7 Rodrigue\'s SA reported the following financial statement data for the year en

Question

7 Rodrigue's SA   reported the following financial statement data for the year ended 2007









Average net operating assets

39,000






Net income


14,000






Cash flow from operating activity
17,300






cash flow from investing   activity -12,400



A. -8%











B. -19.1%











C. 23.3%























8 Cash collected from customers is   least likely to differ from sales due to change in:




Inventory










Deffered revenue










Accounts receivable





















9 reported revenue is most likely to   have been reduced by management's discretionary estimate of:


A. warranty provisions









B. inventory damage and theft









C. interest to be earned on credit   sales




















10 Zimt AG reports 2007 revenue of   L14.3 billion. During 2007, its accounts receivable rose by L0.7 billion,   accounts payable
increased by L1.1 billion, and   unearned revenue increased by L0.5 billion. Its cash collections from   custormers in 2007 were
closest to:










A. L14.1billion










B. L14.58 billion










C. L15.2 billion






















11 Cinamon Corp began the year with   $12 million in accounts receivable and $31 million in deferred revenue. It   ended the year with $15
million in accounts receivable and   $27 million included in total revenue wre closest to:



A. $1 million










B. $7 million










C. $12 million









12 Which of the following is least   liklely to be likely to be a warning sign of low -qualify revenue?


A. large decrease in deferred   revenue








B. large increase in accounts   receivable








C.   A large increase in the allowance for doubtful accounts


















13 An unexpectedly large reduction in   the unearning revenue account is most likely a sign that the company:

A. accelerated revenue   recognition








B. Overstated revenue in prior   periods








C. Adopted more conservative revenue   recognition practices


















14 Canelle SA reported 2007 revenue of   L137 million. In accounts receivable balance began the year at L11 million   and
ended the year at L16 million. At   year end, L2 million of receivables had been securitized. Canelle's cash   collections
from customers(in L millions) in   2007 were closest to:






A. L130











B. L132











C. L134

Explanation / Answer

7. c.23.3%

8. Accounts recievable

9.B. inventory damage and theft

10. c. L 15.2

11. A. 1 million

12. C. A large increase in the allowance for doubtful accounts

13.B. Overstated revenue in prior periods

14. B. L132

Related Questions

Navigate

• Browse (All)
• Browse 7
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.