Question 1

The ________ balance sheets displays only percentages.

Accepted Answer

A) comparative 
B) account form 
C) report form 
D) common-size 
A) comparative 
B) account form 
C) report form 
D) common-size

Question 2

The Amos Corporation reported the following income statement and balance sheet amounts and additional information for the end of the current year.   Inventory and prepaid expenses account for $30,000 of the current year's current assets.
Average inventory for the current year is $36,250.
Average net accounts receivable for the current year is $45,000.
There are 43,000 shares of common stock outstanding.
Total dividends paid during the current year were $17,000.
The market price per share of common stock is $50.
What is the earnings per share for the current year?

Accepted Answer

A) $53.86 
B) $3.86 
C) $5.00 
D) $50.00 
A) $53.86 
B) $3.86 
C) $5.00 
D) $50.00

Question 3

Jill Corporation prepared a vertical analysis of its income statement and the following excerpt is available:   What is the Gross Profit for the year based on the information provided from the vertical analysis?

Accepted Answer

A) $501,600 
B) $698,400 
C) $618,000 
D) Cannot determine from the information given 
A) $501,600 
B) $698,400 
C) $618,000 
D) Cannot determine from the information given

Question 4

To follow is selected information about the Little Dipper Company for the current year and prior year.   What is the current year's net income percentage (as would be found on a vertical analysis of the income statement for the current year)?

Accepted Answer

A) 10.28% 
B) 70.30% 
C) 9)14% 
D) 236.69% 
A) 10.28% 
B) 70.30% 
C) 9)14% 
D) 236.69%

Question 5

The Amos Corporation reported the following income statement and balance sheet amounts and additional information for the end of the current year.   Inventory and prepaid expenses account for $30,000 of the current year's current assets.
Average inventory for the current year is $36,250.
Average net accounts receivable for the current year is $45,000.
There are 35,000 shares of common stock outstanding.
Total dividends paid during the current year were $17,000.
The market price per share of common stock is $20.
What is the current ratio for the current year?

Accepted Answer

A) 0)22 
B) 0)65 
C) 1)95 
D) 0)51 
A) 0)22 
B) 0)65 
C) 1)95 
D) 0)51

Question 6

The Amos Corporation reported the following income statement and balance sheet amounts and additional information for the end of the current year.   Inventory and prepaid expenses account for $30,000 of the current year's current assets.
Average inventory for the current year is $36,250.
Average net accounts receivable for the current year is $45,000.
There are 35,000 shares of common stock outstanding.
Total dividends paid during the current year were $17,000.
The market price per share of common stock is $20.
What is the rate of return on net sales for the current year?

Accepted Answer

A) 0)19 
B) 0)28 
C) 0)12 
D) 8)21 
A) 0)19 
B) 0)28 
C) 0)12 
D) 8)21

Question 7

The formula used in vertical analysis of the income statement is: (each income statement line item/sales revenue)= vertical %.

Accepted Answer

A) True 
 B)False

Question 8

Selected information about the Thomas Trucks Company for the current year and prior year is given below.   The current year's net income percentage (as would be found on a vertical analysis of the income statement for the current year)is

Accepted Answer

A) 11.31%. 
B) 4)69%. 
C) 12.35%. 
D) 5)11%. 
A) 11.31%. 
B) 4)69%. 
C) 12.35%. 
D) 5)11%.

Question 9

The formula to compute the debt ratio is

Accepted Answer

A) interest expense/income from operations. 
B) total liabilities/total assets. 
C) income from operations/interest expense. 
D) total assets/total liabilities. 
A) interest expense/income from operations. 
B) total liabilities/total assets. 
C) income from operations/interest expense. 
D) total assets/total liabilities.

Question 10

In a vertical analysis of an income statement, gross profit is assigned a percentage of 100.

Accepted Answer

A) True 
 B)False

Question 11

A company's ability to pay liabilities with current assets is measured by which of the following ratios?

Accepted Answer

A) Inventory turnover ratio 
B) Day's sales in receivables 
C) Acid-test ratio 
D) Current ratio 
A) Inventory turnover ratio 
B) Day's sales in receivables 
C) Acid-test ratio 
D) Current ratio

Question 12

Gavette Company reported the following information for the current year and prior year:   What would a vertical analysis report with respect to current year net income before income tax and income tax expense?

Accepted Answer

A) An increase of $17,768 from prior to current year 
B) An increase of both net income before income tax and income tax of 21.00% 
C) A decrease of $17,768 in net income before tax 
D) Net income before tax of 21.00% and income tax of 3.09% of net sales revenue 
A) An increase of $17,768 from prior to current year 
B) An increase of both net income before income tax and income tax of 21.00% 
C) A decrease of $17,768 in net income before tax 
D) Net income before tax of 21.00% and income tax of 3.09% of net sales revenue

Question 13

The formula for computing book value per share of common stock is

Accepted Answer

A) market price per share of common stock/earning per share. 
B) annual dividend per share of common stock/market price per share of common stock. 
C) (net income - preferred dividends)/number of shares of common stock outstanding. 
D) (total stockholders' equity - preferred equity)/number of shares of common stock outstanding. 
A) market price per share of common stock/earning per share. 
B) annual dividend per share of common stock/market price per share of common stock. 
C) (net income - preferred dividends)/number of shares of common stock outstanding. 
D) (total stockholders' equity - preferred equity)/number of shares of common stock outstanding.

Question 14

The Bristol Corporation data for the current year and prior year is as follows:   With respect to net income before income tax expense and net income, what would a horizontal analysis report?

Accepted Answer

A) There was an increase in both net income before income tax expense and net income of 10%. 
B) Both net income before income tax expense and net income increased by $6000. 
C) The current ratio is 27.76 
D) Both net income before tax expense and net income were 11% of net sales revenue. 
A) There was an increase in both net income before income tax expense and net income of 10%. 
B) Both net income before income tax expense and net income increased by $6000. 
C) The current ratio is 27.76 
D) Both net income before tax expense and net income were 11% of net sales revenue.

Question 15

Presented are the income statements of Little Dipper and Big Dipper telescope manufacturers for the current year:   Which company has the best inventory turnover rate?

Accepted Answer

A) Both have the same rate 
B) Impossible to determine 
C) Big Dipper 
D) Little Dipper 
A) Both have the same rate 
B) Impossible to determine 
C) Big Dipper 
D) Little Dipper

Question 16

The following selected information relates to Belcher Unlimited for the past two years.   The price-earnings ratio for the current year is

Accepted Answer

A) 47.00. 
B) 7)25. 
C) 9)28. 
D) 2)47. 
A) 47.00. 
B) 7)25. 
C) 9)28. 
D) 2)47.

Question 17

The following selected information relates to Belcher Unlimited for the past two years.   The acid-test ratio for the current year is

Accepted Answer

A) 0)80. 
B) 0)44. 
C) 1)25. 
D) 0)35. 
A) 0)80. 
B) 0)44. 
C) 1)25. 
D) 0)35.

Question 18

Which of the following is the formula for computing the rate of return on total assets?

Accepted Answer

A) (Net income - preferred dividends)/number of shares of outstanding common stock 
B) Net income/net sales 
C) (Net income + interest expense)/average total assets 
D) (Net income - preferred dividends)/average common stockholders' equity 
A) (Net income - preferred dividends)/number of shares of outstanding common stock 
B) Net income/net sales 
C) (Net income + interest expense)/average total assets 
D) (Net income - preferred dividends)/average common stockholders' equity

Question 19

Working capital is current assets minus current liabilities.

Accepted Answer

A) True 
 B)False

Question 20

Use the following information to do a horizontal analysis of Rae Company's income statement for the current year and prior year:   What is the percentage change in net income?

Accepted Answer

A) 51.52% 
B) -34.00% 
C) 29.59% 
D) 22.84% 
A) 51.52% 
B) -34.00% 
C) 29.59% 
D) 22.84%

The ________ balance sheets displays only percentages.

Jill Corporation prepared a vertical analysis of its income statement and the following excerpt is available: What is the Gross Profit for the year based on the information provided from the vertical analysis?

To follow is selected information about the Little Dipper Company for the current year and prior year. What is the current year's net income percentage (as would be found on a vertical analysis of the income statement for the current year)?

The formula used in vertical analysis of the income statement is: (each income statement line item/sales revenue)= vertical %.

Selected information about the Thomas Trucks Company for the current year and prior year is given below. The current year's net income percentage (as would be found on a vertical analysis of the income statement for the current year)is

The formula to compute the debt ratio is

In a vertical analysis of an income statement, gross profit is assigned a percentage of 100.

A company's ability to pay liabilities with current assets is measured by which of the following ratios?

Gavette Company reported the following information for the current year and prior year: What would a vertical analysis report with respect to current year net income before income tax and income tax expense?

The formula for computing book value per share of common stock is

The Bristol Corporation data for the current year and prior year is as follows: With respect to net income before income tax expense and net income, what would a horizontal analysis report?

Presented are the income statements of Little Dipper and Big Dipper telescope manufacturers for the current year: Which company has the best inventory turnover rate?

The following selected information relates to Belcher Unlimited for the past two years. The price-earnings ratio for the current year is

The following selected information relates to Belcher Unlimited for the past two years. The acid-test ratio for the current year is

Which of the following is the formula for computing the rate of return on total assets?

Working capital is current assets minus current liabilities.

Use the following information to do a horizontal analysis of Rae Company's income statement for the current year and prior year: What is the percentage change in net income?

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Activity-Based Costing, Lean Operations, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Performance Evalulation

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Sustainability

Filters

Exam 14: Financial Statement Analysis

The ________ balance sheets displays only percentages.

Jill Corporation prepared a vertical analysis of its income statement and the following excerpt is available: What is the Gross Profit for the year based on the information provided from the vertical analysis?

To follow is selected information about the Little Dipper Company for the current year and prior year. What is the current year's net income percentage (as would be found on a vertical analysis of the income statement for the current year)?

The formula used in vertical analysis of the income statement is: (each income statement line item/sales revenue)= vertical %.

Selected information about the Thomas Trucks Company for the current year and prior year is given below. The current year's net income percentage (as would be found on a vertical analysis of the income statement for the current year)is

The formula to compute the debt ratio is

In a vertical analysis of an income statement, gross profit is assigned a percentage of 100.

A company's ability to pay liabilities with current assets is measured by which of the following ratios?

Gavette Company reported the following information for the current year and prior year: What would a vertical analysis report with respect to current year net income before income tax and income tax expense?

The formula for computing book value per share of common stock is

The Bristol Corporation data for the current year and prior year is as follows: With respect to net income before income tax expense and net income, what would a horizontal analysis report?

Presented are the income statements of Little Dipper and Big Dipper telescope manufacturers for the current year: Which company has the best inventory turnover rate?

The following selected information relates to Belcher Unlimited for the past two years. The price-earnings ratio for the current year is

The following selected information relates to Belcher Unlimited for the past two years. The acid-test ratio for the current year is

Which of the following is the formula for computing the rate of return on total assets?

Working capital is current assets minus current liabilities.

Use the following information to do a horizontal analysis of Rae Company's income statement for the current year and prior year: What is the percentage change in net income?

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Activity-Based Costing, Lean Operations, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Performance Evalulation

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Sustainability

Filters