Question 1

The statement of explains changes in the components of owners' equity during the period.

Accepted Answer

The answer of The statement of explains changes in the...

Question 2

is a liquidity measure that is calculated by subtracting current assets from current liabilities.

Accepted Answer

The answer of is a liquidity measure that is calculated...

Question 3

____________________ is the process of writing off the cost of tangible assets and ____________________ is the process of writing off the cost of intangible assets.

Accepted Answer

The answer of ____________________ is the process of writing off...

Question 4

On the statement of cash flows, the section involves the issuance and repayment of long term liabilities and stock transactions.

Accepted Answer

The answer of On the statement of cash flows, the...

Question 5

The ability of a company to pay its debt as it comes due relates to .

Accepted Answer

The answer of The ability of a company to pay...

Question 6

Read the information about Cargo Corporation.
Required:
Calculate Cargo's current ratio at December 31, 2015.What does this ratio tell you about the "composition" of the current assets?

Accepted Answer

The answer of Read the information about Cargo Corporation.
Required:
Calculate Cargo's...

Question 7

Read the information about Cargo Corporation.
Required:
Prepare the current liabilities section of the balance sheet for Cargo Corp.at December 31, 2015.You may omit the heading.If the amount of current liabilities were larger, what effect would this have on the current ratio?

Accepted Answer

The answer of Read the information about Cargo Corporation.
Required:
Prepare the...

Question 8

On the statement of cash flows, the section involves the purchase and sale of products and services.

Accepted Answer

The answer of On the statement of cash flows, the...

Question 9

Read the information about Cargo Corporation.
Required:
Prepare the long-term asset section of Cargo Corp.'s balance sheet at December 31, 2015.You may omit the heading.Why are these amounts classified as "long-term"?

Accepted Answer

The answer of Read the information about Cargo Corporation.
Required:
Prepare the...

Question 10

On the statement of cash flows, the section involves the acquisition and sale of long-term assets.

Accepted Answer

The answer of On the statement of cash flows, the...

Question 11

Read the information below about Cargo Corporation.
Required:
Calculate the amount of working capital at December 31, 2015 for Cargo Corp.What can you learn from the current ratio that you cannot learn from the amount of working capital?

Accepted Answer

The answer of Read the information below about Cargo Corporation.
Required:
Calculate...

Question 12

Read the information about Cargo Corporation.
Required:
Prepare the current assets section of the balance sheet for Cargo Corp.at December 31, 2015.You may omit the heading.How does the concept of liquidity apply?

Accepted Answer

The answer of Read the information about Cargo Corporation.
Required:
Prepare the...

Question 13

are cash and other assets that are reasonably expected to be realized in cash during the normal operating cycle of the business.

Accepted Answer

The answer of are cash and other assets that are...

Question 14

Harrison Company calculated the following amounts concerning its financial information for the years ending December 31, 2015 and 2014:  
Required:
Examine Harrison's ratios.Is the change in the current ratio favorable or not? Explain.

Accepted Answer

The answer of Harrison Company calculated the following amounts concerning...

Question 15

have claims to an entity's economic resources.

Accepted Answer

The answer of have claims to an entity's economic resources....

Question 16

In a -step income statement, all expenses and losses are added together, then deducted from the sum of all revenues and gains.

Accepted Answer

The answer of In a -step income statement, all expenses...

Question 17

Property, plant and equipment is classified as assets on the balance sheet.

Accepted Answer

The answer of Property, plant and equipment is classified as...

Quiz 2: Financial Statements and the Annual Report

The statement of explains changes in the components of owners' equity during the period.

is a liquidity measure that is calculated by subtracting current assets from current liabilities.

is the process of writing off the cost of tangible assets and is the process of writing off the cost of intangible assets.

On the statement of cash flows, the section involves the issuance and repayment of long term liabilities and stock transactions.

The ability of a company to pay its debt as it comes due relates to .

Read the information about Cargo Corporation. Required: Calculate Cargo's current ratio at December 31, 2015.What does this ratio tell you about the "composition" of the current assets?

Read the information about Cargo Corporation. Required: Prepare the current liabilities section of the balance sheet for Cargo Corp.at December 31, 2015.You may omit the heading.If the amount of current liabilities were larger, what effect would this have on the current ratio?

On the statement of cash flows, the section involves the purchase and sale of products and services.

Read the information about Cargo Corporation. Required: Prepare the long-term asset section of Cargo Corp.'s balance sheet at December 31, 2015.You may omit the heading.Why are these amounts classified as "long-term"?

On the statement of cash flows, the section involves the acquisition and sale of long-term assets.

Read the information below about Cargo Corporation. Required: Calculate the amount of working capital at December 31, 2015 for Cargo Corp.What can you learn from the current ratio that you cannot learn from the amount of working capital?

Read the information about Cargo Corporation. Required: Prepare the current assets section of the balance sheet for Cargo Corp.at December 31, 2015.You may omit the heading.How does the concept of liquidity apply?

are cash and other assets that are reasonably expected to be realized in cash during the normal operating cycle of the business.

Harrison Company calculated the following amounts concerning its financial information for the years ending December 31, 2015 and 2014: Required: Examine Harrison's ratios.Is the change in the current ratio favorable or not? Explain.

have claims to an entity's economic resources.

In a -step income statement, all expenses and losses are added together, then deducted from the sum of all revenues and gains.

Property, plant and equipment is classified as assets on the balance sheet.