Question 1

Which of the following is not a characteristic evaluated in ratio analysis?

Accepted Answer

A) liquidity 
B) profitability 
C) solvency 
D) marketability 
A) liquidity 
B) profitability 
C) solvency 
D) marketability

Question 2

The ratio of fixed assets to long-term liabilities provides a measure of a firm's ability to pay dividends.

Accepted Answer

A) True 
 B)False

Question 3

A company reports the following:
   Determine the a rate earned on stockholders' equity, and b rate earned on common stockholders' equity.Round
to one decimal place.

Accepted Answer

The answer of A company reports the following:
  ...

Question 4

What type of analysis is indicated by the following?

Accepted Answer

A)   
B)   
C)   
D)   
A)   
B)   
C)   
D)

Question 5

Assume the following sales data for a company: Current year $325,000
Preceding year 250,000
What is the percentage increase in sales from the preceding year to the current year?

Accepted Answer

A) 70% 
B) 76.9% 
C) 30% 
D) 50% 
A) 70% 
B) 76.9% 
C) 30% 
D) 50%

Question 6

In a common-sized income statement, 100% is the

Accepted Answer

A) net cost of goods sold 
B) net income 
C) gross profit 
D) sales 
A) net cost of goods sold 
B) net income 
C) gross profit 
D) sales

Question 7

Match each definition that follows with the term a-h it defines.
-an event or transaction that is both unusual and infrequent

Accepted Answer

A) discontinued operations 
B) extraordinary items 
C) change from one generally accepted accounting principle to another 
D) horizontal analysis 
E) vertical analysis
F)common-sized financial statements
G)current position analysis
H)profitability analysis 
A) discontinued operations 
B) extraordinary items 
C) change from one generally accepted accounting principle to another 
D) horizontal analysis 
E) vertical analysis
F)common-sized financial statements
G)current position analysis
H)profitability analysis

Question 8

Comparing dividends per share to earnings per share indicates the extent to which the corporation is retaining its earnings for use in operations.

Accepted Answer

A) True 
 B)False

Question 9

Using measures to assess a business's ability to pay its current liabilities is called current position analysis.

Accepted Answer

A) True 
 B)False

Question 10

The following information was taken from the financial statement of Fox Resources for December 31 of the current fiscal year:
   The net income was $600,000, and the declared dividends on the common stock were $125,000 for the current year.The market price of the common stock is $20 per share.
Required:
Calculate for the common stock:
a earnings per share
b the price-earnings ratio
c the dividends per share and the dividend yield
Round to one decimal place except earnings per share, which should be rounded to two decimal places.

Accepted Answer

The answer of The following information was taken from the...

Question 11

Match each ratio that follows to its use items a-h.Items may be used more than once.
-current ratio

Accepted Answer

A) assess the profitability of the assets 
B) assess the effectiveness in the use of assets 
C) indicate the ability to meet currently maturing obligations 
D) indicate the margin of safety to creditors 
E) indicate instant debt-paying ability
F)assess the profitability of the investment by common stockholders
G)indicate future earnings prospects
H)indicate the extent to which earnings are being distributed to common stockholders 
A) assess the profitability of the assets 
B) assess the effectiveness in the use of assets 
C) indicate the ability to meet currently maturing obligations 
D) indicate the margin of safety to creditors 
E) indicate instant debt-paying ability
F)assess the profitability of the investment by common stockholders
G)indicate future earnings prospects
H)indicate the extent to which earnings are being distributed to common stockholders

Question 12

Match each definition that follows with the term a-h it defines.
-the percentage analysis of the relationship of each component in a financial statement to a total within the statement

Accepted Answer

A) discontinued operations 
B) extraordinary items 
C) change from one generally accepted accounting principle to another 
D) horizontal analysis 
E) vertical analysis
F)common-sized financial statements
G)current position analysis
H)profitability analysis 
A) discontinued operations 
B) extraordinary items 
C) change from one generally accepted accounting principle to another 
D) horizontal analysis 
E) vertical analysis
F)common-sized financial statements
G)current position analysis
H)profitability analysis

Question 13

If net income is $250,000 and interest expense is $20,000 for Year 2, and the market price of common shares is $30, what is the price-earnings ratio on common stock for Year 2? Round intermediate calculation to two decimal places and final answers to one decimal place.

Accepted Answer

A) 7.5 
B) 13.4 
C) 12.1 
D) 8.5 
A) 7.5 
B) 13.4 
C) 12.1 
D) 8.5

Question 14

Match each ratio that follows to its use items a-h.Items may be used more than once.
-ratio of sales to assets

Accepted Answer

A) assess the profitability of the assets 
B) assess the effectiveness in the use of assets 
C) indicate the ability to meet currently maturing obligations 
D) indicate the margin of safety to creditors 
E) indicate instant debt-paying ability
F)assess the profitability of the investment by common stockholders
G)indicate future earnings prospects
H)indicate the extent to which earnings are being distributed to common stockholders 
A) assess the profitability of the assets 
B) assess the effectiveness in the use of assets 
C) indicate the ability to meet currently maturing obligations 
D) indicate the margin of safety to creditors 
E) indicate instant debt-paying ability
F)assess the profitability of the investment by common stockholders
G)indicate future earnings prospects
H)indicate the extent to which earnings are being distributed to common stockholders

Question 15

Unusual items affecting the prior period's income statement consist of errors and changes in accounting principles.

