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BAO 1101 Study Guide - Quiz Guide: Accounts Payable, Deferral, Cash Flow Statement

107 views7 pages
limefrog702
29 Jun 2018
School
Victoria University
Department
BAO
Course
BAO 1101
Professor
Rod Herbert

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Ques"on Set
Ques"on 1 1 / 1 point
In the Balance Sheet / Statement of Financial Posi"on, a bank overdra#
would be classified under :
Current Asset
Non Current Asset
Current Liability
Non Current Liability
Ques"on 2 1 / 1 point
In the Cash Flow Statement, the payment of income tax would be
classified as :
an inflow from Financing Ac"vi"es
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an ou#low from Inves"ng Ac"vi"es
an inflow from Opera"ng Ac"vi"es
an ou#low from Opera"ng Ac"vi"es
Ques"on 3 1 / 1 point
Obliga"ons that must be paid within one accoun"ng period is known as
:
current asset
current liability
non-current asset
non-current liablilty
Ques"on 4 1 / 1 point
Which of the following groups of categories must be reported in a Cash
Flow Statement?
Opera"ng, Financing, Retailing
Selling, Opera"ng, Financing
Selling, Administra"on, Financing
Inves"ng, Financing, Opera"ng
Ques"on 5 1 / 1 point
The "Accoun"ng En"ty Assump"on" assumes:
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Document Summary

In the balance sheet / statement of financial posi"on, a bank overdra# would be classi ed under : In the cash flow statement, the payment of income tax would be classi ed as : an in ow from financing ac"vi"es an ou#low from inves"ng ac"vi"es an in ow from opera"ng ac"vi"es an ou#low from opera"ng ac"vi"es. Obliga"ons that must be paid within one accoun"ng period is known as current asset current liability non-current asset non-current liablilty. Which of the following groups of categories must be reported in a cash. The "accoun"ng en"ty assump"on" assumes: all transac"ons are recorded in monetary terms the business has an inde nite life transac"on are recorded at their original cost the business is considered separate from its owner. A company"s borrowings would appear in the cash flow statement as : a banking ac"vity a nancing ac"vity an inves"ng ac"vity an opera"ng ac"vity.

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Related Questions

ABC Company is preparing for an audit. To begin with, they areevaluating the balances in each account of the trial balance. Usingthe attached trial balance, enter the balances for the followingaccounts:

Cash: $7,500
Finished goods inventory: $1,000 Receivables: $500
Machinery and equipment: $3,000 Building: $5,000
Common stock: $11,500
Bank loan (to be repaid in 3 years): $4,000 Accounts payable:$500
Sale of goods produced: $3,000
Cost of goods sold: $1,500
Interest expense: $500

Enter the category (current and non-current asset/liability,equity, income statement).

TRIAL BALANCE
Category (Current/Non-currentAsset/Liability/
Income Statement, Equity)		 Debit (+) Credit (-)
Cash Current Asset
Finished goods Current Asset
Receivables Current Asset
Machinery and Equipment Non current asset
Building Non current asset
Common Stock equity
Bank Loans Non current asset
Accounts Payable current liability
Sale of Goods Produced income statement
Cost of Goods Sold income statement
Depreciation income statement
Interest Expense income statement
- -

1. Produce a balance sheet for a company that distinguishesbetween current and non-current assets and liabilities.
2. Create a balance sheet from a trial balance.
3. Create a comparison of net income based on different methods ofinventory accounting.
4. Analyze a statement of cash flows and show where each line itemcan be found or calculated from the other financialstatements.
5. Prepare a full analysis of key financial ratios for a companyand state conclusions about the financial strength of the companycompared to industry ratios.

