University of Central Florida

Prepaid Expenses - Answer Expenses that have been paid in the current fiscal period but will not be subtracted from revenue until a subsequent fiscal period How would you write a $12,000 prepaid insurance expense for the year (12 months)? How would you adjust it after a month? - Answer (DB)Prepaid Insurance 12,000 (CR)Cash 12,000 (DB)Insurance Expense 1,000 (CR)Prepaid Insurance 1,000 What are the 4 methods of Inventory Costing? - Answer Specific Identificatio...

10-K - Answer annual audited financial statements An unqualified auditors' opinion about an entity's financial statements: - Answer states that they are presented in conformance with U.S. generally accepted accounting principles. consolidated - Answer means the company owns other companies Conservatism - Answer make estimates lower to make firm look worse off and not mislead investors Matching Principle - Answer match expenses to revenues in the sa...

Your company has the following information: Earnings before Taxes (from the financial statements: $1,000,000 Tax Liability (from the tax return): $80,000 Increase in deferred tax liabilities for the year: $25,000 Statutory tax rate (not the effective rate): 21% Which is the correct tax expense on the financial statements? - Answer 80,000 + 25,000= 105,000 Your company has the following information: "adjusted" taxable income: $5,000,000 Interest expense: 1,950,000 Busine...

If the ending inventory of a firm is overstated by $51,000, by how much and in what direction (overstated or understated) will the firm's operating income be misstated? - Answer Operating income will be overstated by 51000 leverage can be defined as the use of ________ or fixed _______ to maximize returns. - Answer debt or fixed costs It's important to note that an advantage of using debt rather than stock to raise capital is: - Answer that interest (paid on debt) i...

If you were interested in evaluating the profitability of a company and could have only limited historical data, would you prefer to know operating income or net income for the past five years? - Answer operating income Which series of data is more meaningful? operating income OR net income - Answer Operating income Assets = - Answer Liabilities + PIC + RE Ending RE = - Answer Beginning RE + NI - Div What accounts for the difference between issued shares an...

Margin of Safety = - Answer Current Sales - BreakEven Sales The independent auditors' report usually: - Answer includes an opinion that the financial statements present fairly, in all material respects, financial information about the company. Units (for sale) = - Answer (Fixed Expenses + Operating Income) / CM Current Sales = - Answer BreakEven Dollars + Margin of Safety or Units * Price per unit Margin of Safety Ratio = - Answer Margin of Safe...

ROA = - Answer NI / Average Total Assets ROE = - Answer NI / Average SE Working Capital = - Answer CA - CL Current Ratio = - Answer CA / CL Quick Ratio = - Answer (Cash + A/R) / CL Cash Ratio = - Answer Cash / CL Debt-to-Equity = - Answer Total Debt / Total Equity Debt Ratio = - Answer Total Debt / Total Assets Ending SE = - Answer Beg SE +NI -Dividends Income Statement - Answer Sales -COGS =Gross Profit ...

The equity of Lime Company is $180,000 and the total liabilities are $80,000. The total assets are ________. - Answer Assets = Liabilities + Equity = 180,000 + 80,000 = 260,000 Grapefruit Services started the year with total assets of $90,000 and total liabilities of $40,000. The company is a sole proprietorship. The revenues and the expenses for the year amounted to $130,000 and $50,000, respectively. During the year, there were no new capital contributions and the owner with...

Liability - Answer A present responsibility to sacrifice assets in the future due to a transaction or other event that happened in the past Normal Balance: credit Financial statement: balance sheet Current liability - Answer Liability payable within one year Normal Balance: Credit Financial statement is : Balance sheet It's a current liability Long-Term liability - Answer Liability payable after ONE year Normal balance: Credit Financial statement: Balance sh...

ECO 2013 Spring 2026 Macro Practice Exam 1 Test Guide Questions And Answers (Answers at the end) Multiple Choice Identify the choice that best completes the statement or answers the question. 1. An economist would argue that the true cost of a college education exceeds the cost of tuition, housing, and books because of a. opportunity cost. d. tax credits. b. invisible costs. e. scholarships. c. inflation. 2. Which of the following is a positive statement? a. Nelly’s dog should...