Question 1

The debt ratio,the equity ratio,pledged assets to secured liabilities,and times interest earned are all ________ ratios.

Accepted Answer

The answer of The debt ratio,the equity ratio,pledged assets to...

Question 2

Financial statement analysis involves all of the following except:

Accepted Answer

A) The application of analytical tools to general-purpose financial statements and related data for making business decisions. 
B) Transforming accounting data into useful information for decision-making. 
C) Helping users to make better decisions. 
D) Helping to reduce uncertainty in decision-making. 
E) Assuring that the company will be more profitable in the future. 
A) The application of analytical tools to general-purpose financial statements and related data for making business decisions. 
B) Transforming accounting data into useful information for decision-making. 
C) Helping users to make better decisions. 
D) Helping to reduce uncertainty in decision-making. 
E) Assuring that the company will be more profitable in the future.

Question 3

Describe the purpose of vertical financial statement analysis and how it is applied.

Accepted Answer

Vertical analysis is used to evaluate in

Question 4

Ratios may be expressed as (1)________,(2)________,or (3)________.

Accepted Answer

percentages; rates;

Question 5

The standards for comparisons when interpreting measures from financial statement analysis include (1)________,(2)________,(3)________,and (4)________.

Accepted Answer

intra-company; compe

Question 6

Comparative financial statements in which each individual financial statement amount is expressed as a percentage of a base amount are called:

Accepted Answer

A) Asset comparative statements. 
B) Percentage comparative statements. 
C) Common-size comparative statements. 
D) Sales comparative statements. 
E) General-purpose financial statements. 
A) Asset comparative statements. 
B) Percentage comparative statements. 
C) Common-size comparative statements. 
D) Sales comparative statements. 
E) General-purpose financial statements.

Question 7

When no value is in the base period,no percent change is computable.

Accepted Answer

A) True 
 B)False

Question 8

General-purpose financial statements include the (1)________,(2)________,(3)________,(4)________ and (5)________.

Accepted Answer

income statement; balance shee

Question 9

Use the following selected information from Wheeler,LLC to determine the 2018 and 2017 trend percentages for cost of goods sold using 2017 as the base. $\begin{array}{lrrl}
&2018&&2017\
Net ~sales&\$ 276,200& & \$ 231,400 \
Cost ~of ~goods ~sold&151,90 0 & & 129,590 \
Operatirg ~expenses&55,240 & & 53,240 \
Net ~earmirgs&27,820 & & 19,820
\end{array}$

Accepted Answer

A) 36.4% for 2018 and 41.1% for 2017. 
B) 55.0% for 2018 and 56.0% for 2017. 
C) 119.4% for 2018 and 100.0% for 2017. 
D) 117.2% for 2018 and 100.0% for 2017. 
E) 65.1% for 2018 and 64.6% for 2017. 
A) 36.4% for 2018 and 41.1% for 2017. 
B) 55.0% for 2018 and 56.0% for 2017. 
C) 119.4% for 2018 and 100.0% for 2017. 
D) 117.2% for 2018 and 100.0% for 2017. 
E) 65.1% for 2018 and 64.6% for 2017.

Question 10

Financial reporting includes not only general purpose financial statements,but also information from SEC filings,press releases,shareholders' meetings,forecasts,management letters,auditor's reports,and Webcasts.

Accepted Answer

A) True 
 B)False

Question 11

The purpose of financial statement analysis for external users is to provide information to improve efficiency and effectiveness.

Accepted Answer

A) True 
 B)False

Question 12

Evaluation of company performance can include comparison and/or assessment of all but which of the following:

Accepted Answer

A) Past performance. 
B) Current performance. 
C) Current financial position. 
D) Future performance and risk. 
E) External user needs and demands. 
A) Past performance. 
B) Current performance. 
C) Current financial position. 
D) Future performance and risk. 
E) External user needs and demands.

Question 13

Comparative financial statements are reports that show financial amounts in side by side columns on a single statement for analysis purposes.

Accepted Answer

A) True 
 B)False

Question 14

Zhang Company reported Cost of goods sold of $835,000,beginning Inventory of $37,200 and ending Inventory of $46,300.The average Inventory amount is:

Accepted Answer

A) $37,200. 
B) $46,300. 
C) $83,500. 
D) $41,750. 
E) $9,100. 
A) $37,200. 
B) $46,300. 
C) $83,500. 
D) $41,750. 
E) $9,100.

Question 15

The following current year information is available from a manufacturing company:
 $\begin{array}{lr}
\text { Sales } & \$ 740,000 \
\text { Gross profit on sales } & 276,000 \
\text { Operating income } & 64,000 \
\text { Income before taxes } & 44,000 \
\text { Net income } & 33,600 \
\text { Accounts Receivable, beginning-year } & 58,000 \
\text { Accounts Receivable, end-of-year } & 72,000
\end{array}$ Calculate the company's accounts receivable turnover and its days' sales uncollected.

