Question 1: The following infrmation is available for Hughes Co.
2010 2009 2008
-------------------------------------------------------------------------------------------------
Net income $2,500 $1,700 $1,900
Net Sales $37,000 $35,000 $32,000
Total Assets $420,000 $395,000 $375,000
From the information provided, calculate Hughes`s profit margin ratio for each of the three years. In 2009 economic conditions and a slowing economy impacted the results of operations. Comment on the results, assuming that the industry average for the profit margin ration is 7% for each of the three years
Question 2: The closing process is a step in the accounting cycle that prepares accounts for the next accounting period.
True or False
Question 3: All necessary numbers to prepare the income statement can be taken from the income statement columns of the work sheet, including the net income or net loss
True or False
Question 4: When expenses exceed revenues, there is a net loss and the Income Summary account would have a credit balance
True or False
Question 5: Current liabilities are cash and other resources that expected to be sold, collected or used within one year or the company`s operating cycle whichever is longer
True or False
Question 6: Intangible assets are long-term resources that benefit business operations that usually lack physical form and have uncertain benefits
True or False
Question 7: Reversing entries
a; Are optional
b; Are mandatory
c; Correct errors in journal entries
d; Are required by GAAP
e; Are prepared on the worksheet
Question 8: Revenue, expense, withdrawals, and Income Summary are called ( )
accounts because they are closed at the end of each accounting period
Question 9: A company`s post-closing trial balance has a debit total of $475,000 and a credit total of $457,000. This indicates that ( ).