ACCT 304 Week 1 to 7 Quizzes

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ACCT 304 Week 1 to 7 Quizzes Click Link Below To Buy: http://hwcampus.com/shop/acct-304-week-1-7-quizzes/ Contact Us: [email protected] Question 1. Question : (TCO 1) Which of the following has the authority to set accounting standards in the United States? FASB IRS SEC AICPA : 1 Question 2. Question : (TCO 2) SFAC No.5 focuses on: objectives of financial reporting. qualitative characteristics of accounting information. Recognition and measurement concepts in accounting, including assumptions and principles. elements of financial statements. : 1 5 of 5 Question 3. Question : (TCO 3) Mary Parker Co. invested $15,000 in ABC Corporation and received capital stock in exchange. Mary Parker Co.’s journal entry to record this transaction would include a: debit to investments. credit to retained earnings. credit to capital stock. debit to expense. : 2 5 of 5 Question 4. Question : (TCO 3) The adjusting entry required to record accrued expenses includes: a credit to cash. a debit to an asset. a credit to an asset. a credit to liability. : 2 5 of 5 Question 5. Question : (TCO 3) Temporary accounts would not include: salaries payable. depreciation expense. supplies expense. cost of goods sold. : 2 5 of 5 Question 6. Question : (TCO 4) Notes payable: is a current liability account. usually has a debit balance. is a non-current liability account. cannot determine its classification without additional information. : 2 5 of 5 Question 7. Question : (TCO 4) The current ratio is given by: current assets divided by non-current assets. current assets divided by total assets. current assets divided by current liabilities. current assets divided by total liabilities. : 3 5 of 5 Question 8. Question : (TCO 5) The distinction between operating and non-operating income relates to: continuity of income. principal activities of the reporting entity. consistency of income stream. reliability of measurements. : 4 5 of 5 Question 9. Question : (TCO 5) A voluntary change in accounting principle is accounted for by: a cumulative effect on income in the year of the change. a retrospective reporting of all comparative financial statements shown. a prior period adjustment. a separate line component of income. : 4 5 of 5 Question 10. Question : (TCO 5) Cash flows from investing activities do not include: proceeds from issuing bonds. payment for the purchase of equipment. proceeds from the sale of marketable securities. cash outflows from acquiring land. : 4 5 of 5 Question 11. Question : (TCO 5) The Maytag Corporation’s income statement includes income from continuing operations, a loss from discontinued operations, and extraordinary items. Earnings per share information would be provided for: net income only. income from continuing operations and net income only. income from continuing operations, loss from discontinued operations, and net income only. income from continuing operations, loss from discontinued operations, extraordinary items, and net income. : 4 5 of 5 Question 12. Question : (TCO 5) In a statement of cash flows prepared under International Financial Reporting Standards, each of the following items is typically classified as a financing cash flow except: interest paid. dividends paid. proceeds from the issuance of long-term debt. dividends received. : 4 5 of 5 Question 13. Question : (TCO 4) Which is a shareholders’ equity account in the balance sheet? Accumulated depreciation Paid-in capital Dividends payable Marketable securities : 3 5 of 5 Question 14. Question : (TCO 4) Which of the following groups is not among the external users for whom financial statements are prepared? Customers Suppliers Employees All of the above are external users of financial statements. (TCO 5) Misty Company reported the following before-tax items during the current year: Misty’s effective tax rate is 40% and there were 1,000 shares of common stock outstanding. What would be Misty’s income before extraordinary item(s)? Question 2. Question : (TCO 4) Listed below are account balances (in $millions) taken from the records of Symphony Stores. All of these are permanent accounts, except the last two that have yet to be closed. The installment receivables are current. Symphony uses a perpetual inventory system. What would Symphony report as total assets? Hint: Don’t forget to deduct the contra assets. (TCO 4) Explain how management’s discussion and analysis of its operations and liquidity may be helpful to investors. Question 2. Question : (TCO 2) What are the key provisions of the Public Company Accounting Reform and Investor Protection (Sarbanes-Oxley) Act of 2002? Question 3. Question : (TCO 5) Give an example of a non-cash financing and investing activity and explain when and how it would be reported in the financial statements. Question 4. Question : (TCO 3) What is the purpose of the closing process? (TCO 1) The SEC issues accounting standards in the form of accounting research bulletins. financial reporting releases. financial accounting standards. financial technical bulletins. : Question 2. Question : (TCO 2) Enhancing qualitative characteristics of accounting