Cornerstones of Financial Accounting
4th Edition
ISBN: 9781337690881
Author: Jay Rich, Jeff Jones
Publisher: Cengage Learning
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Chapter 1, Problem 73.7C
To determine
Concept Introduction:
Annual report:
The annual report of the company includes the financial and other operating descriptions about the business for a particular year.
Financial statements: Financial statements are prepared to summaries the account at the end of the period. The statements prepared are Income statement, Balance sheet, Statement of owner’s equity and
To Indicate:
If the financial statements reported by Apple Inc. in its annual report for the year 2016 are audited.
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QUESTIONS 4
You are the financial controller of Omega, a listed entity which prepares consolidated financial
statements in accordance with International Financial Reporting Standards (IFRS® Standards).
The financial statements for the year ended 30 September 2018 are due to be published shortly. A
trainee accountant who is assigned to your department is reviewing the financial statements as part
of a training exercise. She has prepared a list of queries arising out of this review.
Query One
When I look at the statement of financial position, one of the categories of non-current assets is
'investment properties and another category is 'property, plant and equipment' - in which all
other properties are included. Surely we invest in all our properties, so why have two categories
for them in the statement of financial position? How do we decide what goes where?
note to the financial statements states that investment properties are measured at their fair values
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Chapter 1 Solutions
Cornerstones of Financial Accounting
Ch. 1 - Define accounting. How does accounting differ from...Ch. 1 - Prob. 2DQCh. 1 - What is accounting entity?Ch. 1 - Prob. 4DQCh. 1 - Prob. 5DQCh. 1 - Prob. 6DQCh. 1 - Define the terms revenue and expense. How are...Ch. 1 - Name and briefly describe the purpose of the four...Ch. 1 - What types of questions are answered by the...Ch. 1 - Prob. 10DQ
Ch. 1 - Write the fundamental accounting equation. Why is...Ch. 1 - What information is included in the heading of...Ch. 1 - Define current assets and current liabilities. Why...Ch. 1 - Prob. 14DQCh. 1 - Name the two main components of stockholders;...Ch. 1 - Prob. 16DQCh. 1 - How does the multiple-step income statement differ...Ch. 1 - Explain the items reported on a retained earnings...Ch. 1 - Name and describe the three categories of the...Ch. 1 - Prob. 20DQCh. 1 - Prob. 21DQCh. 1 - Prob. 22DQCh. 1 - Prob. 1MCQCh. 1 - Prob. 2MCQCh. 1 - At December 31, Pitt Inc. has assets of $12,900...Ch. 1 - Prob. 4MCQCh. 1 - Prob. 5MCQCh. 1 - Prob. 6MCQCh. 1 - Use the following information for Multiple-Choice...Ch. 1 - Use the following information for Multiple-Choice...Ch. 1 - Which of the following statements regarding the...Ch. 1 - Prob. 10MCQCh. 1 - Which of the following statements concerning...Ch. 1 - Which of the following sentences regarding the...Ch. 1 - Prob. 13MCQCh. 