BE 245
The adjusted trial balance of Hanson Hawk Corporation at September 30, 2014 includes the following accounts: Retained Earnings €27,700; Dividends €9,750; Sales Revenue €44,800; Insurance Expense €1,950; Salaries and Wages Expense €18,000; Rent Expense €3,000; Supplies Expense €650; and Depreciation Expense €1,100. Prepare a retained earnings statement for the year.
a
BE 246
The following terms relate to the fundamental qualities of useful information. Match the key letter of the correct term with the descriptive statement below.
a.Confirmatory valuee.Faithful representation
b.Neutralf.Timely
c.Predictive valueg.Verifiable
d.Relevant
a
BE 247
Each of the following statements is justified by a fundamental quality or an enhancing quality of useful information. Write the letter in the blank next to each statement corresponding to the quality involved.
a.Comparabilityd.Consistency
b.Understandabilitye.Relevance
c.Verifiablef.Faithful representation
_____1.A company uses the same accounting principles from year to year.
_____2.Information where independent measures, using the same methods, obtain similar results.
_____3.Information presented in a clear and concise fashion.
_____4.Information that makes a difference in a decision.
_____5.Information accurately depicts what really happened.
LO 9, BT: C, Difficulty: Easy, TOT: 5 min., AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC: None, IMA: Reporting
1.d2.c3.b4.e5.f