Question 1

The numerator used to calculate accounts receivable turnover is

Accepted Answer

A) total sales 
B) net sales 
C) accounts receivable at year-end 
D) average accounts receivable 
A) total sales 
B) net sales 
C) accounts receivable at year-end 
D) average accounts receivable

Question 2

The following information pertains to Carlton 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 total assets for this company? Round your answer to one decimal point.

Accepted Answer

A) 8.5% 
B) 6.8% 
C) 10.3% 
D) 13.3% 
A) 8.5% 
B) 6.8% 
C) 10.3% 
D) 13.3%

Question 3

A company can use comparisons of its financial data to the data of other companies and industry values to evaluate its position.

Accepted Answer

A) True 
 B)False

Question 4

The number of days' sales in inventory is one means of expressing the relationship between the cost of goods sold and inventory.

Accepted Answer

A) True 
 B)False

Question 5

All of the following are typically included in the Management's Discussion and Analysis in annual reports except:

Accepted Answer

A) explanations of any significant changes between the current and prior years' financial statements. 
B) management's assessment of liquidity. 
C) journal entries. 
D) off-balance-sheet arrangements 
A) explanations of any significant changes between the current and prior years' financial statements. 
B) management's assessment of liquidity. 
C) journal entries. 
D) off-balance-sheet arrangements

Question 6

When you are interpreting financial ratios,it is useful to compare a company's ratios to some form of standard.

Accepted Answer

A) True 
 B)False

Question 7

Condensed data taken from the ledger of Joplin Company at December 31,2012 and 2011,are as follows:
   
Prepare a comparative balance sheet,with horizontal analysis,for December 31,2012 and 2011.(Round percents to one decimal point. )

Accepted Answer

The answer of Condensed data taken from the ledger of...

Question 8

A company reports the following income statement and balance sheet information for the current year:
   
Determine the rate earned on total assets.Round your answer to one decimal place.

Accepted Answer

Rate earned on total assets = (Net incom

Question 9

Comparable financial statements are designed to compare the financial statements of two or more corporations.

Accepted Answer

A) True 
 B)False

Question 10

A balance sheet shows cash,$75,000;marketable securities,$115,000;receivables,$150,000 and $222,500 of inventories.Current liabilities are $225,000.The current ratio is 2.5 to 1.

Accepted Answer

A) True 
 B)False

Question 11

A company reports the following:
 $\begin{array}{lr}
\text {Net income }&\$270,000\
\text {Preferred dividends }&\$10,000\
\text {Share s of common stock out standing }&20,000\\text { Market price per share of common stock }&\$36.40
\end{array}$
 
Determine the company's price-earnings ratio.Round your answer to one decimal place.

Accepted Answer

Price-earnings ratio = Market price per

Question 12

The percent of fixed assets to total assets is an example of

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 13

Ratios and various other analytical measures are not a substitute for sound judgment,nor do they provide definitive guides for action.

Accepted Answer

A) True 
 B)False

Question 14

Those unusual items reported as deductions from income from continuing operations should be listed net of the related income tax.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following should be reported net of the related income tax effect on the income statement?

Accepted Answer

A) sale of an inventory item at a loss 
B) loss due to sale of fixed assets 
C) loss due to a discontinued operations of the business 
D) sale of a temporary investment at a loss 
A) sale of an inventory item at a loss 
B) loss due to sale of fixed assets 
C) loss due to a discontinued operations of the business 
D) sale of a temporary investment at a loss

Question 16

Which of the following below generally is the most useful in analyzing companies of different sizes

Accepted Answer

A) comparative statements 
B) common-sized financial statements 
C) price-level accounting 
D) audit report 
A) comparative statements 
B) common-sized financial statements 
C) price-level accounting 
D) audit report

Question 17

From the following data,determine for the current year the (a)rate earned on total assets, (b)rate earned on stockholders' equity, (c)rate earned on common stockholders' equity, (d)earnings per share on common stock, (e)price-earnings ratio on common stock,and (f)dividend yield on common stock.Assume that the current market price per share of common stock is $25.(Present key figures used in your computations. )
Round percentage values to one decimal place,dollar values to two decimal places,and other ratios to one decimal place.

