General Purpose F/S

Question 1

The balance sheet is as of

Answer 1

A specific period.

Question 2

The income Statement is as of

Answer 2

A period in time.

Question 3

Current Ratios

Answer 3

Current Assets/Current Liabilities
Does the entity have enough short term resource to cover the short term liabilities.

Question 4

Quick Ratio

Answer 4

(Current Assets - Inventory - Prepaid)/ Current liabilities

Question 5

Debt to Equity

Answer 5

Total Liabilities/ Shareholder’s Equity

Question 6

Multistep Income Statement

Answer 6

Sales
- COGS
= Gross Income
- SG&A
- Deprecation
= Operating Income
+/- Misc. Rev/Gains/Expenses/losses
=Income before taxes
- Income tax expense
= Income from continuing operations
+/- Income from discont. Operations ( Presented Net of Tax)
= Net Income

Question 7

Gross Margin formula

Answer 7

(Revenue - COGS) / Revenue

Question 8

Profit Margin

Answer 8

Gross Profit / Net sales

Question 9

OCI “Other Comprehensive Income

Answer 9

Unrealized gains or losses on AFS Securities
Unrecognized gains and losses from pension cost
Foreign currency translation adjustments
Unrealized gains or losses from certain derivative transactions