GibsonTB_ch02
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GibsonTB_ch02

Course Number: FINANCE 101, Spring 2012

College/University: University of Sharjah

Word Count: 3596

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CHAPTER 2INTRODUCTION TO FINANCIAL STATEMENTS AND OTHER FINANCIAL REPORTING TOPICS MULTIPLE CHOICE 1. At the end of the fiscal year, an adjusting entry is made that increases both interest expense and interest payable. This entry is an application for which accounting principle? a. full disclosure b. materiality c. matching d. going concern e. realization ANS: C PTS: 1 2. Who is responsible for the preparation...

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CHAPTER 2INTRODUCTION TO FINANCIAL STATEMENTS AND OTHER FINANCIAL REPORTING TOPICS MULTIPLE CHOICE 1. At the end of the fiscal year, an adjusting entry is made that increases both interest expense and interest payable. This entry is an application for which accounting principle? a. full disclosure b. materiality c. matching d. going concern e. realization ANS: C PTS: 1 2. Who is responsible for the preparation and integrity of financial statements? a. a cost accountant b. management c. an auditor d. a bookkeeper e. the FASB ANS: B PTS: 1 3. Which of the following is not an objective of the SEC's integrated disclosure system? a. to coordinate the Form 10-K requirements with those of the annual report b. to lessen the impact of the FASB c. to expand the management discussion of liquidity, capital resources, and results of operations d. to improve the quality of disclosure e. to standardize information requirements ANS: B PTS: 1 4. Which of the following is not a type of audit opinion? a. unqualified opinion b. qualified opinion c. adverse opinion d. clean opinion e. disclaimer of opinion ANS: D PTS: 1 2-1 5. Which of the following statements is not true? a. A qualified opinion or an adverse opinion may bring into question the reliability of the financial statements. b. A disclaimer of opinion indicates that one should not look to the auditor's report as an indication of the reliability of the statements. c. In some cases, outside accountants are associated with financial statements when they have performed less than an audit. d. A review is substantially less in scope than an examination in accordance with generally accepted auditing statements. e. The accountant's report expresses an opinion on reviewed financial statements. ANS: E PTS: 1 6. In addition to the balance sheet, the income statement, and the statement of cash flows, a complete set of financial statements must include: a. an auditor's opinion b. a ten-year summary of operations c. a note disclosure of such items as accounting policies

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University of Sharjah - FINANCE - 101
CHAPTER 3BALANCE SHEETMULTIPLE CHOICE1. The balance sheet reports:a. the assets, liabilities, gains, and losses for a period of timeb. the changes in assets, liabilities, and equity for a period of timec. the assets, expenses, and liabilities as of a
University of Sharjah - FINANCE - 101
CHAPTER 4INCOME STATEMENTMULTIPLE CHOICE1. Gross profit is the difference between:a. net income and operating incomeb. revenues and expensesc. sales and cost of goods soldd. income from continuing operations and discontinued operationse. gross sale
University of Sharjah - FINANCE - 101
CHAPTER 5BASICS OF ANALYSISMULTIPLE CHOICE1. Statements in which all items are expressed only in relative terms (percentages of a base) are termed:a. Vertical Statementsb. Horizontal Statementsc. Funds Statementsd. Common-Size Statementse. none of
University of Sharjah - FINANCE - 101
CHAPTER 6LIQUIDITY OF SHORT-TERM ASSETS; RELATED DEBTPAYING ABILITYMULTIPLE CHOICE1. Company A uses lifo and Company B uses fifo for inventory valuation. Otherwise, the firms are ofsimilar size and have the same revenue and expense. Assume inflation. I
University of Sharjah - FINANCE - 101
