Question 1

The relationship of each asset item as a percent of total assets is an example of horizontal analysis.

Accepted Answer

A) True 
 B)False

Question 2

Balance sheet and income statement data indicate the following:
 
Based on the data presented above,what is the number of times interest charges were earned (rounded to one decimal place)?

Accepted Answer

A) 3.5 
B) 2.2 
C) 4.0 
D) The answer cannot be determined. 
A) 3.5 
B) 2.2 
C) 4.0 
D) The answer cannot be determined.

Question 3

The following data are taken from the financial statements:

Accepted Answer

The answer of The following data are taken from the...

Question 4

The ratio computed by dividing current assets by current liabilities is the

Accepted Answer

A) current ratio. 
B) earnings ratio. 
C) acid-test ratio. 
D) quick ratio. 
A) current ratio. 
B) earnings ratio. 
C) acid-test ratio. 
D) quick ratio.

Question 5

The rate earned on total assets is one of the measures of profitability.

Accepted Answer

A) True 
 B)False

Question 6

Statements in which all items are expressed only in relative terms (percentages of a common base)are

Accepted Answer

A) horizontal statements. 
B) percentage statements. 
C) vertical statements. 
D) common-size statements. 
A) horizontal statements. 
B) percentage statements. 
C) vertical statements. 
D) common-size statements.

Question 7

The ratio of the market price per share of common stock on a specific date to the annual earnings per share is referred to as the price-earnings ratio.

Accepted Answer

A) True 
 B)False

Question 8

The relationship of 120 to 100 can be expressed as 1.2,1.2:1,or 120%.

Accepted Answer

A) True 
 B)False

Question 9

A company's assets are comprised of the following: Cash,$25,000;Receivables,$5,600;Marketable Securities,$7,200;and Equipment,$65,000.The total of quick assets is $37,800.

Accepted Answer

A) True 
 B)False

Question 10

The effects of differences in accounting methods are of little importance when analyzing comparable data from competing businesses.

Accepted Answer

A) True 
 B)False

Question 11

The percentage analysis of increases and decreases in individual items in comparative financial statements is called

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 12

Based on the following data for the current year,what is the number of days' sales in accounts receivable?

Accepted Answer

A) 12.5 
B) 14.17 
C) 25.76 
D) 15.8 
A) 12.5 
B) 14.17 
C) 25.76 
D) 15.8

Question 13

If a company has issued only one class of stock,the earnings per share is determined by dividing net income by the number of shares outstanding.

Accepted Answer

A) True 
 B)False

Question 14

If the current credit terms are 2/10,n/30 for Jones Inc. ,an accounts receivable turnover of 3 for the current year would be considered normal.

Accepted Answer

A) True 
 B)False

Question 15

The ratio of the sum of cash,receivables,and marketable securities to current liabilities is called the

Accepted Answer

A) price-earnings ratio. 
B) earnings ratio. 
C) quick ratio. 
D) current ratio. 
A) price-earnings ratio. 
B) earnings ratio. 
C) quick ratio. 
D) current ratio.

Question 16

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...

Question 17

Based on the following data,what is the amount of working capital?

Accepted Answer

A) $190,000 
B) $134,000 
C) $118,000 
D) $62,000 
A) $190,000 
B) $134,000 
C) $118,000 
D) $62,000

Question 18

The balance sheets at the end of each of the first two years of operations indicate the following:
  
-If net income is $130,000 and interest expense is $40,000 for 2011,what are the earnings per share on common stock for 2011 (rounded to two decimal places)?

Accepted Answer

A) $2.17 
B) $2.68 
C) $2.02 
D) $2.32 
A) $2.17 
B) $2.68 
C) $2.02 
D) $2.32

Question 19

Which of the following is NOT included in the computation of the quick ratio?

Accepted Answer

A) Inventory 
B) Marketable securities 
C) Accounts receivable 
D) Cash 
A) Inventory 
B) Marketable securities 
C) Accounts receivable 
D) Cash

Question 20

The terms acid-test ratio and quick ratio refer to the same ratio--the instant debt-paying ability of a company.

