Question: Which of the following would normally not

> How may beta coefficients be used to standardize returns for risk to permit comparisons of mutual fund performance?

> Why may the annual growth in a fund’s net asset value not be comparable to the return earned by an individual investor?

> What are the differences among loading fees, exit fees, and 12b-1 fees?

> Should an investor expect a mutual fund to outperform the market? If not, why should the investor buy the shares?

> How are the SIPC and FDIC similar? Why are securities laws frequently referred to as “full disclosure laws,” and what is the role of the SEC?

> The Kelleher brothers, Victor and Darin, could not be more different. Victor is assertive and enjoys Taking risks, while Darin is reserved and is exceedingly risk averse. Both have jobs that pay well and provide fringe benefits, including medical insuran

> Compute total assets for Romney’s Marketing Company based on the adjusted trial balance in Mini Exercise 8. Then compute the company’s total asset turnover (rounded to two decimal places) for the current year, assuming total assets at the e

> Prepare journal entries for each transaction listed in Mini Exercise 5. Data from Mini Exercise 5: Using the following categories, indicate the effects of the following transactions. Use + for increase and- for decrease and indicate the accounts af

> Given the transactions in Mini Exercise 7 and Mini Exercise 8, prepare an income statement for Craig’s Bowling, Inc., for the month of July. Transactions in Mini Exercise 7: Balance Sheet Income Statement   Assets Liabilities Stockholders’ Equ

> Using the following categories, indicate the effects of the following transactions. Use + for increase and- for decrease and indicate the accounts affected and the amounts. a. Sales on account were $1,800 and related cost of goods sold was $1,200. b. Iss

> Saunders, Inc., recently reported the following December 31 amounts in its financial statements (dollars in thousands): Compute return on assets for the current year. What does this ratio measure? Current Year Prior Year Gross profit $ 200 $120 Net i

> For each of the transactions in Mini Exercise 3, write the journal entry in good form. Transactions in Mini Exercise 3:  Revenue Account Affected  Amount of Revenue Earned in July  a. Games Revenue $15,000  b. Sales Revenue $8,000  c. 

> For each of the transactions in Mini Exercise 3, write the journal entry in good form. The transactions in Mini Exercise 3: a. Games Revenue $15,000  b. Sales Revenue $8,000  c. None No revenue earned in July; cash collections in July relate

> Abercrombie and Fitch is a leading retailer of casual apparel for men, women, and children. Assume that you are employed as a stock analyst and your boss has just completed a review of the new Abercrombie annual report. She provided you with her notes, b

> Refer to the adjusted trial balance for Romney’s Marketing Company in Mini Exercise 8. Prepare the closing entry at the end of the current year. Data from Exercise 8: Romney’s Marketing Company has the following adjus

> Match the type of inventory with the type of business in the following matrix: TYPE OF BUSINESS Type of Inventory Merchandising Manufacturing Work in process Finished goods Merchandise Raw materials

> TangoCo is developing its annual financial statements for the current year. The following amounts were correct at December 31, current year: cash, $48,800; investment in stock of PIL Corporation (long term), $36,400; store equipment, $67,200; accounts re

> Avon Products, Inc., is a leading manufacturer and marketer of beauty products and related merchandise. The company sells its products in 110 countries through a combination of direct selling and use of individual sales representatives. Presented here is

> Dynamite Sales (organized as a corporation on September 1, 2013) has completed the accounting cycle for the second year, ended August 31, 2015. Dynamite also has completed a correct trial balance as follows: Required: Complete the financial statements,

> Kate’s Kite Company (a corporation) sells and repairs kites from manufacturers around the world. Its stores are located in rented space in malls and shopping centers. During its first month of operations ended April 30, Kateâ&#128

> At the end of the prior annual reporting period, Mesa Industries’s balance sheet showed the following: MESA INDUSTRIES Balance Sheet At December 31, Prior Year Stockholders’ Equity Common stock (par $15; 7,000 shares)……..$105,000 Additional paid-in capit

> How is the total asset turnover ratio computed and interpreted?

> How is earnings per share computed and interpreted?

> For each of the transactions in Mini Exercise 4, indicate the amounts and the direction of effects of the adjusting entry on the elements of the balance sheet and income statement. Using the following format, indicate + for increase, −

> What is a contra-asset? Give an example of one.

> Explain the difference between sales revenue and net sales.

> What is the purpose of recording adjusting entries?

