Question 1

Return on total assets can be separated into profit margin and total asset turnover.

Accepted Answer

A) True 
 B)False

Question 2

Targot's current assets were $16,825.Its quick assets were $11,220.Its current liabilities were $13,190.The quick ratio is

Accepted Answer

A) 0.65 
B) 0.78 
C) 0.85 
D) 1.18 
E) 1.28 
A) 0.65 
B) 0.78 
C) 0.85 
D) 1.18 
E) 1.28

Question 3

GAP's earnings per share is $3.11.Its common dividend is $.36 per share and its market price is $40 per share.The dividend yield is 0.9%.

Accepted Answer

A) True 
 B)False

Question 4

Profit margin reflects the portion of profit in each dollar of revenue.

Accepted Answer

A) True 
 B)False

Question 5

Sonie's accounts receivable turnover was 5.7 for this year and 5.4 for last year.Aple's accounts receivable turnover was 6.8 for this year and 7 for last year.This means that

Accepted Answer

A) Sonie has the better turnover for both years 
B) Aple has the worse turnover for both years 
C) Sonie's turnover is improving 
D) Aple's turnover is improving 
E) Sonie has the better turnover for both years and Aple's turnover is improving 
A) Sonie has the better turnover for both years 
B) Aple has the worse turnover for both years 
C) Sonie's turnover is improving 
D) Aple's turnover is improving 
E) Sonie has the better turnover for both years and Aple's turnover is improving

Question 6

A company's sales in Year 1 were $460,000.Sales in Year 2 were $483,200.Using Year 1 as the base year,what is the trend percentage for Year 2?

Accepted Answer

$483,200/$

Question 7

a.What is meant by the term leverage,and how is leverage used to increase return to shareholders? b.If leverage does increase the returns to shareholders why don't all firms structure themselves to have a significantly high percentage of financing from debt and significantly less from shareholders?

Accepted Answer

Leverage is the use of borrowed money to

Question 8

Alternative City had profit of $150,000 and average total assets of $312,700.Calculate its return on total assets.

Accepted Answer

$150,000/$

Question 9

A trend percent is calculated by dividing the analysis period amount by the base period amount and multiplying the result by 100.

Accepted Answer

A) True 
 B)False

Question 10

A total asset turnover ratio of 3.5 indicates that

Accepted Answer

A) For every $1 in sales,the firm acquired $3.50 in assets during the year 
B) For every $1 in assets,the firm produced $3.50 in net sales during the year 
C) For every $1 in assets,the firm earned gross profit of $3.50 during the year 
D) For every $1 in assets,the firm earned $3.50 in earnings per share 
E) For every $1 in assets,the firm paid $3.50 in dividends per share 
A) For every $1 in sales,the firm acquired $3.50 in assets during the year 
B) For every $1 in assets,the firm produced $3.50 in net sales during the year 
C) For every $1 in assets,the firm earned gross profit of $3.50 during the year 
D) For every $1 in assets,the firm earned $3.50 in earnings per share 
E) For every $1 in assets,the firm paid $3.50 in dividends per share

Question 11

The days' sales uncollected ratio is used to

Accepted Answer

A) Measure how many days of sales remain until the end of the year 
B) Determine the number of days that have passed without collecting on accounts receivable 
C) Identify the likelihood of collecting sales on account 
D) Measure the amount of layaway sales for a period 
E) Estimate how much time is likely to pass before cash receipts from credit sales equal the amount of the existing accounts receivable 
A) Measure how many days of sales remain until the end of the year 
B) Determine the number of days that have passed without collecting on accounts receivable 
C) Identify the likelihood of collecting sales on account 
D) Measure the amount of layaway sales for a period 
E) Estimate how much time is likely to pass before cash receipts from credit sales equal the amount of the existing accounts receivable

Question 12

Three of the most common tools of financial analysis include horizontal analysis,vertical analysis,and ratio analysis.

Accepted Answer

A) True 
 B)False

Question 13

The current ratio

Accepted Answer

A) Is used to measure a company's profitability 
B) Is used to measure the relationship between assets and long-term debt 
C) Measures the effect of operating income on profit 
D) Is used to evaluate a company's ability to pay its short-term obligations 
E) Is used to measure a company's profitability and to evaluate a company's ability to pay its short-term obligations 
A) Is used to measure a company's profitability 
B) Is used to measure the relationship between assets and long-term debt 
C) Measures the effect of operating income on profit 
D) Is used to evaluate a company's ability to pay its short-term obligations 
E) Is used to measure a company's profitability and to evaluate a company's ability to pay its short-term obligations

Question 14

The dollar change for a financial statement is calculated by

Accepted Answer

A) Subtracting the analysis period amount from the base period amount 
B) Subtracting the base period amount from the analysis period amount 
C) Subtracting the analysis period amount from the base period amount,dividing the result by the base period amount,then multiplying that amount by 100 
D) Subtracting the base period amount from the analysis period amount,dividing the result by the base period amount,then multiplying that amount by 100 
E) Subtracting the base period amount from the analysis period amount,then dividing the result by the base amount 
A) Subtracting the analysis period amount from the base period amount 
B) Subtracting the base period amount from the analysis period amount 
C) Subtracting the analysis period amount from the base period amount,dividing the result by the base period amount,then multiplying that amount by 100 
D) Subtracting the base period amount from the analysis period amount,dividing the result by the base period amount,then multiplying that amount by 100 
E) Subtracting the base period amount from the analysis period amount,then dividing the result by the base amount

Question 15

The profit margin ratio is gross profit divided by net sales.

Accepted Answer

A) True 
 B)False

Question 16

Three of the most common tools of financial analysis are

Accepted Answer

A) Financial analysis,ratio analysis,vertical analysis 
B) Ratio analysis,horizontal analysis,financial analysis 
C) Horizontal analysis,vertical analysis,ratio analysis 
D) Horizontal analysis,financial analysis,ratio analysis 
E) Vertical analysis,investment analysis,horizontal analysis 
A) Financial analysis,ratio analysis,vertical analysis 
B) Ratio analysis,horizontal analysis,financial analysis 
C) Horizontal analysis,vertical analysis,ratio analysis 
D) Horizontal analysis,financial analysis,ratio analysis 
E) Vertical analysis,investment analysis,horizontal analysis

Question 17

The days' sales uncollected ratio measures a company's ability to manage its debt.

Accepted Answer

A) True 
 B)False

Question 18

On January 1,BPA Corporation had 250,000 common shares outstanding,issued for $500,000,and retained earnings of $100,000.On January 1,BPA declared a 35% share dividend to holders of record on January 15,to be distributed on January 25.Fair market value of BPA common shares on January 1 was $20 per share.What is the book value per common share on January 26?

Accepted Answer

($500,000

Question 19

Information from the current income statement of Coffey Corp follows:
 $\begin{array}{|l|r|}
\hline \text { Sales } & \$ 640,000 \
\hline \text { Gross profit on sales } & 276,000 \
\hline \text { Operating income } & 64,000 \
\hline \text { Income before taxes } & 44,000 \
\hline \text { Profit } & 33,600 \
\hline
\end{array}$ If the company's January 1,accounts receivable were $78,000 and its December 31,accounts receivable were $90,000,what was the company's accounts receivable turnover?

Accepted Answer

$640,000/[

Question 20

When evaluating the profit margin of a sole proprietorship,the formula should be modified by subtracting owner's equity from profit.This will factor in the value of the owner's efforts in running the business.

Accepted Answer

A) True 
 B)False

Return on total assets can be separated into profit margin and total asset turnover.

Targot's current assets were $16,825.Its quick assets were $11,220.Its current liabilities were $13,190.The quick ratio is

GAP's earnings per share is $3.11.Its common dividend is $.36 per share and its market price is $40 per share.The dividend yield is 0.9%.

Profit margin reflects the portion of profit in each dollar of revenue.

Sonie's accounts receivable turnover was 5.7 for this year and 5.4 for last year.Aple's accounts receivable turnover was 6.8 for this year and 7 for last year.This means that

A company's sales in Year 1 were $460,000.Sales in Year 2 were $483,200.Using Year 1 as the base year,what is the trend percentage for Year 2?

a.What is meant by the term leverage,and how is leverage used to increase return to shareholders? b.If leverage does increase the returns to shareholders why don't all firms structure themselves to have a significantly high percentage of financing from debt and significantly less from shareholders?

Alternative City had profit of $150,000 and average total assets of $312,700.Calculate its return on total assets.

A trend percent is calculated by dividing the analysis period amount by the base period amount and multiplying the result by 100.

A total asset turnover ratio of 3.5 indicates that

The days' sales uncollected ratio is used to

Three of the most common tools of financial analysis include horizontal analysis,vertical analysis,and ratio analysis.

The current ratio

The dollar change for a financial statement is calculated by

The profit margin ratio is gross profit divided by net sales.

Three of the most common tools of financial analysis are

The days' sales uncollected ratio measures a company's ability to manage its debt.

When evaluating the profit margin of a sole proprietorship,the formula should be modified by subtracting owner's equity from profit.This will factor in the value of the owner's efforts in running the business.

Property, plant and Equipment Intangibles

Current Liabilities

Partnerships

Organization and Operation of Corporations

Corporate Reporting: Income, earnings Per Share, and Retained Earnings

Bonds and Long-Term Notes Payable

Accounting for Debt and Share Investments

Reporting and Analyzing Cash Flows

Filters

Exam 9: Analyzing Financial Statements

Return on total assets can be separated into profit margin and total asset turnover.

Targot's current assets were $16,825.Its quick assets were $11,220.Its current liabilities were $13,190.The quick ratio is

GAP's earnings per share is $3.11.Its common dividend is $.36 per share and its market price is $40 per share.The dividend yield is 0.9%.

Profit margin reflects the portion of profit in each dollar of revenue.

Sonie's accounts receivable turnover was 5.7 for this year and 5.4 for last year.Aple's accounts receivable turnover was 6.8 for this year and 7 for last year.This means that

A company's sales in Year 1 were $460,000.Sales in Year 2 were $483,200.Using Year 1 as the base year,what is the trend percentage for Year 2?

a.What is meant by the term leverage,and how is leverage used to increase return to shareholders? b.If leverage does increase the returns to shareholders why don't all firms structure themselves to have a significantly high percentage of financing from debt and significantly less from shareholders?

Alternative City had profit of $150,000 and average total assets of $312,700.Calculate its return on total assets.

A trend percent is calculated by dividing the analysis period amount by the base period amount and multiplying the result by 100.

A total asset turnover ratio of 3.5 indicates that

The days' sales uncollected ratio is used to

Three of the most common tools of financial analysis include horizontal analysis,vertical analysis,and ratio analysis.

The current ratio

The dollar change for a financial statement is calculated by

The profit margin ratio is gross profit divided by net sales.

Three of the most common tools of financial analysis are

The days' sales uncollected ratio measures a company's ability to manage its debt.

When evaluating the profit margin of a sole proprietorship,the formula should be modified by subtracting owner's equity from profit.This will factor in the value of the owner's efforts in running the business.

Property, plant and Equipment Intangibles

Current Liabilities

Partnerships

Organization and Operation of Corporations

Corporate Reporting: Income, earnings Per Share, and Retained Earnings

Bonds and Long-Term Notes Payable

Accounting for Debt and Share Investments

Reporting and Analyzing Cash Flows

Filters