Accepted Answer

A) True 
 B)False

The relationship of each asset item as a percent of total assets is an example of horizontal analysis.

Balance sheet and income statement data indicate the following: Based on the data presented above,what is the number of times interest charges were earned (rounded to one decimal place)?

The following data are taken from the financial statements:

The ratio computed by dividing current assets by current liabilities is the

The rate earned on total assets is one of the measures of profitability.

Statements in which all items are expressed only in relative terms (percentages of a common base)are

The ratio of the market price per share of common stock on a specific date to the annual earnings per share is referred to as the price-earnings ratio.

The relationship of 120 to 100 can be expressed as 1.2,1.2:1,or 120%.

A company's assets are comprised of the following: Cash,$25,000;Receivables,$5,600;Marketable Securities,$7,200;and Equipment,$65,000.The total of quick assets is $37,800.

The effects of differences in accounting methods are of little importance when analyzing comparable data from competing businesses.

The percentage analysis of increases and decreases in individual items in comparative financial statements is called

Based on the following data for the current year,what is the number of days' sales in accounts receivable?

If a company has issued only one class of stock,the earnings per share is determined by dividing net income by the number of shares outstanding.

If the current credit terms are 2/10,n/30 for Jones Inc. ,an accounts receivable turnover of 3 for the current year would be considered normal.

The ratio of the sum of cash,receivables,and marketable securities to current liabilities is called the

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.

Based on the following data,what is the amount of working capital?

The balance sheets at the end of each of the first two years of operations indicate the following: -If net income is $130,000 and interest expense is $40,000 for 2011,what are the earnings per share on common stock for 2011 (rounded to two decimal places)?

Which of the following is NOT included in the computation of the quick ratio?

The terms acid-test ratio and quick ratio refer to the same ratio--the instant debt-paying ability of a company.

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley,internal Control,and Cash

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Accounting Systems for Manufacturing Businesses

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

Filters

Exam 9: Financial Statement Analysis

The relationship of each asset item as a percent of total assets is an example of horizontal analysis.

Balance sheet and income statement data indicate the following: Based on the data presented above,what is the number of times interest charges were earned (rounded to one decimal place)?

The following data are taken from the financial statements:

The ratio computed by dividing current assets by current liabilities is the

The rate earned on total assets is one of the measures of profitability.

Statements in which all items are expressed only in relative terms (percentages of a common base)are

The ratio of the market price per share of common stock on a specific date to the annual earnings per share is referred to as the price-earnings ratio.

The relationship of 120 to 100 can be expressed as 1.2,1.2:1,or 120%.

A company's assets are comprised of the following: Cash,$25,000;Receivables,$5,600;Marketable Securities,$7,200;and Equipment,$65,000.The total of quick assets is $37,800.

The effects of differences in accounting methods are of little importance when analyzing comparable data from competing businesses.

The percentage analysis of increases and decreases in individual items in comparative financial statements is called

Based on the following data for the current year,what is the number of days' sales in accounts receivable?

If a company has issued only one class of stock,the earnings per share is determined by dividing net income by the number of shares outstanding.

If the current credit terms are 2/10,n/30 for Jones Inc. ,an accounts receivable turnover of 3 for the current year would be considered normal.

The ratio of the sum of cash,receivables,and marketable securities to current liabilities is called the

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.

Based on the following data,what is the amount of working capital?

The balance sheets at the end of each of the first two years of operations indicate the following: -If net income is $130,000 and interest expense is $40,000 for 2011,what are the earnings per share on common stock for 2011 (rounded to two decimal places)?

Which of the following is NOT included in the computation of the quick ratio?

The terms acid-test ratio and quick ratio refer to the same ratio--the instant debt-paying ability of a company.

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley,internal Control,and Cash

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Accounting Systems for Manufacturing Businesses

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

Filters