> Papa John’s International Inc. operates and franchises pizza delivery and carryout restaurants worldwide. The following is an alphabetical list of accounts and amounts reported in a recent year’s set of financial state

> Tunstall, Inc., a small service company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following unadjusted trial balance as of the end of the annual accounting period on December 31: Data not

> Following are the concepts of accounting covered in Chapters 2 through 5. Match each transaction or definition with its related concept by entering the appropriate letter in the space provided. Use one letter for each blank. Concepts Transactions/Def

> Ramirez Company is completing the information processing cycle at its fiscal year-end on December 31. Following are the correct balances at December 31 for the accounts both before and after the adjusting entries. Required: 1. Compare the amounts in the

> Refer to Exercise 15. Data from Exercise 15: Lisa Frees and Amelia Ellinger have been operating a catering business for several years. In March, the partners plan to expand by opening a retail sales shop. They have decided to form the business as a corp

> Newell Rubbermaid Inc. manufactures and markets a broad array of office products, tools and hardware, and home products under a variety of brand names, including Sharpie, Paper Mate, Rolodex, Rubbermaid, Levolor, and others. The items reported on its inc

> Mateo Inc. is a retailer of men’s and women’s clothing aimed at college-age customers. Listed below are additional transactions that Mateo was considering at the end of the accounting period. Required: Listed below ar

> Creative Technology, a computer hardware company based in Singapore, developed the modern standard for computer sound cards in the early 1990s. Recently, Creative has released a line of portable audio products to directly compete with Appleâ€&

> Jordan Sales Company (organized as a corporation on April 1, 2014) has completed the accounting cycle for the second year, ended March 31, 2016. Jordan also has completed a correct trial balance as follows: Required: Complete the financial statements as

> Peet’s Coffee & Tea, Inc., is a specialty coffee roaster and marketer of branded fresh-roasted whole bean coffee. It recently disclosed the following information concerning the Allowance for Doubtful Accounts on its Form 10-K Annual

> Aeropostale, Inc., is a mall-based specialty retailer of casual apparel and accessories. The company concept is to provide the customer with a focused selection of high-quality, active-oriented fashions at compelling values. The items reported on its inc

> At the end of the prior annual reporting period, Barnard Corporation’s balance sheet showed the following: BARNARD CORPORATION Balance Sheet At December 31, Prior Year Stockholders’ Equity Contributed capital Common stock (par $15; 5,500 shares)………………………

> Exquisite Jewelers is developing its annual financial statements for the current year. The following amounts were correct at December 31, current year: cash, $58,000; accounts receivable, $71,000; merchandise inventory, $154,000; prepaid insurance, $1,50

> Following are terms related to the balance sheet that were discussed in Chapters 2 through 5. Match each definition with its related term by entering the appropriate letter in the space provided. Terms Definitions (1) Capital in excess of par A. Near

> Net income was $850,000. Beginning and ending assets were $8,500,000 and $9,600,000, respectively. What was the return on assets (ROA)? a. 9.39% b. 10.59% c. 9.94% d. 10.41%

> When a company issues stock with a par value, what columns are typically presented in the statement of stockholders’ equity? a. Common Stock; Additional Paid-In Capital; and Property, Plant, and Equipment, Net. b. Cash; and Property, Plant, and Equipment

> Lisa Frees and Amelia Ellinger have been operating a catering business for several years. In March, the partners plan to expand by opening a retail sales shop. They have decided to form the business as a corporation called Traveling Gourmet, Inc. The fol

> Refer to the information regarding Martin Towing Company in Problem 3. Data given in Problem 3: Martin Towing Company is at the end of its accounting year ending December 31. The following data that must be considered were developed from the company&aci

> The classified balance sheet format allows one to ascertain quickly which of the following? a. The most valuable asset of the company. b. The specific due date for all liabilities of the company. c. What liabilities must be paid within the upcoming year.

> Which of the following is not a normal function of a financial analyst? a. Issue earnings forecasts. b. Examine the records underlying the financial statements to certify their conformance with GAAP. c. Make buy, hold, and sell recommendations on compani

> Match each definition with its related term by entering the appropriate letter in the space provided. Definition Term A. Accrued expense B. Deferred expense C. Accrued revenue (1) At year-end, service revenue of $1,000 was collected in cash but was n

> Which of the following reports is filed annually with the SEC? a. Form 10-Q b. Form 10-K c. Form 8-K d. Press release

> Which of the following is one of the possible nonrecurring items that must be shown in a separate line item below the Income from Continuing Operations subtotal in the income statement? a. Gains and losses from the sale of fixed assets. b. Discontinued o

> If a company reported the following items on its income statement (cost of goods sold $6,000, income tax expense $2,000, interest expense $500, operating expenses $3,500, sales revenue $14,000), what amount would be reported for the subtotal “income from

