Quiz 04.144 – Terms and Phrases
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
Match each phrase with its corresponding terminology, earnings per share, comprehensive income, etc…
Match each phrase with its corresponding terminology, earnings per share, comprehensive income, etc…
Identify the suitable reporting treatment for the following events that took place during the 2021 fiscal year of Calstone, Inc., which prepares a single, continuous statement of comprehensive income. Consider each occurrence to be material and choose the correct reporting treatment from the given list for each situation.
The Retrospective Approach for accounting principle changes involves restating financial statements of all periods presented as if the new standard had been used in those periods.
The Modified Retrospective Approach is a method used for accounting principle changes, which involves adjusting for cumulative effects on prior periods and implementing the change in the current period.
The prospective approach is used to account for changes in estimates, which means that the effects of the change are reflected in future and current periods, but not in prior periods.
What is an example of a significant investing activity cash outflow that a manufacturing company could report on its statement of cash flows?
Using the direct method, what are four operating activities that would appear in Walmart’s statement of cash flows?
If a company’s receivables turnover ratio decreases, it suggests that there has been an increase in the time taken between credit sales and cash collection.
Even if a company has low profit margins, it can still be highly profitable if it has a high asset turnover, as demonstrated through the decomposition of return on assets.
Increasing its income or total assets are two methods that a company can use to improve its return on assets.