Create a BalanceSheet from the trial balance:
Debits Credits Classification
Cash 300,000.00 Current asset
Sales (10,000,000.00) Income statement
Cost of Goods Sold 7,000,000.00 Income statement
Selling Expenses 500,000.00 Income statement
Other income (50,000.00) Income statement
Administrative expenses 350,000.00 Income statement
Interest Expenses 12,500.00 Income statement
Land 300,000.00 non-current asset
Building 2,000,000.00 non-current asset
Long Term bond payable (550,000.00) non-current liability
Accrued Liabilities (50,000.00) current- liability
Accumulated Depreciation Buildings (250,000.00) non-current asset
Equipment 750,000.00 non-current asset
Receivables 100,000.00 current asset
Allowance for doubtful accounts (7,500.00) current asset
Accumulated depreciation equipment (125,000.00) non-current asset
Common Stock (200,000.00) equity
Payables (115,000.00) current Liability
Inventories 200,000.00 current asset
Prepaid Expenses 50,000.00 current asset
Retained Earnings (215,000.00) equity
11,562,500.00 (11,562,500.00)
Assets Equity and Liabilities
Current Assets Current Liabilities
Total Current Assets - Total Current Liabilities -
Total long term Liabilities -
Total property plant and equipment -
Total Equity -
Total Assets - Total Equity and liabilities -

Produce a balance sheet for a company that distinguishes betweencurrent and non- current assets and liabilities.

Create a balance sheet from a trial balance.

Create a comparison of net income based on different methods ofinventory accounting.

Analyze a statement of cash flows and show where each line itemcan be found or

calculated from the other financial statements.

Prepare a full analysis of key financial ratios for a companyand state conclusions about

the financial strength of the company compared to industryratios.

PROJECT SUBMISSION PLAN

Project Part

Description/Requirements of Project Part

Evaluation Criteria

1

Title: Creating a Balance Sheet and Evaluating Inventory
You will be provided with financial information about a fictionalcompany. You will have to determine what information is relevantfor Project Parts 1 and 2.

Task 1: Create a balance sheet from a trial balance for a givenscenario. Make sure you classify the accounts appropriately ascurrent or non-current. Click here to download the trialbalance.

Page 1

AC1420: Project

Project Part

Description/Requirements of Project Part

Evaluation Criteria

Task 2: Perform inventory valuations using LIFO, FIFO, andweighted average methods based on the following information.Explain the impact of each method on the cost of goods sold andending inventory.

The company imports microwaves from a supplier in China for theUS market. At the end of the first quarter, 100 microwaves are instock. The company purchased a total of 400 microwaves during thequarter at various prices: January: 100 units @ $75

February: 250 units @ $83
March: 50 units @ $87
The company had no inventory at the beginning of the quarter.
Task 3: If the company’s goal is to maximize net income, whichevaluation method will you use and why?

Project Part 1 -Task 2:
Purchases Cost per Unit Total Cost
January
February
March
Ending Inventory =
Value of Ending Inventory of100 Units
Weighted AVG LIFO FIFO
Cost of Goods Sold (300 UnitsSold)
Weighted AVG LIFO FIFO
Create a BalanceSheet from the trial balance:
Debits Credits Classification
Cash 300,000.00 Current asset
Sales (10,000,000.00) Income statement
Cost of Goods Sold 7,000,000.00 Income statement
Selling Expenses 500,000.00 Income statement
Other income (50,000.00) Income statement
Administrative expenses 350,000.00 Income statement
Interest Expenses 12,500.00 Income statement
Land 300,000.00 non-current asset
Building 2,000,000.00 non-current asset
Long Term bond payable (550,000.00) non-current liability
Accrued Liabilities (50,000.00) current- liability
Accumulated Depreciation Buildings (250,000.00) non-current asset
Equipment 750,000.00 non-current asset
Receivables 100,000.00 current asset
Allowance for doubtful accounts (7,500.00) current asset
Accumulated depreciation equipment (125,000.00) non-current asset
Common Stock (200,000.00) equity
Payables (115,000.00) current Liability
Inventories 200,000.00 current asset
Prepaid Expenses 50,000.00 current asset
Retained Earnings (215,000.00) equity
11,562,500.00

(11,562,500.00)


Assets Equity and Liabilities
Current Assets Current Liabilities
Total Current Assets - Total Current Liabilities -
Total long term Liabilities -
Total property plant andequipment -
Total Equity -
Total Assets - Total Equity and liabilities -