> If a company plans to differentiate its products by offering low prices and discounts for items packaged in bulk (like a discount retailer that requires memberships for its customers), which component in the ROA profit driver analysis is the company atte

> If average total assets increase, but net income, net sales, and average stockholders’ equity remain the same, what is the impact on the return on assets ratio? a. Increases. b. Decreases. c. Remains the same. d. Cannot be determined without additional i

> Which of the following is false regarding a perpetual inventory system? a. Physical counts are not needed since records are maintained on a transaction-by-transaction basis. b. The balance in the inventory account is updated with each inventory purchase

> Refer to Exercise 13. Data from Exercise 13: At January 1 (beginning of its fiscal year), Conover, Inc., a financial services consulting firm, reported the following account balances (in thousands of dollars, except number of shares and par value per sh

> Which inventory method provides a better matching of current costs with sales revenue on the income statement and outdated values for inventory on the balance sheet? a. FIFO b. Average cost c. LIFO d. Specific identification

> Refer to the information regarding Zimmerman Company in Problem 2. Data from Problem 2: All of the current year’s entries for Zimmerman Company have been made, except the following adjusting entries. The company’s ann

> The following data were selected from the records of Sykes Company for the year ended December 31, current year. Balances January 1, current year Accounts receivable (various customers) ……&acir

> Which of the following regarding the lower of cost or market rule for inventory are true? (1) The lower of cost or market rule is an example of the historical cost principle. (2) When the net realizable value of inventory drops below the cost shown in th

> If the ending balance in accounts payable decreases from one period to the next, which of the following is true? a. Cash payments to suppliers exceeded current period purchases. b. Cash payments to suppliers were less than current period purchases. c. Ca

> An increasing inventory turnover ratio a. Indicates a longer time span between the ordering and receiving of inventory. b. Indicates a shorter time span between the ordering and receiving of inventory. c. Indicates a shorter time span between the purchas

> Consider the following information: beginning inventory, 10 units @ $20 per unit; first purchase, 35 units @ $22 per unit; second purchase, 40 units @ $24 per unit; 50 units were sold. What is cost of goods sold using the LIFO method of inventory costing

> Consider the following information: beginning inventory, 10 units @ $20 per unit; first purchase, 35 units @ $22 per unit; second purchase, 40 units @ $24 per unit; 50 units were sold. What is cost of goods sold using the FIFO method of inventory costing

> Which of the following is not a component of the cost of inventory? a. Administrative overhead b. Direct labor c. Raw materials d. Factory overhead

> The inventory costing method selected by a company will affect a. The balance sheet. b. The income statement. c. The statement of retained earnings. d. All of the above.

> Consider the following information: ending inventory, $24,000; sales, $250,000; beginning inventory, $30,000; selling and administrative expenses, $70,000; and purchases, $90,000. What is cost of goods sold? a. $86,000 b. $94,000 c. $96,000 d. $84,000

> Scott’s Cycles sells merchandise on credit terms of 2/15, n/30. A sale invoiced at $1,500 (cost of sales $975) was made to Shannon Allen on February 1. The company uses the gross method of recording sales discounts. Required: 1. Give the journal entry t

> Use the data presented in Problem 1, which were selected from the records of Sykes Company for the year ended December 31, current year. Data from Problem 1: The following data were selected from the records of Sykes Company for the year ended December

> Assume that a retailer’s beginning inventory and purchases of a popular item during January included: (1) 300 units at $7 in beginning inventory on January 1, (2) 450 units at $8 purchased on January 8, and (3) 750 units at $9 purchased on January 29.

> Martin Towing Company is at the end of its accounting year ending December 31. The following data that must be considered were developed from the company’s records and related documents: a. On January 1 of the current year, the company purchased a new ha

> In its annual report, ConocoPhillips reported that the company decreased its inventory levels during 2011. ConocoPhillips’s 2011 financial statements contain the following note: In 2011, a liquidation of LIFO inventory values increased net income attribu

> In its recent annual report, PepsiCo included the following information in its balance sheets (dollars in millions): Required: Explain the effects of the changes in inventory and accounts payable on cash flow from operating activities for the current ye

> Several years ago, the financial statements of Gibson Greeting Cards, now part of American Greetings, contained the following note: On July 1, the Company announced that it had determined that the inventory . . . had been overstated. . . . The overstatem

> Snyder’s-Lance is a leading snack-food company. The following note was contained in its recent annual report: Required: 1. What amount of ending inventory would have been reported in the current year if Snyder’s-Lance

> The following note was contained in a recent Ford Motor Company annual report: Required: 1. What amount of ending inventory would have been reported in the current year if Ford had used only FIFO? 2. The cost of goods sold reported by Ford for the curre

> The records at the end of January of the current year for Young Company showed the following for a particular kind of merchandise: Beginning Inventory at FIFO: 19 Units @ $16 = $304 Beginning Inventory at LIFO: 19 Units @ $12 = $228 Required: Compute th

> Define goods available for sale. How does it differ from cost of goods sold?

