Financial Statements for a Corporation

JEOPARDY

Income Income StatementStatement

Analyzing Analyzing Income StIncome St

Statement of Statement of Stockholders’ Stockholders’

EquityEquity

Balance Balance SheetSheet VocabularyVocabulary GRAB BAGGRAB BAG

100 100 100 100 100 100

200 200 200 200 200 200

300 300 300 300 300 300

400 400 400 400 400 400

500 500 500 500 500 500

600 600 600 600 600 600

Financial Statements for a Corporation JEOPARDY

Income Statement - 100

• The income statement of a merchandising business has three main sections…

what is . . . Revenue, Cost of Merchandise Sold and Expenses

what is . . . Revenue, Cost of Merchandise Sold and Expenses

Income Statement - 200

• The two contra accounts for Sales

what are . . . Sales Discounts and Sales Ret. & Allow.

what are . . . Sales Discounts and Sales Ret. & Allow.

Income Statement - 300

• The two contra accounts for Purchases

what are . . . Purchases Discounts & Purchases Ret. & Allow

what are . . . Purchases Discounts & Purchases Ret. & Allow

Income Statement - 400

• Calculation for Total Cost of Merchandise available for sale

What is . . . Net Purchases plus

Beginning Merchandise Inventory What is . . . Net Purchases plus

Beginning Merchandise Inventory

Income Statement - 500

• The remaining revenue after cost of merchandise sold has been deducted

what is . . . Gross Profit on Sales

what is . . . Gross Profit on Sales

Income Statement - 600

• Another name for cost of merchandise sold.

what is . . . Cost of goods sold or cost of sales

what is . . . Cost of goods sold or cost of sales

Analyzing Income ST - 100

• For a component percentage to be useful, a business must know…

what is . . . Acceptable percentages (industry standards)

what is . . . Acceptable percentages (industry standards)

Analyzing Income St - 200

• The major cost of a merchandising business…

what is . . . Cost of Merchandise Soldwhat is . . . Cost of Merchandise Sold

Analyzing Income St - 300

• Gross Profit must be large enough to

what is . . . Cover expenses and the desired amount of net income

what is . . . Cover expenses and the desired amount of net income

Analyzing Income St - 400

• Total expenses must be less than

what is . . . Gross Profit on Sales (to provide a desirable net income)

what is . . . Gross Profit on Sales (to provide a desirable net income)

Analyzing Income St - 500

• The business’s total expenses are greater than the gross profit, the difference is known as

what is . . . Net Losswhat is . . . Net Loss

Analyzing Income St - 600

what are . . . Cost of Merchandise Sold, Gross Profit on Sales, total expenses, net income before income tax

what are . . . Cost of Merchandise Sold, Gross Profit on Sales, total expenses, net income before income tax

• The four components reported on the income statement…

Statement of Stockholders’ Equity - 100

• A financial statement that shows changes in a corporation’s ownership for a fiscal period

what is . . . Statement of stockholders’ equitywhat is . . . Statement of stockholders’ equity

Statement of Stockholders’ Equity - 200

• A value assigned to a share of stock and printed on the stock certificate is called

what is . . . PAR VALUEwhat is . . . PAR VALUE

Statement of Stockholders’ Equity - 300

• The two sections in a statement of stockholders’ equity

what are . . . Capital Stock & Retained Earnings

what are . . . Capital Stock & Retained Earnings

Statement of Stockholders’ Equity - 400

• The information found to prepare the capital stock section of a statement of stockholder’s equity

what is . . . The capital stock general ledger account.

what is . . . The capital stock general ledger account.

Statement of Stockholders’ Equity - 500

• The beginning balance of retained earnings is found

what is . . . the balance sheet credit column of the worksheet.

what is . . . the balance sheet credit column of the worksheet.

Statement of Stockholders’ Equity - 600

• The corporation distributes a portion on income to stockholders

what is . . . a dividendwhat is . . . a dividend

Balance Sheet - 100

• The two sources information is obtained from for the balance sheet

what are . . . Balance sheet columns of the worksheet and statement of stockholders’ equity

what are . . . Balance sheet columns of the worksheet and statement of stockholders’ equity

Balance Sheet - 200

• Calculation for the book value of Accounts receivable

what is . . . Accts. Receivable less Allowance for Uncollectible Accounts

what is . . . Accts. Receivable less Allowance for Uncollectible Accounts

Balance Sheet - 300

• Example of a long-term liability

what is . . . Mortgage Payable, Notes Payable

what is . . . Mortgage Payable, Notes Payable

Balance Sheet - 400

• Two classifications of Assets for our Merchandising Balance sheet

what are . . . Current Assets & Plant Assets

what are . . . Current Assets & Plant Assets

Balance Sheet - 500

• Two items reported under the Stockholders’ Equity section

what are . . . Capital Stock and Retained Earnings (taken for the statement of Shareholders’ Equity)

what are . . . Capital Stock and Retained Earnings (taken for the statement of Shareholders’ Equity)

Balance Sheet - 600

• Two supporting schedules that might accompany a balance sheet

what are . . . Schedule of Accounts Receivable and Schedule of Accounts Payable

what are . . . Schedule of Accounts Receivable and Schedule of Accounts Payable

Vocab/Concepts - 100

• A comparison between two items of financial information

what is . . . A financial ratiowhat is . . . A financial ratio

Vocab/Concepts - 200

• The amount of net income after federal income tax belonging to a single share of stock

what is . . . Earnings Per Sharewhat is . . . Earnings Per Share

Vocab/Concepts - 300

• The relationship between the market value per share and earnings per share

what is . . . Price-earnings ratiowhat is . . . Price-earnings ratio

Vocab/Concepts - 400

• Instead of industry standards the EPS is compared to these two things

what are . . . Prior year’s earnings per share or Market Price on the stock

what are . . . Prior year’s earnings per share or Market Price on the stock

Vocab/Concepts - 500

• AN ORDER TO COMPEL THAT SOMETHING BE DONE

what is . . . AN INJUNCTIONwhat is . . . AN INJUNCTION

Vocab/Concepts - 600

• Companies with a high price-earnings ratio

what are . . . Growth Companieswhat are . . . Growth Companies

GRAB BAG - 100

• The financial statements should provide information about a business’s financial condition, changes in this financial condition and the progress of operations

what is . . . Adequate Disclosurewhat is . . . Adequate Disclosure

GRAB BAG - 200

• Financial information must be reported the same way from one fiscal period to the next

what is . . . Consistent Reportingwhat is . . . Consistent Reporting

GRAB BAG - 300

• Total Sales less sales discounts an sales returns and allowances

what is . . . Net Saleswhat is . . . Net Sales

GRAB BAG - 400

• The amount an owner expects to receive when a plant asset is removed from use

what is . . . Estimated salvage valuewhat is . . . Estimated salvage value

GRAB BAG - 500

• The total amount of depreciation expense that has been recorded since the purchase of a plant asset

what is . . . Accumulated depreciationwhat is . . . Accumulated depreciation

GRAB BAG - 600

• The amount of goods on hand for sale to customers

what is . . . Merchandise Inventorywhat is . . . Merchandise Inventory

Final Jeopardy

• Calculate Total Cost of Merchandise Available for Sale

Merchandise Inventory 1/1140,480.00

Net Purchases204, 826.90

Merchandise Inventory 12/31124, 640.00

Purchases Discounts 1, 648.15