8. A net loss will result during a time period when a. liabilities exceed assets. b. drawings exceed investments. C. expenses exceed revenues. d. revenues exceed expenses. 9. CVP analysis does not consider the a. level of activity. b. fixed cost per unit. C. unit variable cost. 10. d. sales mix. Capital is a. an owner's investment in the business. b. equal to liabilities minus owner's equity. c. equal to assets minus owner's equity. d. equal to liabilities plus drawings. 11. E&A Company reported the following on its income statement: Income before income taxes $420,000 120,000 $300,000 Income tax expense Net income An analysis of the income statement revealed that interest expense was $60,000. E&A Company's times interest earned was a. 8 times. b. 7 times. 12. C. 6 times. d. 5 times. The following credit sales are budgeted by Hoffmann Co.: January February March April $204,000 300,000 420,000 360,000 The company's past experience indicates that 70% of accounts receivable are collected in the month of sale, 20% in the month following the sale, and 8% in the second month following the sale. The budgeted cash receipts for the month of April are a. $370,320. b. $336,000. c. $360,000. d. $352,800. 13. 33 An income statement a. summarizes the changes in owner's equity for a specific period of time. b. reports the changes in assets, liabilities, and owner's equity over a period of time. c. reports the assets, liabilities, and owner's equity at a specific date. d. presents the revenues and expenses for a specific period of time. Horizontal analysis is also called linear analysis. 14. a. b. vertical analysis. C. trend analysis. d. common size analysis. 15. GAAP stands for a. Generally Accepted Auditing Procedures. b. Generally Accepted Accounting Principles. C. Generally Accepted Auditing Principles. d. Generally Accepted Accounting Procedures. (2/3)
8. A net loss will result during a time period when a. liabilities exceed assets. b. drawings exceed investments. C. expenses exceed revenues. d. revenues exceed expenses. 9. CVP analysis does not consider the a. level of activity. b. fixed cost per unit. C. unit variable cost. 10. d. sales mix. Capital is a. an owner's investment in the business. b. equal to liabilities minus owner's equity. c. equal to assets minus owner's equity. d. equal to liabilities plus drawings. 11. E&A Company reported the following on its income statement: Income before income taxes $420,000 120,000 $300,000 Income tax expense Net income An analysis of the income statement revealed that interest expense was $60,000. E&A Company's times interest earned was a. 8 times. b. 7 times. 12. C. 6 times. d. 5 times. The following credit sales are budgeted by Hoffmann Co.: January February March April $204,000 300,000 420,000 360,000 The company's past experience indicates that 70% of accounts receivable are collected in the month of sale, 20% in the month following the sale, and 8% in the second month following the sale. The budgeted cash receipts for the month of April are a. $370,320. b. $336,000. c. $360,000. d. $352,800. 13. 33 An income statement a. summarizes the changes in owner's equity for a specific period of time. b. reports the changes in assets, liabilities, and owner's equity over a period of time. c. reports the assets, liabilities, and owner's equity at a specific date. d. presents the revenues and expenses for a specific period of time. Horizontal analysis is also called linear analysis. 14. a. b. vertical analysis. C. trend analysis. d. common size analysis. 15. GAAP stands for a. Generally Accepted Auditing Procedures. b. Generally Accepted Accounting Principles. C. Generally Accepted Auditing Principles. d. Generally Accepted Accounting Procedures. (2/3)
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 20MC: A multi-step income statement ________. A. separates cost of goods sold from operating expenses B....
Related questions
Question
Transcribed Image Text:8.
A net loss will result during a time period when
a.
liabilities exceed assets.
b. drawings exceed investments.
C.
expenses exceed revenues.
d. revenues exceed expenses.
9.
CVP analysis does not consider the
a. level of activity.
b.
fixed cost per unit.
C.
unit variable cost.
10.
d. sales mix.
Capital is
a.
an owner's investment in the business.
b. equal to liabilities minus owner's equity.
c. equal to assets minus owner's equity.
d. equal to liabilities plus drawings.
11.
E&A Company reported the following on its income statement:
Income before income taxes
$420,000
120,000
$300,000
Income tax expense
Net income
An analysis of the income statement revealed that interest expense was $60,000. E&A Company's times
interest earned was
a. 8 times.
b. 7 times.
12.
C.
6 times.
d. 5 times.
The following credit sales are budgeted by Hoffmann Co.:
January
February
March
April
$204,000
300,000
420,000
360,000
The company's past experience indicates that 70% of accounts receivable are collected in the month of sale,
20% in the month following the sale, and 8% in the second month following the sale. The budgeted cash receipts
for the month of April are
a. $370,320.
b. $336,000.
c. $360,000.
d. $352,800.
13.
33
An income statement
a.
summarizes the changes in owner's equity for a specific period of time.
b. reports the changes in assets, liabilities, and owner's equity over a period of time.
c. reports the assets, liabilities, and owner's equity at a specific date.
d. presents the revenues and expenses for a specific period of time.
Horizontal analysis is also called
linear analysis.
14.
a.
b.
vertical analysis.
C.
trend analysis.
d.
common size analysis.
15.
GAAP stands for
a. Generally Accepted Auditing Procedures.
b. Generally Accepted Accounting Principles.
C. Generally Accepted Auditing Principles.
d. Generally Accepted Accounting Procedures.
(2/3)
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