Final\u00a0 Part 1\t\t\t\t\t\t\t\t\tQuestion 1\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tUnder the corporate form of business organization\t\t\t\t\t\t\t\t\tQuestion 2 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tAccountants do not attempt to measure the change in a plant asset’s market value during ownership because\t\t\t\t\t\t\t\t\tQuestion 3\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tBudget reports provide the feedback needed by management to see whether actual operations are on course.\t\t\t\t\t\t\t\t\tQuestion 4\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tIntangible assets are rights, privileges, and competitive advantages that result from ownership of long-lived assets without physical substance.\t\t\t\t\t\t\t\t\tQuestion 5\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tA corporation is not an entity that is separate and distinct from its owners\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tQuestion 6\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tThe market rate of interest is often called the\t\t\t\t\t\t\t\t\tQuestion 7\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tA current liability is a debt that can reasonably be expected to be paid\t\t\t\t\t\t\t\t\tQuestion 8 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tA budget can be used as a basis for evaluating performance.\t\t\t\t\t\t\t\t\tQuestion 9\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tVertical analysis is a technique for evaluating a series of financial statement data over a period of time to determine the increase (decrease) that has taken place.\t\t\t\t\t\t\t\t\tQuestion 10\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tBonds with a face value of $400,000 and a quoted price of 104\u00bc have a selling price of\t\t\t\t\t\t\t\t\tQuestion 11\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tThe current cash debt coverage ratio is considered a better representative of liquidity than the current ratio because it involves the entire year rather than a balance at one point in time.\t\t\t\t\t\t\t\t\tQuestion 12\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tOn January 1, 2014, Ermler Company, a calendar-year company, issued $1,000,000 of notes payable, of which $250,000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2014, is\t\t\t\t\t\t\t\t\tQuestion 13\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tOne objective of the income statement is to separate the results of continuing operations from those of discontinued operations.\t\t\t\t\t\t\t\t\tQuestion 14 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tAll of the following are true regarding financial statement analysis ratios associated with liabilities except\t\t\t\t\t\t\t\t\tQuestion 15\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tA primary objective of the statement of cash flows is to show the income or loss on investing and financing transactions.\t\t\t\t\t\t\t\t\tQuestion 16\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tA master budget is most useful in evaluating a manager’s performance in controlling costs.\t\t\t\t\t\t\t\t\tQuestion 17 \t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tThe master budget reflects management’s long-term plans encompassing five years or more.\t\t\t\t\t\t\t\t\tQuestion 18\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tThe debt to assets ratio measures the percentage of the total assets provided by creditors\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tQuestion 19\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tA company whose current liabilities exceed its current assets may have a liquidity problem.\t\t\t\t\t\t\t\t\tQuestion 20\t\t\t\t\t\t\t\t\t\u00a0\t\t\t\t\t\t\t\t\tDuring 2014, Phelps Corporation reported net sales of $3,000,000, net income of $1,320,000, and depreciation expense of $80,000. Phelps also reported beginning total assets of $1,000,000, ending total assets of $1,500,000, plant assets of $800,000, and accumulated depreciation of $500,000. Phelps’s asset turnover ratio is<\/p>\n","protected":false},"excerpt":{"rendered":"
Final\u00a0 Part 1 Question 1 \u00a0 Under the corporate form of business organization Question 2 \u00a0 Accountants do not attempt to measure the change in a plant asset’s market value during ownership because Question 3 \u00a0 Budget reports provide the Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-200178","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200178","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=200178"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200178\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=200178"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=200178"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=200178"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}