information include each of the following, except timeliness. materiality. comparability. verifiability. Comments: Question 3. Question : (TCO 3) Hughes Aircraft sold a four-passenger airplane for $380,000, receiving a $50,000 down payment and a 12% note for the balance. The journal entry to record this sale would include a credit to cash. debit to cash discount. debit to note receivable. credit to note receivable. Comments: Question 4. Question : (TCO 3) When a tenant makes an end-of-period adjusting entry credit to the prepaid rent account he or she usually debits cash. he or she usually debits an expense account. he or she debits a liability account. he or she does none of the above. Comments: Question 5. Question : (TCO 3) Permanent accounts would not include interest expense. wages payable. prepaid rent. unearned revenues. Question 1. Question : (TCO 4) Cash equivalents would not include cash not available for current operations. money market funds. United States Treasury bills. bank drafts. Question 2. Question : (TCO 4) Which is a shareholders’ equity account in the balance sheet? Accumulated depreciation Paid-in capital Dividends payable Marketable securities Instructor Explanation: See Chapter 3. Points Received: 4 of 4 Comments: Question 3. Question : (TCO 4) Janson Corporation Co.’s trial balance included the following account balances at December 31, 2011: Investments consist of treasury bills that were purchased in November and mature in January. Prepaid insurance is for the next 2 years. What amount should be included in the current asset section of Janson’s December 31, 2011 balance sheet? $88.000 $85,000 $55,000 $135,000 Question 4. Question : (TCO 4) Which of the following would be disclosed in the summary of significant accounting policies disclosure note? Option A Option B Option C Option D Question 5. Question : (TCO 4) Below is the partial balance sheet ($ in thousands) for Paisano Seafood Inc. The current ratio (rounded) is 1.98. 1.58. 1.17. 0.66. quiz 3 TCO 5) The distinction between operating and non-operating income relates to continuity of income. principal activities of the reporting entity. consistency of income stream. reliability of measurements. Instructor Explanation: See Chapter 4. Points Received: 4 of 4 Comments: Question 2. Question : (TCO 5) Major Co. reported a 2011 income of $300,000 from continuing operations before income taxes and a before-tax extraordinary loss of $80,000. All income is subject to a 30% tax rate. In the 2011 income statement, Major Co. would show the following line-item amounts for income tax expense and net income. $66,000 and $210,000 $90,000 and $154,000 $90,000 and $276,000 $66,000 and $220,000 Instructor Explanation: Points Received: 4 of 4 Comments: Question 3. Question : (TCO 5) The financial statement presentation of a change in depreciation method is most similar to that of reporting changes in accounting estimates. prior period adjustments. ion of errors. extraordinary items. Instructor Explanation: See Chapter 4. Points Received: 4 of 4 Comments: Question 4. Question : (TCO 5) Cash flows from investing activities do not include proceeds from issuing bonds. payment for the purchase of equipment. proceeds from the sale of marketable securities. cash outflows from acquiring land. Instructor Explanation: See Chapter 4. Points Received: 4 of 4 Comments: Question 5. Question : (TCO 5) Review Rowdy’s Restaurants cash flow (in millions): Rowdy’s would report net cash inflows (outflows) from financing activities in the amount of $1,100. $(1,100). $820. $900. Instructor Explanation: Points Received: 4 of 4 Comments: 4 (TCO 5) For a typical manufacturing company, the most common critical point for recognizing revenue is the date an order is received. production is completed. the product is delivered. payment is received. Question 2. Question : (TCO 5) On December 15, 2011, Rigsby Sales Co. sold a tract of land that cost $3,600,000 for $4,500,000. Rigsby appropriately uses the installment sale method of accounting for this transaction. Terms called for a down payment of $500,000 with the balance in two equal, annual installments, payable on December 15, 2012 and December 15, 2013. Ignore interest charges. Rigsby has a December 31 year-end. In 2011, Rigsby would recognize the realized gross profit of $500,000. $0. $900,000. $100,000. Question 3. Question : (TCO 6) Present and future value tables of $1 at 3% are presented below: Carol wants to invest money in a 6% CD account that compounds semiannually. Carol would like the account to have a balance of $50,000 5 years from now. How much must Carol deposit to accomplish her goal? $35,069 $43,131 $37,205 $35,000 Comments: Question 4. Question : (TCO 6) Sondra deposits $2,000 in an IRA account on April 15, 2011. Assume the account will earn 3% annually. If she repeats this for the next 9 years, how much will she have on deposit on April 14, 2020? $20,600 $20,928 $23,616 $24,715 Question 5. Question : (TCO 6) Jose wants to cash in his winning lottery ticket. He can either receive five, $5,000 annual payments starting today, or he can receive a lump-sum payment now based on a 3% annual interest rate. What is