Question 1

Trend percentage is calculated by dividing _________________________ by ___________________________ and multiplying the result by 100.

Accepted Answer

analysis period amou

Question 2

A corporation reported cash of $14,000 and total assets of $178,300.Its common-size percent for cash equals:

Accepted Answer

A) .0785%. 
B) 7.85%. 
C) 12.73%. 
D) 1273%. 
E) 7850%. 
A) .0785%. 
B) 7.85%. 
C) 12.73%. 
D) 1273%. 
E) 7850%.

Question 3

What are the standards for comparisons in financial analysis?
 Give an example of each.

Accepted Answer

The standards are intra-company comparis

Question 4

A company paid cash dividends on its preferred stock of $40,000 in the current year when its net income was $120,000 and its average common stockholders' equity was $640,000.What is the company's return on common stockholders' equity?

Accepted Answer

($120,000

Question 5

____________ is a method of analysis used to evaluate individual financial statement items or groups of items in terms of a specific base amount.

Accepted Answer

The answer of ____________ is a method of analysis used...

Question 6

Profitability is the ability to generate positive market expectations.

Accepted Answer

A) True 
 B)False

Question 7

Describe ratio analysis including its purpose,application,and interpretation.

Accepted Answer

A ratio is a mathematical relation betwe

Question 8

Total asset turnover reflects a company's ability to use its assets to generate sales and is an important indication of operating efficiency.

Accepted Answer

A) True 
 B)False

Question 9

Phoenix Company reported sales of $400,000 for Year 1,$450,000 for Year 2,and $500,000 for Year 3.Using Year 1 as the base year,what were the percentage increases for Year 2 and Year 3 compared to the base year?

Accepted Answer

A) 80% for Year 2 and 90% for Year 3. 
B) 88% for Year 2 and 80% for Year 3. 
C) 88% for Year 2 and 90% for Year 3. 
D) 112.5% for Year 2 and 125% for Year 3. 
E) 125% for Year 2 and 112.5% for Year 3. 
A) 80% for Year 2 and 90% for Year 3. 
B) 88% for Year 2 and 80% for Year 3. 
C) 88% for Year 2 and 90% for Year 3. 
D) 112.5% for Year 2 and 125% for Year 3. 
E) 125% for Year 2 and 112.5% for Year 3.

Question 10

A ratio expresses a mathematical relation between two quantities and can be expressed as a percent,rate,or proportion.

Accepted Answer

A) True 
 B)False

Question 11

Liquidity and efficiency are considered to be building blocks of financial statement analysis.

Accepted Answer

A) True 
 B)False

Question 12

Calculate the percent increases for each of the following selected balance sheet items.

Accepted Answer

The answer of Calculate the percent increases for each of...

Question 13

In horizontal analysis the percent change is computed by:

Accepted Answer

A) Subtracting the analysis period amount from the base period amount. 
B) Subtracting the base period amount from the analysis period amount. 
C) Subtracting the analysis period amount from the base period amount, dividing the result by the base period amount, then multiplying that amount by 100. 
D) Subtracting the base period amount from the analysis period amount, dividing the result by the base period amount, then multiplying that amount by 100. 
E) Subtracting the base period amount from the analysis amount, then dividing the result by the analysis period amount. 
A) Subtracting the analysis period amount from the base period amount. 
B) Subtracting the base period amount from the analysis period amount. 
C) Subtracting the analysis period amount from the base period amount, dividing the result by the base period amount, then multiplying that amount by 100. 
D) Subtracting the base period amount from the analysis period amount, dividing the result by the base period amount, then multiplying that amount by 100. 
E) Subtracting the base period amount from the analysis amount, then dividing the result by the analysis period amount.

Question 14

Evaluation of company performance can include comparison and/or assessment of:

Accepted Answer

A) Past performance. 
B) Current performance. 
C) Current financial position. 
D) Future performance and risk. 
E) All of the choices are correct. 
A) Past performance. 
B) Current performance. 
C) Current financial position. 
D) Future performance and risk. 
E) All of the choices are correct.

