Question 1

If the average collection period is 35 days, this means:

Accepted Answer

A)  from the date of purchase to the date of payment is 35 days. 
B)  from the date of sale to the date of receipt of payment is 35 days. 
C)  from the date of discount to the date of receipt of payment is 35 days. 
D)  None of these answers are correct. 
A)  from the date of purchase to the date of payment is 35 days. 
B)  from the date of sale to the date of receipt of payment is 35 days. 
C)  from the date of discount to the date of receipt of payment is 35 days. 
D)  None of these answers are correct.

Question 2

Compute the gross profit rate when sales are $600,000; net sales are $460,000 and gross profits are $120,000. (Round your answer to the nearest whole percent.)

Accepted Answer

A)  26% 
B)  20% 
C)  0.26 to 1 
D)  0.20 to 1 
A)  26% 
B)  20% 
C)  0.26 to 1 
D)  0.20 to 1

Question 3

If Rick's sales increased from $49,000 to $81,000 and its cost of goods sold increased from $25,000 to $66,000, then vertical analysis based on sales would show the following for cost of goods sold for the two periods:

Accepted Answer

A)  81.48% and 51.02%. 
B)  51.02% and 81.48%. 
C)  122.73% and 196.00%. 
D)  196.00% and 122.73%. 
A)  81.48% and 51.02%. 
B)  51.02% and 81.48%. 
C)  122.73% and 196.00%. 
D)  196.00% and 122.73%.

Question 4

Tom's Toys has a cash balance of $109,000; temporary investments of $42,000; net receivables of $63,000; and inventory of $407,000. Tom's current liabilities total $126,000. His quick (acid test) ratio is: (Round your answer two decimal places.)

Accepted Answer

A)  1.70 to 1. 
B)  1.87 to 1. 
C)  0.87 to 1. 
D)  0.59 to 1. 
A)  1.70 to 1. 
B)  1.87 to 1. 
C)  0.87 to 1. 
D)  0.59 to 1.

If the average collection period is 35 days, this means:

Compute the gross profit rate when sales are $600,000; net sales are $460,000 and gross profits are $120,000. (Round your answer to the nearest whole percent.)

If Rick's sales increased from $49,000 to $81,000 and its cost of goods sold increased from $25,000 to $66,000, then vertical analysis based on sales would show the following for cost of goods sold for the two periods:

Tom's Toys has a cash balance of $109,000; temporary investments of $42,000; net receivables of $63,000; and inventory of $407,000. Tom's current liabilities total $126,000. His quick (acid test) ratio is: (Round your answer two decimal places.)

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying, Recording, and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property, Plant, Equipment, and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values, Dividends, Treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

The Voucher System

Departmental Accounting

Manufacturing Accounting

Filters

Exam 22: Analyzing Financial Statements

If the average collection period is 35 days, this means:

Compute the gross profit rate when sales are $600,000; net sales are $460,000 and gross profits are $120,000. (Round your answer to the nearest whole percent.)

If Rick's sales increased from $49,000 to $81,000 and its cost of goods sold increased from $25,000 to $66,000, then vertical analysis based on sales would show the following for cost of goods sold for the two periods:

Tom's Toys has a cash balance of $109,000; temporary investments of $42,000; net receivables of $63,000; and inventory of $407,000. Tom's current liabilities total $126,000. His quick (acid test) ratio is: (Round your answer two decimal places.)

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying, Recording, and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property, Plant, Equipment, and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values, Dividends, Treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

The Voucher System

Departmental Accounting

Manufacturing Accounting

Filters