Question 1

FastForward had $3,000 of profit for October.Total revenues were $10,000.Calculate the profit margin

Accepted Answer

A) 30% 
B) $7,000 
C) 15% 
D) $1,500 
E) 45% 
A) 30% 
B) $7,000 
C) 15% 
D) $1,500 
E) 45%

Question 2

External users of financial information

Accepted Answer

A) Are not directly involved in running the company 
B) Include internal auditors and consultants 
C) Are those individuals involved in managing and operating the company 
D) Make strategic decisions for a company 
E) Make operating decisions for a company 
A) Are not directly involved in running the company 
B) Include internal auditors and consultants 
C) Are those individuals involved in managing and operating the company 
D) Make strategic decisions for a company 
E) Make operating decisions for a company

Question 3

A merchandising company's ability to pay its short-term obligations depends on how quickly it sells its merchandise inventory.

Accepted Answer

A) True 
 B)False

Question 4

The percent change in horizontal analysis 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 5

Horizontal statement analysis is used to reveal changes in the relative importance of each financial statement item.

Accepted Answer

A) True 
 B)False

Question 6

Working capital is current liabilities minus current assets.

Accepted Answer

A) True 
 B)False

Question 7

Analysis measures taken from a selected competitor or group of competitors are often the best standards of comparisons.

Accepted Answer

A) True 
 B)False

Question 8

The number of days' sales uncollected

Accepted Answer

A) Measures a company's ability to pay its bills on time 
B) Is calculated by dividing accounts receivable by sales 
C) Is used to evaluate the liquidity of receivables 
D) Measures a company's debt to income 
E) Is calculated by dividing sales by accounts receivable 
A) Measures a company's ability to pay its bills on time 
B) Is calculated by dividing accounts receivable by sales 
C) Is used to evaluate the liquidity of receivables 
D) Measures a company's debt to income 
E) Is calculated by dividing sales by accounts receivable

Question 9

Blaise Corporation has profit of $187,000,net sales of $1,496,000 and average total assets of $1,040,000.Its return on total assets was

Accepted Answer

A) 18.0% 
B) 144.0% 
C) 12.5% 
D) 556.1% 
E) 69.5% 
A) 18.0% 
B) 144.0% 
C) 12.5% 
D) 556.1% 
E) 69.5%

Question 10

Power Co.had $750,000 in accounts receivable and $2,800,000 in net sales for the period.Its days' sales uncollected was 29.8.

Accepted Answer

A) True 
 B)False

Question 11

When a company goes into debt,the debt ratio provides information about the risk created for the company's owners and lenders.

Accepted Answer

A) True 
 B)False

Question 12

Explain how to calculate the price-earnings ratio and explain how it is used in the analysis of a company's financial condition.

Accepted Answer

The price-earnings ratio is calculated b

Question 13

The gross profit ratio measures the relationship between sales and cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 14

Hornish Co.had net sales of $5,265 million and accounts receivable of $225 million.Its days' sales uncollected was

Accepted Answer

A) 2.98 
B) 15.6 
C) 19.4 
D) 81.8 
E) 65.2 
A) 2.98 
B) 15.6 
C) 19.4 
D) 81.8 
E) 65.2

Question 15

The ability to provide financial rewards sufficient to attract and retain financing is called

Accepted Answer

A) Liquidity and efficiency 
B) Liquidity and solvency 
C) Market 
D) Profitability 
E) Creditworthiness 
A) Liquidity and efficiency 
B) Liquidity and solvency 
C) Market 
D) Profitability 
E) Creditworthiness

Question 16

Total asset turnover is calculated by dividing average total assets by net sales.

Accepted Answer

A) True 
 B)False

Question 17

Financial statements with data for two or more successive accounting periods placed in columns side by side,sometimes with changes shown in dollar amounts and percentages,are

Accepted Answer

A) Cost statements 
B) Controlling statements 
C) Successive statements 
D) Comparative statements 
E) Position statements 
A) Cost statements 
B) Controlling statements 
C) Successive statements 
D) Comparative statements 
E) Position statements

Question 18

Staley Tile Company has assets with a book value of $350,000 pledged against loans with a balance of $190,000.Its pledged assets to secured liabilities ratio is 1.8 to 1.