the present value of the installments if he opts for the lump sum payment? $22,899 $21,565 $23,000 5 (TCO 7) Cash may not include foreign currency. money orders. restricted cash. undeposited customer checks. Question 2. Question : (TCO 7) On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit term 2/10, n/30. Flores uses the gross method of accounting for cash discounts. What is the correct entry for Flores on November 17, assuming the correct payment was received on that date? Option a Option b Option c Option d Question 3. Question : (TCO 7) Which of the following does not change the balance in accounts receivable? Returns on credit sales Collections from customers Bad debts expense adjusting entry Write-offs Question 4. Question : (TCO 7) Brockton Carpet Cleaning prepares a bank reconciliation at the end of every month. At the end of July, the balance in the general ledger checking account was $2,750, and the bank balance on the bank statement was $2,980. Outstanding checks totaled $680, and deposits in transit were $400. The bank statement revealed that a check written for $120 was incorrectly recorded by Brockton as a $220 disbursement. The bank statement listed service charges and NSF check charges totaling $150. The corrected cash balance is $2,270. $2,550. $2,470. $2,700. Question 5. Question : (TCO 7) Calistoga Produce estimates bad debt expense at ½% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $471,000 and $1,650, respectively, at December 31, 2010. During 2011, Calistoga’s credit sales and collections were $315,000 and $319,000, respectively, and $1,720 in accounts receivable were written off. Calistoga’s adjusted allowance for uncollectible accounts at December 31, 2011 is $1,575. $1,505. $1,650. $1,720. quiz 7 (TCO 8) In applying LCM, market cannot be less than net realizable value minus a normal profit margin. net realizable value less reasonable completion and disposal costs. greater than net realizable value reduced by an allowance for normal profit margin. less than cost. Question 2. Question : (TCO 8) Montana Co. has determined its year-end inventory on a FIFO basis to be $600,000. Information pertaining to that inventory is as follows: What should be the carrying value of Montana’s inventory? $600,000 $520,000 $590,000 $510,000 Question 3. Question : (TCO 8) Howard’s Supply Co. suffered a fire loss on April 20, 2011. The company’s last physical inventory was taken on January 30, 2011, at which time the inventory totaled $220,000. Sales from January 30 to April 20 were $600,000, and purchases during that time were $450,000. Howard’s consistently reports a 30% gross profit. The estimated inventory loss is $490,000. $238,000. $250,000. None of the above Question 4. Question : (TCO 8) When computing the cost-to-retail percentage for the conventional retail method, included in the denominator are net markups and net markdowns. neither net markups nor net markdowns. net markups, but not net markdowns. net markdowns, but not net markups. Question 5. Question : (TCO 8) Retrospective treatment of prior years’ financial statements is required when there is a change from average cost to FIFO. FIFO to average cost. LIFO to average cost. All of the above week 6 Annual Report Analysis Your annual report analysis is due at the end of Week 6. Obtain an annual report from a corporation that is interesting to you. Using techniques that you have learned of in the previous weeks, respond to the following questions. 1. Who are the firm’s auditors? Do they provide a clean opinion on the financial statements? 2. Have there been any subsequent events, errors and irregularities, illegal acts, or related-party transactions that have a material effect on the financial statements? 3. Describe the trend in total assets and total liabilities for the years presented. 4. What are the company’s three largest assets for the most recent year presented? 5. What are the company’s three largest liabilities for the most recent year presented? 6. What types of stock does the company have? How many outstanding shares are there for each type of stock for the most recent year presented? 7. Does the company use the single-step income statement, multiple-step income statement, or a variation of both? 8. Does the income statement contain any separately reported items, including discontinued operations or extraordinary items, in any year presented? If it does, describe the event that caused the item. (Hint: There should be a related footnote.) 9. Describe the trend in net income over the years presented. 10. Does the company have other comprehensive income? If yes, what is the nature of the transaction(s)? 11. Does the company use the indirect or direct method of the cash-flow statement? 12. What is the trend in cash from operations for the years presented? 13. What are the two largest items included in cash from investing activities? Please see grading rubric for guidelines. Please submit the completed project by Sunday at the end of Week 6. Submit your Course Project to the Dropbox located on the silver tab at the top of this page. For instructions on how to use the Dropbox, read these

