Question 1

Net income belongs to a company's stockholders.

Accepted Answer

A) True 
 B)False

Question 2

Serenity Sounds,Inc.reported the following for 2012:
 
What are the dividends per share for Serenity Sounds,Inc.(to the nearest cent)?

Accepted Answer

A) $4.10/share 
B) $28.75/share 
C) $0.41/share 
D) $3.70/share 
A) $4.10/share 
B) $28.75/share 
C) $0.41/share 
D) $3.70/share

Question 3

Which of the following ratios measures the earnings of a company on each dollar of assets invested?

Accepted Answer

A) Return on assets 
B) Return on sales 
C) Return on equity 
D) Current ratio 
A) Return on assets 
B) Return on sales 
C) Return on equity 
D) Current ratio

Question 4

Operating profit (EBIT)is first used to pay dividends to a company's stockholders.

Accepted Answer

A) True 
 B)False

Question 5

When an analyst compares a business with a similar business it is referred to as:

Accepted Answer

A) comparative analysis. 
B) mentoring. 
C) benchmarking. 
D) idolizing. 
A) comparative analysis. 
B) mentoring. 
C) benchmarking. 
D) idolizing.

Question 6

The interest coverage ratio is an indicator of a company's ability to repay interest on its debt.

Accepted Answer

A) True 
 B)False

Question 7

Island Coffee Company reported the following for 2012:
 
What is the dividend yield for Island Coffee Company (to the nearest tenth of a percent)?

Accepted Answer

A) 28.7% 
B) 10.0% 
C) 38.7% 
D) 35.0% 
A) 28.7% 
B) 10.0% 
C) 38.7% 
D) 35.0%

Question 8

The fixed asset turnover ratio measures a company's ability to generate sales using all of its assets.

Accepted Answer

A) True 
 B)False

Question 9

Moore Masonry has current assets of $52,100,long-term assets of $263,700,current liabilities of $39,600,and long-term debt of $156,700.Moore's debt ratio is:

Accepted Answer

A) 74.4%. 
B) 49.6%. 
C) 62.2%. 
D) 59.4%. 
A) 74.4%. 
B) 49.6%. 
C) 62.2%. 
D) 59.4%.

Question 10

In computing trend percentages,the most recent year amounts become the base and are always set to 100%.

Accepted Answer

A) True 
 B)False

Question 11

Other income (such as rental income)and other expenses (such as interest expense)are listed immediately after:

Accepted Answer

A) gross profit. 
B) operating expenses. 
C) operating income. 
D) income tax expense. 
A) gross profit. 
B) operating expenses. 
C) operating income. 
D) income tax expense.

Question 12

Which of the following is NOT an asset management ratio?

Accepted Answer

A) Inventory turnover ratio 
B) Days-sales-in-inventory ratio 
C) Fixed asset turnover ratio 
D) Return on assets 
A) Inventory turnover ratio 
B) Days-sales-in-inventory ratio 
C) Fixed asset turnover ratio 
D) Return on assets

Question 13

Which of the following measures the ability for a company to meet long-term obligations or take on more debt?

Accepted Answer

A) Return on equity 
B) Debt ratio 
C) Current ratio 
D) Debt turnover 
A) Return on equity 
B) Debt ratio 
C) Current ratio 
D) Debt turnover

Question 14

The dividend payout is a measure that is often looked at when valuing a company?

Accepted Answer

A) True 
 B)False

Question 15

What is the return on equity if sales are $100,000,net income is $22,700,beginning Stockholders' Equity is $88,000,and ending common Stockholders' Equity is $84,000?

Accepted Answer

A) 22.7% 
B) 25.8% 
C) 27.0% 
D) 26.4% 
A) 22.7% 
B) 25.8% 
C) 27.0% 
D) 26.4%

Question 16

Caesar Corporation the following for 2012:
 
What is the dividend yield for Caesar Corporation (to the nearest tenth of a percent)?

Accepted Answer

A) 13.7% 
B) 40.4% 
C) 92.3% 
D) 34.0% 
A) 13.7% 
B) 40.4% 
C) 92.3% 
D) 34.0%

Question 17

Coulter Company's operating income for the year was $104,000.The interest expense was $13,600 and the income tax expense was $8,300.Coulter Company's interest coverage ratio for the year is:

Accepted Answer

A) 7)65. 
B) 0)13. 
C) 12.53. 
D) 4)75. 
A) 7)65. 
B) 0)13. 
C) 12.53. 
D) 4)75.

Question 18

Why would a high debt ratio be a red flag in a financial statement analysis?

Accepted Answer

A) The company is borrowing more than it is earning. 
B) The company may be unable to pay its debts. 
C) The company is paying too much interest. 
D) Both A and B are reasons why it would be a red flag. 
A) The company is borrowing more than it is earning. 
B) The company may be unable to pay its debts. 
C) The company is paying too much interest. 
D) Both A and B are reasons why it would be a red flag.

