If total assets decreased by $49,016 during a period of time and stockholders' equity increased by $29,140 during the same period, then the amount and direction (increase or decrease) of the period's change in total liabilities is

If total assets decreased by $49,016 during a period of time and stockholders' equity increased by $29,140 during the same period, then the amount and direction (increase or decrease) of the period's change in total liabilities is

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 2MC: When a change in accounting principle is made during the year, the cumulative effect on retained...

See similar textbooks

Related questions

Q: Sales Revenue less COGS Gross Margin less Operating Exps. Net Inc. S 250,000 ?? 50,000 GM Ratio = ??…

A: Lets understand the basics.Cost of goods sold is a cost of acquisition or production of goods or…

Q: Explains these controls and tell why they are important in any fraud situation: a. Preventive…

A: Controls refer to measures, procedures, or mechanisms put in place by organizations to manage and…

Q: Kalyan Corporation uses the first-in, first-out method in its process costing system. Operating data…

A: Equivalent units of production for conversion costs refer to the number of partially completed units…

Q: 1. Construct a complete, properly formatted income statement for the year ended December 31, 2019,…

A: Income statement is one of the part of the financial statement. In it we show the revenue and…

Q: Until the end of year 0, Magic Carpets (MC) was a C corporation with a calendar-year-end. At the…

A: It is the income of a taxpayer on which the revenue authorities will impose tax. Taxable is the…

Q: The company incurred the following actual costs when it operated at 75% of capacity in October…

A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…

Q: Life, Incorporated experienced the following events in Year 1. its first year of operation: 1.…

A: The accounting equation records all the assets, liabilities and stockholders' equity related…

Q: Coronado Industries has recently reported steadily increasing income. The company reported income of…

A: Answer:- Warranty expense meaning:- In accounting, warranty expense refers to the expense incurred…

Q: Bradley Inc. has the capacity to make 100,000 windows. Bradley is currently operating at 80%…

A: The fixed costs remain constant for the existing production range. The variable cost per unit…

Q: Privett Company Line Item Description Amount Accounts payable $35,877 Accounts receivable 64,837…

A: Working capital is the amount available for the business entity to meet out its day-to-day business…

Q: At the beginning of last year, Brentwood Corporation purchased a piece of heavy equipment for…

A: DEPRECIATION EXPENSEDepreciation means gradual decrease in value of assets due to normal wear and…

Q: FruAgro Company has average annual gross receipts of $50 million annually. This year, FruAgro earned…

A: The business interest deduction is the deduction which has been deducted and is allowed to the…

Q: What is the impact of changes in interest rates on the accounting for variable-rate promissory…

A: The chance of the borrowed or invested quantum that's charged or earned as payment for the…

Q: PR 7-34 (Algo) Basic CVP Relationships; Retailer (LO 7-1,7-2, 7-4) Disk City, Incorporated, is a…

A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is one of the Important Cost…

Q: Seth and Rachel have original investments of $50,000 and $100,000, respectively, in a partnership.…

A: Net loss is the amount of money incurred by the entity. When expenses are more than the revenues,…

Q: Coronado, Inc. can produce 100 units of a component part with the following costs: Direct Materials…

A: In decision making process we should not consider fixed cost, because it is constant in total. It…

Q: The assets and liabilities of Thompson Computer Services at March 31, the end of the current year,…

A: Lets understand the basics.The income statement is one of the essential parts of the financial…

Q: Net sales Cost of products sold Gross margin 2020 $ 8,691 5,692 $ 2,999 (In millions) 2019 $ 8,107…

A: GROSS PROFIT RATIOGross Profit Ratio is the ratio between Gross Profit & Net Sales Revenue.…

Q: 163. ( Paul Cooper, shipping manager for DFG Distributors, is responsible for managing the staff and…

A: Goal congruence, in simple terms, refers to the alignment or harmony between the goals and…

Q: The following balances were taken from the records of Sheridan Company: Common stock (1/1/20 and…

A: Consolidation is an activity in which financial statements of a parent and its subsidiary should be…

Q: a. What is Acorn's maximum cost recovery deduction in the current year? Maximum cost recovery…

A: As per the given information, Acorn is not eligible for section 179 expensing because it new assets…

Q: The A and B partnership agreement stipulates that profits and losses will be shared equally after…

