Question 1

Assume the following sales data for a company: $\begin{array}{ll}
\$ 1,017,000 & 2012 \
565,000 & 2011
\end{array}$ What is the percentage increase in sales from 2011 to 2012?

Accepted Answer

A)  100% 
B)  80% 
C)  180% 
D)  44.4% 
A)  100% 
B)  80% 
C)  180% 
D)  44.4%

Question 2

A company reports the following:
   Determine the (a) rate earned on stockholders' equity, and (b) rate earned on common stockholders' equity. Round your answer to one decimal place.

Accepted Answer

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

Question 3

Unusual items affecting the current period's income statement consist of changes in accounting principles and discontinued operations.

Accepted Answer

A) True 
 B)False

Question 4

In computing the ratio of net sales to assets, long-term investments are excluded from average total assets.

Accepted Answer

A) True 
 B)False

Question 5

A financial statement showing each item on the statement as a percentage of one key item on the statement is called common-sized financial statements.

Accepted Answer

A) True 
 B)False

Question 6

The following information was taken from the financial statement of Fox Resources for December 31 of the current fiscal year:
   The net income was $600,000 and the declared dividends on the common stock were $125,000 for the current year. The market price of the common stock is $20 per share.
Required:
Calculate for the common stock:
(1) earnings per share
(2) the price-earnings ratio
(3) the dividends per share and the dividend yield.
Round to one decimal place except earnings per share, which should be rounded to two decimal places.

Accepted Answer

The answer of The following information was taken from the...

Question 7

A company with working capital of $500,000 and a current ratio of 2.5 pays a $85,000 short-term liability. The amount of working capital immediately after payment is

Accepted Answer

A)  $585,000 
B)  $415,000 
C)  $500,000 
D)  $85,000 
A)  $585,000 
B)  $415,000 
C)  $500,000 
D)  $85,000

Question 8

Which of the following would appear as an extraordinary item on the income statement?

Accepted Answer

A)  loss resulting from the sale of fixed assets 
B)  gain resulting from the disposal of a segment of the business 
C)  loss from land condemned for public use 
D)  liquidating dividend 
A)  loss resulting from the sale of fixed assets 
B)  gain resulting from the disposal of a segment of the business 
C)  loss from land condemned for public use 
D)  liquidating dividend

Question 9

Which of the following is required by the Sarbanes-Oxley Act of 2002?

Accepted Answer

A)  A price-earnings ratio. 
B)  A report on internal control. 
C)  A vertical analysis. 
D)  A common-sized statement. 
A)  A price-earnings ratio. 
B)  A report on internal control. 
C)  A vertical analysis. 
D)  A common-sized statement.

Question 10

In the vertical analysis of a balance sheet, the base for current liabilities is total liabilities.

Accepted Answer

A) True 
 B)False

Question 11

In horizontal analysis, each item is expressed as a percentage of the

Accepted Answer

A)  base year figure. 
B)  retained earnings figure. 
C)  total assets figure. 
D)  net income figure. 
A)  base year figure. 
B)  retained earnings figure. 
C)  total assets figure. 
D)  net income figure.

Question 12

The balance sheets at the end of each of the first two years of operations indicate the following:   If net income is $115,000 and interest expense is $30,000 for 2012 what is the rate earned on total assets for 2012 (round percent to one decimal point)?

Accepted Answer

A)  9.3% 
B)  10.1% 
C)  8.0% 
D)  7.4% 
A)  9.3% 
B)  10.1% 
C)  8.0% 
D)  7.4%

Question 13

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

Accepted Answer

A)  gain on the retirement of a bond payable 
B)  gain from land condemned for public use 
C)  loss due to an discontinued operation 
D)  selling treasury stock for more than the company paid for it 
A)  gain on the retirement of a bond payable 
B)  gain from land condemned for public use 
C)  loss due to an discontinued operation 
D)  selling treasury stock for more than the company paid for it

Question 14

The comparative balance sheet of Ramos Company appears below:
(a) RAMOS COMPANY
Comparative Balance Sheet
December 31, 2012 and 2011
   Instructions

Accepted Answer

The answer of The comparative balance sheet of Ramos Company...

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 theft 
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 theft 
C)  loss due to a discontinued operations of the business 
D)  sale of a temporary investment at a loss

Question 16

A 15% change in sales will result in a 15% change in net income.

Accepted Answer

A) True 
 B)False

Question 17

The excess of current assets over current liabilities is referred to as working capital.

Accepted Answer

A) True 
 B)False

Question 18

Assuming that the quantities of inventory on hand during the current year were sufficient to meet all demands for sales, a decrease in the inventory turnover for the current year when compared with the turnover for the preceding year indicates an improvement in inventory management.

