List the three ways to analyze financial statements. State what each of these ways provides to investors and creditors.
What will be an ideal response?
Horizontal analysis provides a year-to-year comparison of a company's performance in different
periods.
Vertical analysis provides a way to compare different companies.
Ratio analysis provides information about a company's performance. It is used most effectively to
measure a company against other companies in the same industry and to denote trends within the
company.
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Exhibit 14-10 Hawk issued $500,000 of its ten-year 5% bonds for $463,197 on October 1, 2016 so as to yield an effective rate of 6%. Interest is paid each October 1 and April 1. ?Refer to Exhibit 14-10. Assuming Hawk uses the effective interest method and reversing entries, the entry to record the payment of interest on April 1, 2017, would include (rounded to the nearest dollar)
A) ?a credit to Discount on Bonds Payable for $1,396. B) ?a debit to Discount on Bonds Payable for $1,396. C) ?a debit to Interest Expense for $11,580. D) ?a credit to Cash for $12,500.
The standard overhead cost is the sum of the estimates of variable and fixed overhead costs in the next accounting period
Indicate whether the statement is true or false
For three consecutive years, 2012-2014, Siamese Corporation has reported income before taxes of $200,000 for both financial reporting purposes and tax reporting purposes. During this time, Siamese income tax rates were as follows: 2012 ............................ 20% 2013 ............................ 25% 2014 ............................ 30% In 2015, Siamese' tax rate changed to 35 percent. Also
in 2015, the company reported a loss for both financial reporting and tax reporting purposes of $200,000 . Assuming the company uses the carryback provisions, the amount Siamese' should report as an income tax refund receivable in 2015 is a. $45,000. b. $50,000. c. $60,000. d. $67,500.
Which statement concerning vending machines is correct?
a. Over 95 percent of vending machine sales involve hot and cold beverages and food items. b. Eighty-five percent of vending machine sales involve cigarettes. c. There has been significant growth in the sale of items priced above $5.00 in vending machines. d. Most vending machines are equipped with dollar bill changers.