A: The partnership is an agreement between two or more partners where partners agree to work together…

Q: A: On January 1st, 2022, Vehicle Inc. bought 5% of the outstanding stock of Bicycle Inc. for…

A: The method of recording of investment is dependent upon the fact which is the controlling interest…

Q: College Life produces sweatshirts for college organizations and uses hybrid costing. It reports the…

A: Cost per Unit:Cost per unit includes material, labor charges, conversion costs etc: and includes…

Q: A physical count of supplies on hand at the end of May for Masters, Inc. indicated $1,250 of…

A: Adjusting entries are those which are prepared by the entity to adjust the prepayments and accruals…

Q: Expected Cost $141,000 10,800 87,500 Machining Receiving 25,500 Silven produces two models of cell…

A: Activity-Based Costing (ABC) is a cost allocation and accounting method used by organizations to…

Q: Calculate percentages to the nearest 0.1%. Loblaws purchases raisins at $85.75 per 25-kg box and…

A: MARKUP PERCENTAGEMarkup is the difference between Selling Price & Cost. The Markup Percentage on…

Q: Slicing Golf Company Schedule of Cost of Goods Manufactured Beginning Work-in-Process Inventory…

A: The cost of goods manufactured includes the cost of goods that are finished during the period. The…

Q: Lansing Mfg. prepared the following annual abbreviated flexible budget for different levels of…

A: Manufacturing Overhead: The total of all indirect expenses spent during the manufacture of a product…

Q: The following financial information is available for Hero Sports Ltd.: Sales :$45,000 Costs :$25,000…

A: Retained earnings is the amount of earnings accumulated or retained for the period of time. Net…

Q: Identify whether each description best applies to a periodic or a perpetual inventory system.…

A: An inventory system is a method used by businesses to keep track of their inventory, which includes…

Q: Variable manufacturing overhead costs incurred Variable manufacturing overhead cost rate Fixed…

A: Utility bills, maintenance and repairs, supplies, and labor costs for personnel who are paid…

Q: Required information [The following information applies to the questions displayed below.] Hudson…

A: The break-even sales are calculated as the fixed costs divided by the contribution margin ratio. The…

Q: Port Ormond Carpet Company manufactures carpets. Fiber is placed in process in the Spinning…

A: When the production cost is required for a job, it is referred to as work in process, until and…

Q: TX, Inc., dominates the snack-food industry with its Salty Chip brand. Assume that TX purchased…

A: When one firm buys another, whether it be through the purchase of only certain assets or the whole…

Q: Knowledge Check 01 Roberts Company reported the following information: Accounts Payables beginning…

A: Account payable turnover ratio = The accounts payable turnover ratio, also known as the payable…

Q: Required information [The following information applies to the questions displayed below.] Archer…

A: VARIABLE COST Variable Cost is a cost that varies with the level of output.Variable costs include…

Q: The Shirt Works sells a large variety of tee shirts and sweatshirts. Steve Hooper, the owner, is…

A: Target profit is like having a destination in mind for your business. It's the specific amount of…

Q: 00

A: A contingent liability is a liability or a potential loss that may occur in the future…

Q: The Bradford Company issued 10% bonds, dated January 1, with a face amount of $50 million on January…

A: The bonds a debt securities issued by corporations and government entities to raise funds. Bonds are…

Q: Question Content Area Assume that three identical units of merchandise were purchased during…

A: The average cost per unit is calculated as the total cost of goods available for sale divided by the…

Q: Assume the following sales data for a company: Line Item Description Amount Current year $891,303…

A: The following formula used to calculate as follows:-=Increased sales / Previous year sales x 100

Q: The owner of a bicycle repair shop forecasts revenues of $192,000 a year. Variable costs will be…

A: INCOME STATEMENTIncome Statement is one of the Important Financial Statement of the Company. Income…

Q: Assume that a general economic downturn occurred during year 2, with product demand falling from…

A: Percentage change in saleChange in sales x100Base SalesPercentage change in…

Q: 1. Wages earned by employees during December 2022, unpaid and unrecorded on December 31, 2022,…

A: Journal Entry is the primary step in recording the transactions in the books of accounts.The…

Q: The Zulu Company has a maximum production capacity of 40,000 units per year. For that capacity…

A: Fixed Cost:Fixed costs are expenses that remain constant in total, regardless of the level of…

