Tiêu đề Financial Accounting Ex2.pdf ✅

76 chapter 2 A Further Look at Financial Statements Do it! 2-1 Lonyear Corporation has collected the following information related to its December 31, 2014, balance sheet. Accounts receivable $22,000 Equipment $180,000 Accumulated depreciation—equipment 50,000 Inventory 58,000 Cash 13,000 Supplies 7,000 Prepare the assets section of Lonyear Corporation’s balance sheet. Do it! 2-2 The following financial statement items were taken from the financial state- ments of Zheng Corp. ____ Trademarks ____ Inventory ____ Notes payable (current) ____ Accumulated depreciation ____ Interest revenue ____ Land ____ Income taxes payable ____ Common stock ____ Debt investments (long-term) ____ Advertising expense ____ Unearned sales revenue ____ Mortgage payable (due in 3 years) Match each of the financial statement items to its proper balance sheet classification. (See E2-1, on page 77, for a list of the balance sheet classifications.) If the item would not appear on a balance sheet, use “NA.” Do it! 2-3 The following information is available for Benser Corporation. 2014 2013 Current assets $ 54,000 $ 36,000 Total assets 240,000 205,000 Current liabilities 22,000 30,000 Total liabilities 72,000 100,000 Net income 80,000 40,000 Net cash provided by operating activities 90,000 56,000 Preferred dividends 6,000 6,000 Common dividends 3,000 1,500 Expenditures on property, plant, and equipment 27,000 12,000 Shares outstanding at beginning of year 40,000 30,000 Shares outstanding at end of year 75,000 40,000 Do it! Review Prepare assets section of balance sheet. (LO 1), AP Classify financial statement items by balance sheet classification. (LO 1), AP Compute ratios and analyze. (LO 4, 5), AP BE2-10 Here are some qualitative characteristics of useful accounting information: 1. Predictive value 3. Verifiable 2. Neutral 4. Timely Match each qualitative characteristic to one of the following statements. ______ (a) Accounting information should help provide accurate expectations about future events. ______ (b) Accounting information cannot be selected, prepared, or presented to favor one set of interested users over another. ______ (c) The quality of information that occurs when independent observers, using the same methods, obtain similar results. ______ (d) Accounting information must be available to decision-makers before it loses its capacity to influence their decisions. BE2-11 The full disclosure principle dictates that: (a) financial statements should disclose all assets at their cost. (b) financial statements should disclose only those events that can be measured in dollars. (c) financial statements should disclose all events and circumstances that would matter to users of financial statements. (d) financial statements should not be relied on unless an auditor has expressed an unqualified opinion on them. Identify characteristics of useful information. (LO 7), K Define full disclosure principle. (LO 7), K