ch5 - Ch5 PostLecture,Question1

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Ch5 Post-Lecture, Question 1 Correct! The balance sheet is not used in analyzing profitability.      the balance sheet is useful for analyzing all of the following except financial flexibility. liquidity. solvency. profitability. Post-Lecture, Question 2 Correct! The basis for classifying assets as current or non-current is the period of time normally required to  convert cash invested in inventory back into cash, or 12 months, whichever is longer.  The basis for classifying assets as current or non-current is the period of time normally required by the  accounting entity to convert cash invested in tangible fixed assets back into cash, or 12 months, whichever is longer. receivables back into cash, or 12 months, whichever is longer. inventory back into cash, or 12 months, whichever is shorter. inventory back into cash, or 12 months, whichever is longer. Post-Lecture, Question 4 Correct! Depreciation methods, not composition of the fixed assets, should be included in the summary of  significant accounting policies.      Which of the following facts concerning fixed assets should be included in the summary of significant  accounting policies?   Depreciation Method   Composition Yes   No Yes   Yes No   No No   Yes
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Post-Lecture, Question 7 Correct! $70,000 plus $250,000 less $110,000 plus $140,000 equals $350,000, the ending balance of cash.      Quince Holman Corporation reports: Cash provided by operating activities $250,000 Cash used by investing activities 110,000 Cash provided by financing activities 140,000 Beginning cash balance 70,000 What is Holman's ending cash balance? $570,000. $350,000. $500,000. $280,000. Post-Lecture, Question 8 Correct! $500,000 plus $140,000 less $60,000 equals $580,000, the cash provided by operating activities.      Craig Rusch Corporation reports the following information: Net income $500,000 Depreciation expense 140,000 Increase in accounts receivable 60,000 Rusch should report cash provided by operating activities of $300,000. $700,000. $420,000. $580,000. ABE5-2 Koch Corporation's adjusted trial balance contained the following asset accounts at December 31, 2010: Cash  $7,170; Land $43,310; Patents $14,690; Accounts Receivable $90,060; Prepaid Insurance $6,100; Inventory  $35,780; Allowance for Doubtful Accounts $4,880; Trading Securities $11,850. Prepare the current assets  section of the balance sheet, listing the accounts in proper sequence. 
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Current assets            Cash   $  7,170         Trading securities   11,850         Accounts receivable $  90,060                Less:  Allowance for doubtful accounts 4,880  85,180         Inventory   35,780        
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This note was uploaded on 11/08/2010 for the course ACCOUNTING 505 taught by Professor Pierce,b during the Fall '10 term at Winthrop.

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ch5 - Ch5 PostLecture,Question1

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