Question 1

In computing the rate earned on total assets, interest expense is subtracted from net income before dividing by average total assets.

Accepted Answer

A) True 
 B)False

Question 2

The following information is available for Taylor Company:   Which of the following statements is correct?

Accepted Answer

A)  The price-earnings ratio is 20 and a share of common stock was selling for 20 times the amount of earnings per share at the end of 2012. 
B)  The price-earnings ratio is 5.0% and a share of common stock was selling for 5.0% more than the amount of earnings per share at the end of 2012. 
C)  The price-earnings ratio is 10 and a share of common stock was selling for 125 times the amount of earnings per share at the end of 2012. 
D)  The market price per share and the earnings per share are not statistically related to each other. 
A)  The price-earnings ratio is 20 and a share of common stock was selling for 20 times the amount of earnings per share at the end of 2012. 
B)  The price-earnings ratio is 5.0% and a share of common stock was selling for 5.0% more than the amount of earnings per share at the end of 2012. 
C)  The price-earnings ratio is 10 and a share of common stock was selling for 125 times the amount of earnings per share at the end of 2012. 
D)  The market price per share and the earnings per share are not statistically related to each other.

Question 3

A loss due to a discontinued operation should be reported in the income statement

Accepted Answer

A)  above income from continuing operations. 
B)  without related tax effect. 
C)  below income from continuing operations. 
D)  as an operating expense. 
A)  above income from continuing operations. 
B)  without related tax effect. 
C)  below income from continuing operations. 
D)  as an operating expense.

Question 4

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

Accepted Answer

A)  3.7 
B)  4.4 
C)  4.5 
D)  3.5 
A)  3.7 
B)  4.4 
C)  4.5 
D)  3.5

Question 5

Revenue and expense data for Young Technologies are as follows: 
   Required:

Accepted Answer

(1)
Young Technologies Inc.
Co

Question 6

In 2012 Robert Corporation had net income of $250,000 and paid dividends to common stockholders of $50,000. They had 50,000 shares of common stock outstanding during the entire year. Robert Corporation's common stock is selling for $50 per share on the New York Stock Exchange. Robert Corporation's price-earnings ratio is

Accepted Answer

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

Question 7

A company reports the following:
   Determine the (a) accounts receivable turnover, and (b) number of days' sales in receivables. Round your answer to one decimal place.

Accepted Answer

@#IMG-DLM&_TB2085_00

Question 8

The following information pertains to Auburn Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets
  Liabilities and Stockholders' Equity
  Income Statement
    What is the rate earned on stockholders' equity? Round answer to a single decimal point.

Accepted Answer

A)  9.3% 
B)  15.9% 
C)  24.0% 
D)  40.9% 
A)  9.3% 
B)  15.9% 
C)  24.0% 
D)  40.9%

Question 9

The following information pertains to Brock Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets
  Liabilities and Stockholders' Equity
  Income Statement
    What is the current ratio for this company?

Accepted Answer

A)  1.42 
B)  0.78 
C)  1.58 
D)  0.67 
A)  1.42 
B)  0.78 
C)  1.58 
D)  0.67

Question 10

Using vertical analysis of the income statement, a company's net income as a percentage of net 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

The number of times interest expense is earned is computed as

Accepted Answer

A)  net income plus interest expense, divided by interest expense 
B)  income before income tax plus interest expense, divided by interest expense 
C)  net income divided by interest expense 
D)  income before income tax divided by interest expense 
A)  net income plus interest expense, divided by interest expense 
B)  income before income tax plus interest expense, divided by interest expense 
C)  net income divided by interest expense 
D)  income before income tax divided by interest expense

Question 12

In a common size balance sheet, the 100% figure is:

Accepted Answer

A)  total property, plant and equipment. 
B)  total current assets. 
C)  total liabilities. 
D)  total assets. 
A)  total property, plant and equipment. 
B)  total current assets. 
C)  total liabilities. 
D)  total assets.

Question 13

A company reports the following:
   Determine the (a) inventory turnover, and (b) number of days' sales in inventory. Round your answer to one decimal place.

Accepted Answer

@#IMG-DLM&_TB2085_00

Question 14

The tendency of the rate earned on stockholders' equity to vary disproportionately from the rate earned on total assets is sometimes referred to as

Accepted Answer

A)  leverage 
B)  solvency 
C)  yield 
D)  quick assets 
A)  leverage 
B)  solvency 
C)  yield 
D)  quick assets

Question 15

Why would you or why wouldn't you compare an organization like Ford Motor Company to the local car dealer "Johnson City Ford/Lincoln/Mercury" in vertical and horizontal analysis?

