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SecondPrelimPracticeTest-1 - Under which conditions will...

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Under which conditions will each of the accepted methodologies for inventory valuation yield the result which best estimates the market value of the inventory? 1. FIFO a 2. LIFO b a. Goods or commodities with a short shelf life (ie. perishable goods) b. Goods or commodities subject to a strong trend of increasing or declining prices Match the different aspects of accounting in business with their descriptions 3. Providing managers or an organization with information they need to make decisions b 4. Preparing financial statements for people outside the firm (creditors, unions, supplier, investors, etc.) a 5. Review and evaluate records used to prepare the organization’s financial statements d 6. Development of tax strategies c 7. Staffing the Government Accounting Office e a. Financial accounting b. Managerial accounting c. Tax accounting d. Auditing e. Not-for-profit accounting Find below the summarized income statement and balance sheets of Nike for 2006. Answer the questions below Income Statement (in millions) Nike, Inc. Balance Sheet (in millions) – Nike, Inc. Assets Liabilities and Owner’s Equity Revenue 14954.9 Cash 2303.0 Short-term debt 255.3 Cost of Goods Sold 8367.9 Net receivables 2979.3 Current liabilities 2623.3 Gross Profit 6587.8 Inventories 2076.7 Long-term debt 960.8 General expenses 4186.9 Total current assets 7359 Total liabilities 3584.1 Depreciation 290.9 Operating Income 4477.8 Total assets 9869.6 Total equity 6285.5 Due interest and taxes 569.57 Total net income 1392.0 Shares outstanding (millions) 192.1 EPS (earnings per share) Match the appropriate values with the missing values for the income statement of Nike 8. Gross profit e 9. Operating income c 10. Due interest and taxes a
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Match the appropriate values with the missing values for the balance sheet of Nike 11. Long-term liabilities b 12. Current assets a 13. Equity c Match the appropriate values for the liquidity ratios for Nike 14. Current ratio e 15. Quick ratio d 16. Debt to equity ratio c Match the appropriate values for the profitability and activity ratios for Nike 17. Return on sales a 18. Return on equity c 19. Earnings per share ? 20. Inventory turnover e a. 0.09 b. 0.19 c. 0.22 d. 1.84 e. 4.03
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