Question 1

The following data have been taken from your company's financial records for the current year:   The price-earnings ratio is:

Accepted Answer

A)  1.67 to 1. 
B)  7.0 to 1. 
C)  9.0 to 1. 
D)  15.0 to 1. 
A)  1.67 to 1. 
B)  7.0 to 1. 
C)  9.0 to 1. 
D)  15.0 to 1.

Question 2

Orantes Company's return on total assets for 20 × 6 was closest to:

Accepted Answer

A)  11.4%. 
B)  12.3%. 
C)  12.7%. 
D)  13.1%. 
A)  11.4%. 
B)  12.3%. 
C)  12.7%. 
D)  13.1%.

Question 3

Working capital equals current assets less current liabilities.

Accepted Answer

A) True 
 B)False

Question 4

Harwichport Company has a current ratio of 3.5 to 1 and an acid-test ratio of 2.8 to 1.Current assets equal $175,000 of which $5,000 consists of prepaid expenses.Harwichport Company's inventory must be:

Accepted Answer

A)  $30,000. 
B)  $35,000. 
C)  $40,000. 
D)  $50,000. 
A)  $30,000. 
B)  $35,000. 
C)  $40,000. 
D)  $50,000.

Question 5

March Company's working capital (in thousands of dollars)at the end of 20 × 6 was closest to:

Accepted Answer

A)  $180. 
B)  $520. 
C)  $80. 
D)  $1,290. 
A)  $180. 
B)  $520. 
C)  $80. 
D)  $1,290.

Question 6

For 20 × 9,the gross margin as a percentage of sales was:

Accepted Answer

A)  5%. 
B)  10%. 
C)  40%. 
D)  60%. 
A)  5%. 
B)  10%. 
C)  40%. 
D)  60%.

Question 7

Calculate the earnings per share for 20 × 4

Accepted Answer

$23,000/20

Question 8

In calculating earnings per share,net income is reduced by the amount paid out as dividends to the owners of the preferred shares.

Accepted Answer

A) True 
 B)False

Question 9

Laroche Company's earnings per share of common stock for 20 × 6 were closest to:

Accepted Answer

A)  $3.71. 
B)  $10.67. 
C)  $11.08. 
D)  $15.83. 
A)  $3.71. 
B)  $10.67. 
C)  $11.08. 
D)  $15.83.

Question 10

The market price of XYZ Company's common shares dropped from $25 to $21 per share.The dividend paid per share remained unchanged.The company's dividend payout ratio would:

Accepted Answer

A)  increase. 
B)  decrease. 
C)  be unchanged. 
D)  impossible to determine without more information. 
A)  increase. 
B)  decrease. 
C)  be unchanged. 
D)  impossible to determine without more information.

Question 11

Which of the following is true regarding the calculation of return on total assets?

Accepted Answer

A)  the numerator of the ratio consists only of net income. 
B)  the denominator of the ratio consists of the balance of total assets at the end of the period under consideration. 
C)  the numerator of the ratio consists of net income plus interest expense times the tax rate. 
D)  the numerator of the ratio consists of net income plus interest expense times one minus the tax rate. 
A)  the numerator of the ratio consists only of net income. 
B)  the denominator of the ratio consists of the balance of total assets at the end of the period under consideration. 
C)  the numerator of the ratio consists of net income plus interest expense times the tax rate. 
D)  the numerator of the ratio consists of net income plus interest expense times one minus the tax rate.

Question 12

The following account balances have been provided for the end of the most recent year:   The book value per share of common stock is:

Accepted Answer

A)  $20. 
B)  $22. 
C)  $25. 
D)  $28. 
A)  $20. 
B)  $22. 
C)  $25. 
D)  $28.

Question 13

Marcell Company's average collection period (age of receivables)for 20 × 6 was closest to:

Accepted Answer

A)  15.7 days. 
B)  22.6 days. 
C)  25.8 days. 
D)  36.9 days. 
A)  15.7 days. 
B)  22.6 days. 
C)  25.8 days. 
D)  36.9 days.

