Question 1

The following is a common-sized Income Statement for Sydney and Caesar Companies.  
Which company has better control of their overall operating expenses?

Accepted Answer

A) Not enough information is given to assess the question. 
B) Sydney Company 
C) Caesar Company 
D) Too close to make a solid determination. 
A) Not enough information is given to assess the question. 
B) Sydney Company 
C) Caesar Company 
D) Too close to make a solid determination.

Question 2

The current ratio for a company with current assets of $73,000, quick assets of $31,000, total assets of $160,000, current liabilities of $46,000, and net sales of $77,000 would be: (Round your final answer to two decimal places.)

Accepted Answer

A) 0.19. 
B) 1.59. 
C) 3.48. 
D) 0.94. 
A) 0.19. 
B) 1.59. 
C) 3.48. 
D) 0.94.

Question 3

Management discussion and analysis is:

Accepted Answer

A) part of a business's annual report. 
B) prepared by the external auditors. 
C) a summary of all the business's press releases for the year. 
D) both A and B. 
A) part of a business's annual report. 
B) prepared by the external auditors. 
C) a summary of all the business's press releases for the year. 
D) both A and B.

Question 4

A business model describes what a business does, what it sells, and who it sells to.

Accepted Answer

A) True 
 B)False

Question 5

Radar Corporation the following for 2016:  
What is the price earnings ratio for Radar Corporation? (Round your final answer to two decimal places.)

Accepted Answer

A) 2.90 
B) 7.56 
C) 2.61 
D) 0.85 
A) 2.90 
B) 7.56 
C) 2.61 
D) 0.85

Question 6

Two measures that are often looked at in valuing a business are:

Accepted Answer

A) Earnings per Share and Dividend per Share. 
B) Earnings per Share and Dividend Yield. 
C) Price Earnings Ratio and Dividend Yield. 
D) Price Earnings Ratio and Dividend per Share. 
A) Earnings per Share and Dividend per Share. 
B) Earnings per Share and Dividend Yield. 
C) Price Earnings Ratio and Dividend Yield. 
D) Price Earnings Ratio and Dividend per Share.

Question 7

Stella Corp. has a debt ratio that is significantly higher than industry, indicating that they are better at paying off debt than their competitors.

Accepted Answer

A) True 
 B)False

Question 8

Solvency ratios measure a company's ability to meet its long-term obligations or take on more debt.

Accepted Answer

A) True 
 B)False

Question 9

If current assets were $101,000 in 2015 and $91,000 in 2016, what was the amount of increase or decrease in percentage terms from 2015 to 2016? (Round your final answer to two decimal places, X.XX%.)

Accepted Answer

A) Increase of 11% 
B) Decrease of 11% 
C) Increase of 10% 
D) Decrease of 10% 
A) Increase of 11% 
B) Decrease of 11% 
C) Increase of 10% 
D) Decrease of 10%

Question 10

Financial analysis is the process of using a company's financial information to evaluate whether or not the company is creating value.

Accepted Answer

A) True 
 B)False

Question 11

Woods, Inc. reported Net Sales of $326,000, Cost of Goods Sold of $188,600, Operating Expenses of $59,900, and Income Tax Expense of $9300. Woods' net income percentage was: (Round your final answer to two decimal places, X.XX%.)

Accepted Answer

A) 42.15%. 
B) 20.92%. 
C) 57.85%. 
D) 23.77%. 
A) 42.15%. 
B) 20.92%. 
C) 57.85%. 
D) 23.77%.

Question 12

Which of the following is NOT an asset management ratio?

Accepted Answer

A) Inventory turnover ratio 
B) Days-sales-in-inventory ratio 
C) Fixed asset turnover ratio 
D) Return on assets 
A) Inventory turnover ratio 
B) Days-sales-in-inventory ratio 
C) Fixed asset turnover ratio 
D) Return on assets

Question 13

The management discussion and analysis is typically located after the financial statements in a company's annual report.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is a profitability ratio?

Accepted Answer

A) Cash conversion cycle 
B) Earnings per share 
C) Debt ratio 
D) Gross profit percentage 
A) Cash conversion cycle 
B) Earnings per share 
C) Debt ratio 
D) Gross profit percentage

Question 15

The ratio that measures the efficiency of all of a company's assets in generating sales is the:

Accepted Answer

A) Accounts Receivable turnover ratio. 
B) total asset turnover ratio. 
C) inventory turnover ratio. 
D) fixed asset turnover ratio. 
A) Accounts Receivable turnover ratio. 
B) total asset turnover ratio. 
C) inventory turnover ratio. 
D) fixed asset turnover ratio.

Question 16

Which of the following is typically NOT one of the questions asked when analyzing a business' operations?

Accepted Answer

A) How is the business investing its money? 
B) When was the business started? 
C) Is the business a going concern? 
D) Can the business pay its debt obligations? 
A) How is the business investing its money? 
B) When was the business started? 
C) Is the business a going concern? 
D) Can the business pay its debt obligations?

Question 17

Net income belongs to a company's stockholders.

Accepted Answer

A) True 
 B)False

Question 18

Metropolitan Builders reported the following for 2016:  
What are the dividends per share for Metropolitan Builders? : (Round your final answer to the nearest cent.)