CHAPTER 7LONG-TERM DEBT-PAYING ABILITYMULTIPLE CHOICE1. Jones Company has long-term debt of $1,000,000, while Smith Company, Jones' competitor, has longterm debt of $200,000. Which of the following statements best represents an analysis of the long-term
University of Sharjah - FINANCE - 101
CHAPTER 8PROFITABILITYMULTIPLE CHOICE1. Which of the following is not a base against which profits are measured?a. owners' equityb. owners' and creditors' funds providedc. intangiblesd. revenuese. productive assetsANS: CPTS: 12. Net profit margi
University of Sharjah - FINANCE - 101
CHAPTER 10STATEMENT OF CASH FLOWSMULTIPLE CHOICE1. Which of the following is not a purpose of the statement of cash flows?a. To show cash flow from operations.b. To show cash flow from financing activities.c. To show cash flow from investing activiti
University of Sharjah - FINANCE - 101
Conceptual FrameworkConceptual FrameworkUnderlying Financial AccountingUnderlying Financial AccountingUnderlyingUnderlyingChapterChapter2IntermediateAccounting12thEditionKieso,Weygandt,andWarfieldChapter2-1PreparedbyCobyHarmon,UniversityofCa
University of Sharjah - FINANCE - 101
The Accounting InformationThe Accounting InformationSystemSystemSystemSystemChapterChapter3IntermediateAccounting12thEditionKieso,Weygandt,andWarfieldChapter3- 1PreparedbyCobyHarmon,UniversityofCalifornia,SantaBarbaraLearning ObjectivesLea
University of Sharjah - FINANCE - 101
IIncome statement andncome statement andRetained earnings statementRetained earnings statementRetainedRetainedChapterChapter4IntermediateAccounting,12thEditionKieso,Weygandt,andWarfieldChapter4-1PreparedbyCobyHarmon,UniversityofCalifornia,Sa
University of Sharjah - FINANCE - 101
Balance Sheet andBalance Sheet and StatementBalanceStatementBalanceoff Cash Flowsof Cash FlowsofoChapterChapter5IntermediateAccounting12thEditionKieso,Weygandt,andWarfieldChapter5- 1PreparedbyCobyHarmon,UniversityofCalifornia,SantaBarbara
University of Sharjah - FINANCE - 101
Chapter 05 - The Financial Statements of Banks and Their Principal CompetitorsCHAPTER 5THE FINANCIAL STATEMENTS OF BANKS AND THEIR PRINCIPALCOMPETITORSConcept Checks5-1. What are the principal accounts that appear on a bank's balance sheet (Report of
University of Sharjah - FINANCE - 101
Chapter 5The Financial Statements of Banks and Their Principal CompetitorsFill in the Blank Questions1. Fed funds purchased is an example of _ along with Eurodollarborrowings.Answer: nondeposit borrowings2. The short term securities of the bank, inc
University of Sharjah - FINANCE - 101
Chapter 6Measuring and Evaluating the Performance of Banks and Their PrincipalCompetitorsFill in the Blank Questions1. The equity multiplier for a bank measures the amount of _ of the bankand is one part of the evaluation of the bank's ROE.Answer: l
University of Sharjah - FINANCE - 101
Chapter 11Liquidity and Reserves Management: Strategies and PoliciesFill in the Blank Questions1. A(n) _ is an asset which can be converted into cash easily, which has arelatively stable price and is reversible so that the seller can recover their ori
University of Sharjah - FINANCE - 101
Chapter 15The Management of CapitalFill in the Blank Questions1. The risk that has to do with banks trading in foreign currencies is called_.Answer: exchange risk2. The risk that has to do with fraud, embezzlement and bank robberies is called_.Ans
University of Sharjah - FINANCE - 101
GROUP PRESENTATION EVALUATION CRITERIAOrganization of Material and Subject Matter(are all important points covered and presented in a logical manner)Clarity(are all points made clear and well explained)Speaking Coherence and Clarity(are the speakers
University of Sharjah - FINANCE - 101
Business Communication: Group Membership and Chapter ResponsibilityName and/or IDGroup NoChapterPart1 Mohammed Emad Abed -U00023144Mohamed Salam-U00018930Samer al safarini-U00022406chapter 9first part2 1- Mohamed Nader Hassouna U000241412- Sy
