Analysis ACCT.WARD.16.01-06 - 01-06 LEARNING OBJECTIVES: ACCT.ACBSP.APC.23 - Financial Statement Analysis ACCREDITING STANDARDS: ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic The following data were taken from Miller balance sheet: Company’s Dec. 31, Year 2 Dec. 31, Year 1 Total liabilities $150,000 $105,000 Total equity 75,000 60,000 owner’s Compute the ratio of liabilities to equity. owner’s Has the risk increased or decreased from December 31, Year 1, to December 31, Year 2? creditors’ a. 12/31/Year 2: $150,000 / $75,000 = 2.0 ANSWER: 12/31/Year 1: $105,000 / $60,000 = 1.75 b. Increased Moderate DIFFICULTY: Bloom's: Analysis ACCT.WARD.16.01-06 - 01-06 LEARNING OBJECTIVES: ACCT.ACBSP.APC.23 - Financial Statement Analysis ACCREDITING STANDARDS: ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Match the following business types with each business listed below. Each may be used more than once. Service firm Manufacturing firm Merchandising firm Easy DIFFICULTY: Remembering Bloom’s: ACCT.WARD.16.01-01 - 01-01 LEARNING OBJECTIVES: ACCT.ACBSP.APC.03 - Business Forms ACCREDITING STANDARDS: ACCT.AICPA.BB.01 - Industry ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic A tax preparation firm a ANSWER: A law firm a ANSWER:
Analysis LEARNING OBJECTIVES: ACCT.WARD.16.01-06 - 01-06 ACCREDITING STANDARDS: ACCT.ACBSP.APC.23 - Financial Statement Analysis ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic The following data were taken from Miller Company’s balance sheet: Dec. 31, Year 2 Dec. 31, Year 1 Total liabilities $150,000 $105,000 Total owner’s equity 75,000 60,000 Compute the ratio of liabilities to owner’s equity. Has the creditors’ risk increased or decreased from December 31, Year 1, to December 31, Year 2? ANSWER: a. 12/31/Year 2: $150,000 / $75,000 = 2.0 12/31/Year 1: $105,000 / $60,000 = 1.75 b. Increased DIFFICULTY: Moderate Bloom's: Analysis LEARNING OBJECTIVES: ACCT.WARD.16.01-06 - 01-06 ACCREDITING STANDARDS: ACCT.ACBSP.APC.23 - Financial Statement Analysis ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Match the following business types with each business listed below. Each may be used more than once. Service firm Manufacturing firm Merchandising firm DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-01 - 01-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.03 - Business Forms ACCT.AICPA.BB.01 - Industry ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic A tax preparation firm ANSWER: a A law firm ANSWER: a
Accouting-26th-Edition-Test-Bank.docx