Question 1

Cash from operations to current liabilities measures a company's liquidity.

Accepted Answer

A) True 
 B)False

Question 2

The dividend yield ratio is a measure of a company's profitability.

Accepted Answer

A) True 
 B)False

Question 3

The following information is from Megabux, Inc.'s annual report for the years ended December 31:
 
-Refer to the Megabux annual report above.Calculate the gross profit ratio for 2012.

Accepted Answer

A) 1)7% 
B) 48.3% 
C) 62.0% 
D) 51.7% 
A) 1)7% 
B) 48.3% 
C) 62.0% 
D) 51.7%

Question 4

The following selected information is from Acme's annual report for the years ended December 31:
 
-Refer to the Acme annual report above.Calculate the accounts receivable turnover ratio for 2010.

Accepted Answer

A) 4.9 times 
B) 2.7 times 
C) 3.4 times 
D) The answer cannot be determined from the information given. 
A) 4.9 times 
B) 2.7 times 
C) 3.4 times 
D) The answer cannot be determined from the information given.

Question 5

The accounts receivable turnover ratio is a measure of a company's solvency.

Accepted Answer

A) True 
 B)False

Question 6

Which of these is part of OTHER comprehensive income?

Accepted Answer

A) unrealized gains and losses on foreign currency translation 
B) gains and losses from selling property,plant and equipment 
C) gains and losses from selling treasury stock 
D) gains and losses from issuing a stock dividend 
A) unrealized gains and losses on foreign currency translation 
B) gains and losses from selling property,plant and equipment 
C) gains and losses from selling treasury stock 
D) gains and losses from issuing a stock dividend

Question 7

Jack is comparing Team Shirts to Xtreme T's.He found that the gross profit ratio was 47% for Team Shirts and 50% for Xtreme T's.This is an example of ________ analysis.

Accepted Answer

A) horizontal 
B) vertical 
C) time-series 
D) ratio 
A) horizontal 
B) vertical 
C) time-series 
D) ratio

Question 8

The debt-to-equity ratio is used to determine whether or not a ________.

Accepted Answer

A) company's stock is a good investment 
B) company can earn a satisfactory rate of return 
C) company can pay its bills on time 
D) company can survive over a long period of time 
A) company's stock is a good investment 
B) company can earn a satisfactory rate of return 
C) company can pay its bills on time 
D) company can survive over a long period of time

Question 9

Held-to-maturity securities are investments in debt securities that a company plans to hold until the securities mature.

Accepted Answer

A) True 
 B)False

Question 10

Team Shirts sold its surfboard operations for $125,000 and incurred a loss of $47,000 on the sale.This loss would be reported on the income statement as part of ________.

Accepted Answer

A) discontinued operations 
B) extraordinary items 
C) other revenues and expenses 
D) income from continuing operations 
A) discontinued operations 
B) extraordinary items 
C) other revenues and expenses 
D) income from continuing operations

Question 11

A technique for using information from financial statements to formulate specific values to determine some measure of a company's financial position is called ________ analysis.

Accepted Answer

A) horizontal 
B) vertical 
C) time-series 
D) ratio 
A) horizontal 
B) vertical 
C) time-series 
D) ratio

Question 12

Earnings,or net income,is the focus of financial reporting.

Accepted Answer

A) True 
 B)False

Question 13

Use the information provided to analyze the stock of T-Shirt City using the following ratios: earnings per share,price/earnings ratio,and dividend yield.T-Shirt City has no preferred stock.

Accepted Answer

1.Earnings per share: $38,880

Question 14

Which financial statement(s)do you need to calculate the gross profit ratio?

Accepted Answer

A) only the income statement 
B) only the balance sheet 
C) both the income statement and the balance sheet 
D) both the statement of cash flows and the income statement 
A) only the income statement 
B) only the balance sheet 
C) both the income statement and the balance sheet 
D) both the statement of cash flows and the income statement

Question 15

Only investments in equity securities can be classified as held-to-maturity.

Accepted Answer

A) True 
 B)False

Question 16

Put an X in the appropriate box to show how each of the following items would be classified:

Accepted Answer

The answer of Put an X in the appropriate box...

Question 17

The price-earnings ratio is a ________ ratio.

Accepted Answer

A) liquidity 
B) solvency 
C) profitability 
D) market indicator 
A) liquidity 
B) solvency 
C) profitability 
D) market indicator

Question 18

Discontinuing a business segment is considered part of normal business operations.

Accepted Answer

A) True 
 B)False

Question 19

The following information is from Megabux, Inc.'s annual report for the years ended December 31:
 
-Refer to the Megabux annual report above.Calculate the profit margin ratio for 2011.

Accepted Answer

A) 5.0% 
B) 4.5% 
C) 22% 
D) 11% 
A) 5.0% 
B) 4.5% 
C) 22% 
D) 11%

Question 20

A gain or loss from discontinued operations is treated on the income statement as a ________.

