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When the disposal of a significant segment occurs TRUE-FALSE STATEMENTS 1. Earning power refers to a company’s ability to sustain its profits from operations. 2. When the disposal of a significant segment occurs, the income statement should report both income from continuing operations and income (loss) from discontinued operations. 3. An event or transaction should be classified as an extraordinary item if it is unusual in nature ...

Other / Other 30 Apr 2016

Which one of the following is not a tool in financial statement analysis 1. In analyzing the financial statements of a company, a single item on the financial statements a. should be reported in boldface type. b. must be compared with other financial data to provide more information. c. is significant only if it is large. d. should be accompanied by a footnote. 2. Comparisons of financial data made within a company are called a. in ...

Other / Other 30 Apr 2016

Liquidity ratios measure the ability of the enterprise TRUE-FALSE STATEMENTS 1. In the vertical analysis of a balance sheet, the base for current liabilities is total liabilities. 2. Vertical analysis is useful in making comparisons of companies of different sizes. 3. Using vertical analysis of the income statement, a company's net income as a percentage Test Bank for Managerial Accounting, Second Edition of net sales is 15%; therefore ...

Other / Other 30 Apr 2016

The return on assets ratio will be greater TRUE-FALSE STATEMENTS 1. A solvency ratio measures the income or operating success of an enterprise for a given period of time. 2. The current ratio is a measure of all the ratios calculated for the current year. 3. Inventory turnover measures the number of times on the average the inventory was sold during the period. 4. Profitability ratios are frequently used as a basis for evaluating mana ...

Other / Other 30 Apr 2016

The order of presentation of nontypical items 1. The discontinued operations section of the income statement refers to a. discontinuance of a product line. b. the income or loss on products that have been completed and sold. c. obsolete equipment and discontinued inventory items. d. the disposal of a significant segment of a business. 2. Which one of the following would be classified as an extraordinary item? a. Expropriation of pro ...

Other / Other 30 Apr 2016

Another name for horizontal analysis is trend analysis TRUE-FALSE STATEMENTS 1. Another name for horizontal analysis is trend analysis. 2. If a company has sales of $110 in 2001 and $154 in 2002, the percentage increase in sales from 2001 to 2002 is 140%. 3. In horizontal analysis, if an item has a negative amount in the base year, and a positive amount in the following year, no percentage change for that item can be computed. 4. Verti ...

Other / Other 30 Apr 2016

Intracompany comparisons of the same financial statement items TRUE-FALSE STATEMENTS 1. Comprehensive income includes all changes in stockholders’ equity during a period except those resulting from investments by stockholders and distributions to stockholders. 2. Intracompany comparisons of the same financial statement items are often useful to detect changes in financial relationships and significant trends. 3. Comparisons of co ...

Other / Other 30 Apr 2016

Briefly explain the difference between Unearned Art Fees and Art Fees Earned 1. What two purposes are served by using the Post. Ref. columns of a journal and ledger? 2. Briefly explain the difference between Unearned Art Fees and Art Fees Earned. Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help ...

Other / Other 29 Apr 2016

Signed up five students, who will begin lessons on March 10, at $80 per week per student 1. In the journal provided, prepare journal entries (in good form) for the following transactions. If no entry is required, write “no entry.” Omit explanations. Mar. 1 Jean Kelly opened a dance school, called Jean's Dance Studio, by depositing $15,000 into a business bank account. 2 Paid three months' rent in advance, $1,800. ...

Other / Other 29 Apr 2016

Recorded cash received for services rendered during the week, $5,000 1. In the journal provided, prepare journal entries (in good form) for the following transactions. If no entry is required, write “no entry.” Omit explanations. May 1 Lew Parker opened a dry cleaning service, called Junction Cleaners, by depositing $100,000 into a business bank account. 3 Paid two years' rent in advance, $11,200. 6 Purchased dry clean ...

Other / Other 29 Apr 2016