Question 1

Which one of the following would not be considered a liquidity ratio?

Accepted Answer

A) current ratio 
B) inventory turnover ratio 
C) receivables turnover ratio 
D) return on assets ratio 
A) current ratio 
B) inventory turnover ratio 
C) receivables turnover ratio 
D) return on assets ratio

Question 2

A company with $60,000 in current assets and $40,000 in current liabilities pays a $1,000 current liability.As a result of this transaction, the current ratio and working capital will

Accepted Answer

A) both decrease. 
B) both increase. 
C) increase and remain the same, respectively. 
D) remain the same and decrease, respectively. 
A) both decrease. 
B) both increase. 
C) increase and remain the same, respectively. 
D) remain the same and decrease, respectively.

Question 3

The discontinued operations section of the statement of income refers to

Accepted Answer

A) discontinuance of a product line. 
B) the net income or loss on products that have been completed and sold. 
C) sale of obsolete equipment and discontinued inventory items. 
D) the disposal of a major line of business or major geographical area of operations. 
A) discontinuance of a product line. 
B) the net income or loss on products that have been completed and sold. 
C) sale of obsolete equipment and discontinued inventory items. 
D) the disposal of a major line of business or major geographical area of operations.

Question 4

In vertical analysis of an statement of income, the 100% figure is

Accepted Answer

A) net income. 
B) cost of goods sold. 
C) gross profit. 
D) sales. 
A) net income. 
B) cost of goods sold. 
C) gross profit. 
D) sales.

Question 5

Assume the following sales data for a company:   What is the percentage increase in sales from 2021 to 2022?

Accepted Answer

A) 11% 
B) 88% 
C) 12% 
D) 47% 
A) 11% 
B) 88% 
C) 12% 
D) 47%

Question 6

Use the following information to answer questions 
Green Thumb Garden Supplies reported the following information for 2021 and 2022:
  
-What is the price-earnings ratio?

Accepted Answer

A) 44.4 times 
B) 16.0 times 
C) 8.0 times 
D) 2.5 times 
A) 44.4 times 
B) 16.0 times 
C) 8.0 times 
D) 2.5 times

Question 7

A general rule to use in assessing the average collection period is that it

Accepted Answer

A) should not exceed 30 days. 
B) can be any length as long as the customer eventually pays his account. 
C) should not greatly exceed the discount period. 
D) should not greatly exceed the credit period. 
A) should not exceed 30 days. 
B) can be any length as long as the customer eventually pays his account. 
C) should not greatly exceed the discount period. 
D) should not greatly exceed the credit period.

Which one of the following would not be considered a liquidity ratio?

A company with $60,000 in current assets and $40,000 in current liabilities pays a $1,000 current liability.As a result of this transaction, the current ratio and working capital will

The discontinued operations section of the statement of income refers to

In vertical analysis of an statement of income, the 100% figure is

Assume the following sales data for a company: What is the percentage increase in sales from 2021 to 2022?

Use the following information to answer questions Green Thumb Garden Supplies reported the following information for 2021 and 2022: -What is the price-earnings ratio?

A general rule to use in assessing the average collection period is that it

The Purpose and Use of Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations

Reporting and Analyzing Inventory

Internal Control and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Shareholders Equity

Reporting and Analyzing Investments

Statement of Cash Flows

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Exam 14: Performance Measurement

Which one of the following would not be considered a liquidity ratio?

A company with $60,000 in current assets and $40,000 in current liabilities pays a $1,000 current liability.As a result of this transaction, the current ratio and working capital will

The discontinued operations section of the statement of income refers to

In vertical analysis of an statement of income, the 100% figure is

Assume the following sales data for a company: What is the percentage increase in sales from 2021 to 2022?

Use the following information to answer questions Green Thumb Garden Supplies reported the following information for 2021 and 2022: -What is the price-earnings ratio?

A general rule to use in assessing the average collection period is that it

The Purpose and Use of Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations

Reporting and Analyzing Inventory

Internal Control and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Shareholders Equity

Reporting and Analyzing Investments

Statement of Cash Flows

Filters