Question 1

Laroche Company's return on common shareholders' equity for 20 × 6 was closest to:

Accepted Answer

A)  21.2%. 
B)  22.0%. 
C)  23.1%. 
D)  24.0%. 
A)  21.2%. 
B)  22.0%. 
C)  23.1%. 
D)  24.0%.

Question 2

Fracus Company had $100,000 in sales on account last year.The beginning accounts receivable balance was $14,000 and the ending accounts receivable balance was $16,000.The company's accounts receivable turnover was closest to:

Accepted Answer

A)  3.33 times. 
B)  6.25 times. 
C)  6.67 times. 
D)  7.14 times. 
A)  3.33 times. 
B)  6.25 times. 
C)  6.67 times. 
D)  7.14 times.

Question 3

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

Accepted Answer

A)  13.0%. 
B)  14.1%. 
C)  14.6%. 
D)  15.2%. 
A)  13.0%. 
B)  14.1%. 
C)  14.6%. 
D)  15.2%.

Question 4

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

Accepted Answer

A)  0.39 to 1. 
B)  0.53 to 1. 
C)  0.95 to 1. 
D)  1.90 to 1. 
A)  0.39 to 1. 
B)  0.53 to 1. 
C)  0.95 to 1. 
D)  1.90 to 1.

Question 5

If a company's bonds bear an interest rate of 8%,the tax rate is 30%,and the company's assets are generating an after-tax return of 7%,then the leverage would be:

Accepted Answer

A)  positive. 
B)  negative. 
C)  neither positive nor negative. 
D)  impossible to determine without knowing the return on common shareholders' equity. 
A)  positive. 
B)  negative. 
C)  neither positive nor negative. 
D)  impossible to determine without knowing the return on common shareholders' equity.

Question 6

When computing the acid-test ratio,prepaid expenses are ignored.

Accepted Answer

A) True 
 B)False

Question 7

Erambo Company has $11,000 in cash,$6,000 in marketable securities,$27,000 in current receivables,$8,000 in inventories,and $51,000 in current liabilities.The company's acid-test (quick)ratio is closest to:

Accepted Answer

A)  0.53 to 1. 
B)  0.75 to 1. 
C)  0.86 to 1. 
D)  1.02 to 1. 
A)  0.53 to 1. 
B)  0.75 to 1. 
C)  0.86 to 1. 
D)  1.02 to 1.

Question 8

Marcy Corporation's current ratio is currently 1.75 to 1.The firm's current ratio cannot fall below 1.5 to 1 without violating agreements with its bondholders.If current liabilities are presently $250 million,the maximum new short-term debt that can be issued to finance an equivalent amount of inventory expansion is:

Accepted Answer

A)  $41.67 million. 
B)  $62.50 million. 
C)  $125.00 million. 
D)  $375.00 million. 
A)  $41.67 million. 
B)  $62.50 million. 
C)  $125.00 million. 
D)  $375.00 million.

Question 9

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

Accepted Answer

A)  4.9 times. 
B)  5.9 times. 
C)  6.7 times. 
D)  8.0 times. 
A)  4.9 times. 
B)  5.9 times. 
C)  6.7 times. 
D)  8.0 times.

Question 10

Marcell Company's inventory turnover for 20 × 6 was closest to:

Accepted Answer

A)  9.9 times. 
B)  14.2 times. 
C)  16.2 times. 
D)  23.2 times. 
A)  9.9 times. 
B)  14.2 times. 
C)  16.2 times. 
D)  23.2 times.

Question 11

Narumi Company's times interest earned for 20 × 6 was closest to:

Accepted Answer

A)  4.6 times. 
B)  6.6 times. 
C)  7.6 times. 
D)  12.4 times. 
A)  4.6 times. 
B)  6.6 times. 
C)  7.6 times. 
D)  12.4 times.

Question 12

PFM Company has sales of $210,000,interest expense of $8,000,a tax rate of 30%,and a net profit after tax of $35,000.PFM Company's times interest earned ratio is:

Accepted Answer

A)  4.375 times. 
B)  5.375 times. 
C)  7.25 times. 
D)  15.5 times. 
A)  4.375 times. 
B)  5.375 times. 
C)  7.25 times. 
D)  15.5 times.

Question 13

Sale of a piece of equipment at book value for cash will:

Accepted Answer

A)  increase working capital. 
B)  decrease working capital. 
C)  decrease the debt-to-equity ratio. 
D)  increase net income. 
A)  increase working capital. 
B)  decrease working capital. 
C)  decrease the debt-to-equity ratio. 
D)  increase net income.

