Trend analysis is a form of horizontal analysis that can reveal patterns in data across successive periods.

In preparing a company’s statement of cash flows for the most recent year, the following information is available:         Loss on the sale of equipment $ 14,000 Purchase of equipment   225,000 Proceeds from the sale of equipment   106,000 Repayment of outstanding bonds   87,000 Purchase of treasury stock   25,000 Issuance of common stock   96,000 Purchase of land   115,000 Increase in accounts receivable during the year   33,000 Decrease in accounts payable during the year   75,000 Payment of cash dividends   35,000 Net cash flows from investing activities for the year were:

When preparing the operating activities section of the statement of cash flows using the indirect method, expenses with no cash outflows are added back to net income.

Identify the accounts that would normally have balances in the credit column of a business’s trial balance.

Recordkeeping, or bookkeeping, is the recording of transactions and events, either manually or electronically. This is just one part of accounting.

If a company plans to continue business into the future, closing entries are not required.

The credit purchase of a new oven for $4,700 was posted to Kitchen Equipment as a $4,700 debit and to Accounts Payable as a $4,700 debit. What effect would this error have on the trial balance?

When preparing the operating activities section of the statement of cash flows using the indirect method, decreases in current operating assets are subtracted from net income.

Clermont Industries reported Net income of $283,000 and average Total assets of $637,000. The Return on total assets is:

Refer to the following selected financial information from Port Elizabeth, LLC. Compute the company’s current ratio for Year 2.    Year 2   Year 1 Cash $ 37,500   $ 36,850   Short-term investments   90,000     90,000   Accounts receivable, net   85,500     86,250   Merchandise inventory   121,000     117,000   Prepaid expenses   12,100     13,500   Plant assets   388,000     392,000   Accounts payable   113,400     111,750   Net sales   711,000     706,000   Cost of goods sold   390,000     385,500