Question 1

Drew Company's average collection period (age of receivables)for 20× 7 was closest to:

Accepted Answer

A)  30.4 days. 
B)  40.6 days. 
C)  50.7 days. 
D)  60.8 days. 
A)  30.4 days. 
B)  40.6 days. 
C)  50.7 days. 
D)  60.8 days.

Question 2

Crabtree Company's net income last year was $50,000.The company paid preferred dividends of $20,000 and its average common shareholders' equity was $440,000.The company's return on common shareholders' equity for the year was closest to:

Accepted Answer

A)  4.5%. 
B)  6.8%. 
C)  11.4%. 
D)  15.9%. 
A)  4.5%. 
B)  6.8%. 
C)  11.4%. 
D)  15.9%.

Question 3

Narlock Company's debt-to-equity ratio at the end of 20 × 6 was closest to:

Accepted Answer

A)  0.32 to 1. 
B)  0.38 to 1. 
C)  0.70 to 1. 
D)  1.09 to 1. 
A)  0.32 to 1. 
B)  0.38 to 1. 
C)  0.70 to 1. 
D)  1.09 to 1.

Question 4

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

Accepted Answer

A)  15.8%. 
B)  17.2%. 
C)  17.8%. 
D)  18.6%. 
A)  15.8%. 
B)  17.2%. 
C)  17.8%. 
D)  18.6%.

Question 5

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

Accepted Answer

A)  $3.09. 
B)  $9.41. 
C)  $9.86. 
D)  $14.09. 
A)  $3.09. 
B)  $9.41. 
C)  $9.86. 
D)  $14.09.

Question 6

Last year Dunn Company purchased $1,920,000 of inventory.The cost of goods sold was $1,800,000 and the ending inventory was $360,000.What was the inventory turnover?

Accepted Answer

A)  5.0 times. 
B)  5.3 times. 
C)  6.0 times. 
D)  6.4 times. 
A)  5.0 times. 
B)  5.3 times. 
C)  6.0 times. 
D)  6.4 times.

Question 7

M.K.Berry is the managing director of CE Ltd.a small,family-owned company which manufactures cutlery.His company belongs to a trade association which publishes a monthly magazine.The latest issue of the magazine contains a very brief article based on the analysis of the accounting statements published by the 40 companies which manufacture this type of product.The article contains the following table:

Accepted Answer

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Required:
a.Calculate each of the r

Question 8

Oratz Company's accounts receivable turnover for 20 × 6 was closest to:

Accepted Answer

A)  6.3 times. 
B)  8.8 times. 
C)  9.1 times. 
D)  12.5 times. 
A)  6.3 times. 
B)  8.8 times. 
C)  9.1 times. 
D)  12.5 times.

Question 9

The price-earnings ratio for the prior year was:

Accepted Answer

A)  11.1 to 1. 
B)  12.2 to 1. 
C)  14.3 to 1. 
D)  15.8 to 1. 
A)  11.1 to 1. 
B)  12.2 to 1. 
C)  14.3 to 1. 
D)  15.8 to 1.

Question 10

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

Accepted Answer

A)  $200. 
B)  $440. 
C)  $570. 
D)  $1,360. 
A)  $200. 
B)  $440. 
C)  $570. 
D)  $1,360.

Question 11

If a company converts a short-term note payable into a long-term note payable,this transaction would:

Accepted Answer

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

Question 12

The Miller Company paid off some of its accounts payable using cash.The company's current ratio is greater than 1.0 to 1.The company's current ratio would:

Accepted Answer

A)  increase. 
B)  decrease. 
C)  remain unchanged. 
D)  impossible to determine from the information given. 
A)  increase. 
B)  decrease. 
C)  remain unchanged. 
D)  impossible to determine from the information given.

Question 13

Calculate the average collection period for 20 × 4

Accepted Answer

365/12.86

Question 14

Frabine Company had $150,000 in sales on account last year.The beginning accounts receivable balance was $14,000 and the ending accounts receivable balance was $18,000.The company's accounts receivable turnover was closest to:

Accepted Answer

A)  4.69 times. 
B)  8.33 times. 
C)  9.38 times. 
D)  10.71 times. 
A)  4.69 times. 
B)  8.33 times. 
C)  9.38 times. 
D)  10.71 times.

Question 15

Starrs Company has current assets of $300,000 and current liabilities of $200,000.Which of the following transactions would increase its working capital?

Accepted Answer

A)  Prepayment of $50,000 of next year's rent. 
B)  Refinancing $50,000 of short-term debt with long-term debt. 
C)  Acquisition of land valued at $50,000 by issuing new common shares. 
D)  Purchase of $50,000 of marketable securities for cash. 
A)  Prepayment of $50,000 of next year's rent. 
B)  Refinancing $50,000 of short-term debt with long-term debt. 
C)  Acquisition of land valued at $50,000 by issuing new common shares. 
D)  Purchase of $50,000 of marketable securities for cash.