> The August current year bank statement for Allison Company and the August current year ledger account for cash follow: Outstanding checks at the end of July were for $270, $430, and $320. No deposits were in transit at the end of July. Required: 1. Comp

> Dell Inc. is the leading manufacturer of personal computers. In a recent year, it reported the following in dollars in millions: Net sales revenue…………………………...$62,071 Cost of sales……………………………………...48,260 Beginning inventory………………………….…..1,301 Ending inve

> Parson Company was formed on January 1 of the current year and is preparing the annual financial statements dated December 31, current year. Ending inventory information about the four major items stocked for regular sale follows: Required: 1. Compute t

> Jones Company is preparing the annual financial statements dated December 31 of the current year. Ending inventory information about the five major items stocked for regular sale follows: Required: Compute the valuation that should be used for the curre

> All of the current year’s entries for Zimmerman Company have been made, except the following adjusting entries. The company’s annual accounting year ends on December 31. a. On September 1 of the current year, Zimmerman collected six months’ rent of $8,40

> Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise inventory (ending inventory December 31, prior year), 2,000 units at $38; purchases, 8,000 units at $40; expenses (excluding income taxes), $194,500; ending

> Following is partial information for the income statement of Arturo Technologies Company under three different inventory costing methods, assuming the use of a periodic inventory system: Required: 1. Compute cost of goods sold under the FIFO, LIFO, and

> Following is partial information for the income statement of Audio Solutions Company under three different inventory costing methods, assuming the use of a periodic inventory system: Required: 1. Compute cost of goods sold under the FIFO, LIFO, and aver

> Beck Inc. uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2: Required: 1. Prepare a separate income statement through pr

> Broadhead Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2: Required: 1. Prepare a separate income statement th

> Hamilton Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Required: Compute ending inventory and cost of goods

> The bookkeeper at Jefferson Company has not reconciled the bank statement with the Cash account, saying, “I don’t have time.” You have been asked to prepare a reconciliation and review the procedures

> Refer to Exercise 10. Data from Exercise 10: Stacey’s Piano Rebuilding Company has been operating for one year. At the start of the second year, its income statement accounts had zero balances and its balance sheet account balances wer

> Penn Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Required: Compute ending inventory and cost of goods sol

> Supply the missing dollar amounts for the income statement for each of the following independent cases: Pretax Ending Cases Revenue Inventory Purchases Available Inventory Goods Sold Profit Expenses (Loss) Sales Beginning Total Cost of Gross Income A

> Supply the missing dollar amounts for the income statement for each of the following independent cases. Case A Case B Case C Net sales revenue $7,500 $ ? $5,000 Beginning inventory $11,200 $ 7,000 $ 4,000 Purchases 4,500 ? 9,500 Goods available for s

> Based on its physical count of inventory in its warehouse at year-end, December 31 of the current year, Madison Company planned to report inventory of $34,500. During the audit, the independent CPA developed the following additional information: a. Goods

> Stacey’s Piano Rebuilding Company has been operating for one year. At the start of the second year, its income statement accounts had zero balances and its balance sheet account balances were as follows: Required: 1. Create T-accounts f

> Blaine Air Transport Service, Inc., has been in operation for three years. The following transactions occurred in February: February 1 Paid $275 for rent of hangar space in February. February 2 Purchased fuel costing $490 on account for the next flight

> Vail Resorts, Inc., owns and operates five premier year-round ski resort properties (Vail Mountain, Beaver Creek Resort, Breckenridge Mountain, and Keystone Resort, all located in the Colorado Rocky Mountains, and Heavenly Valley Mountain Resort, located

> Sysco, formed in 1969, is North America’s largest marketer and distributor of food service products, serving approximately 425,000 restaurants, hotels, schools, hospitals, and other institutions. The following summarized transactions are typical of those

> Wolverine World Wide, Inc., manufactures military, work, sport, and casual footwear and leather accessories under a variety of brand names, such as Hush Puppies, Wolverine, Merrell, Stride Rite, and Bates, to a global market. The following transactions o

> Tungsten Company, Inc., sells heavy construction equipment. There are 10,000 shares of capital stock outstanding. The annual fiscal period ends on December 31. The following condensed trial balance was taken from the general ledger on December 31, curren