Accepted Answer

Accounts receivable turnover =

Question 16

Measures taken from a selected competitor or a group of competitors are often excellent standards of comparison for analysis.

Accepted Answer

A) True 
 B)False

Question 17

Selected current year end financial information for a company is presented below.Calculate the following company ratios:
(a)Profit margin.
(b)Total asset turnover.
(c)Return on total assets.
(d)Return on common stockholders' equity (assume the company has no preferred stock).
Net income……………………………….. $ 325,000
Net sales………………………………….. 4,700,000
Total liabilities,beginning-year………….. 550,000
Total liabilities,end-of-year……………… 530,000
Total stockholders' equity,beginning-year. 760,000
Total stockholders' equity,end-of-year….. 745,000

Accepted Answer

(a)Profit margin = ($325,000/$4,700,000)

Question 18

________ ratios include the price-earnings ratio and dividend yield.

Accepted Answer

The answer of ________ ratios include the price-earnings ratio and...

Question 19

The return on total assets ratio is a profitability measure.

Accepted Answer

A) True 
 B)False

Question 20

The measurement of key relationships between financial statement items is known as ________.

Accepted Answer

The answer of The measurement of key relationships between financial...

The debt ratio,the equity ratio,pledged assets to secured liabilities,and times interest earned are all ________ ratios.

Financial statement analysis involves all of the following except:

Describe the purpose of vertical financial statement analysis and how it is applied.

Ratios may be expressed as (1),(2),or (3).

The standards for comparisons when interpreting measures from financial statement analysis include (1),(2),(3),and (4).

Comparative financial statements in which each individual financial statement amount is expressed as a percentage of a base amount are called:

When no value is in the base period,no percent change is computable.

General-purpose financial statements include the (1),(2),(3),(4) and (5).

Financial reporting includes not only general purpose financial statements,but also information from SEC filings,press releases,shareholders' meetings,forecasts,management letters,auditor's reports,and Webcasts.

The purpose of financial statement analysis for external users is to provide information to improve efficiency and effectiveness.

Evaluation of company performance can include comparison and/or assessment of all but which of the following:

Comparative financial statements are reports that show financial amounts in side by side columns on a single statement for analysis purposes.

Zhang Company reported Cost of goods sold of $835,000,beginning Inventory of $37,200 and ending Inventory of $46,300.The average Inventory amount is:

Measures taken from a selected competitor or a group of competitors are often excellent standards of comparison for analysis.

________ ratios include the price-earnings ratio and dividend yield.

The return on total assets ratio is a profitability measure.

The measurement of key relationships between financial statement items is known as ________.

Introducing Financial Statements

Financial Statements and the Accounting System

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash,fraud,and Internal Control

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Applying Present and Future Values

Investments

International Operations

Filters

Exam 13: Analyzing and Interpreting Financial Statements

The debt ratio,the equity ratio,pledged assets to secured liabilities,and times interest earned are all ________ ratios.

Financial statement analysis involves all of the following except:

Describe the purpose of vertical financial statement analysis and how it is applied.

Ratios may be expressed as (1)________,(2)________,or (3)________.

The standards for comparisons when interpreting measures from financial statement analysis include (1)________,(2)________,(3)________,and (4)________.

Comparative financial statements in which each individual financial statement amount is expressed as a percentage of a base amount are called:

When no value is in the base period,no percent change is computable.

General-purpose financial statements include the (1)________,(2)________,(3)________,(4)________ and (5)________.

Financial reporting includes not only general purpose financial statements,but also information from SEC filings,press releases,shareholders' meetings,forecasts,management letters,auditor's reports,and Webcasts.

The purpose of financial statement analysis for external users is to provide information to improve efficiency and effectiveness.

Evaluation of company performance can include comparison and/or assessment of all but which of the following:

Comparative financial statements are reports that show financial amounts in side by side columns on a single statement for analysis purposes.

Zhang Company reported Cost of goods sold of $835,000,beginning Inventory of $37,200 and ending Inventory of $46,300.The average Inventory amount is:

Measures taken from a selected competitor or a group of competitors are often excellent standards of comparison for analysis.

________ ratios include the price-earnings ratio and dividend yield.

The return on total assets ratio is a profitability measure.

The measurement of key relationships between financial statement items is known as ________.

Introducing Financial Statements

Financial Statements and the Accounting System

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash,fraud,and Internal Control

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Applying Present and Future Values

Investments

International Operations

Filters

Ratios may be expressed as (1),(2),or (3).

The standards for comparisons when interpreting measures from financial statement analysis include (1),(2),(3),and (4).

General-purpose financial statements include the (1),(2),(3),(4) and (5).