Question 1

If total assets are $6,000,what is the common-size figure of Cash,assuming that Cash has a balance of $2,400?

Accepted Answer

A) 120.0% 
B) 100.0% 
C) 40.0% 
D) 60.0% 
A) 120.0% 
B) 100.0% 
C) 40.0% 
D) 60.0%

Question 2

Business activities that are unusual and infrequent in occurrence are reported in the:

Accepted Answer

A) other income (expense)section. 
B) discontinued operations section. 
C) continuing operations section. 
D) extraordinary items section. 
A) other income (expense)section. 
B) discontinued operations section. 
C) continuing operations section. 
D) extraordinary items section.

Question 3

Industrial Medical Supply has net sales of $1,200,000,net income of $85,000,average current assets of $53,000,average fixed assets of $184,000,and average total assets of $237,000.Industrial Medical Supply's total asset turnover ratio is:

Accepted Answer

A) 22.64. 
B) 0)20. 
C) 6)52. 
D) 5)06. 
A) 22.64. 
B) 0)20. 
C) 6)52. 
D) 5)06.

Question 4

Which section of the Income Statement is NOT reported net of income taxes or net of income tax savings?

Accepted Answer

A) All sections are reported net of taxes. 
B) Discontinued operations section 
C) Continuing operations section 
D) Extraordinary items section 
A) All sections are reported net of taxes. 
B) Discontinued operations section 
C) Continuing operations section 
D) Extraordinary items section

Question 5

To determine the ability of a company to pay interest on its debt,you would calculate the:

Accepted Answer

A) debt ratio. 
B) interest coverage ratio. 
C) price-earnings ratio. 
D) return on assets ratio. 
A) debt ratio. 
B) interest coverage ratio. 
C) price-earnings ratio. 
D) return on assets ratio.

Question 6

A company with an Accounts Receivable turnover of four means that the company collects its receivables approximately every ________ days.

Accepted Answer

A) 30 
B) 60 
C) 90 
D) 120 
A) 30 
B) 60 
C) 90 
D) 120

Question 7

The formula for the debt ratio is total liabilities divided by long-term assets.

Accepted Answer

A) True 
 B)False

Question 8

Inventory turnover measures the relationship between:

Accepted Answer

A) merchandise inventory and current liabilities. 
B) total assets and merchandise inventory. 
C) cost of goods sold and merchandise inventory. 
D) cost of goods sold and total liabilities. 
A) merchandise inventory and current liabilities. 
B) total assets and merchandise inventory. 
C) cost of goods sold and merchandise inventory. 
D) cost of goods sold and total liabilities.

Question 9

The formula for the debt ratio is total liabilities divided by long-term assets.

Accepted Answer

A) True 
 B)False

Question 10

After income from continuing operations,the next section on an Income Statement is:

Accepted Answer

A) earnings per share data. 
B) discontinued operations. 
C) continuing operations. 
D) extraordinary items. 
A) earnings per share data. 
B) discontinued operations. 
C) continuing operations. 
D) extraordinary items.

Question 11

The sales of Dogs 'R Us for the years 2012,2013,and 2014 are $40,000,$60,000 and $80,000,respectively.If 2012 is the base year,the trend percentage for 2013 is:

Accepted Answer

A) 0%. 
B) 150%. 
C) 200%. 
D) 133%. 
A) 0%. 
B) 150%. 
C) 200%. 
D) 133%.

Question 12

If Net Sales at Baskin's Bakery increased from $40,000 to $60,000 and its cost of goods sold increased from $20,000 to $40,000,the vertical analysis based on net sales would show the following percentages for cost of goods sold (rounded to nearest %):

Accepted Answer

A) 40% and 20%. 
B) 10% and 30%. 
C) 50% and 67%. 
D) 67% and 40%. 
A) 40% and 20%. 
B) 10% and 30%. 
C) 50% and 67%. 
D) 67% and 40%.

Question 13

When a company sells off part of the business,this would be reported:

Accepted Answer

A) as a retrospective application. 
B) in the discontinued operations section. 
C) in the continuing operations section. 
D) in the extraordinary items section. 
A) as a retrospective application. 
B) in the discontinued operations section. 
C) in the continuing operations section. 
D) in the extraordinary items section.

Question 14

Current assets divided by current liabilities yields the:

Accepted Answer

A) quick ratio. 
B) current ratio. 
C) debt ratio. 
D) working capital ratio. 
A) quick ratio. 
B) current ratio. 
C) debt ratio. 
D) working capital ratio.

Question 15

The ratio of dividends to the average number of common shares outstanding is:

Accepted Answer

A) earnings per share. 
B) dividend payout ratio. 
C) dividends per share. 
D) dividend yield. 
A) earnings per share. 
B) dividend payout ratio. 
C) dividends per share. 
D) dividend yield.

Question 16

A comparison of the amounts for the same item in the financial statements of two or more periods is called:

Accepted Answer

A) vertical analysis. 
B) comparative analysis. 
C) horizontal analysis. 
D) trend analysis. 
A) vertical analysis. 
B) comparative analysis. 
C) horizontal analysis. 
D) trend analysis.

Question 17

Which of the following is NOT one of the steps in financial analysis?

Accepted Answer

A) Understanding the environment in which a business operates 
B) Analyzing a business' operations 
C) Preparing a business' financial statements 
D) Understanding a business' model and strategy 
A) Understanding the environment in which a business operates 
B) Analyzing a business' operations 
C) Preparing a business' financial statements 
D) Understanding a business' model and strategy

Question 18

Kroger would probably benchmark with other:

Accepted Answer

A) general merchandise retailers. 
B) big box retailers. 
C) grocery chains. 
D) companies that sell food. 
A) general merchandise retailers. 
B) big box retailers. 
C) grocery chains. 
D) companies that sell food.

Question 19

The economic environment of a business describes how a business is affected by competitors.

Accepted Answer

A) True 
 B)False

Question 20

Knowing the dollar amount of change from year-to-year in an account is less relevant than knowing the percentage change.

Accepted Answer

A) True 
 B)False

If total assets are $6,000,what is the common-size figure of Cash,assuming that Cash has a balance of $2,400?

Business activities that are unusual and infrequent in occurrence are reported in the:

Industrial Medical Supply has net sales of $1,200,000,net income of $85,000,average current assets of $53,000,average fixed assets of $184,000,and average total assets of $237,000.Industrial Medical Supply's total asset turnover ratio is:

Which section of the Income Statement is NOT reported net of income taxes or net of income tax savings?

To determine the ability of a company to pay interest on its debt,you would calculate the:

A company with an Accounts Receivable turnover of four means that the company collects its receivables approximately every ________ days.

The formula for the debt ratio is total liabilities divided by long-term assets.

Inventory turnover measures the relationship between:

The formula for the debt ratio is total liabilities divided by long-term assets.

After income from continuing operations,the next section on an Income Statement is:

The sales of Dogs 'R Us for the years 2012,2013,and 2014 are $40,000,$60,000 and $80,000,respectively.If 2012 is the base year,the trend percentage for 2013 is:

If Net Sales at Baskin's Bakery increased from $40,000 to $60,000 and its cost of goods sold increased from $20,000 to $40,000,the vertical analysis based on net sales would show the following percentages for cost of goods sold (rounded to nearest %):

When a company sells off part of the business,this would be reported:

Current assets divided by current liabilities yields the:

The ratio of dividends to the average number of common shares outstanding is:

A comparison of the amounts for the same item in the financial statements of two or more periods is called:

Which of the following is NOT one of the steps in financial analysis?

Kroger would probably benchmark with other:

The economic environment of a business describes how a business is affected by competitors.

Knowing the dollar amount of change from year-to-year in an account is less relevant than knowing the percentage change.

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

If total assets are $6,000,what is the common-size figure of Cash,assuming that Cash has a balance of $2,400?

Business activities that are unusual and infrequent in occurrence are reported in the:

Industrial Medical Supply has net sales of $1,200,000,net income of $85,000,average current assets of $53,000,average fixed assets of $184,000,and average total assets of $237,000.Industrial Medical Supply's total asset turnover ratio is:

Which section of the Income Statement is NOT reported net of income taxes or net of income tax savings?

To determine the ability of a company to pay interest on its debt,you would calculate the:

A company with an Accounts Receivable turnover of four means that the company collects its receivables approximately every ________ days.

The formula for the debt ratio is total liabilities divided by long-term assets.

Inventory turnover measures the relationship between:

The formula for the debt ratio is total liabilities divided by long-term assets.

After income from continuing operations,the next section on an Income Statement is:

The sales of Dogs 'R Us for the years 2012,2013,and 2014 are $40,000,$60,000 and $80,000,respectively.If 2012 is the base year,the trend percentage for 2013 is:

If Net Sales at Baskin's Bakery increased from $40,000 to $60,000 and its cost of goods sold increased from $20,000 to $40,000,the vertical analysis based on net sales would show the following percentages for cost of goods sold (rounded to nearest %):

When a company sells off part of the business,this would be reported:

Current assets divided by current liabilities yields the:

The ratio of dividends to the average number of common shares outstanding is:

A comparison of the amounts for the same item in the financial statements of two or more periods is called:

Which of the following is NOT one of the steps in financial analysis?

Kroger would probably benchmark with other:

The economic environment of a business describes how a business is affected by competitors.

Knowing the dollar amount of change from year-to-year in an account is less relevant than knowing the percentage change.

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