1 - Prob. 14CECh. 1 - Cornerstone Exercise 1-15 Using the Accounting...Ch. 1 - Cornerstone Exercise 1-16 Financial Statements...Ch. 1 - Prob. 17CECh. 1 - Cornerstone Exercise 1-18 Balance Sheet An...Ch. 1 - Cornerstone Exercise 1-19 Income Statement An...Ch. 1 - Cornerstone Exercise 1-20 Retained Earnings...Ch. 1 - Prob. 21BECh. 1 - Prob. 22BECh. 1 - Brief Exercise 1-23 Business Activities Marni...Ch. 1 - Brief Exercise 1-24 The Accounting Equation...Ch. 1 - Prob. 25BECh. 1 - Brief Exercise 1-26 Income Statement An analysis...Ch. 1 - Retained Earnings Statement Listed below are...Ch. 1 - Brief 1-28 Statement of Cash Flows Listed are...Ch. 1 - Prob. 29BECh. 1 - Prob. 30BECh. 1 - Exercise 1-31 Decisions Based on Accounting...Ch. 1 - Prob. 32ECh. 1 - Prob. 33ECh. 1 - Exercise 1-34 Business Activities Bill and Steve...Ch. 1 - Exercise 1-35 Accounting Concepts OBJECTIVE 06° A...Ch. 1 - Exercise 1-36 The Fundamental Accounting Equation...Ch. 1 - Exercise 1-37 Balance Sheet Structure The...Ch. 1 - Exercise 1-38 Identifying Current Assets and...Ch. 1 - Exercise 1-39 Current Assets and Current...Ch. 1 - Exercise 1-40 Depreciation OBJECTIVE 0° Swanson...Ch. 1 - Exercise 1-41 Stockholders Equity OBJECTIVE o On...Ch. 1 - Prob. 42ECh. 1 - Prob. 43ECh. 1 - Prob. 44ECh. 1 - Prob. 45ECh. 1 - OBJECTIVE 6 Exercise 1-46 Income Statement ERS...Ch. 1 - Exercise 1-47 Multiple-Step Income Statement The...Ch. 1 - Exercise 1-48 Income Statement The following...Ch. 1 - Prob. 49ECh. 1 - Exercise 1-50 Statement of Cash Flows OBJECTIVE o...Ch. 1 - Exercise 1-51 Relationships Among the Financial...Ch. 1 - Exercise 1-52 Relationships Among the Financial...Ch. 1 - Exercise 1-53 Relationships Among the Financial...Ch. 1 - Prob. 54ECh. 1 - Prob. 55ECh. 1 - Problem 1-56A Applying the Fundamental Accounting...Ch. 1 - Problem 1-57A Accounting Relationships Information...Ch. 1 - Prob. 58APSACh. 1 - Prob. 59APSACh. 1 - Problem 1-60A Income Statement and Balance Sheet...Ch. 1 - Problem 1-61A Retained Earnings Statement Dittman...Ch. 1 - Problem 1-62A Retained Earnings Statements The...Ch. 1 - Problem 1-63A Income Statement, Retained Earnings...Ch. 1 - Problem 1-64A Stockholders' Equity Relationships...Ch. 1 - Problem 1-65A Relationships Among Financial...Ch. 1 - Problem 1-563 Applying the Fundamental Accounting...Ch. 1 - Problem 1-57B The Fundamental Accounting Equation...Ch. 1 - Problem 1-583 Arrangement of the Income Statement...Ch. 1 - Prob. 59BPSBCh. 1 - Problem 1-60B Income Statement and Balance Sheet...Ch. 1 - Problem 1-61B Retained Earnings Statement Magical...Ch. 1 - Problem 1-62B Retained Earnings Statements The...Ch. 1 - Problem1-63B Income Statement, Retained Earnings...Ch. 1 - Prob. 64BPSBCh. 1 - Problem 1-65B Relationships Among Financial...Ch. 1 - Prob. 66CCh. 1 - Prob. 67.1CCh. 1 - Prob. 67.2CCh. 1 - Prob. 68.1CCh. 1 - Prob. 68.2CCh. 1 - Prob. 69.1CCh. 1 - Prob. 69.2CCh. 1 - Case 1-70 Financial Statement Analysis Reproduced...Ch. 1 - Prob. 70.2CCh. 1 - Case 1-70 Financial Statement Analysis Reproduced...Ch. 1 - Prob. 71CCh. 1 - Prob. 72CCh. 1 - Prob. 73.1CCh. 1 - Prob. 73.2CCh. 1 - Prob. 73.3CCh. 1 - Case 1-73 Research and Analysis Using the Annual...Ch. 1 - Prob. 73.5CCh. 1 - Prob. 73.6CCh. 1 - Prob. 73.7CCh. 1 - Prob. 74.1CCh. 1 - Case 1-74 Comparative Analysis: Under Armour,...Ch. 1 - Prob. 74.3CCh. 1 - Case 1-74 Comparative Analysis: Under Armour,...Ch. 1 - Case 1-74 Comparative Analysis: Under Armour,...Ch. 1 - Case 1-74 Comparative Analysis: Under Armour,...Ch. 1 - Prob. 75.1CCh. 1 - Prob. 75.2CCh. 1 - Case 1-75 CONTINUING PROBLEM: FRONT ROW...