Accepted Answer

A) True 
 B)False

Question 16

An acceleration in the collection of receivables will tend to cause the accounts receivable turnover to

Accepted Answer

A) decrease 
B) remain the same 
C) either increase or decrease 
D) increase 
A) decrease 
B) remain the same 
C) either increase or decrease 
D) increase

Question 17

A company reports the following:
Sales $1,200,000
Average accounts receivable net 50,000
Determine the a accounts receivable turnover, and b number of days' sales in receivables.Round your answer to one decimal place.

Accepted Answer

a Accounts receivable turnover = Sales/A

Question 18

The following items are reported on a company's balance sheet:
   Determine the a current ratio, and b quick ratio.Round your answer to one decimal place.

Accepted Answer

The answer of The following items are reported on a...

Which of the following is not a characteristic evaluated in ratio analysis?

The ratio of fixed assets to long-term liabilities provides a measure of a firm's ability to pay dividends.

A company reports the following: Determine the a rate earned on stockholders' equity, and b rate earned on common stockholders' equity.Round to one decimal place.

What type of analysis is indicated by the following?

Assume the following sales data for a company: Current year $325,000 Preceding year 250,000 What is the percentage increase in sales from the preceding year to the current year?

In a common-sized income statement, 100% is the

Match each definition that follows with the term a-h it defines. -an event or transaction that is both unusual and infrequent

Comparing dividends per share to earnings per share indicates the extent to which the corporation is retaining its earnings for use in operations.

Using measures to assess a business's ability to pay its current liabilities is called current position analysis.

Match each ratio that follows to its use items a-h.Items may be used more than once. -current ratio

Match each definition that follows with the term a-h it defines. -the percentage analysis of the relationship of each component in a financial statement to a total within the statement

If net income is $250,000 and interest expense is $20,000 for Year 2, and the market price of common shares is $30, what is the price-earnings ratio on common stock for Year 2? Round intermediate calculation to two decimal places and final answers to one decimal place.

Match each ratio that follows to its use items a-h.Items may be used more than once. -ratio of sales to assets

Unusual items affecting the prior period's income statement consist of errors and changes in accounting principles.

An acceleration in the collection of receivables will tend to cause the accounts receivable turnover to

A company reports the following: Sales $1,200,000 Average accounts receivable net 50,000 Determine the a accounts receivable turnover, and b number of days' sales in receivables.Round your answer to one decimal place.

The following items are reported on a company's balance sheet: Determine the a current ratio, and b quick ratio.Round your answer to one decimal place.

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Lean Principles, Lean Accounting, and Activity Analysis

Statement of Cash Flows

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Exam 14: Financial Statement Analysis

Which of the following is not a characteristic evaluated in ratio analysis?

The ratio of fixed assets to long-term liabilities provides a measure of a firm's ability to pay dividends.

A company reports the following: Determine the a rate earned on stockholders' equity, and b rate earned on common stockholders' equity.Round to one decimal place.

What type of analysis is indicated by the following?

Assume the following sales data for a company: Current year $325,000 Preceding year 250,000 What is the percentage increase in sales from the preceding year to the current year?

In a common-sized income statement, 100% is the

Match each definition that follows with the term a-h it defines. -an event or transaction that is both unusual and infrequent

Comparing dividends per share to earnings per share indicates the extent to which the corporation is retaining its earnings for use in operations.

Using measures to assess a business's ability to pay its current liabilities is called current position analysis.

Match each ratio that follows to its use items a-h.Items may be used more than once. -current ratio

Match each definition that follows with the term a-h it defines. -the percentage analysis of the relationship of each component in a financial statement to a total within the statement

If net income is $250,000 and interest expense is $20,000 for Year 2, and the market price of common shares is $30, what is the price-earnings ratio on common stock for Year 2? Round intermediate calculation to two decimal places and final answers to one decimal place.

Match each ratio that follows to its use items a-h.Items may be used more than once. -ratio of sales to assets

Unusual items affecting the prior period's income statement consist of errors and changes in accounting principles.

An acceleration in the collection of receivables will tend to cause the accounts receivable turnover to

A company reports the following: Sales $1,200,000 Average accounts receivable net 50,000 Determine the a accounts receivable turnover, and b number of days' sales in receivables.Round your answer to one decimal place.

The following items are reported on a company's balance sheet: Determine the a current ratio, and b quick ratio.Round your answer to one decimal place.

Managerial Accounting Concepts and Principles

Job Order Costing

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Lean Principles, Lean Accounting, and Activity Analysis

Statement of Cash Flows

Filters