Question 14

Frantic Company had $130,000 in sales on account last year.The beginning accounts receivable balance was $10,000 and the ending accounts receivable balance was $16,000.The company's accounts receivable turnover was closest to:

Accepted Answer

A)  5.00 times. 
B)  8.13 times. 
C)  10.00 times. 
D)  13.00 times. 
A)  5.00 times. 
B)  8.13 times. 
C)  10.00 times. 
D)  13.00 times.

Question 15

The net accounts receivable for Andante Company were $150,000 at the beginning of the most recent year and $190,000 at the end of the year.If the accounts receivable turnover for the year was 8.5,and 15% of total sales were cash sales,then the total sales for the year were:

Accepted Answer

A)  $1,445,000. 
B)  $1,500,000. 
C)  $1,700,000. 
D)  $1,900,000. 
A)  $1,445,000. 
B)  $1,500,000. 
C)  $1,700,000. 
D)  $1,900,000.

Question 16

The gross margin percentage is most likely to be used to assess:

Accepted Answer

A)  how quickly accounts receivables can be collected. 
B)  how quickly inventories are sold. 
C)  the efficiency of administrative departments. 
D)  the overall profitability of the company's products. 
A)  how quickly accounts receivables can be collected. 
B)  how quickly inventories are sold. 
C)  the efficiency of administrative departments. 
D)  the overall profitability of the company's products.

Question 17

Lisa Inc.'s inventory turnover for 20 × 7 was closest to:

Accepted Answer

A)  3.7 times. 
B)  4.0 times. 
C)  4.4 times. 
D)  5.0 times. 
A)  3.7 times. 
B)  4.0 times. 
C)  4.4 times. 
D)  5.0 times.

Question 18

A company's current ratio and acid-test ratios are both greater than 1.0 to 1.If obsolete inventory is written off,this would:

Accepted Answer

A)  decrease the acid-test ratio. 
B)  increase the acid-test ratio. 
C)  increase net working capital. 
D)  decrease the current ratio. 
A)  decrease the acid-test ratio. 
B)  increase the acid-test ratio. 
C)  increase net working capital. 
D)  decrease the current ratio.

Question 19

Arquandt Company's net income last year was $550,000.The company has 150,000 shares of common stock and 50,000 shares of preferred stock outstanding.There was no change in the number of common or preferred shares outstanding during the year.The company declared and paid dividends last year of $1.20 per share on the common stock and $1.70 per share on the preferred stock.The earnings per share of common stock are closest to:

Accepted Answer

A)  $2.47. 
B)  $3.10. 
C)  $6.67. 
D)  $4.23. 
A)  $2.47. 
B)  $3.10. 
C)  $6.67. 
D)  $4.23.

Question 20

Erack Company has $15,000 in cash,$4,000 in marketable securities,$38,000 in current receivables,$18,000 in inventories,and $40,000 in current liabilities.The company's acid-test (quick)ratio is closest to:

Accepted Answer

A)  0.95 to 1. 
B)  1.33 to 1. 
C)  1.43 to 1. 
D)  1.88 to 1. 
A)  0.95 to 1. 
B)  1.33 to 1. 
C)  1.43 to 1. 
D)  1.88 to 1.

The following data have been taken from your company's financial records for the current year: The price-earnings ratio is:

Orantes Company's return on total assets for 20 × 6 was closest to:

Working capital equals current assets less current liabilities.

Harwichport Company has a current ratio of 3.5 to 1 and an acid-test ratio of 2.8 to 1.Current assets equal $175,000 of which $5,000 consists of prepaid expenses.Harwichport Company's inventory must be:

March Company's working capital (in thousands of dollars)at the end of 20 × 6 was closest to:

For 20 × 9,the gross margin as a percentage of sales was:

Calculate the earnings per share for 20 × 4

In calculating earnings per share,net income is reduced by the amount paid out as dividends to the owners of the preferred shares.

