Question 1

Selected financial data from Harlow Company for the most recent year appear below: 
 The income tax rate is 30%.
The return on sales ratio was closest to

Accepted Answer

A)  14%. 
B)  40%. 
C)  22%. 
D)  10%. 
A)  14%. 
B)  40%. 
C)  22%. 
D)  10%.

Question 2

Many industrial averages and figures are published in the each of the following except?

Accepted Answer

A)  Key Business Ratios, Dun and Bradstreet 
B)  The Almanac of Business and Industrial Financial Ratios, Prentice-Hall 
C)  Annual Random Studies, Robert Morris Associates 
D)  Standard and Poor's Industry Survey, Standard & Poor's 
E)  Dow Jones-Irwin Business and Investment Almanac, Dow Jones-Irwin 
A)  Key Business Ratios, Dun and Bradstreet 
B)  The Almanac of Business and Industrial Financial Ratios, Prentice-Hall 
C)  Annual Random Studies, Robert Morris Associates 
D)  Standard and Poor's Industry Survey, Standard & Poor's 
E)  Dow Jones-Irwin Business and Investment Almanac, Dow Jones-Irwin

Question 3

Industrial statistics should be taken as absolute norms as far as standards for comparability.

Accepted Answer

A) True 
 B)False

Question 4

Last year, Nickel Company had a net income of $150,000, income tax expense of $30,000, and interest expense of $20,000.The company's times-interest-earned ratio was closest to:

Accepted Answer

A)  33 times. 
B)  17 times. 
C)  10 times. 
D)  22 times. 
A)  33 times. 
B)  17 times. 
C)  10 times. 
D)  22 times.

Question 5

A ratio analysis of financial statements indicates:

Accepted Answer

A)  the investment opportunities available to an organization.​ 
B)  the ability of an organization to meet short-term obligations. 
C)  the competitiveness of an organization. 
D)  the marketability of the finished product of an organization. 
A)  the investment opportunities available to an organization.​ 
B)  the ability of an organization to meet short-term obligations. 
C)  the competitiveness of an organization. 
D)  the marketability of the finished product of an organization.

Question 6

Chaney Inc.wants to measure the relationship between profitability and the investment made by stockholders.Chaney should use

Accepted Answer

A)  return on common stockholders' equity. 
B)  earnings per share. 
C)  return on sales. 
D)  the statement of retained earnings. 
A)  return on common stockholders' equity. 
B)  earnings per share. 
C)  return on sales. 
D)  the statement of retained earnings.

Question 7

Indicate the type of each ratio listed below.
-Debt-to-equity ratio

Accepted Answer

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

Question 8

For meaningful analysis, ratios should be compared with a standard.

Accepted Answer

A) True 
 B)False

Question 9

Which profitability ratio requires the use of earnings per share and the current market price?

Accepted Answer

A)  return on common stockholders' equity 
B)  dividend payout ratio 
C)  dividend yield 
D)  price-earnings ratio 
A)  return on common stockholders' equity 
B)  dividend payout ratio 
C)  dividend yield 
D)  price-earnings ratio

Question 10

Starbuck Corporation had net income of $250,000 and paid dividends to common stockholders of $50,000 in Year 1.The weighted average number of shares outstanding in Year 1 was 50,000 shares.Starbuck Corporation's common stock is selling for $40 per share on the New York Stock Exchange. ?
-
Starbuck's price-earnings ratio is:

Accepted Answer

A)  2. 
B)  5. 
C)  10. 
D)  8. 
A)  2. 
B)  5. 
C)  10. 
D)  8.

Question 11

A liquidity ratio measures the

Accepted Answer

A)  income or operating success of an enterprise over a period of time. 
B)  ability of the enterprise to survive over a long period of time. 
C)  short-term ability of the enterprise to pay its obligations and to meet unexpected needs for cash. 
D)  number of times interest is earned. 
A)  income or operating success of an enterprise over a period of time. 
B)  ability of the enterprise to survive over a long period of time. 
C)  short-term ability of the enterprise to pay its obligations and to meet unexpected needs for cash. 
D)  number of times interest is earned.

Question 12

Indicate the type of each ratio listed below.
-Debt ratio

Accepted Answer

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

Question 13

Citrine Company reported the following on its income statement:  
An analysis of the income statement revealed that interest expense was $50,000.Citrine Company's times-interest-earned ratio was:

Accepted Answer

A)  11. 
B)  5. 
C)  18. 
D)  9. 
A)  11. 
B)  5. 
C)  18. 
D)  9.

Question 14

Indicate the type of each ratio listed below.
-Current ratio

Accepted Answer

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

Question 15

Which of the following is also referred to as horizontal analysis?