Accepted Answer

A) part of regular income from operations for the period 
B) separate line item called other revenues and expenses 
C) separate line item before taxes 
D) separate line item net of taxes 
A) part of regular income from operations for the period 
B) separate line item called other revenues and expenses 
C) separate line item before taxes 
D) separate line item net of taxes

Cash from operations to current liabilities measures a company's liquidity.

The dividend yield ratio is a measure of a company's profitability.

The following information is from Megabux, Inc.'s annual report for the years ended December 31: -Refer to the Megabux annual report above.Calculate the gross profit ratio for 2012.

The following selected information is from Acme's annual report for the years ended December 31: -Refer to the Acme annual report above.Calculate the accounts receivable turnover ratio for 2010.

The accounts receivable turnover ratio is a measure of a company's solvency.

Which of these is part of OTHER comprehensive income?

Jack is comparing Team Shirts to Xtreme T's.He found that the gross profit ratio was 47% for Team Shirts and 50% for Xtreme T's.This is an example of ________ analysis.

The debt-to-equity ratio is used to determine whether or not a ________.

Held-to-maturity securities are investments in debt securities that a company plans to hold until the securities mature.

Team Shirts sold its surfboard operations for $125,000 and incurred a loss of $47,000 on the sale.This loss would be reported on the income statement as part of ________.

A technique for using information from financial statements to formulate specific values to determine some measure of a company's financial position is called ________ analysis.

Earnings,or net income,is the focus of financial reporting.

Use the information provided to analyze the stock of T-Shirt City using the following ratios: earnings per share,price/earnings ratio,and dividend yield.T-Shirt City has no preferred stock.

Which financial statement(s)do you need to calculate the gross profit ratio?

Only investments in equity securities can be classified as held-to-maturity.

Put an X in the appropriate box to show how each of the following items would be classified:

The price-earnings ratio is a ________ ratio.

Discontinuing a business segment is considered part of normal business operations.

The following information is from Megabux, Inc.'s annual report for the years ended December 31: -Refer to the Megabux annual report above.Calculate the profit margin ratio for 2011.

A gain or loss from discontinued operations is treated on the income statement as a ________.

Business: Whats It All About

Qualities of Accounting Information

Accruals and Deferrals: Timing Is Everything in Accounting

Payment for Goods and Services: Cash and Accounts Receivable

The Purchase and Sale of Inventory

Acquisition and Use of Long-Term Assets

Accounting for Liabilities

Accounting for Shareholders Equity

Preparing and Analyzing the Statement of Cash Flows

Quality of Earnings, corporate Governance, and Ifrs

Filters

Exam 10: Using Financial Statement Analysis to Evaluate Firm Performance

Cash from operations to current liabilities measures a company's liquidity.

The dividend yield ratio is a measure of a company's profitability.

The following information is from Megabux, Inc.'s annual report for the years ended December 31: -Refer to the Megabux annual report above.Calculate the gross profit ratio for 2012.

The following selected information is from Acme's annual report for the years ended December 31: -Refer to the Acme annual report above.Calculate the accounts receivable turnover ratio for 2010.

The accounts receivable turnover ratio is a measure of a company's solvency.

Which of these is part of OTHER comprehensive income?

Jack is comparing Team Shirts to Xtreme T's.He found that the gross profit ratio was 47% for Team Shirts and 50% for Xtreme T's.This is an example of ________ analysis.

The debt-to-equity ratio is used to determine whether or not a ________.

Held-to-maturity securities are investments in debt securities that a company plans to hold until the securities mature.

Team Shirts sold its surfboard operations for $125,000 and incurred a loss of $47,000 on the sale.This loss would be reported on the income statement as part of ________.

A technique for using information from financial statements to formulate specific values to determine some measure of a company's financial position is called ________ analysis.

Earnings,or net income,is the focus of financial reporting.

Use the information provided to analyze the stock of T-Shirt City using the following ratios: earnings per share,price/earnings ratio,and dividend yield.T-Shirt City has no preferred stock.

Which financial statement(s)do you need to calculate the gross profit ratio?

Only investments in equity securities can be classified as held-to-maturity.

Put an X in the appropriate box to show how each of the following items would be classified:

The price-earnings ratio is a ________ ratio.

Discontinuing a business segment is considered part of normal business operations.

The following information is from Megabux, Inc.'s annual report for the years ended December 31: -Refer to the Megabux annual report above.Calculate the profit margin ratio for 2011.

A gain or loss from discontinued operations is treated on the income statement as a ________.

Business: Whats It All About

Qualities of Accounting Information

Accruals and Deferrals: Timing Is Everything in Accounting

Payment for Goods and Services: Cash and Accounts Receivable

The Purchase and Sale of Inventory

Acquisition and Use of Long-Term Assets

Accounting for Liabilities

Accounting for Shareholders Equity

Preparing and Analyzing the Statement of Cash Flows

Quality of Earnings, corporate Governance, and Ifrs

Filters