1 POINT 2 POINTS 3 POINTS 4 POINTS 5 POINTS Choc. Creme 1 POINT 4 POINTS 3 POINTS 2 POINTS2 POINTS 3 POINTS 2 POINTS 5 POINTS 2 POINTS 3 POINTS 4 POINTS 5 POINTS 4 POINTS 3 POINTS 4 POINTS 5 POINTS GlazedJelly Boston Creme Cruller

These are the 4 basic financial statements. 1 POINT

What is Income statement, Retained Earnings statement, Balance Sheet And Stmt of Cash Flows

This is the section of the cash flows statement where you would find a bond issuance. 2 POINTS

What is the financing section?

Non cash transactions would be show in this part of the statement of cash flows 3 POINTS

It would be on a separate schedule.

4 POINTS This is the section of the cash flows statement where you would find a land sale.

What is the investing section

This is the section of the cash flows statement where you would find amortization 5 POINTS

Operating

This is the section of the cash flows statement where you would find a gain on the sale of investments 1 POINT

Operating

This is the section of the cash flows statement where you would find the cash inflow from a sale of another company’s common stock. 2 POINTS

Investing

A/R increase – added or subtracted from NI 3 POINTS

Subtracted

This is the section of the cash flows statement where you would report dividends paid. 4 POINTS

Financing

Cash dividends payable were $20,000 and $28,000 at the beginning and end of the year, $50,000 in dividends were declared during the year, what is the cash outflow for payment of dividends. 5 POINTS

What is 42,000?

Increase in wages payable – add or subtract from net income. 1 POINT

add

Increase in Inventory 2 POINTS

subtract

Increase in prepaid expenses. 3 POINTS

Subtract

4 POINTS Depreciation expense

Add

Decrease in Cash 5 POINTS

Nothing

Comparing individual items in financial statements from one year to the next is this type of analysis. 1 POINT

Horizontal

An analysis where all assets are stated as a component of total assets. 2 POINTS

Vertical analysis

This analysis is used when comparing different size companies in the same industry. 3 POINTS

What is common-size statement analysis?

What is the formula for horizontal analysis. 4 POINTS

(CY-LY)/LY

5 POINTS This is a short term asset not included in the acid test ratio

What is prepaid accounts and inventory?

An increase in the collection of A/R will cause the A/R turnover ratio to ? 1 POINT

What is increase?

A good auditor’s report is called a _____ opinion. 2 POINTS

What is clean or unqualified?

An auditor’s report where they can’t give an opinion due to the lack of data available is called a ____.. 3 POINTS

What is disclaimer?

The purpose of an audit is to: 4 POINTS

Render an opinion on the fairness of financial statements.

This is where management gives their opinion of the financial statements and can be completely biased. 5 POINTS

What is MD&A

CATEGORY: Cash Flows MAKE YOUR WAGER!

ANSWER: Net Income $200,000 Loss on Sale of land $30,000 Amortization $10,000 A/R increase $30,000 Inventory decrease $18,000 A/P decrease $20,000

QUESTION $208,000