Question 1

The ________________ is calculated by dividing total liabilities by total stockholders' equity.

Accepted Answer

debt-to-eq

Question 2

Profitability ratios assess the ability of a company to meets its long- and short-term obligations.

Accepted Answer

A) True 
 B)False

Question 3

Industrial figures, standards and statistics should be used with so much care that they are not a very good reference point to compare companies.

Accepted Answer

A) True 
 B)False

Question 4

A common measure of profitability is

Accepted Answer

A)  the quick ratio. 
B)  times-interest-earned ratio. 
C)  return on common stockholders' equity ratio. 
D)  debt ratio. 
A)  the quick ratio. 
B)  times-interest-earned ratio. 
C)  return on common stockholders' equity ratio. 
D)  debt ratio.

Question 5

Which of the following analysis expresses each item in a financial statement as a percent of a base amount?

Accepted Answer

A)  Variance analysis 
B)  Standard analysis 
C)  Vertical analysis 
D)  Horizontal analysis 
A)  Variance analysis 
B)  Standard analysis 
C)  Vertical analysis 
D)  Horizontal analysis

Question 6

Swanson Company had $250,000 of current assets and $90,000 of current liabilities before borrowing $60,000 from the bank with a 3-month note payable.What effect did the borrowing transaction have on Swanson Company's current ratio?

Accepted Answer

A)  The ratio remained unchanged. 
B)  The change in the current ratio cannot be determined. 
C)  The ratio decreased. 
D)  The ratio increased. 
A)  The ratio remained unchanged. 
B)  The change in the current ratio cannot be determined. 
C)  The ratio decreased. 
D)  The ratio increased.

Question 7

Chromel Company has $36,000 in cash, $12,000 in marketable securities, $40,000 in accounts receivables, $25,000 in inventories, and $80,000 in current liabilities.The company's quick ratio is closest to:

Accepted Answer

A)  1.10. 
B)  2.45. 
C)  0.25. 
D)  3.12. 
A)  1.10. 
B)  2.45. 
C)  0.25. 
D)  3.12.

Question 8

Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time

Accepted Answer

A)  that has been arranged from the highest amount to the lowest amount. 
B)  that has been arranged from lowest amount to the highest amount. 
C)  to determine which items are in error. 
D)  to determine the amount and/or percentage increase or decrease that has taken place. 
A)  that has been arranged from the highest amount to the lowest amount. 
B)  that has been arranged from lowest amount to the highest amount. 
C)  to determine which items are in error. 
D)  to determine the amount and/or percentage increase or decrease that has taken place.

Question 9

The quick ratio should be larger than the current ratio.

Accepted Answer

A) True 
 B)False

Question 10

Last year, Amber Company's net sales was $800,000.The beginning accounts receivable balance was $20,000, and the ending accounts receivable balance was $30,000.The company's accounts receivable turnover ratio was closest to:

Accepted Answer

A)  32. 
B)  11. 
C)  24. 
D)  46. 
A)  32. 
B)  11. 
C)  24. 
D)  46.

Question 11

Dividing the market price of a share of stock by the earnings per share gives the price-earnings ratio.

Accepted Answer

A) True 
 B)False

Question 12

Liquidity ratios include the _____.

Accepted Answer

A)  price-earnings ratio 
B)  debt-equity ratio 
C)  dividend payout ratio 
D)  inventory turnover ratio 
A)  price-earnings ratio 
B)  debt-equity ratio 
C)  dividend payout ratio 
D)  inventory turnover ratio

Question 13

Jill's Market has an inventory turnover of 120 times.Scott's Market has a turnover of 128 times.Scott's is more effective in managing inventory.

Accepted Answer

A) True 
 B)False

Question 14

_________________ expresses a line item as a percentage of some prior-period amount.

Accepted Answer

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

Question 15

Select the ratio that each statement below most properly satisfies.
-A measure of the company's ability to pay its short-term liabilities out of short-term assets

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 16

Last year, Copper Company had a net income of $500,000, income tax expense of $60,000, and interest expense of $40,000.The company's times-interest-earned ratio was closest to:

Accepted Answer

A)  10 times. 
B)  22 times. 
C)  15 times. 
D)  30 times. 
A)  10 times. 
B)  22 times. 
C)  15 times. 
D)  30 times.

Question 17

Select the ratio that each statement below most properly satisfies.
-An income statement measure of the ability of a company to service its debts

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 18

Emerald Company has $20,000 in cash, $10,000 in marketable securities, $40,000 in accounts receivables, $45,000 in inventories, and $50,000 in current liabilities.The company's quick ratio is closest to:

Accepted Answer

A)  1.20. 
B)  1.40. 
C)  2.35. 
D)  0.60. 
A)  1.20. 
B)  1.40. 
C)  2.35. 
D)  0.60.