Q: Prepare a schedule that shows how the equivalent units were computed so that you can complete the…

A: The equivalent units are calculated on the basis of the percentage of the work completed during the…

Q: Trevor Corporation had $2,900,000 in total liabilities and $4,300,000 in total assets as of December…

Q: Balance sheet preparation Use the appropriate items from the following list to prepare in good form…

A: CURRENT ASSETS :Current Assets are those assets which are expected to released within 12 Months From…

Q: Disk City, Incorporated, is a retailer for digital video disks. The projected net income for the…

A: Given information,Projected net income = $2,130,000Sales volume = 230,000 video disksSelling price…

Question

Definition Definition Assets available to stockholders after a company's liabilities are paid off. Stockholders’ equity is also sometimes referred to as owner's equity. A stockholders’ equity or book value generally includes common stock, preferred stock, and retained earnings and is an indicator of a company's financial strength.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Define liability, assets and equity

VIEW

Step 2: Calculation of change in Liabilities

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Assuming that total assets were $8,037,000 at the beginning of the current fiscal year, determine the following: When required, round to one decimal place. a. Ratio of fixed assets to long-term liabilities b. Ratio of liabilities to stockholders' equity c. Asset turnover d. Return on total assets e. Return on stockholders' equity f. Return on common stockholders' equity % % %
Vertical analysis compares each item on a financial statement with: a corresponding item on a different statement of the same year. B. a total or key amount on the same statement. an industry average. a total or key amount on the financial statement of the previous period.
the retained earnings for the end of a year should be calculated as the retained earnings at the end of the previous year minus earnings retained for the year. TRUE OR FALSE?
To calculate a year-to-year percentage change in any financial statement line item such as sales, you determine the current-year amount and prior-year amount and divide the difference by: A) Total assets B) Net income C) The current year’s amount D) The prior years amount
What do the following data, taken from a comparative balance sheet, indicate about the companys ability to borrow additional long-term debt in the current year as compared to the preceding year?
The cumulative effect of an accounting change should generally be reported as an adjustment to the beginning balance of retained earnings in tin period in which the change is made for a:
When a change in accounting principle is made during the year, the cumulative effect on retained earnings is determined: a. during the year using the weighted average method b. as of the date of the change c. as of the beginning of the year in which the change is made d. as of the end of the year in which the change is made
What is the amount of change in retained earnings for the year?
How is the year-end balance of the NCI in Net Assets (NCINA) account calculated? A) Beginning-of-year NCINA + NCI's% of S's reported net income - NCI's % of Amort of Differential - NCI's% of S's dividends. B) Beginning-of-year NCINA – P's % of S's reported net income + P's % of Amort of Differential + P's % of S's dividends. C) Beginning-of-year NCINA – NCI's% of S's reported net income + NCI's % of Amort of Differential - NCI's% of S's dividends. D) Beginning-of-year NCINA + P's% of S's reported net income - P's % of Amort of Differential - P's% of S's dividends.
Determine the following: (a) debt ratio, (b) ratio of fixed assets to long-term liabilities, (c) ratio of liabilities to stockholders' equity, (d) asset turnover, (e) return on total assets, (f) return on stockholders' equity, and (g) return on common stockholders' equity. Round to two decimal places. a. Debt ratio b. Ratio of fixed assets to long-term liabilities C. Ratio of liabilities to stockholders' equity d. Asset turnover e. Return on total assets f. Return on stockholders' equity g. Return on common stockholders' equity 23.08✔ % 1.4 ✓ 0.3 ✔ 2.97 X % % %
Which ratio measures the number of times the receivables are rotated in a year in terms of sales? [A] stock turnover ratio [B] debtors turnover ratio [C] creditors velocity ratio [D] working capital turnover ratio
Determine the following measures for 20Y2, rounding to one decimal place including, percentage, except for per-share amounts. 6. Inventory Turnover 7. number of days sale in inventory 8. Ratio of fixed assets to long-term liabilities 9. ratio of liabilities to stockholders equity 10. times interest earned 11. asset turnover 12. return on total asset 13. return on stockholders equity 14. return on common stockholders equity 15. earnings per share on common stock 16. price-earnings ratio 17. dividends per share of common stock 18. dividend yield please and i repeat please answer 7-18 i do NOT need help on 1-7 i have those answers already. I have provided all the information. Please help me