Rough Corporation's Total Assets at the End of Year 2

question 108

Multiple Choice

Rough Corporation's total assets at the end of Year 2 were $1,247,000 and at the end of Year 1 were $1,270,000. The company's total liabilities at the end of Year 2 were $512,000 and at the end of Year 1 were $550,000. The company's total stockholders' equity at the end of Year 2 was $735,000 and at the end of Year 1 was $720,000. The company's equity multiplier is closest to:

• A) 1.73
• B) 1.44
• C) 0.69
• D) 0.58

Understand disclosure requirements for lessees under capital and operating leases.

Calculate the interest expense associated with lease obligations.

Understand how a lease's terms and conditions affect its classification and the resulting financial reporting.

Understand the accounting treatment of initial direct costs for different types of leases.

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Definitions:

Kakapo

A critically endangered species of large, nocturnal, flightless parrot native to New Zealand.

Supplemental Food

Additional food provided to support or improve the diet of certain groups of individuals or species, often used in conservation and animal husbandry.

Sex Ratios

The proportion of males to females in a population, commonly used in studies of population dynamics, behavior, and evolutionary biology.

Drought

A prolonged period of abnormally low rainfall leading to a shortage of water.