Question 1

Which of the following ratios signal success in the just-in-time (JIT) manufacturing environment?

Accepted Answer

A)  A low profitability ratio 
B)  A high inventory turnover ratio 
C)  A low equity ratio 
D)  A high times-interest-earned ratio 
A)  A low profitability ratio 
B)  A high inventory turnover ratio 
C)  A low equity ratio 
D)  A high times-interest-earned ratio

Question 2

_____________________ expresses a line item as a percentage of some other line item for the same period.

Accepted Answer

The answer of _____________________ expresses a line item as a...

Question 3

Investors who prefer gains through appreciation will generally prefer a ___________ dividend payout ratio.

Accepted Answer

The answer of Investors who prefer gains through appreciation will...

Question 4

Companies in the same industry may use different accounting methods, diminishing the usefulness of some industrial averages.

Accepted Answer

A) True 
 B)False

Question 5

Two major forms of common-size analysis are horizontal analysis and vertical analysis.

Accepted Answer

A) True 
 B)False

Question 6

Indicate the type of each ratio listed below.
-Return on total assets ratio

Accepted Answer

A) Liquidity Ratio 
B) Leverage Ratio 
C) Profitability Ratio 
A) Liquidity Ratio 
B) Leverage Ratio 
C) Profitability Ratio

Question 7

For meaningful analysis, ratios are best compared with

Accepted Answer

A)  historical company averages. 
B)  industrial averages. 
C)  historical company averages and industrial averages. 
D)  no standard. 
A)  historical company averages. 
B)  industrial averages. 
C)  historical company averages and industrial averages. 
D)  no standard.

Question 8

The liquidity position of a company is analyzed using its _____.

Accepted Answer

A)  times-interest-earned ratio 
B)  inventory turnover ratio 
C)  dividend yield ratio 
D)  debt-to-equity ratio 
A)  times-interest-earned ratio 
B)  inventory turnover ratio 
C)  dividend yield ratio 
D)  debt-to-equity ratio

Question 9

A company has an account receivable turnover ratio of 4.The average accounts receivable during the period is $200,000.What is the amount of net sales for the period?

Accepted Answer

A)  $220,000 
B)  $800,000 
C)  $520,000 
D)  $740,000 
A)  $220,000 
B)  $800,000 
C)  $520,000 
D)  $740,000

Question 10

Select the ratio that each statement below most properly satisfies.
-The relationship between dividends and the market price of a company's stock

Accepted Answer

A) Dividend yield ratio 
B) Current ratio 
C) Debt ratio 
D) Return on common stockholders' equity ratio 
E) Times-interest-earned ratio
F)Quick ratio
G)Debt-to-equity ratio
H)Dividend payout ratio
I)Price-earnings ratio 
A) Dividend yield ratio 
B) Current ratio 
C) Debt ratio 
D) Return on common stockholders' equity ratio 
E) Times-interest-earned ratio
F)Quick ratio
G)Debt-to-equity ratio
H)Dividend payout ratio
I)Price-earnings ratio

Question 11

Which of the following is an example of liquidity analysis?

Accepted Answer

A)  Bonds payable are divided by total liabilities and stockholders' equity. 
B)  Current assets are divided by current liabilities. 
C)  Net income is divided by the number of shares of stock outstanding. 
D)  Net income is divided by total assets. 
A)  Bonds payable are divided by total liabilities and stockholders' equity. 
B)  Current assets are divided by current liabilities. 
C)  Net income is divided by the number of shares of stock outstanding. 
D)  Net income is divided by total assets.

Question 12

Earnings per share is an indication of how much

Accepted Answer

A)  the company paid as dividends for each share of stock. 
B)  the company earned for each share of outstanding common and preferred stock. 
C)  the company earned for each share of outstanding common stock. 
D)  cash the company has for each share of all outstanding stock. 
A)  the company paid as dividends for each share of stock. 
B)  the company earned for each share of outstanding common and preferred stock. 
C)  the company earned for each share of outstanding common stock. 
D)  cash the company has for each share of all outstanding stock.