Accepted Answer

A)  Progressive analysis 
B)  Variance analysis 
C)  Trend analysis 
D)  Budget analysis 
A)  Progressive analysis 
B)  Variance analysis 
C)  Trend analysis 
D)  Budget analysis

Question 16

Refer to the information from the financial statements of DeBruce Corp.for Year 2 and Year 1. The dividend payout ratio for Year 2 is:

Accepted Answer

A)  0.382. 
B)  0.05. 
C)  0.28. 
D)  0.50. 
A)  0.382. 
B)  0.05. 
C)  0.28. 
D)  0.50.

Question 17

In vertical analysis of the balance sheet, total liabilities are represented by 100%.

Accepted Answer

A) True 
 B)False

Question 18

The quick ratio

Accepted Answer

A)  is used to quickly determine a company's leverage and long-term debt-paying ability. 
B)  relates cash, marketable securities, and net receivables to current liabilities. 
C)  is calculated by taking one item from the income statement and one item from the balance sheet. 
D)  is the same as the current ratio except it is rounded to the nearest whole percent. 
A)  is used to quickly determine a company's leverage and long-term debt-paying ability. 
B)  relates cash, marketable securities, and net receivables to current liabilities. 
C)  is calculated by taking one item from the income statement and one item from the balance sheet. 
D)  is the same as the current ratio except it is rounded to the nearest whole percent.

Question 19

The use of common-size analysis makes comparisons more meaningful because percentages eliminate the effects of size.

Accepted Answer

A) True 
 B)False

Question 20

The ratios that allow investors, creditors, and managers to evaluate the extent to which invested funds are being used efficiently are called ____________.

Accepted Answer

profitabil

Selected financial data from Harlow Company for the most recent year appear below: The income tax rate is 30%. The return on sales ratio was closest to

Many industrial averages and figures are published in the each of the following except?

Industrial statistics should be taken as absolute norms as far as standards for comparability.

Last year, Nickel Company had a net income of $150,000, income tax expense of $30,000, and interest expense of $20,000.The company's times-interest-earned ratio was closest to:

A ratio analysis of financial statements indicates:

Chaney Inc.wants to measure the relationship between profitability and the investment made by stockholders.Chaney should use

Indicate the type of each ratio listed below. -Debt-to-equity ratio

For meaningful analysis, ratios should be compared with a standard.

Which profitability ratio requires the use of earnings per share and the current market price?

A liquidity ratio measures the

Indicate the type of each ratio listed below. -Debt ratio

Citrine Company reported the following on its income statement: An analysis of the income statement revealed that interest expense was $50,000.Citrine Company's times-interest-earned ratio was:

Indicate the type of each ratio listed below. -Current ratio

Which of the following is also referred to as horizontal analysis?

Refer to the information from the financial statements of DeBruce Corp.for Year 2 and Year 1. The dividend payout ratio for Year 2 is:

In vertical analysis of the balance sheet, total liabilities are represented by 100%.

The quick ratio

The use of common-size analysis makes comparisons more meaningful because percentages eliminate the effects of size.

The ratios that allow investors, creditors, and managers to evaluate the extent to which invested funds are being used efficiently are called ____________.

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

Selected financial data from Harlow Company for the most recent year appear below: The income tax rate is 30%. The return on sales ratio was closest to

Many industrial averages and figures are published in the each of the following except?

Industrial statistics should be taken as absolute norms as far as standards for comparability.

Last year, Nickel Company had a net income of $150,000, income tax expense of $30,000, and interest expense of $20,000.The company's times-interest-earned ratio was closest to:

A ratio analysis of financial statements indicates:

Chaney Inc.wants to measure the relationship between profitability and the investment made by stockholders.Chaney should use

Indicate the type of each ratio listed below. -Debt-to-equity ratio

For meaningful analysis, ratios should be compared with a standard.

Which profitability ratio requires the use of earnings per share and the current market price?

A liquidity ratio measures the

Indicate the type of each ratio listed below. -Debt ratio

Citrine Company reported the following on its income statement: An analysis of the income statement revealed that interest expense was $50,000.Citrine Company's times-interest-earned ratio was:

Indicate the type of each ratio listed below. -Current ratio

Which of the following is also referred to as horizontal analysis?

Refer to the information from the financial statements of DeBruce Corp.for Year 2 and Year 1. The dividend payout ratio for Year 2 is:

In vertical analysis of the balance sheet, total liabilities are represented by 100%.

The quick ratio

The use of common-size analysis makes comparisons more meaningful because percentages eliminate the effects of size.

The ratios that allow investors, creditors, and managers to evaluate the extent to which invested funds are being used efficiently are called ____________.

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