Question 1

A balance sheet that displays only component percentages is called a ________ balance sheet.

Accepted Answer

A) condensed 
B) common size 
C) comparative 
D) trendy 
A) condensed 
B) common size 
C) comparative 
D) trendy

Question 2

Comprehensive income includes all revenues expenses gains

Accepted Answer

A) True 
 B)False

Question 3

Salamagundi Inc.has the following Income Statement (in millions): SALAMAGUNDI, INC.
Income Statement
For the Year Ended December 31, 2021
$\begin{array}{lr}
\text { Net Sales } & \$ 160 \
\text { Cost of Goods Sold } & 100 \
\text { Gross Profit } & 60 \
\text { Operating Expenses } & 40 \
\text { Net Income } & \$ 20
\end{array}$ Using vertical analysis what percentage is assigned to net sales?

Accepted Answer

A) 160% 
B) Can't be computed. 
C) 60% 
D) 100% 
A) 160% 
B) Can't be computed. 
C) 60% 
D) 100%

Question 4

All of the following are reported on the income statement net of tax except

Accepted Answer

A) loss on operations from a discontinued division. 
B) other comprehensive income items. 
C) income from operations. 
D) loss on disposal of a division. 
A) loss on operations from a discontinued division. 
B) other comprehensive income items. 
C) income from operations. 
D) loss on disposal of a division.

Question 5

Savory Thymes Inc.had net credit sales of $9000000 and cost of goods sold of $5250000 for the year.The average inventory for the year amounted to $1250000.The average days in inventory during the year was approximately

Accepted Answer

A) 51 days. 
B) 65 days. 
C) 70 days. 
D) 87 days. 
A) 51 days. 
B) 65 days. 
C) 70 days. 
D) 87 days.

Question 6

A current ratio of 1.2 to 1 indicates that a company's current assets exceed its current liabilities.

Accepted Answer

A) True 
 B)False

Question 7

Other comprehensive income includes all changes in stockholders' equity during a period including those changes resulting from investments by stockholders.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following would be considered an "Other Comprehensive Income" item?

Accepted Answer

A) Net income 
B) Gain on disposal of discontinued operations 
C) Other revenues and gains 
D) Unrealized loss on available-for-sale securities 
A) Net income 
B) Gain on disposal of discontinued operations 
C) Other revenues and gains 
D) Unrealized loss on available-for-sale securities

Question 9

A company has an average inventory on hand of $90000 and its average days in inventory is 36.5 days.What is the cost of goods sold?

Accepted Answer

A) $900000 
B) $2102400 
C) $2106000 
D) $1051200 
A) $900000 
B) $2102400 
C) $2106000 
D) $1051200

Question 10

A company that is leveraged is one that

Accepted Answer

A) has a high earnings per share. 
B) contains debt financing. 
C) contains equity financing. 
D) has a high current ratio. 
A) has a high earnings per share. 
B) contains debt financing. 
C) contains equity financing. 
D) has a high current ratio.

Question 11

Which of the following is not reported net of tax on the statement of comprehensive income?

Accepted Answer

A) Discontinued operations 
B) Other comprehensive income 
C) Other revenues and expenses 
D) Income from continuing operations 
A) Discontinued operations 
B) Other comprehensive income 
C) Other revenues and expenses 
D) Income from continuing operations

Question 12

Boone Trading Company reported net sales of $400000 $440000 and $560000 in the years 2020 2021 and 2022 respectively.If 2020 is the base year what is the trend percentage for 2022?

Accepted Answer

A) 71% 
B) 127% 
C) 140% 
D) 110% 
A) 71% 
B) 127% 
C) 140% 
D) 110%

Question 13

Jack's by the Tracks has the following partial balance sheet: JACKS BY THE TRACKS.
Balance Sheet (partial)
Stockholders' equity:
$\begin{array}{lr}
\text { Common stock } & \$ 6,000,000 \
\text { Retained earnings } & 2,000,000 \
\text { paid-in capital and retained earnings } & 8,000,000 \
\text { Accumulated other comprehensive income } & 800,000 \
\text { Total stockholders' equity: } & \$ 8,800,000
\end{array}$ What effect did the accumulated other comprehensive income have on comprehensive income?

Accepted Answer

A) No effect on comprehensive income. 
B) Increase of $800000 in comprehensive income. 
C) Increase of $8800000 in comprehensive income. 
D) Decrease of $800000 in comprehensive income. 
A) No effect on comprehensive income. 
B) Increase of $800000 in comprehensive income. 
C) Increase of $8800000 in comprehensive income. 
D) Decrease of $800000 in comprehensive income.

Question 14

The following schedule is a display of what type of analysis? $\begin{array}{llr}
&\text {Amount }& \text { Percent }\
\text { Current assets } & \$ 100,000 & 25 \% \
\text { Property, plant, and equipment } &{300,000} & {75 \%} \
\text { Total assets }&{\$ 400,000}&{100 \%}\
\end{array}$

Accepted Answer

A) Horizontal analysis 
B) Differential analysis 
C) Vertical analysis 
D) Ratio analysis 
A) Horizontal analysis 
B) Differential analysis 
C) Vertical analysis 
D) Ratio analysis

Question 15

Another name for horizontal analysis is trend analysis.

Accepted Answer

A) True 
 B)False

Question 16

All of the following statements regarding changes in accounting principles are true except which of the following?

Accepted Answer

A) Most changes in accounting principles are only reported in current periods when the principle change takes place. 
B) Changes in accounting principles are allowed when new principles are preferable to old ones. 
C) Most changes in accounting principles are retroactively reported. 
D) Consistency is one of the biggest concerns when a change in accounting principle is undertaken. 
A) Most changes in accounting principles are only reported in current periods when the principle change takes place. 
B) Changes in accounting principles are allowed when new principles are preferable to old ones. 
C) Most changes in accounting principles are retroactively reported. 
D) Consistency is one of the biggest concerns when a change in accounting principle is undertaken.

Question 17

Inventory turnover measures the number of times on average the inventory was sold during the period.

Accepted Answer

A) True 
 B)False

Question 18

The debt to assets ratio measures

Accepted Answer

A) the company's profitability. 
B) whether interest can be paid on debt in the current year. 
C) the proportion of interest paid relative to dividends paid. 
D) the percentage of the total assets provided by creditors. 
A) the company's profitability. 
B) whether interest can be paid on debt in the current year. 
C) the proportion of interest paid relative to dividends paid. 
D) the percentage of the total assets provided by creditors.

Question 19

The best way to study the relationship of the components within a financial statement is to prepare

Accepted Answer

A) common size statements. 
B) a trend analysis. 
C) profitability analysis. 
D) ratio analysis. 
A) common size statements. 
B) a trend analysis. 
C) profitability analysis. 
D) ratio analysis.

Question 20

Assume the following sales data for a company: $$\begin{array} { r r } 
2022 & \$ 980,000 \
2021 & 875,000 \
2020 & 700,000
\end{array}$$ If 2020 is the base year what is the percentage increase in sales from 2020 to 2021?

Accepted Answer

A) 140% 
B) 125% 
C) 40% 
D) 25% 
A) 140% 
B) 125% 
C) 40% 
D) 25%

A balance sheet that displays only component percentages is called a ________ balance sheet.

Comprehensive income includes all revenues expenses gains

Salamagundi Inc.has the following Income Statement (in millions): SALAMAGUNDI, INC. Income Statement For the Year Ended December 31, 2021 Net Sales \ 160 Cost of Goods Sold 100 Gross Profit 60 Operating Expenses 40 Net Income \ 20 Using vertical analysis what percentage is assigned to net sales?

All of the following are reported on the income statement net of tax except

Savory Thymes Inc.had net credit sales of $9000000 and cost of goods sold of $5250000 for the year.The average inventory for the year amounted to $1250000.The average days in inventory during the year was approximately

A current ratio of 1.2 to 1 indicates that a company's current assets exceed its current liabilities.

Other comprehensive income includes all changes in stockholders' equity during a period including those changes resulting from investments by stockholders.

Which of the following would be considered an "Other Comprehensive Income" item?

A company has an average inventory on hand of $90000 and its average days in inventory is 36.5 days.What is the cost of goods sold?

A company that is leveraged is one that

Which of the following is not reported net of tax on the statement of comprehensive income?

Boone Trading Company reported net sales of $400000 $440000 and $560000 in the years 2020 2021 and 2022 respectively.If 2020 is the base year what is the trend percentage for 2022?

The following schedule is a display of what type of analysis? Amount Percent Current assets \ 100,000 25\% Property, plant, and equipment 300,000 75\% Total assets \ 400,000 100\%

Another name for horizontal analysis is trend analysis.

All of the following statements regarding changes in accounting principles are true except which of the following?

Inventory turnover measures the number of times on average the inventory was sold during the period.

The debt to assets ratio measures

The best way to study the relationship of the components within a financial statement is to prepare

Assume the following sales data for a company: 2022 \ 980,000 2021 875,000 2020 700,000 If 2020 is the base year what is the percentage increase in sales from 2020 to 2021?

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Fraud, Internal Control, and Cash

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities and Stockholders Equity

Financial Analysis: the Big Picture

Cost-Volume-Profit

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Activity Based Costing

Cost-Volume Profit Analysis: Additional Issues

Filters

Exam 9: Managerial Accounting

A balance sheet that displays only component percentages is called a ________ balance sheet.

Comprehensive income includes all revenues expenses gains

Salamagundi Inc.has the following Income Statement (in millions): SALAMAGUNDI, INC. Income Statement For the Year Ended December 31, 2021 Net Sales \ 160 Cost of Goods Sold 100 Gross Profit 60 Operating Expenses 40 Net Income \ 20 Using vertical analysis what percentage is assigned to net sales?

All of the following are reported on the income statement net of tax except

Savory Thymes Inc.had net credit sales of $9000000 and cost of goods sold of $5250000 for the year.The average inventory for the year amounted to $1250000.The average days in inventory during the year was approximately

A current ratio of 1.2 to 1 indicates that a company's current assets exceed its current liabilities.

Other comprehensive income includes all changes in stockholders' equity during a period including those changes resulting from investments by stockholders.

Which of the following would be considered an "Other Comprehensive Income" item?

A company has an average inventory on hand of $90000 and its average days in inventory is 36.5 days.What is the cost of goods sold?

A company that is leveraged is one that

Which of the following is not reported net of tax on the statement of comprehensive income?

Boone Trading Company reported net sales of $400000 $440000 and $560000 in the years 2020 2021 and 2022 respectively.If 2020 is the base year what is the trend percentage for 2022?

The following schedule is a display of what type of analysis? Amount Percent Current assets \ 100,000 25\% Property, plant, and equipment 300,000 75\% Total assets \ 400,000 100\%

Another name for horizontal analysis is trend analysis.

All of the following statements regarding changes in accounting principles are true except which of the following?

Inventory turnover measures the number of times on average the inventory was sold during the period.

The debt to assets ratio measures

The best way to study the relationship of the components within a financial statement is to prepare

Assume the following sales data for a company: 2022 \ 980,000 2021 875,000 2020 700,000 If 2020 is the base year what is the percentage increase in sales from 2020 to 2021?

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Fraud, Internal Control, and Cash

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities and Stockholders Equity

Financial Analysis: the Big Picture

Cost-Volume-Profit

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Activity Based Costing

Cost-Volume Profit Analysis: Additional Issues

Filters