The total of the individual customer account balances should equal the balance in accounts receivable, which is the
control account
master account
nominal account
contra account
Activities between affiliated entities such as subsidiaries must be disclosed in the financial statements of a corporation as
segment analysis
significant relationships
related-party transactions
contingent activities
Under international accounting standards, liabilities and owners' equity on the balance sheet usually appear in which order? (Points: 4)
capital, noncurrent liabilities, and current liabilities
current liabilities, noncurrent liabilities, and capital
capital, current liabilities, and noncurrent liabilities
noncurrent liabilities, current liabilities, and capital
The SEC established integrated disclosures to (Points: 4)
establish full disclosure
demonstrate its legal authority to establish GAAP
satisfy the form 10-K disclosure requirements
control Management's Discussion and Analysis
Which of the following is not an acceptable way of reporting a company's comprehensive income? (Points: 4)
on the face of the income statement
in a separate statement of comprehensive income
in the statement of changes in stockholders' equity
in the statement of retained earnings
The statement of cash flows is least likely to help external users to assess (Points: 4)
a company's ability to generate positive future cash flows
the amount of a company's future accrual-based sales revenue
a company's ability to meet its obligations and pay dividends
a company's need for external financing
# 32. The following information relates to the Smith Company:
2010 cash dividends declared $400
unadjusted (reported) retained earnings, January 1, 2010 ?
2010 net income $480
error in 2009--understatement of ending inventory: error found in 2010 $150
unadjusted (reported) retained earnings, December 31, 2010 $1,400
what is the unadjusted January 1, 2010, balance in retained earnings?
$1,170,
$1,320,
$1,470,
$1,630.
The Philip Company had the following information available for the fiscal year ended December 31, 2010:
Net sales $1,600,000
Cost of goods sold 1,200,000
Merchandise inventory:
January 1, 2010 200,000
December 31, 2010 400,000
Philip's inventory turnover for 2010 was
3 times
4 times
5.33 times
6 times
Monroe Company reported the following information for the year ended December 31, 2010:
Net income $600,000
Preferred dividends declared and paid 60,000
Common dividends declared and paid 80,000
Average common shares outstanding 90,000
Ending market price per share 40
Net sales 4,100,000
Monroe's earnings per share for 2010 was
$6.67
$6.00
$5.11
$0.15
Morgan Company reported the following information for the year ended December 31, 2010:
Net income $ 800,000
Preferred dividends declared and paid 100,000
Common dividends declared and paid 160,000
Average common shares outstanding 140,000
Ending market price per share 30
Net sales 7,400,000
Morgan's 2010 price/earnings ratio was
0.17 times
5.25 times
6.00 times
4.67 times