Managerial accounting exam 1 ) (Solved Questions 100% VERIFIED QUESTIONS AND ANSWERS)

Managerial accounting exam 1 Included as part of general-purpose financial statements? Company webcasts Not included Included as part of general-purpose financial statements? Income statement Included Included as part of general-purpose financial statements? Company news releases Not included Included as part of general-purpose financial statements? Financial statement notes Included Included as part of general-purpose financial statements? Prospectus Not included Included as part of general-purpose financial statements? Balance sheet Included Included as part of general-purpose financial statements? Stock price information and investor analysis Not included Included as part of general-purpose financial statements? Press releases on change of board of directors Not included Standard of comparison: Industry Compare McDonald's profit margin to the fast food industry profit margin Standard of comparison: Intracompany Compare Netflix's current year sales to its prior year sales Standard of comparison: Competitor Compare Amazon's cost of goods sold to Walmart's cost of goods sold Standard of comparison: Guidelines Compare a company's times interest earned to the rule of thumb of 2 times interest earned In the current year, Aveeno reported net income of $54,320, which was a 12% increase over prior year net income Compute prior year net income $54,320=1.12*prior $54,320/1.12=$48,500 Percent change= Dollar change/ Base period amount *100 Dollar change= Analysis period amount - base period amount Trend percent= Analysis period/ base year *100 Common-size percents= Analysis period cost of goods sold/ analysis period net sales * 100 Current ratio= Current assets/ current liabilities Assets= Cash Short-term investments Accounts receivable Inventory Prepaid assets How does this transaction affect currents assets, current liabilities, and current ratio? Acquired inventory for $360 cash Current assets= no effect Current liabilities= no effect Current ratio= no effect How does this transaction affect currents assets, current liabilities, and current ratio? Sold a long-term asset (equipment) for $4800 cash Current assets= increase Current liabilities= no effect Current ratio= increase