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ACCT 304 Week 1 to 7 Quizzes Click Link Below To Buy: http://hwcampus.com/shop/acct-304-week-1-7-quizzes/ Contact Us: [email protected] Question 1. Question : (TCO 1) Which of the following has the authority to set accounting standards in the United States? FASB IRS SEC AICPA : 1 Question 2. Question : (TCO 2) SFAC No.5 focuses on: objectives of financial reporting. qualitative characteristics of accounting information. Recognition and measurement concepts in accounting, including assumptions and principles. elements of financial statements. : 1 5 of 5 Question 3. Question : (TCO 3) Mary Parker Co. invested $15,000 in ABC Corporation and received capital stock in exchange. Mary Parker Co.’s journal entry to record this transaction would include a: debit to investments. credit to retained earnings. credit to capital stock. debit to expense. : 2 5 of 5 Question 4. Question : (TCO 3) The adjusting entry required to record accrued expenses includes: a credit to cash. a debit to an asset. a credit to an asset. a credit to liability. : 2 5 of 5 Question 5. Question : (TCO 3) Temporary accounts would not include: salaries payable. depreciation expense. supplies expense. cost of goods sold. : 2 5 of 5 Question 6. Question : (TCO 4) Notes payable: is a current liability account. usually has a debit balance. is a non-current liability account. cannot determine its classification without additional information. : 2 5 of 5 Question 7. Question : (TCO 4) The current ratio is given by: current assets divided by non-current assets. current assets divided by total assets. current assets divided by current liabilities. current assets divided by total liabilities. : 3 5 of 5 Question 8. Question : (TCO 5) The distinction between operating and non-operating income relates to: continuity of income. principal activities of the reporting entity. consistency of income stream. reliability of measurements. : 4 5 of 5 Question 9. Question : (TCO 5) A voluntary change in accounting principle is accounted for by: a cumulative effect on income in the year of the change. a retrospective reporting of all comparative financial statements shown. a prior period adjustment. a separate line component of income. : 4 5 of 5 Question 10. Question : (TCO 5) Cash flows from investing activities do not include: proceeds from issuing bonds. payment for the purchase of equipment. proceeds from the sale of marketable securities. cash outflows from acquiring land. : 4 5 of 5 Question 11. Question : (TCO 5) The Maytag Corporation’s income statement includes income from continuing operations, a loss from discontinued operations, and extraordinary items. Earnings per share information would be provided for: net income only. income from continuing operations and net income only. income from continuing operations, loss from discontinued operations, and net income only. income from continuing operations, loss from discontinued operations, extraordinary items, and net income. : 4 5 of 5 Question 12. Question : (TCO 5) In a statement of cash flows prepared under International Financial Reporting Standards, each of the following items is typically classified as a financing cash flow except: interest paid. dividends paid. proceeds from the issuance of long-term debt. dividends received. : 4 5 of 5 Question 13. Question : (TCO 4) Which is a shareholders’ equity account in the balance sheet? Accumulated depreciation Paid-in capital Dividends payable Marketable securities : 3 5 of 5 Question 14. Question : (TCO 4) Which of the following groups is not among the external users for whom financial statements are prepared? Customers Suppliers Employees All of the above are external users of financial statements. (TCO 5) Misty Company reported the following before-tax items during the current year: Misty’s effective tax rate is 40% and there were 1,000 shares of common stock outstanding. What would be Misty’s income before extraordinary item(s)? Question 2. Question : (TCO 4) Listed below are account balances (in $millions) taken from the records of Symphony Stores. All of these are permanent accounts, except the last two that have yet to be closed. The installment receivables are current. Symphony uses a perpetual inventory system. What would Symphony report as total assets? Hint: Don’t forget to deduct the contra assets. (TCO 4) Explain how management’s discussion and analysis of its operations and liquidity may be helpful to investors. Question 2. Question : (TCO 2) What are the key provisions of the Public Company Accounting Reform and Investor Protection (Sarbanes-Oxley) Act of 2002? Question 3. Question : (TCO 5) Give an example of a non-cash financing and investing activity and explain when and how it would be reported in the financial statements. Question 4. Question : (TCO 3) What is the purpose of the closing process? (TCO 1) The SEC issues accounting standards in the form of accounting research bulletins. financial reporting releases. financial accounting standards. financial technical bulletins. : Question 2. Question : (TCO 2) Enhancing qualitative characteristics of accounting information include each of the following, except