Question 13

The ratios that are used to determine a company's short-term debt paying ability are

Accepted Answer

A)  asset turnover, times interest earned, current ratio, and account receivable turnover. 
B)  times interest earned, inventory turnover, current ratio, and accounts receivable turnover. 
C)  times interest earned, quick ratio, current ratio, and inventory turnover. 
D)  current ratio, quick ratio, accounts receivable turnover, and inventory turnover. 
A)  asset turnover, times interest earned, current ratio, and account receivable turnover. 
B)  times interest earned, inventory turnover, current ratio, and accounts receivable turnover. 
C)  times interest earned, quick ratio, current ratio, and inventory turnover. 
D)  current ratio, quick ratio, accounts receivable turnover, and inventory turnover.

Question 14

Which of the following categories of ratios includes the current ratio?

Accepted Answer

A)  Liquidity ratios 
B)  Leverage ratios 
C)  Debt ratios 
D)  Valuation ratios 
A)  Liquidity ratios 
B)  Leverage ratios 
C)  Debt ratios 
D)  Valuation ratios

Question 15

Creditors would like the debt-to-equity ratio to be _______, indicating that stockholders have financed most of the assets of the firm.

Accepted Answer

The answer of Creditors would like the debt-to-equity ratio to...

Question 16

Select the ratio that each statement below most properly satisfies.
-A measure that compares only the most liquid assets to current liabilities

Accepted Answer

A) Dividend yield ratio 
B) Current ratio 
C) Debt ratio 
D) Return on common stockholders' equity ratio 
E) Times-interest-earned ratio
F)Quick ratio
G)Debt-to-equity ratio
H)Dividend payout ratio
I)Price-earnings ratio 
A) Dividend yield ratio 
B) Current ratio 
C) Debt ratio 
D) Return on common stockholders' equity ratio 
E) Times-interest-earned ratio
F)Quick ratio
G)Debt-to-equity ratio
H)Dividend payout ratio
I)Price-earnings ratio

Question 17

Phillips Company had $300,000 in sales on account last year.The beginning accounts receivable balance was $25,000 and the ending accounts receivable balance was $18,000.The company's accounts receivable turnover ratio was closest to

Accepted Answer

A)  16.67. 
B)  12.00. 
C)  3.85. 
D)  13.95. 
A)  16.67. 
B)  12.00. 
C)  3.85. 
D)  13.95.

Question 18

Presented below are selected data from the financial statements of Korn Corp.for Year 2 and Year 1. The price-earnings ratio for Year 2 is

Accepted Answer

A)  1.09. 
B)  5.46. 
C)  6.0. 
D)  11.0. 
A)  1.09. 
B)  5.46. 
C)  6.0. 
D)  11.0.

Question 19

Which of the following analysis are the two major techniques of common-size analysis?

Accepted Answer

A)  Standard analysis and regression analysis 
B)  Receivable analysis and profitability analysis 
C)  Linear analysis and budget analysis 
D)  Horizontal analysis and vertical analysis 
A)  Standard analysis and regression analysis 
B)  Receivable analysis and profitability analysis 
C)  Linear analysis and budget analysis 
D)  Horizontal analysis and vertical analysis

Question 20

In vertical analysis of the income statement, cost of goods sold is represented by 100%.

Accepted Answer

A) True 
 B)False

Which of the following ratios signal success in the just-in-time (JIT) manufacturing environment?

_____________________ expresses a line item as a percentage of some other line item for the same period.

Investors who prefer gains through appreciation will generally prefer a ___________ dividend payout ratio.

Companies in the same industry may use different accounting methods, diminishing the usefulness of some industrial averages.

Two major forms of common-size analysis are horizontal analysis and vertical analysis.

Indicate the type of each ratio listed below. -Return on total assets ratio

For meaningful analysis, ratios are best compared with

The liquidity position of a company is analyzed using its _____.

