Financial Statements and Accounting Transactions Paper 3

If during the accounting period the assets increased by $7,000, and the owner’s equity decreased by $3,000, then the liabilities must have

One of the local fast-food outlets hired a first-year accounting student to oversee the cash-collection procedures. When the firm pays the student her weekly wage, the transaction will

Which is NOT true of common-size comparative statements?

Assets	2001	2000	1999	1998
Cash	$10,000	$15,000	$12,000	$8,000
Other current assets	18,000	15,000	13,000	10,000
Plant and equipment	20,000	23,000	24,000	15,000
Total assets	48,000	53,000	49,000	33,000

Which of the following statements is true?

	2001	2000	1999	1998
Sales	$160,000	$130,000	$100,000	$ 80,000
Cost of goods sold	96,000	71,500	53,000	41,600
Net income	28,000	26,000	25,000	24,000

Which of the following statements is NOT true?

Current assets	$120,000
Cash	$20,000
Accounts receivable	$45,000
Short-term investments	$12,000
Merchandise inventory	$42,000
Current liabilities	$68,000

Which of the following is true?

Net sales were $450,000, and the accounts receivable turnover was 5.5 times. What is the average accounts receivable?

The cost of goods sold was $240,000. Beginning and ending merchandising inventory balances were $20,000 and $30,000, respectively. The merchandise inventory turnover was:

The days’ sales in inventory is 73. The cost of goods sold is $720,000. The net sales are $1,020,000. The beginning inventory was $82,000. What is the ending inventory?

Total asset turnover is a component of: