Question 1

The following is a common-sized Income Statement for Sigma and Chi Companies.
 
Which company has the biggest sales increase from 2010 to 2011?

Accepted Answer

A) Not enough information is given to assess the question. 
B) Sigma Company 
C) Chi Company 
D) Too close to make a solid determination. 
A) Not enough information is given to assess the question. 
B) Sigma Company 
C) Chi Company 
D) Too close to make a solid determination.

Question 2

If Accounts Receivable turnover is 10.4,this means that from the date of:

Accepted Answer

A) purchase to the date of payment is approximately 35 days. 
B) sale to the date of receipt of payment is approximately 35 days. 
C) discount to the date of receipt of payment is approximately 35 days. 
D) invoice to the date of payment is approximately 35 days. 
A) purchase to the date of payment is approximately 35 days. 
B) sale to the date of receipt of payment is approximately 35 days. 
C) discount to the date of receipt of payment is approximately 35 days. 
D) invoice to the date of payment is approximately 35 days.

Question 3

Island Industries,Inc.reported Net Sales of $306,000,Cost of Goods Sold of $192,600,Operating Expenses of $58,900,and Income Tax Expense of 12,300.Island Industries' net income percentage was:

Accepted Answer

A) 37.06. 
B) 13.79. 
C) 62.94. 
D) 17.81. 
A) 37.06. 
B) 13.79. 
C) 62.94. 
D) 17.81.

Question 4

TNT Guitar's sales were $13,444 in 2014 and $12,898 in 2013.The percentage change in TNT's sales from 2013 to 2014 was:

Accepted Answer

A) +4.06%. 
B) -4.23%. 
C) +4.23%. 
D) -4.06%. 
A) +4.06%. 
B) -4.23%. 
C) +4.23%. 
D) -4.06%.

Question 5

The following is a common-sized Income Statement for Sigma and Chi Companies.
 
Which company has better control of their overall operating expenses?

Accepted Answer

A) Not enough information is given to assess the question. 
B) Sigma Company 
C) Chi Company 
D) Too close to make a solid determination. 
A) Not enough information is given to assess the question. 
B) Sigma Company 
C) Chi Company 
D) Too close to make a solid determination.

Question 6

Salty's Surfshop reported Net Sales of $258,000,Cost of Goods Sold of $110,500,Operating Expenses of $62,400,and Income Tax Expense of 21,600.Salty's gross profit margin percentage was:

Accepted Answer

A) 32.98. 
B) 42.83. 
C) 57.17. 
D) 24.61. 
A) 32.98. 
B) 42.83. 
C) 57.17. 
D) 24.61.

Question 7

Which analysis deals with the percentage of changes in certain items over a period of years?

Accepted Answer

A) Horizontal analysis 
B) Vertical analysis 
C) Incremental analysis 
D) Trend analysis 
A) Horizontal analysis 
B) Vertical analysis 
C) Incremental analysis 
D) Trend analysis

Question 8

S & C Company has a beginning Accounts Receivable balance of $65,000 and an ending Accounts Receivable balance of $60,000.Sales are $250,000.S & C's Accounts Receivable turnover rate is:

Accepted Answer

A) 3)846. 
B) 4)167. 
C) 4)000. 
D) 2)000. 
A) 3)846. 
B) 4)167. 
C) 4)000. 
D) 2)000.

Question 9

Caesar Corporation the following for 2012:
 
What is the price earnings ratio for Caesar Corporation (rounded to two decimals)?

Accepted Answer

A) 2)48 
B) 7)28 
C) 2)94 
D) 1)08 
A) 2)48 
B) 7)28 
C) 2)94 
D) 1)08

Question 10

The three ways to analyze financial statements are by using horizontal,vertical and ratio analysis.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following measures how efficiently a company utilizes its operating assets?

Accepted Answer

A) current ratio and quick ratio 
B) return on equity and earnings per share 
C) debt ratio and interest coverage ratio 
D) Accounts Receivable turnover and inventory turnover 
A) current ratio and quick ratio 
B) return on equity and earnings per share 
C) debt ratio and interest coverage ratio 
D) Accounts Receivable turnover and inventory turnover

Question 12

Revere,Inc.reported $23,400 in A/R in 2014 and $25,100 in A/R in 2013.The percentage change in A/R from 2013 to 2014 was:

Accepted Answer

A) +6.77%. 
B) +7.26%. 
C) -6.77%. 
D) -7.26%. 
A) +6.77%. 
B) +7.26%. 
C) -6.77%. 
D) -7.26%.

Question 13

A company's net income for the year ended was $300,000.Stockholders' Equity was $1,600,000 at the end of the year,and $1,400,000 at the beginning of the year.The return on equity would be:

Accepted Answer

A) 87.50%. 
B) 21.43%. 
C) 20.00%. 
D) 18.75%. 
A) 87.50%. 
B) 21.43%. 
C) 20.00%. 
D) 18.75%.

Question 14

The net working capital for a company with current assets of $78,000,quick assets of $42,000,total assets of $177,000 current liabilities of $60,000 and net sales of $90,000 would be:

Accepted Answer

A) $60,000. 
B) $30,000. 
C) $18,000. 
D) $117,000. 
A) $60,000. 
B) $30,000. 
C) $18,000. 
D) $117,000.

Question 15

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 return on assets is:

Accepted Answer

A) 35.9%. 
B) 7)1%. 
C) 46.2%. 
D) 160.4%. 
A) 35.9%. 
B) 7)1%. 
C) 46.2%. 
D) 160.4%.

Question 16

Native Nursery has cost of goods sold for the years 2014,2013 and 2012 respectively of $28,600,$26,900 and $25,600.If 2012 is the base year,the trend percentage for 2014 is:

Accepted Answer

A) 111.72%. 
B) 11.72%. 
C) 105.08%. 
D) 5)08%. 
A) 111.72%. 
B) 11.72%. 
C) 105.08%. 
D) 5)08%.

Question 17

The current ratio for a company with current assets of $70,000,quick assets of $30,000,total assets of $150,000,current liabilities of $50,000,and net sales of $80,000 would be:

Accepted Answer

A) 0)20. 
B) 1)40. 
C) 3)00. 
D) 1)00. 
A) 0)20. 
B) 1)40. 
C) 3)00. 
D) 1)00.

Question 18

Perkins Company has $56,000 in cash;$12,000 in Accounts Receivable;$25,000 in short-term investments and $100,000 in merchandise inventory.The company also has $60,000 in current liabilities.The company's current ratio is:

Accepted Answer

A) 0)933. 
B) 1)550. 
C) 1)133. 
D) 3)217. 
A) 0)933. 
B) 1)550. 
C) 1)133. 
D) 3)217.

Question 19

Woods Weatherproofing,Inc.has current assets of $43,600,long-term assets of $252,900,current liabilities of $41,400,and long-term debt of $129,800.Woods Weatherproofing,Inc.'s debt ratio is:

Accepted Answer

A) 51.3%. 
B) 57.7%. 
C) 43.8%. 
D) 67.7%. 
A) 51.3%. 
B) 57.7%. 
C) 43.8%. 
D) 67.7%.

The following is a common-sized Income Statement for Sigma and Chi Companies. Which company has the biggest sales increase from 2010 to 2011?

If Accounts Receivable turnover is 10.4,this means that from the date of:

Island Industries,Inc.reported Net Sales of $306,000,Cost of Goods Sold of $192,600,Operating Expenses of $58,900,and Income Tax Expense of 12,300.Island Industries' net income percentage was:

TNT Guitar's sales were $13,444 in 2014 and $12,898 in 2013.The percentage change in TNT's sales from 2013 to 2014 was:

The following is a common-sized Income Statement for Sigma and Chi Companies. Which company has better control of their overall operating expenses?

Salty's Surfshop reported Net Sales of $258,000,Cost of Goods Sold of $110,500,Operating Expenses of $62,400,and Income Tax Expense of 21,600.Salty's gross profit margin percentage was:

Which analysis deals with the percentage of changes in certain items over a period of years?

S & C Company has a beginning Accounts Receivable balance of $65,000 and an ending Accounts Receivable balance of $60,000.Sales are $250,000.S & C's Accounts Receivable turnover rate is:

Caesar Corporation the following for 2012: What is the price earnings ratio for Caesar Corporation (rounded to two decimals)?

