Question 1

When a company sells used equipment for a loss, the net profit margin percentage is unaffected.

Accepted Answer

A) True 
 B)False

Question 2

A company whose inventory turnover ratio is much slower than the average for its industry may have too much inventory or the wrong sorts of inventory.

Accepted Answer

A) True 
 B)False

Question 3

The formula for total asset turnover is: Total asset turnover = Total assets ÷ Total stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 4

Settles Corporation has provided the following financial data:     Dividends on common stock during Year 2 totaled $5,400. The market price of common stock at the end of Year 2 was $5.89 per share. The company's return on equity for Year 2 is closest to:

Accepted Answer

A) 3.31% 
B) 8.50% 
C) 5.09% 
D) 50.52% 
A) 3.31% 
B) 8.50% 
C) 5.09% 
D) 50.52%

Question 5

Sperle Corporation has provided the following data concerning its stockholders' equity accounts:   Net income for Year 2 was $30,400. Dividends on common stock during Year 2 totaled $6,400. The market price of common stock at the end of Year 2 was $3.08 per share. The company's dividend yield ratio for Year 2 is closest to:

Accepted Answer

A) 21.1% 
B) 2.6% 
C) 1.6% 
D) 14.7% 
A) 21.1% 
B) 2.6% 
C) 1.6% 
D) 14.7%

Question 6

Tweedle Corporation's most recent balance sheet and income statement appear below:     The times interest earned for Year 2 is closest to:

Accepted Answer

A) 6.40 
B) 9.16 
C) 14.51 
D) 10.16 
A) 6.40 
B) 9.16 
C) 14.51 
D) 10.16

Question 7

Mahoe Corporation has provided the following financial data:     Dividends on common stock during Year 2 totaled $500. The market price of common stock at the end of Year 2 was $8.06 per share. The company's equity multiplier at the end of Year 2 is closest to:

Accepted Answer

A) 0.28 
B) 1.28 
C) 3.53 
D) 0.78 
A) 0.28 
B) 1.28 
C) 3.53 
D) 0.78

Question 8

Data from Fontecchio Corporation's most recent balance sheet appear below: $$\begin{array} { | l r | } 
\hline \text { Cash } & \$ 18,000 \
\hline \text { Marketable securities } & \$ 24,000 \
\hline \text { Accounts receivable } & \$ 39,000 \
\hline \text { Short-term notes receivable } & \$ 0 \
\hline \text { Inventory } & \$ 60,000 \
\hline \text { Prepaid expenses } & \$ 14,000 \
\hline \text { Current liabilities } & \$ 120,000 \
\hline
\end{array}$$ The corporation's acid-test ratio is closest to:

Accepted Answer

A) 0.35 
B) 0.15 
C) 0.68 
D) 0.79 
A) 0.35 
B) 0.15 
C) 0.68 
D) 0.79

Question 9

Dahn Corporation has provided the following financial data:     Dividends on common stock during Year 2 totaled $1,600. The market price of common stock at the end of Year 2 was $2.37 per share. The company's inventory turnover for Year 2 is closest to:

Accepted Answer

A) 6.54 
B) 5.67 
C) 6.07 
D) 0.87 
A) 6.54 
B) 5.67 
C) 6.07 
D) 0.87

Question 10

Crosswhite Corporation's sales last year were $1,270,000, its gross margin was $400,000, its net operating income was $53,769, and its net income was $26,500. The company's net profit margin percentage is closest to:

Accepted Answer

A) 31.5% 
B) 3.2% 
C) 4.2% 
D) 2.1% 
A) 31.5% 
B) 3.2% 
C) 4.2% 
D) 2.1%

Question 11

Data from Lheureux Corporation's most recent balance sheet and the company's income statement appear below:     The times interest earned for Year 2 is closest to:

Accepted Answer

A) 2.22 
B) 4.17 
C) 3.17 
D) 5.95 
A) 2.22 
B) 4.17 
C) 3.17 
D) 5.95

Question 12

The price-earnings ratio is determined by dividing market price per share of stock by the earnings per share.

