121. The following information pertains to Carlton Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
122. The following information pertains to Newman Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
Assets
123. The following information pertains to Newman Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
Assets
124. Percentage analyses, ratios, turnovers, and other measures of financial position and operating results are
A. a substitute for sound judgment.
B. useful analytical measures.
C. enough information for analysis, industry information is not needed.
D. unnecessary for analysis, but reaction is better.
125. The following information pertains to Auburn Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
Assets
126. Corporate annual reports typically do not contain which of the following?
A. management discussion and analysis
B. SEC statement expressing an opinion
C. accompanying foot notes
D. auditor's report
127. The independent auditor's report does which of the following?
A. describes which financial statements are covered by the audit
B. gives the auditor's opinion regarding the fairness of the financial statements
C. summarizes what the auditor did
D. states that the financial statements are truthful
128. The purpose of an audit is to
A. determine whether or not a company is a good investment.
B. render an opinion on the fairness of the statements.
C. determine whether or not a company complies with income tax regulations.
D. determine whether or not a company is a good credit risk.
129. Which of the following is required by the Sarbanes-Oxley Act of 2002?
A. A price-earnings ratio.
B. A report on internal control.
C. A vertical analysis.
D. A common-sized statement.
130. All of the following are typically included in the Management’s Discussion and Analysis in annual reports except:
A. explanations of any significant changes between the current and prior years’ financial statements.
B. management’s assessment of liquidity.
C. journal entries.
D. off-balance-sheet arrangements