Accepted Answer

(a)
 @#IMG-DLM& (b)

Question 18

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

The answer of A company reports the following:
  ...

Question 19

The ratio of the sum of cash,receivables,and marketable securities to current liabilities is referred to as the current ratio.

Accepted Answer

A) True 
 B)False

Question 20

An extraordinary item results from

Accepted Answer

A) a segment of the business being sold. 
B) corporate income tax being paid. 
C) a change from one accounting method to another acceptable accounting method. 
D) a transaction or event that is unusual and occurs infrequently. 
A) a segment of the business being sold. 
B) corporate income tax being paid. 
C) a change from one accounting method to another acceptable accounting method. 
D) a transaction or event that is unusual and occurs infrequently.

The numerator used to calculate accounts receivable turnover is

A company can use comparisons of its financial data to the data of other companies and industry values to evaluate its position.

The number of days' sales in inventory is one means of expressing the relationship between the cost of goods sold and inventory.

All of the following are typically included in the Management's Discussion and Analysis in annual reports except:

When you are interpreting financial ratios,it is useful to compare a company's ratios to some form of standard.

Condensed data taken from the ledger of Joplin Company at December 31,2012 and 2011,are as follows: Prepare a comparative balance sheet,with horizontal analysis,for December 31,2012 and 2011.(Round percents to one decimal point. )

A company reports the following income statement and balance sheet information for the current year: Determine the rate earned on total assets.Round your answer to one decimal place.

Comparable financial statements are designed to compare the financial statements of two or more corporations.

A balance sheet shows cash,$75,000;marketable securities,$115,000;receivables,$150,000 and $222,500 of inventories.Current liabilities are $225,000.The current ratio is 2.5 to 1.

A company reports the following: Net income \2 70,000 Preferred dividends \1 0,000 Share s of common stock out standing 20,000 Market price per share of common stock \3 6.40 Determine the company's price-earnings ratio.Round your answer to one decimal place.

The percent of fixed assets to total assets is an example of

Ratios and various other analytical measures are not a substitute for sound judgment,nor do they provide definitive guides for action.

Those unusual items reported as deductions from income from continuing operations should be listed net of the related income tax.

Which of the following should be reported net of the related income tax effect on the income statement?

Which of the following below generally is the most useful in analyzing companies of different sizes

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 ratio of the sum of cash,receivables,and marketable securities to current liabilities is referred to as the current ratio.

An extraordinary item results from

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization, stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Filters

Exam 15: Financial Statement Analysis

The numerator used to calculate accounts receivable turnover is

A company can use comparisons of its financial data to the data of other companies and industry values to evaluate its position.

The number of days' sales in inventory is one means of expressing the relationship between the cost of goods sold and inventory.

All of the following are typically included in the Management's Discussion and Analysis in annual reports except:

When you are interpreting financial ratios,it is useful to compare a company's ratios to some form of standard.

Condensed data taken from the ledger of Joplin Company at December 31,2012 and 2011,are as follows: Prepare a comparative balance sheet,with horizontal analysis,for December 31,2012 and 2011.(Round percents to one decimal point. )

A company reports the following income statement and balance sheet information for the current year: Determine the rate earned on total assets.Round your answer to one decimal place.

Comparable financial statements are designed to compare the financial statements of two or more corporations.

A balance sheet shows cash,$75,000;marketable securities,$115,000;receivables,$150,000 and $222,500 of inventories.Current liabilities are $225,000.The current ratio is 2.5 to 1.

A company reports the following: Net income \2 70,000 Preferred dividends \1 0,000 Share s of common stock out standing 20,000 Market price per share of common stock \3 6.40 Determine the company's price-earnings ratio.Round your answer to one decimal place.

The percent of fixed assets to total assets is an example of

Ratios and various other analytical measures are not a substitute for sound judgment,nor do they provide definitive guides for action.

Those unusual items reported as deductions from income from continuing operations should be listed net of the related income tax.

Which of the following should be reported net of the related income tax effect on the income statement?

Which of the following below generally is the most useful in analyzing companies of different sizes

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 ratio of the sum of cash,receivables,and marketable securities to current liabilities is referred to as the current ratio.

An extraordinary item results from

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization, stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Filters