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Conducting a Financial Ratio Analysis on HP INC. Use online resources to work on this chapter's questions. Please note that website information changes over time, and these changes may limit your ability to answer some of these questions. In Chapter 3, we looked at Dunkin' Brands' financial statements. In this chapter, we will use financial Internet websites (specifically, www.morningstar.com and www.google.com / finance) to analyze HP Inc., a computer hardware company. Once on either website, you simply enter HP Inc.'s ticker symbol (HPQ) to obtain the financial information needed. The text mentions that financial statement analysis has two major components: a trend analysis, where we evaluate changes in key ratios over time, and a freer analysis, where we compare financial ratios with firms that are in the same industry and/or line of business. We will do both of these types of analysis in this problem. Through the Morningstar website, you can find the firm's financials (Income Statement, Balance Sheet, and Cash Flow) on an annual or quarterly basis for the five most recent time periods. In addition, the site contains Key Ratios (Profitability, Growth, Cash Flow, Financial Health, and Efficiency) for 10 years. We will use the Key Ratios on this site to conduct the firm's trend analysis. (At the bottom of the screen you will see that you can click "Glossary to find definitions for the different ratios For example, Morningstar's Financial Leverage ratio is the same as the Equity multiplier that we use in the textbook.) On the Google Finance site, you can find the firms financial statements for the four most recent years or the five most recent quarters and key financial data for related companies for the most recent year or quarter. We will use the related companies' annual data to conduct the firm's peer analysis. Notice that when you go to the "Related Companies" screen, you can "add or remove columns." Click on that phrase, and you can check which peer data items you'd like to show on tire computer screen. Also, once you have chosen the data, you can click on a term, and the companies will be ranked in either ascending or descending order for tire specific term selected. 6. From the Google Finance site, look at HP's profitability ratios (as measured by its profit margin, ROA, and ROE). How do these ratios compare with those of its peers?arrow_forwardConducting a Financial Ratio Analysis on HP INC. Use online resources to work on this chapter's questions. Please note that website information changes over time, and these changes may limit your ability to answer some of these questions. In Chapter 3, we looked at Dunkin' Brands' financial statements. In this chapter, we will use financial Internet websites (specifically, www.morningstar.com and www.google.com/finance) to analyze HP Inc., a computer hardware company. Once on either website, you simply enter HP Inc.'s ticker symbol (HPQ) to obtain the financial information needed. The text mentions that financial statement analysis has two major components: a trend analysis, where we evaluate changes in key ratios over time, and a freer analysis, where we compare financial ratios with firms that are in the same industry and/or line of business. We will do both of these types of analysis in this problem. Through the Morningstar website, you can find the firm's financials (Income Statement, Balance Sheet, and Cash Flow) on an annual or quarterly basis for the five most recent time periods. In addition, the site contains Key Ratios (Profitability, Growth, Cash Flow, Financial Health, and Efficiency) for 10 years. We will use the Key Ratios on this site to conduct the firm's trend analysis. (At the bottom of the screen you will see that you can click "Glossary" to find definitions for the different ratios. For example, Morningstar's Financial Leverage ratio is the same as the Equity multiplier that we use in the textbook.) On the Google Finance site, you can find the firms financial statements for the four most recent years or the five most recent quarters and key financial data for related companies for the most recent year or quarter. We will use the related companies' annual data to conduct the firm's peer analysis. Notice that when you go to the "Related Companies" screen, you can "add or remove columns." Click on that phrase, and you can check which peer data items you'd like to show on tire computer screen. Also, once you have chosen the data, you can click on a term, and the companies will be ranked in either ascending or descending order for the specific term selected. 1. Looking at Morningstar's Financial Health ratios, what has happened to HPs liquidity position over the past 10 years?arrow_forwardSelect a public company that interests you. Obtain the company's most recent annual report on Form 10-K. The Form 10-K is a company's annually required filing with the Securities and Exchange Commission (SEC). It includes the company's financial statements and accompanying notes. The Form 10-K can be obtained from (a) the company's investor relations section of the company's website, (b) the search feature of the SEC's EDGAR database service or (c) searching using your search engine (Google, Bing, etc.) Based on the information in the company's most recent annual report, answer the following questions: 1) What amount of total assets does the company report on its balance sheet? 2) What amount of total liabilities does the company report on its balance sheet? 3) Using the accounting equation, determine the company's stockholders' equity. Compare this amount to the amount of stockholder's equity reported on the company's balance sheet. Do the figures match? 4) How many years of…arrow_forward
- Briefly explain the key for a user of financial information to know about the company in the years being examined. please maintain plagiarismarrow_forwardASSIGNMENT: REVIEW QUESTIONS Direction: Answer comprehensively the following questions. 1. Explain the following statement, "While the statement of financial position can be thought of as a snapshot of a firm's financial position at a point in time, the income statement reports on operations over a period of time." 2. Financial statements are based on financial reporting standards and are audited by CPA firms. Do investors need to worry about the validity of those statements? Explain your answer. 3. How is income statement related to the statement of financial position? 4. Comment on why inflation may restrict the usefulness of the statement of financial position as normally presented.arrow_forwardIdentify any Two (2) Public Listed Company listed under the Main Market of Bursa Malaysia originating from the same industry. Download the most recent annual report of the companies you have chosen. Analyze and compare the annual reports and critically assess the difficulties in preparing a set of useful financial statements, which exhibits all the primary qualitative characteristics necessary for all users of financial statements( E.g. Comparability ). How well do you feel that your chosen companies have achieved this purpose ? ( Minimum 1200 words )arrow_forward
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