Question 14

The dividend yield ratio on common shares for the current year was closest to:

Accepted Answer

A)  5.2% 
B)  6.6%. 
C)  6.8%. 
D)  7.4%. 
A)  5.2% 
B)  6.6%. 
C)  6.8%. 
D)  7.4%.

Question 15

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

Accepted Answer

A)  0.35 to 1. 
B)  0.54 to 1. 
C)  1.19 to 1. 
D)  1.50 to 1. 
A)  0.35 to 1. 
B)  0.54 to 1. 
C)  1.19 to 1. 
D)  1.50 to 1.

Question 16

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

Accepted Answer

A)  $20. 
B)  $470. 
C)  $520. 
D)  $1,240. 
A)  $20. 
B)  $470. 
C)  $520. 
D)  $1,240.

Question 17

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

Accepted Answer

A)  0.42 to 1. 
B)  0.48 to 1. 
C)  1.04 to 1. 
D)  1.22 to 1. 
A)  0.42 to 1. 
B)  0.48 to 1. 
C)  1.04 to 1. 
D)  1.22 to 1.

Question 18

Narita Company's times interest earned for 20 × 6 was closest to:

Accepted Answer

A)  10.3 times. 
B)  14.7 times. 
C)  15.7 times. 
D)  26.0 times. 
A)  10.3 times. 
B)  14.7 times. 
C)  15.7 times. 
D)  26.0 times.

Question 19

Rahner Company has a current ratio of 1.75 to 1.Which of the following will cause this ratio to decrease?

Accepted Answer

A)  The company borrows cash using a six-month note. 
B)  The company pays the taxes payable which have been a current liability. 
C)  The company pays the following month's rent on the last day of the year. 
D)  The company sells inventory for more than their cost. 
A)  The company borrows cash using a six-month note. 
B)  The company pays the taxes payable which have been a current liability. 
C)  The company pays the following month's rent on the last day of the year. 
D)  The company sells inventory for more than their cost.

Question 20

Marcell Company's average sale period (turnover in days)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.

Laroche Company's return on common shareholders' equity for 20 × 6 was closest to:

Fracus Company had $100,000 in sales on account last year.The beginning accounts receivable balance was $14,000 and the ending accounts receivable balance was $16,000.The company's accounts receivable turnover was closest to:

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

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

If a company's bonds bear an interest rate of 8%,the tax rate is 30%,and the company's assets are generating an after-tax return of 7%,then the leverage would be:

When computing the acid-test ratio,prepaid expenses are ignored.

Erambo Company has $11,000 in cash,$6,000 in marketable securities,$27,000 in current receivables,$8,000 in inventories,and $51,000 in current liabilities.The company's acid-test (quick)ratio is closest to:

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

Marcell Company's inventory turnover for 20 × 6 was closest to:

Narumi Company's times interest earned for 20 × 6 was closest to:

PFM Company has sales of $210,000,interest expense of $8,000,a tax rate of 30%,and a net profit after tax of $35,000.PFM Company's times interest earned ratio is:

Sale of a piece of equipment at book value for cash will:

The dividend yield ratio on common shares for the current year was closest to:

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

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

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

Narita Company's times interest earned for 20 × 6 was closest to:

Rahner Company has a current ratio of 1.75 to 1.Which of the following will cause this ratio to decrease?

Marcell Company's average sale period (turnover in days)for 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

Filters

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

Laroche Company's return on common shareholders' equity for 20 × 6 was closest to:

Fracus Company had $100,000 in sales on account last year.The beginning accounts receivable balance was $14,000 and the ending accounts receivable balance was $16,000.The company's accounts receivable turnover was closest to:

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

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

If a company's bonds bear an interest rate of 8%,the tax rate is 30%,and the company's assets are generating an after-tax return of 7%,then the leverage would be:

When computing the acid-test ratio,prepaid expenses are ignored.

Erambo Company has $11,000 in cash,$6,000 in marketable securities,$27,000 in current receivables,$8,000 in inventories,and $51,000 in current liabilities.The company's acid-test (quick)ratio is closest to:

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

Marcell Company's inventory turnover for 20 × 6 was closest to:

Narumi Company's times interest earned for 20 × 6 was closest to:

PFM Company has sales of $210,000,interest expense of $8,000,a tax rate of 30%,and a net profit after tax of $35,000.PFM Company's times interest earned ratio is:

Sale of a piece of equipment at book value for cash will:

The dividend yield ratio on common shares for the current year was closest to:

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

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

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

Narita Company's times interest earned for 20 × 6 was closest to:

Rahner Company has a current ratio of 1.75 to 1.Which of the following will cause this ratio to decrease?

Marcell Company's average sale period (turnover in days)for 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

Filters