Assets (in KD)Liabilities (in KD)20000AccountsCash80000payableAccruedAccountsreceivable100000100000expenses210000 Notes payables 180000InventoryProperty,Equipment,PlantsLess:Amortization1500000Long-termborrowings40000050000Total liabilitiesTotal equityTotal Liabilitiesand Total EquityTotal assetsIncome statementSalesCOGS900000400000Gross profitOperating expenses200000EBITInterest expensesEBT50000Taxes20000Net IncomeConsider the above balance sheet and income statement.The average collection period is equal to:(Show calculation steps in reasons box)a.100.55 daysb.54.50 daysC.55.40 daysd.40.55 days

The question is related to Ratio Analysis. The Average Collection Period is calculated with the help…

Answered: Assets (in KD) Liabilities (in KD)…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 3SEQ

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The following data were taken from the statement of affairs of ROBINSONSCorp.:Assets pledged for fully secured liabilities (current fairvalue, P75,000)Assets pledged for partially secured liabilities (currentfair value P52,000)Free assets (current fair value, P40,000)Unsecured liabilities with priorityFully secured liabilitiesPartially secured liabilitiesUnsecured liabilities without priority P90,00074,00070,0007,00030,00060,000112,000 1. The amount that will be paid to creditors with priority is:a. P7,000 b. P6,000 c. P7,500 d. P6,2002. The amount to be paid fully secured creditors is:a. P30,000 b. P32,000 c. P20,000 d. P35,0003. The amount to be paid to partially secured creditors is:a. P52,700 b. P57,200 c. P56,200 d. P 57,0004. The amount to be paid to unsecured creditors:a. P78,200 b. P70,800 c. P72,000 d. P72,800
____ 18. The acquisition of an asset on creditA) leaves the total assets unchangedB) decreases assets and increases liabilitiesC) increases assets and liabilitiesD) increases assets and owner’s equity____ 19. The account records long-term debt of thebusiness entity for which it has pledged certainassets as securityA) notes payableB) accounts payableC) mortgage payableD) bonds payable____ 20. The accounting equationA) is used to determine the amount of liabilities owedB) is used to determine the amount of income earnedduring the periodC) shows the claims on the owner’s equity by thecreditorsD) shows the claims on the entity’s assets by both thecreditors and the owner____ 21. When the proprietor withdraws cash or otherassets, the withdrawal account isA) debitedB) creditedC) debited and creditedD) not affected____ 22. A credit entry decreases the balance ofA) owner’s equityB) assetsC) incomeD) liabilities____ 23. When an entity pays employees for theirservices, the effect is an increase…
If a company have a patent and it will not generate probable future economic benefits, in this case the company will: Select one: a. Derecognition. O b. None of the options. c. Not recorded. O d. Record it as an asset
Which of the following are Assets, Liabilities, EquityAccounts PayableCommon StockBonds PayableFurniture and FixturesInventoryInterest PayableDividentsAdditional paid-in-capitalPatents and copyrightsShort-term investments
Which of the following is an example of long term instruments? (select all that apply) a. Asset backed securities b. Commercial paper С. Repo d. Treasury bill
Collateralized Debt Obligations (CDO’s) are pools of__ a) all tranches of MBS b) the mezzanine and equity tranches of MBS c) senior tranches of MBS d) AAA tranches of MBS
11, please answer part b, thanks list of accounts Accumulated Other Comprehensive Income Allowance for Investment Impairment Bond Investment at Amortized Cost Cash Commission Expense Dividends Receivable Dividend Revenue FV-NI Investments FV-OCI Investments Gain on Disposal of Investments - FV-NI Gain on Disposal of Investments - FV-OCI Gain on Sale of Investments GST Receivable Interest Expense Interest Income Interest Payable Interest Receivable Investment in Associate Investment Income or Loss Loss on Discontinued Operations Loss on Disposal of Investments FV-NI Loss on Disposal of Investments FV-OCI Loss on Impairment Loss on Sale of Investments No Entry Note Investment at Amortized Cost Other Investments Recovery of Loss from Impairment Retained Earnings Unrealized Gain or Loss Unrealized Gain or Loss - OCI
Listed below are several terms and phrases associated with current liabilities. Pair each item from List A (by letter) with the item from List B that is most appropriately associated with it. 1. 2. Payable with current assets. 3. List A Face amount x Interest rate x Time. 4. a. b. Short-term debt to be refinanced with common stock. c. Present value of interest plus present value of principal. 5. Noninterest-bearing. 6. Noncommitted line of credit. 7. Pledged accounts receivable. 8. Reclassification of debt. 9. Purchased by other corporations. 10. Expenses not yet paid. 11. Liability until refunded. 12. Liability until satisfy performance obligation d. e. f. g. |h. I. J. k. 1. List B Informal agreement Secured loan Refinancing prior to the issuance of the financial statements Accounts payable Accrued liabilities Commercial paper Current liabilities Long-term liability Usual valuation of liabilities Interest on debt Customer advances Customer deposits
Charges in the fair value of the effective portion of a hedging financial instrument are recognized as a part of current earnings of the period for which of the following? Cash Flow Hedge Far Value Hedge a b с d yes no yes no yes yes no no
Use IFRS 9 to determine how to subsequently measure the following financial assets. Three choices of measurement basis are amortized cost, fair value through other comprehensive income, and fair value through profit or loss. Provide justification for your choice. Long-term loans that are held for collecting contractual cash flows till their maturities, but may be subsequently sold if the loans’ credit risk substantially increases. Investments in bonds that are held for collecting contractual cash flows, and may be subsequently sold to re-invest the cash in financial assets with a higher return. Subprime (high risk) mortgage loans that were originated by a mortgage-broker firm that always sell these loans to banks right after their origination. Forward contracts that an EU bank purchased to hedge the exposure to changes in fair value of US$-denominated loans. Investment in bonds that are convertible into common stock of the bond issuer. Investment in bonds that pay a variable market…
For assets acquired on credit or by installment, the cost or fair value is equal to: A. cash purchase priceB. invoice priceC. installment priceD. list price
Refering from the below tables What is the current portion of long-term liabilities reported and for what type of liabilities? Non-current liabilities Long term financing 6,728,738,161 Deferred liabilities 491,518,519 Long term payables - Current liabilities Trade and other payable 2,525,6236,858 Accrued interest 124,294,821 Short term borrowing 4,657,389,209 Current position of long-term payable 457,090,780 Current position of long-term Financing 1,628,822,242 Provision for taxation 238,198,131

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