Question 16

Selected year-end data for the Brayer Company are presented below:   The company has no prepaid expenses and inventories remained unchanged during the year.Based on these data,the company's inventory turnover ratio for the year was closest to:

Accepted Answer

A)  1.20 times. 
B)  1.67 times. 
C)  2.33 times. 
D)  2.40 times. 
A)  1.20 times. 
B)  1.67 times. 
C)  2.33 times. 
D)  2.40 times.

Question 17

Financial statements for Qiang Company appear below:

Accepted Answer

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Dividends during 20 × 6 totalled $6

Question 18

Marcell Company's acid-test (quick)ratio at the end of 20 × 6 was closest to:

Accepted Answer

A)  0.33 to 1. 
B)  0.60 to 1. 
C)  0.74 to 1. 
D)  1.35 to 1. 
A)  0.33 to 1. 
B)  0.60 to 1. 
C)  0.74 to 1. 
D)  1.35 to 1.

Question 19

The acid-test ratio is a test of the quality of accounts receivable-in other words,whether they are likely to be collected.

Accepted Answer

A) True 
 B)False

Question 20

Marcial Company's current ratio at the end of 20 × 6 was closest to:

Accepted Answer

A)  0.35 to 1. 
B)  0.38 to 1. 
C)  1.22 to 1. 
D)  1.83 to 1. 
A)  0.35 to 1. 
B)  0.38 to 1. 
C)  1.22 to 1. 
D)  1.83 to 1.

Drew Company's average collection period (age of receivables)for 20× 7 was closest to:

Crabtree Company's net income last year was $50,000.The company paid preferred dividends of $20,000 and its average common shareholders' equity was $440,000.The company's return on common shareholders' equity for the year was closest to:

Narlock Company's debt-to-equity ratio at the end of 20 × 6 was closest to:

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

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

Last year Dunn Company purchased $1,920,000 of inventory.The cost of goods sold was $1,800,000 and the ending inventory was $360,000.What was the inventory turnover?

Oratz Company's accounts receivable turnover for 20 × 6 was closest to:

The price-earnings ratio for the prior year was:

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

If a company converts a short-term note payable into a long-term note payable,this transaction would:

The Miller Company paid off some of its accounts payable using cash.The company's current ratio is greater than 1.0 to 1.The company's current ratio would:

Calculate the average collection period for 20 × 4

Frabine Company had $150,000 in sales on account last year.The beginning accounts receivable balance was $14,000 and the ending accounts receivable balance was $18,000.The company's accounts receivable turnover was closest to:

Starrs Company has current assets of $300,000 and current liabilities of $200,000.Which of the following transactions would increase its working capital?

Selected year-end data for the Brayer Company are presented below: The company has no prepaid expenses and inventories remained unchanged during the year.Based on these data,the company's inventory turnover ratio for the year was closest to:

Financial statements for Qiang Company appear below:

Marcell Company's acid-test (quick)ratio at the end of 20 × 6 was closest to:

The acid-test ratio is a test of the quality of accounts receivable-in other words,whether they are likely to be collected.

Marcial Company's current ratio at the end of 20 × 6 was 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

Drew Company's average collection period (age of receivables)for 20× 7 was closest to:

Crabtree Company's net income last year was $50,000.The company paid preferred dividends of $20,000 and its average common shareholders' equity was $440,000.The company's return on common shareholders' equity for the year was closest to:

Narlock Company's debt-to-equity ratio at the end of 20 × 6 was closest to:

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

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

Last year Dunn Company purchased $1,920,000 of inventory.The cost of goods sold was $1,800,000 and the ending inventory was $360,000.What was the inventory turnover?

Oratz Company's accounts receivable turnover for 20 × 6 was closest to:

The price-earnings ratio for the prior year was:

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

If a company converts a short-term note payable into a long-term note payable,this transaction would:

The Miller Company paid off some of its accounts payable using cash.The company's current ratio is greater than 1.0 to 1.The company's current ratio would:

Calculate the average collection period for 20 × 4

Frabine Company had $150,000 in sales on account last year.The beginning accounts receivable balance was $14,000 and the ending accounts receivable balance was $18,000.The company's accounts receivable turnover was closest to:

Starrs Company has current assets of $300,000 and current liabilities of $200,000.Which of the following transactions would increase its working capital?

Selected year-end data for the Brayer Company are presented below: The company has no prepaid expenses and inventories remained unchanged during the year.Based on these data,the company's inventory turnover ratio for the year was closest to:

Financial statements for Qiang Company appear below:

Marcell Company's acid-test (quick)ratio at the end of 20 × 6 was closest to:

The acid-test ratio is a test of the quality of accounts receivable-in other words,whether they are likely to be collected.

Marcial Company's current ratio at the end of 20 × 6 was 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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