University of Sharjah - FINANCE - 101
Group Presentation Schedule: Dates, Chapter Parts, and Corresponding Page NumbersPresentation Chapter PartsDateApril 1Chapter 15: Part IPage Numberspp.449-467 (Before Keys for Successfully Delivering anEffective Oral Presentation)pp.467-478April
University of Sharjah - FINANCE - 101
UniversityofSharjahCollegeofBusinessAdministrationInternationalFinanceAssignment1DUE ON 14 March 2012Problems:Q1. You are leaving Copenhagen, Denmark, for St. Petersburg, Russia. Denmarks currency isthe krone. You leave Copenhagen with 15,000 Danish
University of Sharjah - FINANCE - 101
UniversityofSharjahCollegeofBusinessAdministrationInternationalFinanceAssignment2Dueon22April2012Problems:1) The Chile peso was fixed through a currency board at Ps. 1.00/$ throughout the 1990s. InJanuary 2002 the Chile peso was floated. On January
University of Sharjah - FINANCE - 101
Problem 7.1 - 7.5 The Latin American Big Mac Index: Historical ComparisonThis textbook has used The Economist magazine's Big Mac Index for many years. Below are the Big Mac prices and actual exchange ratesfor select Latin American countries as printed i
University of Sharjah - FINANCE - 101
Problem 7.6 Argentine Peso and PPPThe Argentine peso was fixed through a currency board at Ps1.00/$ throughout the 1990s. InJanuary 2002 the Argentine peso was floated. On January 29, 2003 it was trading at Ps3.20/$.During that one year period Argentin
University of Sharjah - FINANCE - 101
TheUniversityofSharjahCollegeofBusinessAdministrationDepartmentofAccounting,FinanceandEconomicsCourseSyllabusCourseName: InternationalFinancialManagementCourseNumber:0301430InstructorsName:ProfessorMahendraRajTelephone:065050519OfficeLocation:M51
University of Sharjah - FINANCE - 101
Multinational Business Finance 10th EditionSolution ManualIM Science, KUST, Solution Manual of MBF 10tth Edition Prepared By Wasim Uddin Orakzai1Multinational Business Finance 10th EditionChapter-1Solution ManualFinancial Goals & Corporate Governan
University of Sharjah - FINANCE - 101
Multinational Business Finance 10th EditionSolution ManualChapter-4ForeignExchangeMarket (FEM)1IM Science, KUST, Solution Manual of MBF 10tth Edition Prepared By Wasim Uddin OrakzaiProblem# 4.6: Traveling: Copenhagen to St. Petersburg. On your pos
University of Sharjah - FINANCE - 101
ABUDHABICOMMERCIALBANKP.J.S.C.ReportandconsolidatedfinancialstatementsfortheyearendedDecember31,2011TheseauditedfinancialstatementsaresubjecttoCentralBankofU.A.E.approvalandadoptionbyShareholdersattheAnnualGeneralMeetingABUDHABICOMMERCIALBANKP.J.S.C
University of Sharjah - FINANCE - 101
ABU DHABI COMMERCIALBANK P.J.S.C.Report and consolidated financialstatements for the yearended December 31, 2010These Audited preliminary financial statements aresubject to central bank of UAE approval and adoption byShareholders at the Annual Gene
University of Sharjah - FINANCE - 101
Consolidated statement of financial position at 30 June 2011Sourse of FundsUses of FundsAssetsAssets2.Items in the course of collection from other banks9.Current tax assets10.Prepayments and accrued income12.Intangible assets13.Property, plant an
University of Sharjah - FINANCE - 101
HSBC BANK MIDDLE EAST LIMITEDCondensed Financial Statement (Unaudited) (continued)Consolidated statement of financial position at 30 June 2011Source of FundsAssetsUses of FundsAssets2.Items in the course of collection fromother banksAED9.Current
University of Sharjah - FINANCE - 101
HSBC Bank Middle East LimitedFOCUS ON BANK PERFORMANCEIN THE PERIOD OF 30 JUNE 2010 AND 30 JUNE 2011
University of Sharjah - FINANCE - 101
Statement of sources and Uses of funds of AbuDhabi commercial bank-31 Dec (2010 - 2011)Sources offundsUses of fundsAssets:Cash and balances with Central Banks742,315Deposits and balances due from banks2,442,398Trading securities15,755Loans and
Western Kentucky University - ACCT - 301
