Generally Accepted Accounting Principles and Sample Test Paper

8. If a company has $181,000 in total liabilities and $225,000 in total assets, what percentage of total assets is being financed with the use of other people’s money? 80.4 (http://www.cliffsnotes.com/study_guide/Ratio-Analysis.topicArticleId-21248,articleId-21213.html)

b. Describe what it means for a business to "recognize" revenues. What specific accounts and financial statements are

Briefly summarize the key facts you noted in your study of the five components of internal control and the rationale for the conclusions you made in the audit program concerning whether each component was adequately designed and implemented.

1. For the year-end December 31, 2007, financial statements, what amount should M record as a liability?

Accounts Receivable, Other Receivables, Allowance for Doubtful Accounts, Bad Debt ExpenseInventories and Reserve for Inventory Obsolescence

Student Cases with Solutions to accompany Accounting & Auditing Research: Tools & Strategies (7th edition)

What correcting entry should you prepare? 54 A. Office Expense Accounts Payable 54 54 B. Accounts Payable Office Expense 54 28 C. Accounts Payable Office Expense 28 D. No entry is needed

b. The firm is required to make a cash payment for the goods or services.

7. Debt to capitalization = Long-term Debt in Balance Sheet / Long term debt + Net Assets in

The ______ provides a financial summary of the firm 's operating results during a specified period.

b. Describe what it means for a business to "recognize" revenues. What specific accounts and financial statements are

debt. The steady cash flow generated by the business, short-term bank loans, and the proceeds of the

Another theory used in accounting is that of Materiality. This notion necessitates that accounting centers on material facts and not on facts that are immaterial to figuring revenues. Only transactions that have monetary

Accounts Receivable: This portion shows legally enforceable claims on customers for prior services or goods.

2. At the end of its first year of operations, Matlocke Company has total assets of $2,000,000 and total liabilities of $1,200,000. The owner originally invested $200,000 in the business, but has not made any further investments or taken any withdrawals. What is the first year 's net income for Matlocke Company?