The three ways to analyze financial statements are by using horizontal,vertical and ratio analysis.

Which of the following measures how efficiently a company utilizes its operating assets?

Revere,Inc.reported $23,400 in A/R in 2014 and $25,100 in A/R in 2013.The percentage change in A/R from 2013 to 2014 was:

A company's net income for the year ended was $300,000.Stockholders' Equity was $1,600,000 at the end of the year,and $1,400,000 at the beginning of the year.The return on equity would be:

The net working capital for a company with current assets of $78,000,quick assets of $42,000,total assets of $177,000 current liabilities of $60,000 and net sales of $90,000 would be:

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 return on assets is:

Native Nursery has cost of goods sold for the years 2014,2013 and 2012 respectively of $28,600,$26,900 and $25,600.If 2012 is the base year,the trend percentage for 2014 is:

The current ratio for a company with current assets of $70,000,quick assets of $30,000,total assets of $150,000,current liabilities of $50,000,and net sales of $80,000 would be:

Perkins Company has $56,000 in cash;$12,000 in Accounts Receivable;$25,000 in short-term investments and $100,000 in merchandise inventory.The company also has $60,000 in current liabilities.The company's current ratio is:

Woods Weatherproofing,Inc.has current assets of $43,600,long-term assets of $252,900,current liabilities of $41,400,and long-term debt of $129,800.Woods Weatherproofing,Inc.'s debt ratio is:

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

The following is a common-sized Income Statement for Sigma and Chi Companies. Which company has the biggest sales increase from 2010 to 2011?

If Accounts Receivable turnover is 10.4,this means that from the date of:

Island Industries,Inc.reported Net Sales of $306,000,Cost of Goods Sold of $192,600,Operating Expenses of $58,900,and Income Tax Expense of 12,300.Island Industries' net income percentage was:

TNT Guitar's sales were $13,444 in 2014 and $12,898 in 2013.The percentage change in TNT's sales from 2013 to 2014 was:

The following is a common-sized Income Statement for Sigma and Chi Companies. Which company has better control of their overall operating expenses?

Salty's Surfshop reported Net Sales of $258,000,Cost of Goods Sold of $110,500,Operating Expenses of $62,400,and Income Tax Expense of 21,600.Salty's gross profit margin percentage was:

Which analysis deals with the percentage of changes in certain items over a period of years?

S & C Company has a beginning Accounts Receivable balance of $65,000 and an ending Accounts Receivable balance of $60,000.Sales are $250,000.S & C's Accounts Receivable turnover rate is:

Caesar Corporation the following for 2012: What is the price earnings ratio for Caesar Corporation (rounded to two decimals)?

The three ways to analyze financial statements are by using horizontal,vertical and ratio analysis.

Which of the following measures how efficiently a company utilizes its operating assets?

Revere,Inc.reported $23,400 in A/R in 2014 and $25,100 in A/R in 2013.The percentage change in A/R from 2013 to 2014 was:

A company's net income for the year ended was $300,000.Stockholders' Equity was $1,600,000 at the end of the year,and $1,400,000 at the beginning of the year.The return on equity would be:

The net working capital for a company with current assets of $78,000,quick assets of $42,000,total assets of $177,000 current liabilities of $60,000 and net sales of $90,000 would be:

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 return on assets is:

Native Nursery has cost of goods sold for the years 2014,2013 and 2012 respectively of $28,600,$26,900 and $25,600.If 2012 is the base year,the trend percentage for 2014 is:

The current ratio for a company with current assets of $70,000,quick assets of $30,000,total assets of $150,000,current liabilities of $50,000,and net sales of $80,000 would be:

Perkins Company has $56,000 in cash;$12,000 in Accounts Receivable;$25,000 in short-term investments and $100,000 in merchandise inventory.The company also has $60,000 in current liabilities.The company's current ratio is:

Woods Weatherproofing,Inc.has current assets of $43,600,long-term assets of $252,900,current liabilities of $41,400,and long-term debt of $129,800.Woods Weatherproofing,Inc.'s debt ratio is:

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