Question 1

Jill's Market has an inventory turnover of 120 times.Scott's Market has a turnover of 128 times.Scott's is more effective in managing inventory.

Accepted Answer

A) True 
 B)False

Question 2

Trend analysis is analysis

Accepted Answer

A) of percentage changes over several years. 
B) in which all items are presented as a percentage of one selected item on a financial statement. 
C) in which a statistic is calculated for the relationship between tow items on a single financial statement or for two items on different financial statements. 
D) of all ratios that increased or decreased over past accounting periods. 
A) of percentage changes over several years. 
B) in which all items are presented as a percentage of one selected item on a financial statement. 
C) in which a statistic is calculated for the relationship between tow items on a single financial statement or for two items on different financial statements. 
D) of all ratios that increased or decreased over past accounting periods.

Question 3

If a company has an acid-test ratio of 1.2,what respective effects will the borrowing of cash by short-term debt and the collection of accounts receivable have on the ratio? Short-term Collection of
Borrowing Receivable

Accepted Answer

A) Increase No effect 
B) Increase Increase 
C) Decrease No effect 
D) Decrease Decrease 
A) Increase No effect 
B) Increase Increase 
C) Decrease No effect 
D) Decrease Decrease

Question 4

Grant Company reported the following on its income statement:   An analysis of the income statement revealed that interest expense was $60,000.Grant Company's times-interest-earned ratio was

Accepted Answer

A) 8. 
B) 7. 
C) 6. 
D) 5. 
A) 8. 
B) 7. 
C) 6. 
D) 5.

Question 5

Liquidity ratios measure the ability of a company to meet its current obligations.

Accepted Answer

A) True 
 B)False

Question 6

A number of online sources contain competitive information on individual company's ratios.

Accepted Answer

A) True 
 B)False

Question 7

Horizontal analysis involves comparing two or more years' financial data for a single company.

Accepted Answer

A) True 
 B)False

Question 8

Presented below are selected data from the financial statements of Russell Corp.for 2012 and 2011.   Earnings per share is reported on the 2012 income statement as

Accepted Answer

A) $ .44. 
B) $ .55. 
C) $ .84. 
D) $ .95. 
A) $ .44. 
B) $ .55. 
C) $ .84. 
D) $ .95.

Question 9

The Grand Department Store had net credit sales of $12,000,000 and cost of goods sold of $8,000,000 for the year.The average inventory for the year amounted to $1,600,000. The inventory turnover ratio for the year is

Accepted Answer

A) 4.0 times. 
B) 7.2 times. 
C) 5.0 times. 
D) 2.5 times. 
A) 4.0 times. 
B) 7.2 times. 
C) 5.0 times. 
D) 2.5 times.

Question 10

Presented below are selected data from the financial statements of Korn Corp.for 2012 and 2011.   The price-earnings ratio for 2012 is

Accepted Answer

A) 1.09. 
B) 5.46. 
C) 6.0. 
D) 11.0. 
A) 1.09. 
B) 5.46. 
C) 6.0. 
D) 11.0.

Question 11

Which profitability ratio requires the use of earnings per share in its calculation?

Accepted Answer

A) Price-earnings ratio 
B) Return on common stockholders' equity 
C) Dividend yield 
D) Return on sales 
A) Price-earnings ratio 
B) Return on common stockholders' equity 
C) Dividend yield 
D) Return on sales

Question 12

The two major techniques for financial analysis are

Accepted Answer

A) horizontal analysis and circular analysis. 
B) receivable analysis and profitability analysis. 
C) vertical analysis and budget analysis. 
D) common-size analysis and ratio analysis. 
A) horizontal analysis and circular analysis. 
B) receivable analysis and profitability analysis. 
C) vertical analysis and budget analysis. 
D) common-size analysis and ratio analysis.

Question 13

Which of the following is considered a liquidity analysis ratio?

Accepted Answer

A) Return on total assets ratio. 
B) Quick ratio. 
C) Dividend yield ratio. 
D) Return on sales ratio. 
A) Return on total assets ratio. 
B) Quick ratio. 
C) Dividend yield ratio. 
D) Return on sales ratio.

Question 14

Dividing the market price of a share of stock by the earnings per share gives the price-earnings ratio.

Accepted Answer

A) True 
 B)False

Question 15

For meaningful analysis,ratios are best compared with

Accepted Answer

A) historical company averages. 
B) industrial averages. 
C) historical and industrial averages. 
D) no standard. 
A) historical company averages. 
B) industrial averages. 
C) historical and industrial averages. 
D) no standard.

Question 16

The following data have been taken from your company's financial records for the current year:   The price-earnings ratio is

Accepted Answer

A) 10.2. 
B) 6.9. 
C) 1.5. 
D) 15.3. 
A) 10.2. 
B) 6.9. 
C) 1.5. 
D) 15.3.