Question 19

____________ are fractions or percentages computed by dividing one account or line-item amount by another.

Accepted Answer

The answer of ____________ are fractions or percentages computed by...

Question 20

Which of the following statements is true about the quick ratio?

Accepted Answer

A)  The quick ratio does not include inventory as part of the numerator. 
B)  The quick ratio does not include accounts payable in the denominator. 
C)  The quick ratio is an approximation of the debt ratio. 
D)  The quick ratio reflects the dividends paid by a company. 
A)  The quick ratio does not include inventory as part of the numerator. 
B)  The quick ratio does not include accounts payable in the denominator. 
C)  The quick ratio is an approximation of the debt ratio. 
D)  The quick ratio reflects the dividends paid by a company.

The ________________ is calculated by dividing total liabilities by total stockholders' equity.

Profitability ratios assess the ability of a company to meets its long- and short-term obligations.

Industrial figures, standards and statistics should be used with so much care that they are not a very good reference point to compare companies.

A common measure of profitability is

Which of the following analysis expresses each item in a financial statement as a percent of a base amount?

Swanson Company had $250,000 of current assets and $90,000 of current liabilities before borrowing $60,000 from the bank with a 3-month note payable.What effect did the borrowing transaction have on Swanson Company's current ratio?

Chromel Company has $36,000 in cash, $12,000 in marketable securities, $40,000 in accounts receivables, $25,000 in inventories, and $80,000 in current liabilities.The company's quick ratio is closest to:

Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time

The quick ratio should be larger than the current ratio.

Last year, Amber Company's net sales was $800,000.The beginning accounts receivable balance was $20,000, and the ending accounts receivable balance was $30,000.The company's accounts receivable turnover ratio was closest to:

Dividing the market price of a share of stock by the earnings per share gives the price-earnings ratio.

Liquidity ratios include the _____.

Jill's Market has an inventory turnover of 120 times.Scott's Market has a turnover of 128 times.Scott's is more effective in managing inventory.

_________________ expresses a line item as a percentage of some prior-period amount.

Select the ratio that each statement below most properly satisfies. -A measure of the company's ability to pay its short-term liabilities out of short-term assets

Last year, Copper Company had a net income of $500,000, income tax expense of $60,000, and interest expense of $40,000.The company's times-interest-earned ratio was closest to:

Select the ratio that each statement below most properly satisfies. -An income statement measure of the ability of a company to service its debts

Emerald Company has $20,000 in cash, $10,000 in marketable securities, $40,000 in accounts receivables, $45,000 in inventories, and $50,000 in current liabilities.The company's quick ratio is closest to:

____________ are fractions or percentages computed by dividing one account or line-item amount by another.

Which of the following statements is true about the quick ratio?

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

Exam 15: Financial Statement Analysis

The ________________ is calculated by dividing total liabilities by total stockholders' equity.

Profitability ratios assess the ability of a company to meets its long- and short-term obligations.

Industrial figures, standards and statistics should be used with so much care that they are not a very good reference point to compare companies.

A common measure of profitability is

Which of the following analysis expresses each item in a financial statement as a percent of a base amount?

Swanson Company had $250,000 of current assets and $90,000 of current liabilities before borrowing $60,000 from the bank with a 3-month note payable.What effect did the borrowing transaction have on Swanson Company's current ratio?

Chromel Company has $36,000 in cash, $12,000 in marketable securities, $40,000 in accounts receivables, $25,000 in inventories, and $80,000 in current liabilities.The company's quick ratio is closest to:

Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time

The quick ratio should be larger than the current ratio.

Last year, Amber Company's net sales was $800,000.The beginning accounts receivable balance was $20,000, and the ending accounts receivable balance was $30,000.The company's accounts receivable turnover ratio was closest to:

Dividing the market price of a share of stock by the earnings per share gives the price-earnings ratio.

Liquidity ratios include the _____.

Jill's Market has an inventory turnover of 120 times.Scott's Market has a turnover of 128 times.Scott's is more effective in managing inventory.

_________________ expresses a line item as a percentage of some prior-period amount.

Select the ratio that each statement below most properly satisfies. -A measure of the company's ability to pay its short-term liabilities out of short-term assets

Last year, Copper Company had a net income of $500,000, income tax expense of $60,000, and interest expense of $40,000.The company's times-interest-earned ratio was closest to:

Select the ratio that each statement below most properly satisfies. -An income statement measure of the ability of a company to service its debts

Emerald Company has $20,000 in cash, $10,000 in marketable securities, $40,000 in accounts receivables, $45,000 in inventories, and $50,000 in current liabilities.The company's quick ratio is closest to:

____________ are fractions or percentages computed by dividing one account or line-item amount by another.

Which of the following statements is true about the quick ratio?

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