timeliness. materiality. comparability. verifiability. Comments: Question 3. Question : (TCO 3) Hughes Aircraft sold a four-passenger airplane for $380,000, receiving a $50,000 down payment and a 12% note for the balance. The journal entry to record this sale would include a credit to cash. debit to cash discount. debit to note receivable. credit to note receivable. Comments: Question 4. Question : (TCO 3) When a tenant makes an end-of-period adjusting entry credit to the prepaid rent account he or she usually debits cash. he or she usually debits an expense account. he or she debits a liability account. he or she does none of the above. Comments: Question 5. Question : (TCO 3) Permanent accounts would not include interest expense. wages payable. prepaid rent. unearned revenues. Question 1. Question : (TCO 4) Cash equivalents would not include cash not available for current operations. money market funds. United States Treasury bills. bank drafts. Question 2. Question : (TCO 4) Which is a shareholders’ equity account in the balance sheet? Accumulated depreciation Paid-in capital Dividends payable Marketable securities Instructor Explanation: See Chapter 3. Points Received: 4 of 4 Comments: Question 3. Question : (TCO 4) Janson Corporation Co.’s trial balance included the following account balances at December 31, 2011: Investments consist of treasury bills that were purchased in November and mature in January. Prepaid insurance is for the next 2 years. What amount should be included in the current asset section of Janson’s December 31, 2011 balance sheet? $88.000 $85,000 $55,000 $135,000 Question 4. Question : (TCO 4) Which of the following would be disclosed in the summary of significant accounting policies disclosure note? Option A Option B Option C Option D Question 5. Question : (TCO 4) Below is the partial balance sheet ($ in thousands) for Paisano Seafood Inc. The current ratio (rounded) is 1.98. 1.58. 1.17. 0.66. quiz 3 TCO 5) The distinction between operating and non-operating income relates to continuity of income. principal activities of the reporting entity. consistency of income stream. reliability of measurements. Instructor Explanation: See Chapter 4. Points Received: 4 of 4 Comments: Question 2. Question : (TCO 5) Major Co. reported a 2011 income of $300,000 from continuing operations before income taxes and a before-tax extraordinary loss of $80,000. All income is subject to a 30% tax rate. In the 2011 income statement, Major Co. would show the following line-item amounts for income tax expense and net income. $66,000 and $210,000 $90,000 and $154,000 $90,000 and $276,000 $66,000 and $220,000 Instructor Explanation: Points Received: 4 of 4 Comments: Question 3. Question : (TCO 5) The financial statement presentation of a change in depreciation method is most similar to that of reporting changes in accounting estimates. prior period adjustments. ion of errors. extraordinary items. Instructor Explanation: See Chapter 4. Points Received: 4 of 4 Comments: Question 4. Question : (TCO 5) Cash flows from investing activities do not include proceeds from issuing bonds. payment for the purchase of equipment. proceeds from the sale of marketable securities. cash outflows from acquiring land. Instructor Explanation: See Chapter 4. Points Received: 4 of 4 Comments: Question 5. Question : (TCO 5) Review Rowdy’s Restaurants cash flow (in millions): Rowdy’s would report net cash inflows (outflows) from financing activities in the amount of $1,100. $(1,100). $820. $900. Instructor Explanation: Points Received: 4 of 4 Comments: 4 (TCO 5) For a typical manufacturing company, the most common critical point for recognizing revenue is the date an order is received. production is completed. the product is delivered. payment is received. Question 2. Question : (TCO 5) On December 15, 2011, Rigsby Sales Co. sold a tract of land that cost $3,600,000 for $4,500,000. Rigsby appropriately uses the installment sale method of accounting for this transaction. Terms called for a down payment of $500,000 with the balance in two equal, annual installments, payable on December 15, 2012 and December 15, 2013. Ignore interest charges. Rigsby has a December 31 year-end. In 2011, Rigsby would recognize the realized gross profit of $500,000. $0. $900,000. $100,000. Question 3. Question : (TCO 6) Present and future value tables of $1 at 3% are presented below: Carol wants to invest money in a 6% CD account that compounds semiannually. Carol would like the account to have a balance of $50,000 5 years from now. How much must Carol deposit to accomplish her goal? $35,069 $43,131 $37,205 $35,000 Comments: Question 4. Question : (TCO 6) Sondra deposits $2,000 in an IRA account on April 15, 2011. Assume the account will earn 3% annually. If she repeats this for the next 9 years, how much will she have on deposit on April 14, 2020? $20,600 $20,928 $23,616 $24,715 Question 5. Question : (TCO 6) Jose wants to cash in his winning lottery ticket. He can either receive five, $5,000 annual payments starting today, or he can receive a lump-sum payment now based on a 3% annual interest rate. What is the present value of the installments if he opts for the lump sum