Question 19

The ratio that measures the efficiency of all of a company's assets used is the:

Accepted Answer

A) Accounts Receivable turnover ratio. 
B) total asset turnover ratio. 
C) inventory turnover ratio. 
D) fixed asset turnover ratio. 
A) Accounts Receivable turnover ratio. 
B) total asset turnover ratio. 
C) inventory turnover ratio. 
D) fixed asset turnover ratio.

Question 20

An acid test (quick ratio)of 0.75 would indicate:

Accepted Answer

A) a ratio that would allow a company to pay off current liabilities with quick assets. 
B) that for every $1 of quick assets,there are $0.75 in liabilities. 
C) that for every $1 of liabilities,there are $0.75 in quick assets. 
D) a ratio that would allow a company to pay off current liabilities with current assets. 
A) a ratio that would allow a company to pay off current liabilities with quick assets. 
B) that for every $1 of quick assets,there are $0.75 in liabilities. 
C) that for every $1 of liabilities,there are $0.75 in quick assets. 
D) a ratio that would allow a company to pay off current liabilities with current assets.

Net income belongs to a company's stockholders.

Serenity Sounds,Inc.reported the following for 2012: What are the dividends per share for Serenity Sounds,Inc.(to the nearest cent)?

Which of the following ratios measures the earnings of a company on each dollar of assets invested?

Operating profit (EBIT)is first used to pay dividends to a company's stockholders.

When an analyst compares a business with a similar business it is referred to as:

The interest coverage ratio is an indicator of a company's ability to repay interest on its debt.

Island Coffee Company reported the following for 2012: What is the dividend yield for Island Coffee Company (to the nearest tenth of a percent)?

The fixed asset turnover ratio measures a company's ability to generate sales using all of its assets.

Moore Masonry has current assets of $52,100,long-term assets of $263,700,current liabilities of $39,600,and long-term debt of $156,700.Moore's debt ratio is:

In computing trend percentages,the most recent year amounts become the base and are always set to 100%.

Other income (such as rental income)and other expenses (such as interest expense)are listed immediately after:

Which of the following is NOT an asset management ratio?

Which of the following measures the ability for a company to meet long-term obligations or take on more debt?

The dividend payout is a measure that is often looked at when valuing a company?

What is the return on equity if sales are $100,000,net income is $22,700,beginning Stockholders' Equity is $88,000,and ending common Stockholders' Equity is $84,000?

Caesar Corporation the following for 2012: What is the dividend yield for Caesar Corporation (to the nearest tenth of a percent)?

Coulter Company's operating income for the year was $104,000.The interest expense was $13,600 and the income tax expense was $8,300.Coulter Company's interest coverage ratio for the year is:

Why would a high debt ratio be a red flag in a financial statement analysis?

The ratio that measures the efficiency of all of a company's assets used is the:

An acid test (quick ratio)of 0.75 would indicate:

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Accounting for a Merchandising Business

Inventory

The Challenges of Accounting: Standards, internal Control, audits, fraud, and Ethics

Cash and Receivables

Long-Term and Other Assets

Current Liabilities and Long-Term Debt

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

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Exam 12: Financial Statement Analysis

Net income belongs to a company's stockholders.

Serenity Sounds,Inc.reported the following for 2012: What are the dividends per share for Serenity Sounds,Inc.(to the nearest cent)?

Which of the following ratios measures the earnings of a company on each dollar of assets invested?

Operating profit (EBIT)is first used to pay dividends to a company's stockholders.

When an analyst compares a business with a similar business it is referred to as:

The interest coverage ratio is an indicator of a company's ability to repay interest on its debt.

Island Coffee Company reported the following for 2012: What is the dividend yield for Island Coffee Company (to the nearest tenth of a percent)?

The fixed asset turnover ratio measures a company's ability to generate sales using all of its assets.

Moore Masonry has current assets of $52,100,long-term assets of $263,700,current liabilities of $39,600,and long-term debt of $156,700.Moore's debt ratio is:

In computing trend percentages,the most recent year amounts become the base and are always set to 100%.

Other income (such as rental income)and other expenses (such as interest expense)are listed immediately after:

Which of the following is NOT an asset management ratio?

Which of the following measures the ability for a company to meet long-term obligations or take on more debt?

The dividend payout is a measure that is often looked at when valuing a company?

What is the return on equity if sales are $100,000,net income is $22,700,beginning Stockholders' Equity is $88,000,and ending common Stockholders' Equity is $84,000?

Caesar Corporation the following for 2012: What is the dividend yield for Caesar Corporation (to the nearest tenth of a percent)?

Coulter Company's operating income for the year was $104,000.The interest expense was $13,600 and the income tax expense was $8,300.Coulter Company's interest coverage ratio for the year is:

Why would a high debt ratio be a red flag in a financial statement analysis?

The ratio that measures the efficiency of all of a company's assets used is the:

An acid test (quick ratio)of 0.75 would indicate:

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Accounting for a Merchandising Business

Inventory

The Challenges of Accounting: Standards, internal Control, audits, fraud, and Ethics

Cash and Receivables

Long-Term and Other Assets

Current Liabilities and Long-Term Debt

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Filters