Accepted Answer

Ford Motor Company is an automobile manu

Question 16

What information is generally included in the Management Discussion and Analysis (MD&A) section of a corporate annual report?

Accepted Answer

The MD&A section typically includes:
Man

Question 17

A company reports the following:
   Determine the company's price-earnings ratio. Round your answer to one decimal place.

Accepted Answer

Price-earnings ratio = Market price per

Question 18

The comparative balance sheet of Ramos Company appears below:
(a) RAMOS COMPANY
Comparative Balance Sheet
December 31, 2012 and 2011
  Instructions
   Round percentage to one decimal place.

Accepted Answer

@#IMG-DLM&_TB2085_00

Question 19

Which of the following should be classified as an extraordinary item on the income statement?

Accepted Answer

A)  Gain on a sale of a long term investment. 
B)  Loss due to discontinued operations. 
C)  Restructuring charges. 
D)  Loss resulting from an infrequent natural disaster. 
A)  Gain on a sale of a long term investment. 
B)  Loss due to discontinued operations. 
C)  Restructuring charges. 
D)  Loss resulting from an infrequent natural disaster.

Question 20

A company reports the following:
   Determine the ratio of net sales to total assets. Round your answer to one decimal place.

Accepted Answer

Ratio of net sales to total as

In computing the rate earned on total assets, interest expense is subtracted from net income before dividing by average total assets.

The following information is available for Taylor Company: Which of the following statements is correct?

A loss due to a discontinued operation should be reported in the income statement

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

Revenue and expense data for Young Technologies are as follows: Required:

A company reports the following: Determine the (a) accounts receivable turnover, and (b) number of days' sales in receivables. Round your answer to one decimal place.

The following information pertains to Brock Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets Liabilities and Stockholders' Equity Income Statement What is the current ratio for this company?

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

The number of times interest expense is earned is computed as

In a common size balance sheet, the 100% figure is:

A company reports the following: Determine the (a) inventory turnover, and (b) number of days' sales in inventory. Round your answer to one decimal place.

The tendency of the rate earned on stockholders' equity to vary disproportionately from the rate earned on total assets is sometimes referred to as

Why would you or why wouldn't you compare an organization like Ford Motor Company to the local car dealer "Johnson City Ford/Lincoln/Mercury" in vertical and horizontal analysis?

What information is generally included in the Management Discussion and Analysis (MD&A) section of a corporate annual report?

A company reports the following: Determine the company's price-earnings ratio. Round your answer to one decimal place.

The comparative balance sheet of Ramos Company appears below: (a) RAMOS COMPANY Comparative Balance Sheet December 31, 2012 and 2011 Instructions Round percentage to one decimal place.

Which of the following should be classified as an extraordinary item on the income statement?

A company reports the following: Determine the ratio of net sales to total assets. Round your answer to one decimal place.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Filters

Exam 17: Financial Statement Analysis

In computing the rate earned on total assets, interest expense is subtracted from net income before dividing by average total assets.

The following information is available for Taylor Company: Which of the following statements is correct?

A loss due to a discontinued operation should be reported in the income statement

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

Revenue and expense data for Young Technologies are as follows: Required:

A company reports the following: Determine the (a) accounts receivable turnover, and (b) number of days' sales in receivables. Round your answer to one decimal place.

The following information pertains to Brock Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets Liabilities and Stockholders' Equity Income Statement What is the current ratio for this company?

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

The number of times interest expense is earned is computed as

In a common size balance sheet, the 100% figure is:

A company reports the following: Determine the (a) inventory turnover, and (b) number of days' sales in inventory. Round your answer to one decimal place.

The tendency of the rate earned on stockholders' equity to vary disproportionately from the rate earned on total assets is sometimes referred to as

Why would you or why wouldn't you compare an organization like Ford Motor Company to the local car dealer "Johnson City Ford/Lincoln/Mercury" in vertical and horizontal analysis?

What information is generally included in the Management Discussion and Analysis (MD&A) section of a corporate annual report?

A company reports the following: Determine the company's price-earnings ratio. Round your answer to one decimal place.

The comparative balance sheet of Ramos Company appears below: (a) RAMOS COMPANY Comparative Balance Sheet December 31, 2012 and 2011 Instructions Round percentage to one decimal place.

Which of the following should be classified as an extraordinary item on the income statement?

A company reports the following: Determine the ratio of net sales to total assets. Round your answer to one decimal place.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Filters