payment? $22,899 $21,565 $23,000 5 (TCO 7) Cash may not include foreign currency. money orders. restricted cash. undeposited customer checks. Question 2. Question : (TCO 7) On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit term 2/10, n/30. Flores uses the gross method of accounting for cash discounts. What is the correct entry for Flores on November 17, assuming the correct payment was received on that date? Option a Option b Option c Option d Question 3. Question : (TCO 7) Which of the following does not change the balance in accounts receivable? Returns on credit sales Collections from customers Bad debts expense adjusting entry Write-offs Question 4. Question : (TCO 7) Brockton Carpet Cleaning prepares a bank reconciliation at the end of every month. At the end of July, the balance in the general ledger checking account was $2,750, and the bank balance on the bank statement was $2,980. Outstanding checks totaled $680, and deposits in transit were $400. The bank statement revealed that a check written for $120 was incorrectly recorded by Brockton as a $220 disbursement. The bank statement listed service charges and NSF check charges totaling $150. The corrected cash balance is $2,270. $2,550. $2,470. $2,700. Question 5. Question : (TCO 7) Calistoga Produce estimates bad debt expense at ½% of credit sales. The company reported accounts receivable and allowance for uncollectible accounts of $471,000 and $1,650, respectively, at December 31, 2010. During 2011, Calistoga’s credit sales and collections were $315,000 and $319,000, respectively, and $1,720 in accounts receivable were written off. Calistoga’s adjusted allowance for uncollectible accounts at December 31, 2011 is $1,575. $1,505. $1,650. $1,720. quiz 7 (TCO 8) In applying LCM, market cannot be less than net realizable value minus a normal profit margin. net realizable value less reasonable completion and disposal costs. greater than net realizable value reduced by an allowance for normal profit margin. less than cost. Question 2. Question : (TCO 8) Montana Co. has determined its year-end inventory on a FIFO basis to be $600,000. Information pertaining to that inventory is as follows: What should be the carrying value of Montana’s inventory? $600,000 $520,000 $590,000 $510,000 Question 3. Question : (TCO 8) Howard’s Supply Co. suffered a fire loss on April 20, 2011. The company’s last physical inventory was taken on January 30, 2011, at which time the inventory totaled $220,000. Sales from January 30 to April 20 were $600,000, and purchases during that time were $450,000. Howard’s consistently reports a 30% gross profit. The estimated inventory loss is $490,000. $238,000. $250,000. None of the above Question 4. Question : (TCO 8) When computing the cost-to-retail percentage for the conventional retail method, included in the denominator are net markups and net markdowns. neither net markups nor net markdowns. net markups, but not net markdowns. net markdowns, but not net markups. Question 5. Question : (TCO 8) Retrospective treatment of prior years’ financial statements is required when there is a change from average cost to FIFO. FIFO to average cost. LIFO to average cost. All of the above week 6 Annual Report Analysis Your annual report analysis is due at the end of Week 6. Obtain an annual report from a corporation that is interesting to you. Using techniques that you have learned of in the previous weeks, respond to the following questions. 1. Who are the firm’s auditors? Do they provide a clean opinion on the financial statements? 2. Have there been any subsequent events, errors and irregularities, illegal acts, or related-party transactions that have a material effect on the financial statements? 3. Describe the trend in total assets and total liabilities for the years presented. 4. What are the company’s three largest assets for the most recent year presented? 5. What are the company’s three largest liabilities for the most recent year presented? 6. What types of stock does the company have? How many outstanding shares are there for each type of stock for the most recent year presented? 7. Does the company use the single-step income statement, multiple-step income statement, or a variation of both? 8. Does the income statement contain any separately reported items, including discontinued operations or extraordinary items, in any year presented? If it does, describe the event that caused the item. (Hint: There should be a related footnote.) 9. Describe the trend in net income over the years presented. 10. Does the company have other comprehensive income? If yes, what is the nature of the transaction(s)? 11. Does the company use the indirect or direct method of the cash-flow statement? 12. What is the trend in cash from operations for the years presented? 13. What are the two largest items included in cash from investing activities? Please see grading rubric for guidelines. Please submit the completed project by Sunday at the end of Week 6. Submit your Course Project to the Dropbox located on the silver tab at the top of this page. For instructions on how to use the Dropbox, read these

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