Accepted Answer

A) True 
 B)False

Question 13

Sperle Corporation has provided the following data concerning its stockholders' equity accounts:   Net income for Year 2 was $30,400. Dividends on common stock during Year 2 totaled $6,400. The market price of common stock at the end of Year 2 was $3.08 per share. The company's book value per share at the end of Year 2 is closest to:

Accepted Answer

A) $0.38 per share 
B) $8.18 per share 
C) $18.08 per share 
D) $13.93 per share 
A) $0.38 per share 
B) $8.18 per share 
C) $18.08 per share 
D) $13.93 per share

Question 14

Settles Corporation has provided the following financial data:     Dividends on common stock during Year 2 totaled $5,400. The market price of common stock at the end of Year 2 was $5.89 per share. The company's price-earnings ratio for Year 2 is closest to:

Accepted Answer

A) 19.00 
B) 12.53 
C) 7.46 
D) 1.52 
A) 19.00 
B) 12.53 
C) 7.46 
D) 1.52

Question 15

Karma Corporation has total assets of $190,000 and total liabilities of $90,000. The corporation's debt-to-equity ratio is closest to:

Accepted Answer

A) 0.47 
B) 0.90 
C) 0.53 
D) 0.32 
A) 0.47 
B) 0.90 
C) 0.53 
D) 0.32

Question 16

Garrott Corporation's total assets were $1,505,000 at the end of Year 2 and $1,520,000 at the end of Year 1. Its total stockholders' equity was $1,197,000 at the end of Year 2 and $1,180,000 at the end of Year 1.   The company's net profit margin percentage for Year 2 is closest to:

Accepted Answer

A) 1.9% 
B) 2.7% 
C) 3.3% 
D) 38.1% 
A) 1.9% 
B) 2.7% 
C) 3.3% 
D) 38.1%

Question 17

Mondok Corporation has provided the following financial data:     Required:
a. What is the company's working capital at the end of Year 2?
b. What is the company's current ratio at the end of Year 2?
c. What is the company's acid-test (quick) ratio at the end of Year 2?
d. What is the company's accounts receivable turnover for Year 2?
e. What is the company's average collection period (age of receivables) for Year 2?
f. What is the company's inventory turnover for Year 2?
g. What is the company's average sale period (turnover in days) for Year 2?
h. What is the company's operating cycle for Year 2?
i. What is the company's total asset turnover for Year 2?
j. What is the company's times interest earned for Year 2?
k. What is the company's debt-to-equity ratio at the end of Year 2?
l. What is the company's equity multiplier at the end of Year 2?

Accepted Answer

a. Working capital = Current assets - Cu

Question 18

The accounts receivable for Note Corporation was $240,000 at the beginning of the year and $260,000 at the end of the year. If the accounts receivable turnover for the year was 8 and 20% of the total sales were cash sales, the total sales for the year were:

Accepted Answer

A) $2,600,000 
B) $2,000,000 
C) $2,400,000 
D) $2,500,000 
A) $2,600,000 
B) $2,000,000 
C) $2,400,000 
D) $2,500,000

Question 19

Macmillan Corporation has provided the following financial data:     Dividends on common stock during Year 2 totaled $7,200. The market price of common stock at the end of Year 2 was $3.69 per share. The company's working capital at the end of Year 2 is:

Accepted Answer

A) $732,000 
B) $831,000 
C) $289,000 
D) $590,000 
A) $732,000 
B) $831,000 
C) $289,000 
D) $590,000

Question 20

Frantic Corporation had $130,000 in sales on account last year. The beginning accounts receivable balance was $10,000 and the ending accounts receivable balance was $16,000. The corporation's accounts receivable turnover was closest to:

Accepted Answer

A) 5.00 
B) 13.00 
C) 10.00 
D) 8.13 
A) 5.00 
B) 13.00 
C) 10.00 
D) 8.13

When a company sells used equipment for a loss, the net profit margin percentage is unaffected.

A company whose inventory turnover ratio is much slower than the average for its industry may have too much inventory or the wrong sorts of inventory.

The formula for total asset turnover is: Total asset turnover = Total assets ÷ Total stockholders' equity.

