Exam 11: Financial Instruments: Investments in Bonds and Equity Securities

GHI Inc.has three subsidiaries,Computers,Magazines and Cable TV.Sales,net income and asset data for the most recent year is shown below by subsidiary: Which division has the lowest return on sales?

The current ratio is a measure of the adequacy of a company's working capital.

What do the liquidity ratios focus on? Name two liquidity ratios.

JMR Company has a current ratio of 1.3:1.What does this tell you about the Company? What other information would you like to know?

As an industry analyst comparing a firm to the industry,are you likely to praise or criticize the firm in terms of Net Income/Total Asset

Book value per common share is particularly useful for predicting the expected market value per share.

A company with sales terms of n/30 would prefer a receivable turnover of:

A price-earnings ratio of 10 to 1 implies an earnings rate on market value per share of 10%.

The use of an accelerated depreciation method rather than the straight-line method may have an unfavourable effect on some ratios.

A financial statement analyst will look at the cash flow statement for all of the following except:

Explain the differences between looking at a company as a new or prospective shareholder and as an existing shareholder?

Which of the following analytical techniques could be most likened to a form of trend analysis?

It is possible for companies with revenues totalling in excess of $10 million dollars to be exempt from an audit.

GHI Inc.has three subsidiaries,Computers,Magazines and Cable TV.Sales,net income and asset data for the most recent year is shown below by subsidiary: Calculate the balance sheet item Marketable securities

The allocation to the respective common and preferred equities in calculation of the book value per common share will depend upon the preferential rights of preferred shares.Liquidation,cumulative and participating preferences of the preferred shares must be satisfied; the balance of owners' equity then becomes the common share equity.

What is horizontal analysis?

Upon analyzing the financial statements of KER Ltd.,you notice that there have been few capital asset acquisitions and that capital assets seem low relative to the type of business the company is in.This observation may mean that KER Ltd.is engaged in a(n):

Historical analysis is part of a(n):

Upon reading the notes to the financial statements of KAR Ltd.,you notice that the policies they have chosen tend to be deferring revenue but expensing operating costs as incurred.This approach leads you to believe that KAR Ltd.is employing a(n):

There still remain problems when accounting policies are disclosed for choices made among acceptable alternatives.All of the following are problems except: