Question 1

Unusual items affecting the current period's income statement consist of changes in accounting principles and discontinued operations.

Accepted Answer

A) True 
 B)False

Question 2

For Garrison Corporation, the working capital at the end of the current year is $10,000 more than the working capital at the end of the preceding year, reported as follows:
   Has the current position of Garrison Corporation improved? Explain.

Accepted Answer

The amount of working capital and the ch

Question 3

The rate earned on total assets measures the profitability of total assets, without considering how the assets are financed.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

a Current ratio = Current assets ÷ Curre

Question 5

Comparable financial statements are designed to compare the financial statements of two or more corporations.

Accepted Answer

A) True 
 B)False

Question 6

The dividend yield rate is equal to the dividends per share divided by the par value per share of common stock.

Accepted Answer

A) True 
 B)False

Question 7

In a common-sized income statement, each item is expressed as a percentage of net income.

Accepted Answer

A) True 
 B)False

Question 8

Gallant Company reported net income of $2,500,000.The income statement included a $500,000 gain from condemnation of land and a $200,000 loss on discontinued operations, both after applicable income tax.There were 100,000 shares of $10 par common stock and 40,000 shares of 4% preferred stock of $100 par outstanding throughout the current year.
Prepare the earnings per share section of Gallant Company's income statement.

Accepted Answer

The answer of Gallant Company reported net income of $2,500,000.The...

Question 9

Assuming that the quantities of inventory on hand during the current year were sufficient to meet all demands for sales, a decrease in the inventory turnover for the current year when compared with the turnover for the preceding year indicates an improvement in inventory management.

Accepted Answer

A) True 
 B)False

Question 10

Using vertical analysis of the income statement, a company's net income as a percentage of sales is 15%; therefore, the cost of goods sold as a percentage of sales must be 85%.

Accepted Answer

A) True 
 B)False

Question 11

Match each definition that follows with the term a-h it defines.
-requires a restatement of prior-period financial statements

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 12

What is the rate earned on total assets for Diane Company?

Accepted Answer

A) 10.0% 
B) 8.0% 
C) 0.10% 
D) 1.0% 
A) 10.0% 
B) 8.0% 
C) 0.10% 
D) 1.0%

Question 13

Based on the above data, what is the amount of quick assets?

Accepted Answer

A) $205,000 
B) $203,000 
C) $131,000 
D) $66,000 
A) $205,000 
B) $203,000 
C) $131,000 
D) $66,000

Question 14

Horizontal analysis of comparative financial statements includes

Accepted Answer

A) development of common-sized statements 
B) calculation of liquidity ratios 
C) calculation of dollar amount changes and percentage changes from the previous to the current year 
D) evaluation of each component in a financial statement to a total within the statement 
A) development of common-sized statements 
B) calculation of liquidity ratios 
C) calculation of dollar amount changes and percentage changes from the previous to the current year 
D) evaluation of each component in a financial statement to a total within the statement

Question 15

Current position analysis measures a company's ability to pay its current liabilities.

Accepted Answer

A) True 
 B)False

Question 16

When a corporation discontinues a segment of its operations at a loss, the loss should be reported as a separate item before income from continuing operations on the income statement.

Accepted Answer

A) True 
 B)False

Question 17

In the vertical analysis of an income statement, each item is generally stated as a percentage of total assets.

Accepted Answer

A) True 
 B)False

Question 18

The percent of fixed assets to total assets is an example of

Accepted Answer

A) vertical analysis 
B) solvency analysis 
C) profitability analysis 
D) horizontal analysis 
A) vertical analysis 
B) solvency analysis 
C) profitability analysis 
D) horizontal analysis

Question 19

The number of days' sales in receivables is one means of expressing the relationship between average daily sales and accounts receivable.

Accepted Answer

A) True 
 B)False

Question 20

A 15% change in sales will result in a 15% change in net income.

Accepted Answer

A) True 
 B)False

Unusual items affecting the current period's income statement consist of changes in accounting principles and discontinued operations.

For Garrison Corporation, the working capital at the end of the current year is $10,000 more than the working capital at the end of the preceding year, reported as follows: Has the current position of Garrison Corporation improved? Explain.

The rate earned on total assets measures the profitability of total assets, without considering how the assets are financed.

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

Comparable financial statements are designed to compare the financial statements of two or more corporations.

The dividend yield rate is equal to the dividends per share divided by the par value per share of common stock.

In a common-sized income statement, each item is expressed as a percentage of net income.

Assuming that the quantities of inventory on hand during the current year were sufficient to meet all demands for sales, a decrease in the inventory turnover for the current year when compared with the turnover for the preceding year indicates an improvement in inventory management.

Using vertical analysis of the income statement, a company's net income as a percentage of sales is 15%; therefore, the cost of goods sold as a percentage of sales must be 85%.

Match each definition that follows with the term a-h it defines. -requires a restatement of prior-period financial statements

What is the rate earned on total assets for Diane Company?

Based on the above data, what is the amount of quick assets?

Horizontal analysis of comparative financial statements includes

Current position analysis measures a company's ability to pay its current liabilities.

When a corporation discontinues a segment of its operations at a loss, the loss should be reported as a separate item before income from continuing operations on the income statement.

In the vertical analysis of an income statement, each item is generally stated as a percentage of total assets.

The percent of fixed assets to total assets is an example of

The number of days' sales in receivables is one means of expressing the relationship between average daily sales and accounts receivable.

A 15% change in sales will result in a 15% change in net income.

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

Exam 14: Financial Statement Analysis

Unusual items affecting the current period's income statement consist of changes in accounting principles and discontinued operations.

For Garrison Corporation, the working capital at the end of the current year is $10,000 more than the working capital at the end of the preceding year, reported as follows: Has the current position of Garrison Corporation improved? Explain.

The rate earned on total assets measures the profitability of total assets, without considering how the assets are financed.

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

Comparable financial statements are designed to compare the financial statements of two or more corporations.

The dividend yield rate is equal to the dividends per share divided by the par value per share of common stock.

In a common-sized income statement, each item is expressed as a percentage of net income.

Assuming that the quantities of inventory on hand during the current year were sufficient to meet all demands for sales, a decrease in the inventory turnover for the current year when compared with the turnover for the preceding year indicates an improvement in inventory management.

Using vertical analysis of the income statement, a company's net income as a percentage of sales is 15%; therefore, the cost of goods sold as a percentage of sales must be 85%.

Match each definition that follows with the term a-h it defines. -requires a restatement of prior-period financial statements

What is the rate earned on total assets for Diane Company?

Based on the above data, what is the amount of quick assets?

Horizontal analysis of comparative financial statements includes

Current position analysis measures a company's ability to pay its current liabilities.

When a corporation discontinues a segment of its operations at a loss, the loss should be reported as a separate item before income from continuing operations on the income statement.

In the vertical analysis of an income statement, each item is generally stated as a percentage of total assets.

The percent of fixed assets to total assets is an example of

The number of days' sales in receivables is one means of expressing the relationship between average daily sales and accounts receivable.

A 15% change in sales will result in a 15% change in net income.

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