Accepted Answer

A) True 
 B)False

Question 19

Total asset turnover measures

Accepted Answer

A) Liquidity 
B) The company's ability to use its assets to generate sales 
C) The quality of assets 
D) Profitability 
E) Both profitability and the company's ability to use its assets to generate sales 
A) Liquidity 
B) The company's ability to use its assets to generate sales 
C) The quality of assets 
D) Profitability 
E) Both profitability and the company's ability to use its assets to generate sales

Question 20

The following information pertains to Z-Mart,its competition,and the industry standards.
   The industry standard for the current ratio is 1.8 to 1,and for the acid-test ratio,1 to 1.Instructions: (1)Calculate the current ratio and quick ratio for each firm.(2)Rank the firms in decreasing order of liquidity.(3)Comment on Z-Mart's relative position.

Accepted Answer

@#IMG-DLM& @#IMG-DLM& @#IMG-DLM& @#IMG-DLM& @#IMG-DLM& (3)Z-Mart exceeds the ind

FastForward had $3,000 of profit for October.Total revenues were $10,000.Calculate the profit margin

External users of financial information

A merchandising company's ability to pay its short-term obligations depends on how quickly it sells its merchandise inventory.

The percent change in horizontal analysis is calculated by

Horizontal statement analysis is used to reveal changes in the relative importance of each financial statement item.

Working capital is current liabilities minus current assets.

Analysis measures taken from a selected competitor or group of competitors are often the best standards of comparisons.

The number of days' sales uncollected

Blaise Corporation has profit of $187,000,net sales of $1,496,000 and average total assets of $1,040,000.Its return on total assets was

Power Co.had $750,000 in accounts receivable and $2,800,000 in net sales for the period.Its days' sales uncollected was 29.8.

When a company goes into debt,the debt ratio provides information about the risk created for the company's owners and lenders.

Explain how to calculate the price-earnings ratio and explain how it is used in the analysis of a company's financial condition.

The gross profit ratio measures the relationship between sales and cost of goods sold.

Hornish Co.had net sales of $5,265 million and accounts receivable of $225 million.Its days' sales uncollected was

The ability to provide financial rewards sufficient to attract and retain financing is called

Total asset turnover is calculated by dividing average total assets by net sales.

Financial statements with data for two or more successive accounting periods placed in columns side by side,sometimes with changes shown in dollar amounts and percentages,are

Staley Tile Company has assets with a book value of $350,000 pledged against loans with a balance of $190,000.Its pledged assets to secured liabilities ratio is 1.8 to 1.

Total asset turnover measures

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

FastForward had $3,000 of profit for October.Total revenues were $10,000.Calculate the profit margin

External users of financial information

A merchandising company's ability to pay its short-term obligations depends on how quickly it sells its merchandise inventory.

The percent change in horizontal analysis is calculated by

Horizontal statement analysis is used to reveal changes in the relative importance of each financial statement item.

Working capital is current liabilities minus current assets.

Analysis measures taken from a selected competitor or group of competitors are often the best standards of comparisons.

The number of days' sales uncollected

Blaise Corporation has profit of $187,000,net sales of $1,496,000 and average total assets of $1,040,000.Its return on total assets was

Power Co.had $750,000 in accounts receivable and $2,800,000 in net sales for the period.Its days' sales uncollected was 29.8.

When a company goes into debt,the debt ratio provides information about the risk created for the company's owners and lenders.

Explain how to calculate the price-earnings ratio and explain how it is used in the analysis of a company's financial condition.

The gross profit ratio measures the relationship between sales and cost of goods sold.

Hornish Co.had net sales of $5,265 million and accounts receivable of $225 million.Its days' sales uncollected was

The ability to provide financial rewards sufficient to attract and retain financing is called

Total asset turnover is calculated by dividing average total assets by net sales.

Financial statements with data for two or more successive accounting periods placed in columns side by side,sometimes with changes shown in dollar amounts and percentages,are

Staley Tile Company has assets with a book value of $350,000 pledged against loans with a balance of $190,000.Its pledged assets to secured liabilities ratio is 1.8 to 1.

Total asset turnover measures

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