Accepted Answer

A) $0.11/share 
B) $0.22/share 
C) $0.12/share 
D) $0.81/share 
A) $0.11/share 
B) $0.22/share 
C) $0.12/share 
D) $0.81/share

Question 19

The net working capital for a company with current assets of $77,000, quick assets of $46,000, total assets of $187,000 current liabilities of $65,000 and net sales of $91,000 would be:

Accepted Answer

A) $58,000. 
B) $26,000. 
C) $12,000. 
D) $122,000. 
A) $58,000. 
B) $26,000. 
C) $12,000. 
D) $122,000.

Question 20

How a business uses its money to acquire assets is called the financing decision.

Accepted Answer

A) True 
 B)False

The following is a common-sized Income Statement for Sydney and Caesar Companies. Which company has better control of their overall operating expenses?

The current ratio for a company with current assets of $73,000, quick assets of $31,000, total assets of $160,000, current liabilities of $46,000, and net sales of $77,000 would be: (Round your final answer to two decimal places.)

Management discussion and analysis is:

A business model describes what a business does, what it sells, and who it sells to.

Radar Corporation the following for 2016: What is the price earnings ratio for Radar Corporation? (Round your final answer to two decimal places.)

Two measures that are often looked at in valuing a business are:

Stella Corp. has a debt ratio that is significantly higher than industry, indicating that they are better at paying off debt than their competitors.

Solvency ratios measure a company's ability to meet its long-term obligations or take on more debt.

If current assets were $101,000 in 2015 and $91,000 in 2016, what was the amount of increase or decrease in percentage terms from 2015 to 2016? (Round your final answer to two decimal places, X.XX%.)

Financial analysis is the process of using a company's financial information to evaluate whether or not the company is creating value.

Woods, Inc. reported Net Sales of $326,000, Cost of Goods Sold of $188,600, Operating Expenses of $59,900, and Income Tax Expense of $9300. Woods' net income percentage was: (Round your final answer to two decimal places, X.XX%.)

Which of the following is NOT an asset management ratio?

The management discussion and analysis is typically located after the financial statements in a company's annual report.

Which of the following is a profitability ratio?

The ratio that measures the efficiency of all of a company's assets in generating sales is the:

Which of the following is typically NOT one of the questions asked when analyzing a business' operations?

Net income belongs to a company's stockholders.

Metropolitan Builders reported the following for 2016: What are the dividends per share for Metropolitan Builders? : (Round your final answer to the nearest cent.)

The net working capital for a company with current assets of $77,000, quick assets of $46,000, total assets of $187,000 current liabilities of $65,000 and net sales of $91,000 would be:

How a business uses its money to acquire assets is called the financing decision.

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Accounting for a Merchandising Business

Inventory

The Challenges of Accounting: Standards, Internal Control, Audits, Fraud, and Ethics

Cash and Receivables

Long-Term and Other Assets

Current Liabilities and Long-Term Debt

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Filters

Exam 12: Financial Statement Analysis

The following is a common-sized Income Statement for Sydney and Caesar Companies. Which company has better control of their overall operating expenses?

The current ratio for a company with current assets of $73,000, quick assets of $31,000, total assets of $160,000, current liabilities of $46,000, and net sales of $77,000 would be: (Round your final answer to two decimal places.)

Management discussion and analysis is:

A business model describes what a business does, what it sells, and who it sells to.

Radar Corporation the following for 2016: What is the price earnings ratio for Radar Corporation? (Round your final answer to two decimal places.)

Two measures that are often looked at in valuing a business are:

Stella Corp. has a debt ratio that is significantly higher than industry, indicating that they are better at paying off debt than their competitors.

Solvency ratios measure a company's ability to meet its long-term obligations or take on more debt.

If current assets were $101,000 in 2015 and $91,000 in 2016, what was the amount of increase or decrease in percentage terms from 2015 to 2016? (Round your final answer to two decimal places, X.XX%.)

Financial analysis is the process of using a company's financial information to evaluate whether or not the company is creating value.

Woods, Inc. reported Net Sales of $326,000, Cost of Goods Sold of $188,600, Operating Expenses of $59,900, and Income Tax Expense of $9300. Woods' net income percentage was: (Round your final answer to two decimal places, X.XX%.)

Which of the following is NOT an asset management ratio?

The management discussion and analysis is typically located after the financial statements in a company's annual report.

Which of the following is a profitability ratio?

The ratio that measures the efficiency of all of a company's assets in generating sales is the:

Which of the following is typically NOT one of the questions asked when analyzing a business' operations?

Net income belongs to a company's stockholders.

Metropolitan Builders reported the following for 2016: What are the dividends per share for Metropolitan Builders? : (Round your final answer to the nearest cent.)

The net working capital for a company with current assets of $77,000, quick assets of $46,000, total assets of $187,000 current liabilities of $65,000 and net sales of $91,000 would be:

How a business uses its money to acquire assets is called the financing decision.

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Accounting for a Merchandising Business

Inventory

The Challenges of Accounting: Standards, Internal Control, Audits, Fraud, and Ethics

Cash and Receivables

Long-Term and Other Assets

Current Liabilities and Long-Term Debt

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Filters