Accepted Answer

A) True 
 B)False

Question 19

Based on the following data for the current year, what is the number of days' sales in inventory? $\begin{array}{ll}
\$ 1,204,500 & \text { Net sales on account during year } \
657,000 & \text { Cost of merchandise sold churing year } \
75,000 & \text { Accounts receivable, begining of year } \
85,000 & \text { Accounts receivable, end of year } \
81,600 & \text { Inventory, beginning of year } \
98,600 & \text { Inventory, end of year }
\end{array}$

Accepted Answer

A)  50.1 
B)  45.3 
C)  24.7 
D)  29.9 
A)  50.1 
B)  45.3 
C)  24.7 
D)  29.9

Question 20

Based on the following data for the current year, what is the number of days' sales in accounts receivable? $\begin{array}{ll}
\$ 584,000 & \text { Net sales on account during year } \
300,000 & \text { Cost of merchanclise sold churingyear } \
45,000 & \text { Accounts receivable, beginning of year } \
35,000 & \text { Accounts receivable, end of year } \
90,000 & \text { Inventory, begining of year } \
110,000 & \text { Inventory, end of year }
\end{array}$

Accepted Answer

A)  7.3 
B)  2.5 
C)  14.6 
D)  25 
A)  7.3 
B)  2.5 
C)  14.6 
D)  25

Assume the following sales data for a company: \ 1,017,000 2012 565,000 2011 What is the percentage increase in sales from 2011 to 2012?

A company reports the following: Determine the (a) rate earned on stockholders' equity, and (b) rate earned on common stockholders' equity. Round your answer to one decimal place.

Unusual items affecting the current period's income statement consist of changes in accounting principles and discontinued operations.

In computing the ratio of net sales to assets, long-term investments are excluded from average total assets.

A financial statement showing each item on the statement as a percentage of one key item on the statement is called common-sized financial statements.

A company with working capital of $500,000 and a current ratio of 2.5 pays a $85,000 short-term liability. The amount of working capital immediately after payment is

Which of the following would appear as an extraordinary item on the income statement?

Which of the following is required by the Sarbanes-Oxley Act of 2002?

In the vertical analysis of a balance sheet, the base for current liabilities is total liabilities.

In horizontal analysis, each item is expressed as a percentage of the

The balance sheets at the end of each of the first two years of operations indicate the following: If net income is $115,000 and interest expense is $30,000 for 2012 what is the rate earned on total assets for 2012 (round percent to one decimal point)?

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

The comparative balance sheet of Ramos Company appears below: (a) RAMOS COMPANY Comparative Balance Sheet December 31, 2012 and 2011 Instructions

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

A 15% change in sales will result in a 15% change in net income.

The excess of current assets over current liabilities is referred to as working capital.

Assuming that the quantities of inventory on hand during the current year were sufficient to meet all demands for sales, a decrease in the inventory turnover for the current year when compared with the turnover for the preceding year indicates an improvement in inventory management.

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

Assume the following sales data for a company: \ 1,017,000 2012 565,000 2011 What is the percentage increase in sales from 2011 to 2012?

A company reports the following: Determine the (a) rate earned on stockholders' equity, and (b) rate earned on common stockholders' equity. Round your answer to one decimal place.

Unusual items affecting the current period's income statement consist of changes in accounting principles and discontinued operations.

In computing the ratio of net sales to assets, long-term investments are excluded from average total assets.

A financial statement showing each item on the statement as a percentage of one key item on the statement is called common-sized financial statements.

A company with working capital of $500,000 and a current ratio of 2.5 pays a $85,000 short-term liability. The amount of working capital immediately after payment is

Which of the following would appear as an extraordinary item on the income statement?

Which of the following is required by the Sarbanes-Oxley Act of 2002?

In the vertical analysis of a balance sheet, the base for current liabilities is total liabilities.

In horizontal analysis, each item is expressed as a percentage of the

The balance sheets at the end of each of the first two years of operations indicate the following: If net income is $115,000 and interest expense is $30,000 for 2012 what is the rate earned on total assets for 2012 (round percent to one decimal point)?

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

The comparative balance sheet of Ramos Company appears below: (a) RAMOS COMPANY Comparative Balance Sheet December 31, 2012 and 2011 Instructions

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

A 15% change in sales will result in a 15% change in net income.

The excess of current assets over current liabilities is referred to as working capital.

Assuming that the quantities of inventory on hand during the current year were sufficient to meet all demands for sales, a decrease in the inventory turnover for the current year when compared with the turnover for the preceding year indicates an improvement in inventory management.

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