A company has an account receivable turnover ratio of 4.The average accounts receivable during the period is $200,000.What is the amount of net sales for the period?

Select the ratio that each statement below most properly satisfies. -The relationship between dividends and the market price of a company's stock

Which of the following is an example of liquidity analysis?

Earnings per share is an indication of how much

The ratios that are used to determine a company's short-term debt paying ability are

Which of the following categories of ratios includes the current ratio?

Creditors would like the debt-to-equity ratio to be _______, indicating that stockholders have financed most of the assets of the firm.

Select the ratio that each statement below most properly satisfies. -A measure that compares only the most liquid assets to current liabilities

Phillips Company had $300,000 in sales on account last year.The beginning accounts receivable balance was $25,000 and the ending accounts receivable balance was $18,000.The company's accounts receivable turnover ratio was closest to

Presented below are selected data from the financial statements of Korn Corp.for Year 2 and Year 1. The price-earnings ratio for Year 2 is

Which of the following analysis are the two major techniques of common-size analysis?

In vertical analysis of the income statement, cost of goods sold is represented by 100%.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior, Cost Forecasting, and Segmented Income Statements

Job-Order Costing and Normal Cost Overhead Application

Activity-Based Costing and Management

Process Costing

Cost-Volume-Profit Analysis

Tactical Decision-Making and Relevant Costing

Profit Planning and Flexible Budgets

Standard Costing and Variance Analysis

Performance Evaluation and Decentralization

Capital Investment Decisions

Emerging Topics in Managerial Accounting: Sustainability, Quality Cost, Lean Accounting, International Issues, Enterprise Risk Management, the Managerial Accountant in Forensicfraud Accounting

Statement of Cash Flows

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Exam 15: Financial Statement Analysis

Which of the following ratios signal success in the just-in-time (JIT) manufacturing environment?

_____________________ expresses a line item as a percentage of some other line item for the same period.

Investors who prefer gains through appreciation will generally prefer a ___________ dividend payout ratio.

Companies in the same industry may use different accounting methods, diminishing the usefulness of some industrial averages.

Two major forms of common-size analysis are horizontal analysis and vertical analysis.

Indicate the type of each ratio listed below. -Return on total assets ratio

For meaningful analysis, ratios are best compared with

The liquidity position of a company is analyzed using its _____.

A company has an account receivable turnover ratio of 4.The average accounts receivable during the period is $200,000.What is the amount of net sales for the period?

Select the ratio that each statement below most properly satisfies. -The relationship between dividends and the market price of a company's stock

Which of the following is an example of liquidity analysis?

Earnings per share is an indication of how much

The ratios that are used to determine a company's short-term debt paying ability are

Which of the following categories of ratios includes the current ratio?

Creditors would like the debt-to-equity ratio to be _______, indicating that stockholders have financed most of the assets of the firm.

Select the ratio that each statement below most properly satisfies. -A measure that compares only the most liquid assets to current liabilities

Phillips Company had $300,000 in sales on account last year.The beginning accounts receivable balance was $25,000 and the ending accounts receivable balance was $18,000.The company's accounts receivable turnover ratio was closest to

Presented below are selected data from the financial statements of Korn Corp.for Year 2 and Year 1. The price-earnings ratio for Year 2 is

Which of the following analysis are the two major techniques of common-size analysis?

In vertical analysis of the income statement, cost of goods sold is represented by 100%.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior, Cost Forecasting, and Segmented Income Statements

Job-Order Costing and Normal Cost Overhead Application

Activity-Based Costing and Management

Process Costing

Cost-Volume-Profit Analysis

Tactical Decision-Making and Relevant Costing

Profit Planning and Flexible Budgets

Standard Costing and Variance Analysis

Performance Evaluation and Decentralization

Capital Investment Decisions

Emerging Topics in Managerial Accounting: Sustainability, Quality Cost, Lean Accounting, International Issues, Enterprise Risk Management, the Managerial Accountant in Forensicfraud Accounting

Statement of Cash Flows

Filters