CHRISTY TRAUGHBER2.33, 34, 35, 42, 4333 a. 50,000 profit would be reported on 1040 Schedule C as income for Juanita50,000 profit would be reported on 1120 for the corporation, and since Juanita was paid nob. dividends she would not report anything34
Western Kentucky University - ACCT - 301
Christy Traughber47.a.b.c.d.e.f.g.WCEESBSCEIWSC50.a. are issued fr a fee by the National Office of the IRS upon a taxpayers request anddescribe how the IRS will treat a proposed transaction for tax purposes; apply only to thetaxpayer wh
Western Kentucky University - ACCT - 301
Date:March 19, 2012To:Client Tax FileFrom:Christy TraughberRE:Tax Consequences of Stock in Exchange for Control of Corporation orPartnershipI.Summary of Relevant Facts of this Research CaseOn March 19, 2012, my client, Lynn Jones contacted me r
Western Kentucky University - ACCT - 301
CHRISTY TRAUGHBER12/31/2010$450,000$220,00020%Cumulative FTACumulative FDAEnacted tax ratesPermanent differencesTax Income% of DTA that's current% of DTL that's CurrentBook Income 12/31/11FTAFDAPermanent differenceTaxable Income 12/31/11T
Western Kentucky University - ACCT - 301
PreferredCommonStockStock10,000250,0002,00025,000$50$26%YY5$766,000Shares IssuedShares in TreasuryParPS%Cumulative? (Y/N)Participating? (Y/N)Yrs in ArrearsTotal Dividends to distributeOUTPUTPreferred Stock Shares8,000Outstanding
Western Kentucky University - ACCT - 301
Christy Traughber1/1/20112/1/20113/1/20114/1/20115/1/20116/1/20117/1/20118/1/2011Treasury StockCash1,200,0001,200,000CashRetained EarningsTreasury Stock280,00020,000Treasury StockCash640,000CashTreasury StockAPIC-T850,000Treasury
Western Kentucky University - ACCT - 301
Bond Payable A$24,000,000$1,080,000$340,000$17,000faceannual interestDiscountannual amortizationConverts to 147,000 shares of common stockBond Payable B$28,000,000 face$770,000 annual interest$120,000 Premium$4,000 annual amortizationConver
Western Kentucky University - ACCT - 301
Christy Traughber2009AFS ScheduleSPCTSBM KT SHAREPRICETR ScheduleHRRBIBAVG2010AFS ScheduleSPCTSBTR ScheduleHRRBIBAVG2011AFS ScheduleSPCTSBTR ScheduleHRRBIBAVGFV10FV2021FV1121Unrealized holding loss-HRUnrealized holding
Western Kentucky University - ACCT - 301
Christy TraughberCost (p)Cost (t)20116,000,0006,000,00020123,000,0009,000,00020136,000,00015,000,00020146,000,00021,000,000Est cost tocomplete18,000,00021,000,00010,000,0007,000,000Est total tocomplete24,000,00030,000,00025,000,00
Western Kentucky University - ACCT - 301
Christy TraughberBook Income=20114,320,00070,000120,000210,000(180,000)(30,000)380,000(140,000)(550,000)60,000(90,000)260,0004,430,0000.301,329,0002012201320142015Taxable Income=Tax payable60,00040,000(10,000)80,000(140,000)80
Western Kentucky University - ACCT - 301
PensionExpenseBalance 1/1/11ReturnService CostBenefits paidContributionsInterest (.10)Amortization - PSCAmortization OCI-G/LLiability increase (chg in PBO)Journal Entry for 2011CashOCI-psc426,000 cr734,000 drPension A/L290,000 drPBO8,13
Western Kentucky University - ACCT - 301
CHRISTY TRAUGHBERPayment=-PV (.68301)750,00054,641695,3593.16986219,366PAYMENTPVAO (10%,4)1/1/201112/31/201112/31/201212/31/201312/31/201412/31/2014#012345InterestPayment(219,366)(219,366)(219,366)(219,366)(80,000)(957,464)7
Western Kentucky University - ACCT - 301
CHRISTY TRAUGHBERPROBLEM 22JOURNAL ENTRIESCost of Goods SoldInventory80,00080,000InventoryCumulative Effect Adjustment290,000290,000Depreciation ExpenseAccumulated depreciated-equipment70,000Amortization expenseCopyright16,00070,00016,00
Western Kentucky University - ACCT - 301
CHRISTY TRAUGHBERPROBLEM 22JOURNAL ENTRIESCost of Goods SoldInventory80,00080,000InventoryCumulative Effect Adjustment290,000290,000Depreciation ExpenseAccumulated depreciated-equipment70,000Amortization expenseCopyright16,00070,00016,00
Western Kentucky University - ACCT - 301
CHRISTY TRAUGHBERDodgers CompanyStatement of Cash FlowsFor year ended December 31, 2011Cash flows from operating activitiesCollect from customersPay for inventoryPay for operating expensesPay for interestPay for taxCollect rent revenueBuy inves
