Interim financial statements refer to financial reports:
A. Where the adjustment process is used to assign revenues to the periods in which they are earned and to match expenses with revenues.
B. That cover less than one year, usually spanning one, three, or six-month periods.
C. Where revenues are reported on the income statement when cash is received and expenses are reported when cash is paid.
D. That are prepared before any adjustments have been recorded.
E. That show the assets above the liabilities and the liabilities above the equity.
Answer: B
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Tweedle Corporation's most recent balance sheet and income statement appear below:Balance SheetDecember 31, Year 2 and Year 1(in thousands of dollars)AssetsYear 2Year 1Current assets: Cash$140 $130 Accounts receivable, net 200 210 Inventory 150 180 Prepaid expenses 20 20 Total current assets 510 540 Plant and equipment, net 950 910 Total assets$1,460 $1,450 Liabilities and Stockholders' Equity Current liabilities: Accounts payable$130 $150 Accrued liabilities 70 70 Notes payable, short term 70 60 Total current liabilities 270 280 Bonds payable 170 190 Total liabilities 440 470 Stockholders' equity: Common stock, $1 par value 200 200 Additional paid-in
capital 320 320 Retained earnings 500 460 Total stockholders' equity 1,020 980 Total liabilities & stockholders' equity$1,460 $1,450 Income StatementFor the Year Ended December 31, Year 2(in thousands of dollars)Sales (all on account)$1,190 Cost of goods sold 710 Gross margin 480 Selling and administrative expense 226 Net operating income 254 Interest expense 25 Net income before taxes 229 Income taxes (30%) 69 Net income$160 The debt-to-equity ratio at the end of Year 2 is closest to: A. 0.43 B. 0.17 C. 0.24 D. 0.54
The closing process involves reducing to zero the balance in each income statement account by debiting the revenue accounts and crediting the expense accounts, and transferring to Retained Earnings the differences between total revenues and total expenses
Indicate whether the statement is true or false
Identify and briefly describe the four steps in the risk management process.
Fill in the blank(s) with the appropriate word(s).
Let: rj = regular production quantity for period j, oj =overtime production quantity in period j, ij = inventory quantity in period j, and dj = demand quantity in period j. Correct formulation of the demand constraint for a multiperiod scheduling problem
A) rj + oj + i2 - i1 ? dj. B) rj + oj + i1 - i2 ? dj. C) rj + oj + i1 - i2 ? dj. D) rj - oj - i1 + i2 ? dj.