Laroche Company's earnings per share of common stock for 20 × 6 were closest to:

The market price of XYZ Company's common shares dropped from $25 to $21 per share.The dividend paid per share remained unchanged.The company's dividend payout ratio would:

Which of the following is true regarding the calculation of return on total assets?

The following account balances have been provided for the end of the most recent year: The book value per share of common stock is:

Marcell Company's average collection period (age of receivables)for 20 × 6 was closest to:

Frantic Company had $130,000 in sales on account last year.The beginning accounts receivable balance was $10,000 and the ending accounts receivable balance was $16,000.The company's accounts receivable turnover was closest to:

The net accounts receivable for Andante Company were $150,000 at the beginning of the most recent year and $190,000 at the end of the year.If the accounts receivable turnover for the year was 8.5,and 15% of total sales were cash sales,then the total sales for the year were:

The gross margin percentage is most likely to be used to assess:

Lisa Inc.'s inventory turnover for 20 × 7 was closest to:

A company's current ratio and acid-test ratios are both greater than 1.0 to 1.If obsolete inventory is written off,this would:

Erack Company has $15,000 in cash,$4,000 in marketable securities,$38,000 in current receivables,$18,000 in inventories,and $40,000 in current liabilities.The company's acid-test (quick)ratio is closest to:

An Introduction to Managerial Accounting and Cost Concepts

Systems Design: Job-Order Costing

Systems Design: Activity-Based Costing

Systems Design: Process Costing

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Profit Planning

Standard Costs

Flexible Budgets and Overhead Analysis

Decentralization

Relevant Costs for Decision Making

Capital Budgeting Decisions

How Well Am I Doing Financial Statement Analysis

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Exam 13: How Well Am I Doing Statement of Cash Flows

The following data have been taken from your company's financial records for the current year: The price-earnings ratio is:

Orantes Company's return on total assets for 20 × 6 was closest to:

Working capital equals current assets less current liabilities.

Harwichport Company has a current ratio of 3.5 to 1 and an acid-test ratio of 2.8 to 1.Current assets equal $175,000 of which $5,000 consists of prepaid expenses.Harwichport Company's inventory must be:

March Company's working capital (in thousands of dollars)at the end of 20 × 6 was closest to:

For 20 × 9,the gross margin as a percentage of sales was:

Calculate the earnings per share for 20 × 4

In calculating earnings per share,net income is reduced by the amount paid out as dividends to the owners of the preferred shares.

Laroche Company's earnings per share of common stock for 20 × 6 were closest to:

The market price of XYZ Company's common shares dropped from $25 to $21 per share.The dividend paid per share remained unchanged.The company's dividend payout ratio would:

Which of the following is true regarding the calculation of return on total assets?

The following account balances have been provided for the end of the most recent year: The book value per share of common stock is:

Marcell Company's average collection period (age of receivables)for 20 × 6 was closest to:

Frantic Company had $130,000 in sales on account last year.The beginning accounts receivable balance was $10,000 and the ending accounts receivable balance was $16,000.The company's accounts receivable turnover was closest to:

The net accounts receivable for Andante Company were $150,000 at the beginning of the most recent year and $190,000 at the end of the year.If the accounts receivable turnover for the year was 8.5,and 15% of total sales were cash sales,then the total sales for the year were:

The gross margin percentage is most likely to be used to assess:

Lisa Inc.'s inventory turnover for 20 × 7 was closest to:

A company's current ratio and acid-test ratios are both greater than 1.0 to 1.If obsolete inventory is written off,this would:

Erack Company has $15,000 in cash,$4,000 in marketable securities,$38,000 in current receivables,$18,000 in inventories,and $40,000 in current liabilities.The company's acid-test (quick)ratio is closest to:

An Introduction to Managerial Accounting and Cost Concepts

Systems Design: Job-Order Costing

Systems Design: Activity-Based Costing

Systems Design: Process Costing

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Profit Planning

Standard Costs

Flexible Budgets and Overhead Analysis

Decentralization

Relevant Costs for Decision Making

Capital Budgeting Decisions

How Well Am I Doing Financial Statement Analysis

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