Question 17

The following ratios have been computed for Gilbert Company for 2012.
   Gilbert Company's 2012 financial statements with missing information follow:
     Required: Use the above ratios and information from the Gilbert Company financial statements to fill in the missing information on the financial statements.Follow the sequence indicated.Show computations that support your answers.

Accepted Answer

The answer of The following ratios have been computed for...

Question 18

The income statement for Ray Company for the year ended December 31,2011,appears below.
   *Includes $30,000 of interest expense and $18,000 of income tax expense.
Additional information:
   Required: Compute the following ratios for 2011:

Accepted Answer

The answer of The income statement for Ray Company for...

Question 19

In horizontal analysis,each item is expressed as a percentage of the

Accepted Answer

A) retained earnings figure. 
B) total assets figure. 
C) net income figure. 
D) base year figure. 
A) retained earnings figure. 
B) total assets figure. 
C) net income figure. 
D) base year figure.

Question 20

Holt Company reported the following on its income statement:   An analysis of the income statement revealed that interest expense was $52,500.Holt Company's times-interest-earned ratio was

Accepted Answer

A) 9. 
B) 8. 
C) 7. 
D) 6. 
A) 9. 
B) 8. 
C) 7. 
D) 6.

Jill's Market has an inventory turnover of 120 times.Scott's Market has a turnover of 128 times.Scott's is more effective in managing inventory.

Trend analysis is analysis

If a company has an acid-test ratio of 1.2,what respective effects will the borrowing of cash by short-term debt and the collection of accounts receivable have on the ratio? Short-term Collection of Borrowing Receivable

Grant Company reported the following on its income statement: An analysis of the income statement revealed that interest expense was $60,000.Grant Company's times-interest-earned ratio was

Liquidity ratios measure the ability of a company to meet its current obligations.

A number of online sources contain competitive information on individual company's ratios.

Horizontal analysis involves comparing two or more years' financial data for a single company.

Presented below are selected data from the financial statements of Russell Corp.for 2012 and 2011. Earnings per share is reported on the 2012 income statement as

The Grand Department Store had net credit sales of $12,000,000 and cost of goods sold of $8,000,000 for the year.The average inventory for the year amounted to $1,600,000. The inventory turnover ratio for the year is

Presented below are selected data from the financial statements of Korn Corp.for 2012 and 2011. The price-earnings ratio for 2012 is

Which profitability ratio requires the use of earnings per share in its calculation?

The two major techniques for financial analysis are

Which of the following is considered a liquidity analysis ratio?

Dividing the market price of a share of stock by the earnings per share gives the price-earnings ratio.

For meaningful analysis,ratios are best compared with

The following data have been taken from your company's financial records for the current year: The price-earnings ratio is

The income statement for Ray Company for the year ended December 31,2011,appears below. *Includes $30,000 of interest expense and $18,000 of income tax expense. Additional information: Required: Compute the following ratios for 2011:

In horizontal analysis,each item is expressed as a percentage of the

Holt Company reported the following on its income statement: An analysis of the income statement revealed that interest expense was $52,500.Holt Company's times-interest-earned ratio was

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing,and Inventory Management

Profit Planning

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

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Exam 16: Financial Statement Analysis

Jill's Market has an inventory turnover of 120 times.Scott's Market has a turnover of 128 times.Scott's is more effective in managing inventory.

Trend analysis is analysis

If a company has an acid-test ratio of 1.2,what respective effects will the borrowing of cash by short-term debt and the collection of accounts receivable have on the ratio? Short-term Collection of Borrowing Receivable

Grant Company reported the following on its income statement: An analysis of the income statement revealed that interest expense was $60,000.Grant Company's times-interest-earned ratio was

Liquidity ratios measure the ability of a company to meet its current obligations.

A number of online sources contain competitive information on individual company's ratios.

Horizontal analysis involves comparing two or more years' financial data for a single company.

Presented below are selected data from the financial statements of Russell Corp.for 2012 and 2011. Earnings per share is reported on the 2012 income statement as

The Grand Department Store had net credit sales of $12,000,000 and cost of goods sold of $8,000,000 for the year.The average inventory for the year amounted to $1,600,000. The inventory turnover ratio for the year is

Presented below are selected data from the financial statements of Korn Corp.for 2012 and 2011. The price-earnings ratio for 2012 is

Which profitability ratio requires the use of earnings per share in its calculation?

The two major techniques for financial analysis are

Which of the following is considered a liquidity analysis ratio?

Dividing the market price of a share of stock by the earnings per share gives the price-earnings ratio.

For meaningful analysis,ratios are best compared with

The following data have been taken from your company's financial records for the current year: The price-earnings ratio is

The income statement for Ray Company for the year ended December 31,2011,appears below. *Includes $30,000 of interest expense and $18,000 of income tax expense. Additional information: Required: Compute the following ratios for 2011:

In horizontal analysis,each item is expressed as a percentage of the

Holt Company reported the following on its income statement: An analysis of the income statement revealed that interest expense was $52,500.Holt Company's times-interest-earned ratio was

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing,and Inventory Management

Profit Planning

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Filters