Western Kentucky University - ACCT - 301
CHRISTY TRAUGHBERDodgers CompanyStatement of Cash FlowsFor year ended December 31, 2011Cash flows from operating activitiesCollect from customersPay for inventoryPay for operating expensesPay for interestPay for taxCollect rent revenueBuy inves
Western Kentucky University - ACCT - 301
CHAPTER 17InvestmentsASSIGNMENT CLASSIFICATION TABLEBriefExercises ExercisesTopicsQuestionsProblems1.Debt securities.1, 2, 3, 15(a)Held-to-maturity.4, 5, 7, 8, 15,211, 3(b)Trading.4, 6, 7, 8, 12,214(c)Available-for-sale.4, 7, 8, 9,
Western Kentucky University - ACCT - 301
CHAPTER 18Revenue RecognitionASSIGNMENT CLASSIFICATION TABLE (BY TOPIC)BriefExercisesExercisesProblems*1. Realization and recognition; 1, 2, 3, 4,sales transactions; high5, 6, 22rates of return.11, 2, 31*2. Long-term contracts.7, 8, 9, 10,
Western Kentucky University - ACCT - 301
CHAPTER 22Accounting Changes and Error AnalysisASSIGNMENT CLASSIFICATION TABLE (BY TOPIC)TopicsQuestions1.Differences between change inprinciple, change in estimate,change in entity, errors.2, 4, 6, 7,8, 9, 12, 13,15, 21, 22,232.BriefExerci
Western Kentucky University - ACCT - 301
CHAPTER 23Statement of Cash FlowsASSIGNMENT CLASSIFICATION TABLE (BY TOPIC)TopicsQuestionsBriefExercisesExercisesConceptsProblems for Analysis1.Format, objectivespurpose, and sourceof statement.1, 2, 7,8, 122.Classifying investing,financ
Western Kentucky University - ACCT - 301
CoastJewelers,Inc.IncomeStatementFortheYearEnded12/31/11SalesRevenue$850,511.65Less:CostofGoodsSold442,619.87GrossMargin407,891.78Expenses:Advertising20,654.21Depreciation22,000.00Interest40,846.24Payroll115,365.11Utilities23,541.25Ne
Western Kentucky University - ACCT - 301
CoastJewelers,Inc.IncomeStatementFortheYearEnded12/31/11SalesRevenue$850,511.65Less:CostofGoodsSold442,619.87GrossMargin407,891.78Expenses:Advertising20,654.21Depreciation22,000.00Interest40,846.24Payroll115,365.11Utilities23,541.25Ne
Western Kentucky University - ACCT - 301
CoastJewelers,Inc.RatioAnalysisDec12ProfitabilityReturnonowner'sinvestmentReturnontotalinvestmentProfitmarginGrossmarginLiquidityCurrentratioQuickratioReceivableturnoverInventoryturnoverSolvencyDebttoequityLiability28%14%8%41%3.221.33
Western Kentucky University - ACCT - 301
SalesRevenueLess:CostofGoodsSoldGrossMarginExpenses:AdvertisingDepreciationInterestPayrollUtilitiesNetincomebeforetaxesIncometaxesNetincomeCoastJewelers,Inc.IncomeStatementFortheYearEnded12/31/11$850,511.65442,619.87407,891.78%100%52%
Western Kentucky University - ACCT - 301
Snick's Board ShopIncome Statementfor the period endedSalesLess: Cost of Goods SoldGross MarginExpenses:AdvertisingDepreciationWagesSuppliesUtilitiesNet income12/31/2011% Sales$28,000100%13,00046%15,00054%$2,2001,0005,0003008009,
Western Kentucky University - ACCT - 301
Snick's Board ShopIncome Statemntfor the period ended12/31/2011 % SalesSales# 100%Less: Cost of Goods Sold13,00046%Gross Margin15,00054%Expenses:Advertising #8%Depreciation#4%Wages#18%Supplies#1%Utilities# 9,3003%Net income$5,70
Western Kentucky University - ACCT - 301
CoastJewelers,Inc.EquipmentDepreciationSummaryAssetDisplayCasesChairsDateDeprec. 2011 2011Acc. 2012 2012Acc. 2013 2013Acc.AcquiredCostMethod Deprec. Deprec. Deprec. Deprec. Deprec. Deprec.1/1/2011 $15,000 DDB$6,000 $6,000 $3,600 $9,600 $2,160 $
Western Kentucky University - ACCT - 301
CoastJewelers,Inc.EquipmentDepreciationSummaryAssetDisplayCasesChairsDateDeprec. 2011 2011Acc. 2012 2012Acc. 2013 2013Acc.AcquiredCostMethod Deprec. Deprec. Deprec. Deprec. Deprec. Deprec.1/1/2011 $15,000 S/L$3,000 $3,000 $3,000 $6,000 $3,000 $
Western Kentucky University - ACCT - 301
CoastJewelers,Inc.EquipmentDepreciationSummaryAssetDisplayCasesChairsDateDeprec. 2011 2011Acc. 2012 2012Acc. 2013 2013Acc.AcquiredCostMethod Deprec. Deprec. Deprec. Deprec. Deprec. Deprec.1/1/2011 $15,000 SYD$5,000 $5,000 $4,000 $9,000 $3,000 $