kenny-SOLUTIONS_CH_2-481233108

kenny-SOLUTIONS_CH_2-481233108 - CHAPTER 2 A Further Look...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
2-1 CHAPTER 2 A Further Look at Financial Statements Study Objectives 1. Identify sections of a classified balance sheet. 2. Identify and compute ratios for analyzing a company’s profitability. 3. Explain the relationship between a retained earnings statement and a statement of stockholders’ equity. 4. Identify and compute ratios for analyzing a company’s liquidity and solvency using a balance sheet. 5. Use the statement of cash flows to evaluate solvency. 6. Explain the meaning of generally accepted accounting principles. 7. Discuss financial reporting concepts. Summary of Questions by Study Objectives and Bloom’s Taxonomy Item SO BT Item SO BT Item SO BT Item SO BT Item SO BT Questions 1. 1 K 5. 1 K 9. 4, 5 C 13. 6, 7 K 17. 6 C 2. 1 K 6. 2, 4, 5C 10. 4, 5 K 14. 7 C 18. 7 K 3. 1 C 7. 2, 4, 5K 11. 2, 4, 15. 7 C 19. 7 C 4. 1 C 8. 4 C 12. 6 K 16. 7 C 20. 7 C Brief Exercises 1. 1 K 4. 3 K 7. 6 K 9. 7 K 11. 7 K 2. 1 AP 5. 4 AP 8. 7 K 10. 7 K 12. 7 K 3. 2 AP 6. 4, 5 AP Exercises 1. 1 AP 4. 1 AP 7. 1, 3, 4 AP 9. 4 AP 11. 7 K 2. 1 AP 5. 1 AP 8. 4 AP 10. 4, 5 AP 12. 7 C 3. 1 AP 6. 2 AP Problems: Set A 1. 1 AP 3. 1, 3 AP 5. 2, 4, 5A P 7. 2, 4, P 8. 6, 7 E 2. 1, 3 AP 4. 2, 4, N 6. 2, 4, P Problems: Set B 1. 1 AP 3. 1, 3 AP 5. 2, 4, P 7. 2, 4, P 8. 6, 7 E 2. 1, 3 AP 4. 2, 4, N 6. 2, 4, P
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2-2 ASSIGNMENT CHARACTERISTICS TABLE Problem Number Description Difficulty Level Time Allotted (min.) 1A Prepare a classified balance sheet. Simple 10–20 2A Prepare financial statements. Moderate 20–30 3A Prepare financial statements. Moderate 20–30 4A Compute ratios; commenting on relative profitability, liquidity, and solvency. Moderate 20–30 5A Compute and interpret liquidity, solvency, and profitability ratios. Simple 10–20 6A Compute and interpret liquidity, solvency, and profit- ability ratios. Moderate 15–25 7A Compute ratios and compare liquidity, solvency, and profitability for two companies. Moderate 15–25 8A Comment on the objectives and qualitative characteristics of accounting information. Simple 10–20 1B Prepare a classified balance sheet. Simple 10–20 2B Prepare financial statements. Moderate 20–30 3B Prepare financial statements. Moderate 20–30 4B Compute ratios; commenting on relative profitability, liquidity, and solvency. Moderate 20–30 5B Compute and interpret liquidity, solvency, and profitability ratios. Simple 10–20 6B Compute and interpret liquidity, solvency, and profit- ability ratios. Moderate 15–25 7B Compute ratios and compare liquidity, solvency, and profitability for two companies. Moderate 15–25 8B Comment on the objectives and qualitative characteristics of accounting information. Simple 10–20
Background image of page 2
2-3 ANSWERS TO QUESTIONS 1. A company s operating cycle is the average time that is required to go from cash to cash in prod- ucing revenues. 2. Current assets are cash and other resources that are reasonably expected to be realized in cash or sold or consumed in the business within one year of the balance sheet date or the company s operating cycle, whichever is longer. Current assets are listed in the order in which they are exp- ected to be converted into cash.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/09/2008 for the course ACC 201 taught by Professor Kenny during the Spring '08 term at TCNJ.

Page1 / 50

kenny-SOLUTIONS_CH_2-481233108 - CHAPTER 2 A Further Look...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online