and A/P accounts.
400
The figure that the accountant uses as a base amount (denominator) for a common-size income staement is...
Revenue
400
On the balance sheet Accounts Revievable and Supplies would be classified as...
Current Assets
400
On the Balance Sheet Bank Loan and Accounts Payable are both examples of...
Current Liabilities
400
When comparing statements for two consecutive years accountants make what two calculations...
1. the dollar amount of the increase/decrease from the first year to the second. 2. the percentage amount of the increase/decrease from the first year to the second
400
What 3 things are shown on the 6-column worksheet?
Trial Balance, Income Statement, Balance Sheet
500
If a business manipulates their usual method of recording expenses they have violated...
The consistency principle.
500
Which year was best for the company below?
20-1 20-2 20-3 20-4 $22 500 $24 700 $21 500 $26 900%100.0% 109.8% 95.6% 119.6%
500
Company A Company B $ % $ % Sales $125 000 100.0% $475 000 100.00% Expenses Rent Expense $ 13 000 10.4% $ 28 000 5.9% Wages Expense45 000 36.0% 275 000 57.9% Other Expenses33 000 26.4% 125 000 26.3% Total Expenses $ 91 000 72.8% $428 000 90.1% Net Income $ 34 000 27.2% $ 47 000 9.9% Which company is better?
Company A makes a higher profit.
500
What is a Classified Balance Sheet?
Groups data according to categories.
500
Is a loss placed on the two inner or two outer columns of the 6-column worksheet?
The two inner columns.