Question 1

Discuss the four steps in the ethical decision model used by accountants. Expand the discussion to include questions that you would ask to analyze the key elements in the situation.

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Question 2

The following information is available from the records of Focus Seascapes, Inc. at the end of the 2014 calendar year:
  Required:
1 What is Focus' net income for the year ended December 31, 2014?
2 What is Focus' retained earnings balance for the year ended December 31, 2014?

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Question 3

List three different groups of users of accounting information. Indicate the type of decisions each group typically makes from accounting information.

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Question 4

From an ethical standpoint, if various alternatives are available to report a transaction, what are some of the questions an accountant should ask about the alternatives?

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Question 5

Presented below are condensed data from the financial statements of Laugh Factory for 2015 and 2014. The figures are expressed in thousands. Use this information to answer the questions that follow.
  Required: Was Laugh Factory profitable both years? What are the amounts of the total revenues and total expenses, respectively, for 2015? Which financial statement provides this information to you?

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Question 6

Develop an ethical dilemma scenario that an accountant may face and give examples of key elements listed below that should be considered when analyzing the decision:
1. Those who may benefit or be harmed
2. What potential benefits or harm could result from the situation
3. The rights or claims violated
4. The specific interests in conflict
5. The responsibilities and obligations

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Question 7

resented below are condensed data from the financial statements of Faux Factory for 2015 and 2014. The figures are expressed in thousands. Use this information to answer the questions that follow.
  
1. What is the name of Statement A?
  
2. What is the name of Statement B?

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Question 8

List the four financial statements. Explain the connection between these four statements.

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Question 9

Presented below are condensed data from the financial statements of Toro Factory for 2015 and 2014. The figures are expressed in thousands. Use this information to answer the questions that follow.
  Required: Which statement indicates the financial position of the company? What information is provided on that statement that indicates the "financial position" of the company? Explain.

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Question 10

What is the purpose of an income statement?

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Question 11

Presented below are condensed data from the financial statements of Unique Factory for 2015 and 2014. The figures are expressed in thousands. Use this information to answer the questions that follow.
  Required: Based on the information provided, is Unique Factory considered a business or non-business entity? How do you know by examining the financial statements?

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Question 12

In 2014, you invested $12,000 along with 5 other investors in a new theatre, Rock-On, that offers Broadway play productions. Because you live out of state, you have not been actively involved in the daily affairs of the theatre. On January 10, 2015, you are excited because you received $12,000 as a dividend after the end of the 1st year of the theatre's existence. Included with your $12,000 check are financial statements and some supplemental information regarding the accounting. The supplemental information explains:
1 During the last three months of 2014, an aggressive advertising campaign resulted in the sale of 600 season tickets for the 2015 productions. Each season ticket cost $120 and the resulting $72,000 was included in 2014 income.
2 Along with the advertising campaign, the general manager was able to secure pledges of $7,500 for advertising by local merchants in the playbills for the first two productions for 2015. This amount is included as advertising revenue in the 2014 financial statements.
REQUIRED:
Are there any problems related to the supplementary disclosures? If so, explain and indicate what effects over- or understatements these items will have on the financial statements.

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Question 13

What is meant by generally accepted accounting principles?

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Question 14

Presented below are condensed data from the financial statements of Gallo Factory for 2015 and 2014. The figures are expressed in thousands. Use this information to answer the questions that follow.
  Required: How much of Gallo Factory is financed by creditors at the end of December of 2015? Evaluate the change from 2014 to 2015.

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Question 15

The following accounting principles and assumptions are included in the conceptual framework of accounting:
  For each situation in A through C below, identify which assumption or principle applies by selecting from the list pro why that assumption or principle applies.
A Global Corp. has divisions in several countries around the world. Each of these countries has a currency different from the U.S.dollar. Global Corp. is a U.S. company and must include the financial data of its worldwide divisions in its financial stat
B Steve and Mike operate a security business as a partnership. They are considering the advantages of changing over to the corporate form of business.
C Island Pasta is a locally owned and operated fast-food business. The owners have decided to expand into nearby cities. Expansion will require more capital, but management does not expect it will stay in business for more than a year or so regardless if it expands or not.

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Question 16

The following information is available from the records of Focus Seascapes, Inc. at the end of the 2014 calendar year:
  Required:
1. What is the total amount of Focus' assets at December 31, 2014?
2. What is the total amount of Owners' Equity at December 31, 2014?
3. What is the capital stock balance at December 31, 2014?

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Question 17

List the names of three companies with which you are familiar that are manufacturers or producers. Also list the names of three companies that are retailers. Finally, provide the names of three service providers.

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Question 18

Rogers Corporation starts the year with a Retained Earnings balance of $55,000. Net income for the year is
$27,000. The ending balance in Retained Earnings is $70,000. What was the amount of dividends declared and paid for the year?

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Question 19

Presented below are condensed data from the financial statements of Snap Factory for 2015 and 2014. The figures are expressed in thousands. Use this information to answer the questions that follow.
  Required: How much of Snap Factory is financed by owners at the end of December of 2015?

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Question 20

Tentco reported the following amounts in various statements included in its 2014 annual report. All amounts are stated in millions of dollars.
  1 Prepare a Statement of retained earnings for the year ended December 31, 2014.
2 Assume that Tentco presents a statement of stockholders' equity rather than a statement of retained earnings in its annual report. Explain how the information differs between the two statements.

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Quiz 1: Accounting As a Form of Communication

Discuss the four steps in the ethical decision model used by accountants. Expand the discussion to include questions that you would ask to analyze the key elements in the situation.

The following information is available from the records of Focus Seascapes, Inc. at the end of the 2014 calendar year: Required: 1 What is Focus' net income for the year ended December 31, 2014? 2 What is Focus' retained earnings balance for the year ended December 31, 2014?

List three different groups of users of accounting information. Indicate the type of decisions each group typically makes from accounting information.

From an ethical standpoint, if various alternatives are available to report a transaction, what are some of the questions an accountant should ask about the alternatives?

resented below are condensed data from the financial statements of Faux Factory for 2015 and 2014. The figures are expressed in thousands. Use this information to answer the questions that follow. 1. What is the name of Statement A? 2. What is the name of Statement B?

List the four financial statements. Explain the connection between these four statements.

What is the purpose of an income statement?

What is meant by generally accepted accounting principles?

List the names of three companies with which you are familiar that are manufacturers or producers. Also list the names of three companies that are retailers. Finally, provide the names of three service providers.

Rogers Corporation starts the year with a Retained Earnings balance of $55,000. Net income for the year is $27,000. The ending balance in Retained Earnings is $70,000. What was the amount of dividends declared and paid for the year?

Presented below are condensed data from the financial statements of Snap Factory for 2015 and 2014. The figures are expressed in thousands. Use this information to answer the questions that follow. Required: How much of Snap Factory is financed by owners at the end of December of 2015?