Accounting for Partnerships & Corporations
A partnership that has general and limited partners, where the limited partners have no personal liability beyond the amounts they invest in the partnership is a:
Bonds that mature at more than one date and thus are usually repaid over a number of periods are known as:
What are serial bonds?
The section in the statement of cash flows for reporting the purchase of equipment for cash is:
What is investing activities?
The building blocks of financial statement analysis include:
The process of setting goals and making plans to achieve them is known as:
What is planning?
In the absence of a partnership agreement, income (and loss) should be allocated:
What is equally?
A liability requiring a series of payments to the lender is referred to as a(n):
What is an installment note?
A company's transactions with its creditors to borrow money and/or to repay the principal amounts of long-term debt are reported as cash flows from:
What is financing activities?
The ability to meet long-term obligations and generate future revenues is referred to as:
What is Solvency?
Costs that are capitalized as inventory during completion of products are called:
What are product costs?
The number of shares that a corporation's charter allows it to sell is referred to as:
What is authorized stock?
Occurs when a company issues bonds with a contract rate less than the market rate.
What is a discount on bonds payable?
Where noncash investing and financing activities may be disclosed in
What is a note in the financial statements or a schedule attached to the statement of cash flows?
The comparison of a company's financial condition and performance across time is known as:
What is horizontal analysis?
The salary paid to the assembly line supervisor would normally be classified as:
What is indirect labor?
When preferred stock is cumulative and the directors either do not declare a dividend to preferred stockholders or declare one that does not cover the total amount of the cumulative dividend, the unpaid dividend amount is called:
What is dividends in arrears.
A company's balance sheet reveals it has total assets of $780,000, total liabilities of $280,000, and total equity of $500,000. The current debt-to-equity ratio for this company is:
What is .56?
($280,000/$500,000 = 0.56 )
The method of reporting operating activities that lists operating cash receipts and subtracts operating cash payments is referred to as the:
What is the direct method of reporting net cash provided or used by operating activities?
To compute trend percentages the analyst should:
What is select a base period, divide analysis period amount by the base period amount and multiply that amount by 100?
Manufacturing costs, other than direct materials and direct labor, that cannot be cost-effectively traced to finished goods are called:
What is factory overhead?
A company had a beginning balance in retained earnings of $400,000. It had net income of $50,000 and declared and paid cash dividends of $55,000 in the current period. The ending balance in retained earnings equals:
What is $395,000?
Beginning balance: $400,000
Plus net income: $50,000
Less dividends: $(55,000)
Ending balance $395,000
On January 1, a company issued and sold a $400,000, 7%, 10-year bond payable, and received proceeds of $396,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The journal entry to record the first interest payment is:
Debit Bond Interest Expense $14,200;
Credit Cash $14,000;
Credit Discount on Bonds Payable $200.
(Cash = $400,000 × 0.07 × ½ = $14,000
Discount amortized = ($400,000 − $396,000)/20 = $200
Interest expense = $14,000 + $200 = $14,200 )
If a company is using the indirect method to prepare the statement of cash flows, identify where and how an increase in the accounts receivable account should be reported
What is a decrease in cash flows from operating activities?
A corporation reported cash of $15,300 and total assets of $180,000 on its balance sheet. Its common-size percent for cash equals:
What is 8.50%?
(($15,300/$180,000) × 100 = 8.50%)
Compute cost of goods sold for a retailer using the following information:
Merchandise inventory, beginning: $24,850
Merchandise inventory, ending: $37,304
Cost of merchandise purchased: $170,934
What is $158,480?
[Cost of Goods Sold = Beginning Merchandise Inventory + Cost of Merchandise Purchased − Ending Merchandise Inventory
Cost of Goods Sold = $24,850 + $170,934 − $37,304 = $158,480]