Financial Accounting
9th Edition
ISBN: 9781259222139
Author: Robert Libby, Patricia Libby, Frank Hodge Ch
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 2, Problem 3MCQ
Total liabilities on a balance sheet at the end of the year are $150,000,
- a. $290,000
- b. $270,000
- c. $205,000
- d. $15,000
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Assuming that total assets were $8,037,000 at the beginning of the current fiscal year, determine the following: When required, round to one decimal place.
a. Ratio of fixed assets to long-term liabilities
b. Ratio of liabilities to stockholders' equity
c. Asset turnover
d. Return on total assets
e. Return on stockholders' equity
f. Return on common stockholders' equity
%
%
%
Given the following Year 9 selected balance sheet data:
Assets
Cash on Hand
Total Current Assets
Total Fixed Asset Investments
Total Assets
Liabilities and Shareholder Equity
Accounts Payable
Overdraft Loan Payable
1-Year Bank Loan Payable
Current Portion of Long-Term Loans
$116,000
235,000
230,000
$465,000
$ 56,000
0
0
17,000
Total Current Liabilities
73,000
Long-Term Bank Loans
46,000
Total Liabilities
119,000
Year 8
Year 9
Shareholder Equity:
Balance
Change
Common Stock (at a par value of $0.50 per share
10,050
0
10,050
Additional Capital
81,500
0
81,500
Retained Earnings
Total Shareholder Equity
Total Liabilities and Shareholder Equity
162,450 92,000 254,450
254,000 +92,000 346,000
$465,000
Based on the above figures and the definition of the debt:equity percentages (or debt%:equity%) presented in the Help section for
p. 5 of the Camera and Drone Journal, the company's debt:equity percentages (rounded to the nearest whole percentage--like 25%
and 75%) and its current ratio are
Given the following Year 9 selected balance sheet data:
Assets
Cash on Hand
$136,000
255,000
230,000
$485,000
Total Current Assets
Total Fixed Asset Investments
Total Assets
Liabilities and Shareholder Equity
Accounts Payable
Overdraft Loan Payable
1-Year Bank Loan Payable
Current Portion of Long-Term Loans
Total Current Liabilities
$ 66,000
10,000
17,000
93,000
46,000
139,000
Long-Term Bank Loans
Total Liabilities
Year 8
Year 9
Shareholder Equity:
Balance
Change
Common Stock (at a par value of $0.50 per share
Additional Capital
Retained Earnings
Total Shareholder Equity
Total Liabilities and Shareholder Equity
10,050
81,500
162,450
254,000
10,050
81,500
254,450
346,000
$485,000
92,000
+92,000
Based on the above figures and the definition of the debt:equity percentages (or debt%:equity%)
presented in the Help section for p. 5 of the Camera and Drone Journal, the company's
debt:equity percentages (rounded to 2 decimal places) and its current ratio are:
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Chapter 2 Solutions
Financial Accounting
Ch. 2 - Prob. 1QCh. 2 - Define the following: a. Asset b. Current asset c....Ch. 2 - Explain what the following accounting terms mean:...Ch. 2 - Why are accounting assumptions necessary?Ch. 2 - For accounting purposes, what is an account?...Ch. 2 - What is the fundamental accounting model?Ch. 2 - Prob. 7QCh. 2 - Explain what debit and credit mean.Ch. 2 - Prob. 9QCh. 2 - Prob. 10Q
Ch. 2 - Prob. 11QCh. 2 - Prob. 12QCh. 2 - How is the current ratio computed and interpreted?Ch. 2 - Prob. 14QCh. 2 - Prob. 1MCQCh. 2 - Which of the following is not an asset? a....Ch. 2 - Total liabilities on a balance sheet at the end of...Ch. 2 - The dual effects concept can best be described as...Ch. 2 - The T-account is a tool commonly used for...Ch. 2 - Prob. 6MCQCh. 2 - The Cash T-account has a beginning balance of...Ch. 2 - Prob. 8MCQCh. 2 - At the end of a recent year, The Gap, Inc.,...Ch. 2 - Prob. 10MCQCh. 2 - Matching Definitions with Terms Match each...Ch. 2 - Matching Definitions with Terms Match each...Ch. 2 - Identifying Events as Accounting Transactions...Ch. 2 - Classifying Accounts on a Balance Sheet The...Ch. 2 - Determining Financial Statement Effects of Several...Ch. 2 - Prob. 2.6MECh. 2 - Prob. 2.7MECh. 2 - Prob. 2.8MECh. 2 - Prob. 2.9MECh. 2 - Prob. 2.10MECh. 2 - Prob. 2.11MECh. 2 - Computing and Interpreting the Current Ratio...Ch. 2 - Identifying Transactions as Investing or Financing...Ch. 2 - Matching Definitions with Terms Match each...Ch. 2 - Identifying Account Titles The following are...Ch. 2 - Classifying Accounts and Their Usual Balances As...Ch. 2 - Determining Financial Statement Effects of Several...Ch. 2 - Determining Financial Statement Effects of Several...Ch. 2 - Recording Investing and Financing Activities Refer...Ch. 2 - Prob. 2.7ECh. 2 - Recording Investing and Financing Activities...Ch. 2 - Analyzing the Effects of Transactions In...Ch. 2 - Analyzing the Effects of Transactions In...Ch. 2 - Prob. 2.11ECh. 2 - Inferring Investing and Financing Transactions and...Ch. 2 - Recording Journal Entries Nathanson Corporation...Ch. 2 - Prob. 2.14ECh. 2 - Analyzing the Effects of Transactions Using...Ch. 2 - Prob. 2.16ECh. 2 - Prob. 2.17ECh. 2 - Prob. 2.18ECh. 2 - Inferring Typical Investing and Financing...Ch. 2 - Prob. 2.20ECh. 2 - Identifying the Investing and Financing Activities...Ch. 2 - Prob. 2.22ECh. 2 - Identifying Accounts on a Classified Balance Sheet...Ch. 2 - Determining Financial Statement Effects of Various...Ch. 2 - Prob. 2.3PCh. 2 - Prob. 2.4PCh. 2 - Prob. 2.5PCh. 2 - Prob. 2.6PCh. 2 - Prob. 2.1APCh. 2 - Determining Financial Statement Effects of Various...Ch. 2 - Recording Transactions in T-Accounts, Preparing...Ch. 2 - Prob. 2.4APCh. 2 - Accounting for the Establishment of a New Business...Ch. 2 - Prob. 2.1CPCh. 2 - Prob. 2.2CPCh. 2 - Prob. 2.3CPCh. 2 - Prob. 2.4CPCh. 2 - Prob. 2.5CPCh. 2 - Prob. 2.6CPCh. 2 - Prob. 2.7CPCh. 2 - Prob. 2.8CP
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