Author: Anonymous

Ratios must refer to economically important relationships, such as a sale price compared to its cost.

Depot Architecture’s income statement reports net income of $75,300, which includes deductions for interest expense of $11,500 and income taxes of $34,900. Its times interest earned is:

The statement of cash flows cannot help address questions such as:

The account receivable turnover measures:

If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period, what was the effect on the assets?

If the liabilities of a company increased $74,000 during a period of time and equity in the company decreased $19,000 during the same period, what was the effect on the assets?

Ironwood Company is preparing the company’s statement of cash flows for the fiscal year just ended. The following information is available:        Retained earnings balance at the beginning of the year $ 233,000 Cash dividends declared for the year   50,000 Proceeds from the sale of equipment   85,000 Gain on the sale of equipment   4,500 Cash dividends payable at the beginning of the year   22,000 Cash dividends payable at the end of the year   30,000 Net income for the year   110,000 The amount of cash paid for dividends was:

The statement of cash flows cannot help address questions such as:

If a company mistakenly forgot to record depreciation on office equipment at the end of an accounting period, the financial statements prepared at that time would show:

The account receivable turnover measures: