Question 1

The following is a common-sized income statement for Alpha and Beta Companies.
   
Which company has the best cost of goods sold?

Accepted Answer

The answer of The following is a common-sized income statement...

Question 2

The following is a common-sized income statement for Alpha and Beta Companies.
   
Which company had the lower net income as a percentage of sales?

Accepted Answer

The answer of The following is a common-sized income statement...

Question 3

Explain the difference between basic EPS and diluted EPS.

Accepted Answer

Basic EPS is based on outstanding common

Question 4

Tayler Company's cash reported on the balance sheets for 2009 and 2010 was as follows: $235,000 in 2009; $245,300 in 2010. The percentage change for cash from 2009 to 2010 was __________.

Accepted Answer

The answer of Tayler Company's cash reported on the balance...

Question 5

What is the formula for determining the percentage change in an account from one year to the next year?

Accepted Answer

[(amount in later pe

Question 6

What is other income/(expenses)? Provide three examples?

Accepted Answer

Other income/(expenses) includes items t

Question 7

The ratio that indicated how many days it takes to turn accounts receivable into cash is the:

Accepted Answer

A)  accounts receivable turnover ratio. 
B)  average turnover ratio. 
C)  average collection period. 
D)  quick assets turnover ratio. 
E)  accounts receivable ratio. 
A)  accounts receivable turnover ratio. 
B)  average turnover ratio. 
C)  average collection period. 
D)  quick assets turnover ratio. 
E)  accounts receivable ratio.

Question 8

Common-size statements should NOT be used to compare a company's performance against the industry average.

Accepted Answer

A) True 
 B)False

Question 9

Computing trend percentages over a period of years helps to indicate the direction in which the business is going.

Accepted Answer

A) True 
 B)False

Question 10

The base amounts for a vertical analysis are net income and total equity.

Accepted Answer

A) True 
 B)False

Question 11

Net sales at Kelly's Bakery increased from $40,000 to $60,000 and its cost of goods sold increased from $20,000 to $40,000, then vertical analysis based on net sales would show the following percentages for cost of goods sold (rounded to the nearest percent):

Accepted Answer

A)  40% and 20%. 
B)  10% and 30%. 
C)  50% and 67%. 
D)  67% and 40%. 
E)  33% and 50% 
A)  40% and 20%. 
B)  10% and 30%. 
C)  50% and 67%. 
D)  67% and 40%. 
E)  33% and 50%

Question 12

Patty's Baker has cost of goods sold for the years 2011, 2010, and 2009 respectively of $28,600, $26,900, and $25,600. If 2009 is the base year, the trend percentage for 2011 is:

Accepted Answer

A)  111.72%. 
B)  11.72%. 
C)  105.08%. 
D)  5.08%. 
E)  104.9%. 
A)  111.72%. 
B)  11.72%. 
C)  105.08%. 
D)  5.08%. 
E)  104.9%.

Question 13

A profitability ratio is defined as a measure of a company's ability to generate net income.

Accepted Answer

A) True 
 B)False

Question 14

Net income was $45,000 in 2009 and $60,000 in 2010. The percentage increase or decrease in net income from 2009 to 2010 was __________.

Accepted Answer

The answer of Net income was $45,000 in 2009 and...

Question 15

From the following balance sheet for Brandon's Bikes, compute:
a) the common-size statements using total assets as the base. (Round to the nearest tenth of a percent.)
b) the current and debt ratios for 2012
c) cashflow from operating activities for 2012 assuming Net Income was $85,000
Note that cash remained constant at $5000 year over year.

Accepted Answer

a)
 @#IMG-DLM& 
Calculation:
Divide each 2011 item

Question 16

A company with an accounts receivable turnover of four means that the company collects its receivables approximately every __________ days.

Accepted Answer

The answer of A company with an accounts receivable turnover...

Question 17

Barry Builder's operating income for the year was $75,000. The interest expense was $11,500 and the tax expense was $6,500. Barry's times interest earned for the year is __________.

Accepted Answer

The answer of Barry Builder's operating income for the year...

Question 18

After income from continuing operations, the next section on an income statement is __________.

Accepted Answer

discontinu

Question 19

Carla's Fashions has an average days' in receivable of 30 days. You could infer that Carla's:

Accepted Answer

A)  bills her customers quarterly. 
B)  bills her customers monthly. 
C)  has an accounts receivable turnover of 6. 
D)  has an accounts receivable turnover of 4. 
E)  has an accounts receivable turnover of 0. 
A)  bills her customers quarterly. 
B)  bills her customers monthly. 
C)  has an accounts receivable turnover of 6. 
D)  has an accounts receivable turnover of 4. 
E)  has an accounts receivable turnover of 0.

Question 20

What may an income statement include after continuing operations?

Accepted Answer

Discontinued operati

The following is a common-sized income statement for Alpha and Beta Companies. Which company has the best cost of goods sold?

The following is a common-sized income statement for Alpha and Beta Companies. Which company had the lower net income as a percentage of sales?

Explain the difference between basic EPS and diluted EPS.

Tayler Company's cash reported on the balance sheets for 2009 and 2010 was as follows: $235,000 in 2009; $245,300 in 2010. The percentage change for cash from 2009 to 2010 was __________.

What is the formula for determining the percentage change in an account from one year to the next year?

What is other income/(expenses)? Provide three examples?

The ratio that indicated how many days it takes to turn accounts receivable into cash is the:

Common-size statements should NOT be used to compare a company's performance against the industry average.

Computing trend percentages over a period of years helps to indicate the direction in which the business is going.

The base amounts for a vertical analysis are net income and total equity.

Net sales at Kelly's Bakery increased from $40,000 to $60,000 and its cost of goods sold increased from $20,000 to $40,000, then vertical analysis based on net sales would show the following percentages for cost of goods sold (rounded to the nearest percent):

Patty's Baker has cost of goods sold for the years 2011, 2010, and 2009 respectively of $28,600, $26,900, and $25,600. If 2009 is the base year, the trend percentage for 2011 is:

A profitability ratio is defined as a measure of a company's ability to generate net income.

Net income was $45,000 in 2009 and $60,000 in 2010. The percentage increase or decrease in net income from 2009 to 2010 was __________.

A company with an accounts receivable turnover of four means that the company collects its receivables approximately every __________ days.

Barry Builder's operating income for the year was $75,000. The interest expense was $11,500 and the tax expense was $6,500. Barry's times interest earned for the year is __________.

After income from continuing operations, the next section on an income statement is __________.

Carla's Fashions has an average days' in receivable of 30 days. You could infer that Carla's:

What may an income statement include after continuing operations?

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Ethics, Internal Control, and Cash

Accounting for a Merchandising Business

Inventory

Sales and Receivables

Long-Term Assets

Current Liabilities and Long-Term Debt

Corporations: Share Capital and Retained Earnings

The Cash Flow Statement

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Exam 12: Financial Statement Analysis

The following is a common-sized income statement for Alpha and Beta Companies. Which company has the best cost of goods sold?

The following is a common-sized income statement for Alpha and Beta Companies. Which company had the lower net income as a percentage of sales?

Explain the difference between basic EPS and diluted EPS.

Tayler Company's cash reported on the balance sheets for 2009 and 2010 was as follows: $235,000 in 2009; $245,300 in 2010. The percentage change for cash from 2009 to 2010 was __________.

What is the formula for determining the percentage change in an account from one year to the next year?

What is other income/(expenses)? Provide three examples?

The ratio that indicated how many days it takes to turn accounts receivable into cash is the:

Common-size statements should NOT be used to compare a company's performance against the industry average.

Computing trend percentages over a period of years helps to indicate the direction in which the business is going.

The base amounts for a vertical analysis are net income and total equity.

Net sales at Kelly's Bakery increased from $40,000 to $60,000 and its cost of goods sold increased from $20,000 to $40,000, then vertical analysis based on net sales would show the following percentages for cost of goods sold (rounded to the nearest percent):

Patty's Baker has cost of goods sold for the years 2011, 2010, and 2009 respectively of $28,600, $26,900, and $25,600. If 2009 is the base year, the trend percentage for 2011 is:

A profitability ratio is defined as a measure of a company's ability to generate net income.

Net income was $45,000 in 2009 and $60,000 in 2010. The percentage increase or decrease in net income from 2009 to 2010 was __________.

A company with an accounts receivable turnover of four means that the company collects its receivables approximately every __________ days.

Barry Builder's operating income for the year was $75,000. The interest expense was $11,500 and the tax expense was $6,500. Barry's times interest earned for the year is __________.

After income from continuing operations, the next section on an income statement is __________.

Carla's Fashions has an average days' in receivable of 30 days. You could infer that Carla's:

What may an income statement include after continuing operations?

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Ethics, Internal Control, and Cash

Accounting for a Merchandising Business

Inventory

Sales and Receivables

Long-Term Assets

Current Liabilities and Long-Term Debt

Corporations: Share Capital and Retained Earnings

The Cash Flow Statement

Filters