Question 15

Guidelines (rules-of-thumb)are developed from:

Accepted Answer

A) Industry statistics from the government. 
B) Past experience. 
C) Analysis of competitors. 
D) Relations between financial items. 
E) Dun and Bradstreet. 
A) Industry statistics from the government. 
B) Past experience. 
C) Analysis of competitors. 
D) Relations between financial items. 
E) Dun and Bradstreet.

Question 16

Comparative calendar year financial data for a company are shown below.Calculate the following ratios for 2014:
(a)return on total assets
(b)return on common stockholders' equity.

Accepted Answer

The answer of Comparative calendar year financial data for a...

Question 17

Horizontal analysis is the comparison of a company's financial condition and performance to a base amount.

Accepted Answer

A) True 
 B)False

Question 18

Identify the financial analysis building block most appropriately associated with each ratio listed below by placing the letter of the building block a through d beside each ratio 1 through 10.Each building block may be used more than once.
A.Liquidity and Efficiency
B.Solvency
C.Profitability
D.Market Prospects
__________ (1) Equity Ratio
__________ (2) Dividend Yield
__________ (3) Accounts Receivable Turnover
__________ (4) Days' Sales in Inventory
__________ (5) Return on Total Assets
__________ (6) Price Earnings Ratio
__________ (7) Debt Ratio
__________ (8) Times Interest Earned
__________ (9) Basic Earnings per Share
__________ (10) Inventory Turnover

Accepted Answer

1.B; 2.D;

Question 19

Ratios may be expressed as (1)________________,(2)__________________,or (3)__________________.

Accepted Answer

percents; rates; pro

Question 20

Refer to the following selected financial information from Hansen's,LLC.Compute the company's debt-to-equity ratio for Year 2.

Accepted Answer

A) 1.75. 
B) 2.34. 
C) 0.75. 
D) 1.34. 
E) 2.63. 
A) 1.75. 
B) 2.34. 
C) 0.75. 
D) 1.34. 
E) 2.63.

Exam 17: Analysis of Financial Statements

Trend percentage is calculated by dividing _________________________ by ___________________________ and multiplying the result by 100.

A corporation reported cash of $14,000 and total assets of $178,300.Its common-size percent for cash equals:

What are the standards for comparisons in financial analysis? Give an example of each.

A company paid cash dividends on its preferred stock of $40,000 in the current year when its net income was $120,000 and its average common stockholders' equity was $640,000.What is the company's return on common stockholders' equity?

____________ is a method of analysis used to evaluate individual financial statement items or groups of items in terms of a specific base amount.

Profitability is the ability to generate positive market expectations.

Describe ratio analysis including its purpose,application,and interpretation.

Total asset turnover reflects a company's ability to use its assets to generate sales and is an important indication of operating efficiency.

Phoenix Company reported sales of $400,000 for Year 1,$450,000 for Year 2,and $500,000 for Year 3.Using Year 1 as the base year,what were the percentage increases for Year 2 and Year 3 compared to the base year?

A ratio expresses a mathematical relation between two quantities and can be expressed as a percent,rate,or proportion.

Liquidity and efficiency are considered to be building blocks of financial statement analysis.

Calculate the percent increases for each of the following selected balance sheet items.

In horizontal analysis the percent change is computed by:

Evaluation of company performance can include comparison and/or assessment of:

Guidelines (rules-of-thumb)are developed from:

Comparative calendar year financial data for a company are shown below.Calculate the following ratios for 2014: (a)return on total assets (b)return on common stockholders' equity.

Horizontal analysis is the comparison of a company's financial condition and performance to a base amount.

Ratios may be expressed as (1)________________,(2)__________________,or (3)__________________.

Refer to the following selected financial information from Hansen's,LLC.Compute the company's debt-to-equity ratio for Year 2.

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Managerial Accounting Concepts and Principles

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Time Value of Money B

Activity-Based Costing C

Filters

Trend percentage is calculated by dividing _ by ___ and multiplying the result by 100.

Ratios may be expressed as (1),(2),or (3)____.