Does the Financial Accounting Standards Board require firms to disclose information about operating leases and detailed information about defined benefit pension plans in the financial statement footnotes Operating lease information Defined benefit pension plans ①A. Yes No ②B. Yes Yes ③C. No Yes
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Bentlom Company’ s common sized financial statements show the following information: Earnings after taxes 15 % Current liabilities 20% Equity 45 % Sales $ 800 Cash 10% Total assets $ 2000 Accounts receivable 15% Inventory 20% Bentlom’ s long-term debt-to-equity ratio and current ratio are closest to. Long-term debt-to-equity ratio Current ratio ①A. 77.8 % 2.25 ②B. 98.2% 2.50 ③C. 98.2% 2.25
A. ①
B. ②
C. ③
To convert an indirect statement of cash flows to a direct basis, the analyst would:
A. subtract write-offs of inventory advances from the cost of goods sold.
B. add increases in accounts receivables to net sales.
C. subtract decreases in accounts payable from the cost of goods sold.
A project has the following estimated revenues of $10.0 million and estimated costs are $ 7.5 million. The table below provides information on amounts billed, cash received, and cost incurred for each year of the 3-year project(data is in millions of dollars). Year1 Year2 Year3 Amounts billed 4.0 3.5 2.5 Cash received 2.0 5.0 3.0 Cost incurred 3.0 3.0 1.5 Which of the following statements relating to the cumulative balance sheet and income statement at year-end is least accurate
A. Using the accounting method that smooths income, the company will recognize profit of $ 0.5 million in year 3.
B. Considering this project only, and using the percentage of completion method, total assets at the end of year 3 will be $ 2.5 million.
C. If ultimate payment is assured and the cost estimates are unreliable, the company will recognize profit of $1 million in year 2.
For the year ended December 31,2007, Milan Company reported the following financial information : Gross profit from sales 600000 Operating expenses 100000 Unrealized loss from foreign currency translation 30000 Dividends received from available-for-sale securities 15000 Increase in minimum pension liability 45000 Interest expense 25000 Acquired treasury stock for $ 25000 more than original book value 75000 Unrealized gain from available-sale-securities 20000 Ignoring taxes, calculate Milan’ s net income and comprehensive income for 2007. Net income Comprehensive income ①A. $ 490000 $ 435000 ②B. $ 490000 $ 2000 ③C. $ 40000 $ 44000
A. ①
B. ②
C. ③