Settles Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $5,400. The market price of common stock at the end of Year 2 was $5.89 per share. The company's return on equity for Year 2 is closest to:

Tweedle Corporation's most recent balance sheet and income statement appear below: The times interest earned for Year 2 is closest to:

Mahoe Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $500. The market price of common stock at the end of Year 2 was $8.06 per share. The company's equity multiplier at the end of Year 2 is closest to:

Dahn Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $1,600. The market price of common stock at the end of Year 2 was $2.37 per share. The company's inventory turnover for Year 2 is closest to:

Crosswhite Corporation's sales last year were $1,270,000, its gross margin was $400,000, its net operating income was $53,769, and its net income was $26,500. The company's net profit margin percentage is closest to:

Data from Lheureux Corporation's most recent balance sheet and the company's income statement appear below: The times interest earned for Year 2 is closest to:

The price-earnings ratio is determined by dividing market price per share of stock by the earnings per share.

Settles Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $5,400. The market price of common stock at the end of Year 2 was $5.89 per share. The company's price-earnings ratio for Year 2 is closest to:

Karma Corporation has total assets of $190,000 and total liabilities of $90,000. The corporation's debt-to-equity ratio is closest to:

Garrott Corporation's total assets were $1,505,000 at the end of Year 2 and $1,520,000 at the end of Year 1. Its total stockholders' equity was $1,197,000 at the end of Year 2 and $1,180,000 at the end of Year 1. The company's net profit margin percentage for Year 2 is closest to:

The accounts receivable for Note Corporation was $240,000 at the beginning of the year and $260,000 at the end of the year. If the accounts receivable turnover for the year was 8 and 20% of the total sales were cash sales, the total sales for the year were:

Macmillan Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $7,200. The market price of common stock at the end of Year 2 was $3.69 per share. The company's working capital at the end of Year 2 is:

Frantic Corporation had $130,000 in sales on account last year. The beginning accounts receivable balance was $10,000 and the ending accounts receivable balance was $16,000. The corporation's accounts receivable turnover was closest to:

Managerial Accounting and Cost Concepts

Job-Order Costing

Activity-Based Costing

Process Costing

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Master Budgeting

Flexible Budgets, Standard Costs, and Variance Analysis

Performance Measurement in Decentralized Organizations

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Journal Entries to Record Variances

The Concept of Present Value

The Direct Method of Determining the Net Cash Provided by Operating Activities

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Exam 13: Financial Statement Analysis

When a company sells used equipment for a loss, the net profit margin percentage is unaffected.

A company whose inventory turnover ratio is much slower than the average for its industry may have too much inventory or the wrong sorts of inventory.

The formula for total asset turnover is: Total asset turnover = Total assets ÷ Total stockholders' equity.

Settles Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $5,400. The market price of common stock at the end of Year 2 was $5.89 per share. The company's return on equity for Year 2 is closest to:

Tweedle Corporation's most recent balance sheet and income statement appear below: The times interest earned for Year 2 is closest to:

Mahoe Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $500. The market price of common stock at the end of Year 2 was $8.06 per share. The company's equity multiplier at the end of Year 2 is closest to:

Dahn Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $1,600. The market price of common stock at the end of Year 2 was $2.37 per share. The company's inventory turnover for Year 2 is closest to:

Crosswhite Corporation's sales last year were $1,270,000, its gross margin was $400,000, its net operating income was $53,769, and its net income was $26,500. The company's net profit margin percentage is closest to:

Data from Lheureux Corporation's most recent balance sheet and the company's income statement appear below: The times interest earned for Year 2 is closest to:

The price-earnings ratio is determined by dividing market price per share of stock by the earnings per share.

Settles Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $5,400. The market price of common stock at the end of Year 2 was $5.89 per share. The company's price-earnings ratio for Year 2 is closest to:

Karma Corporation has total assets of $190,000 and total liabilities of $90,000. The corporation's debt-to-equity ratio is closest to:

Garrott Corporation's total assets were $1,505,000 at the end of Year 2 and $1,520,000 at the end of Year 1. Its total stockholders' equity was $1,197,000 at the end of Year 2 and $1,180,000 at the end of Year 1. The company's net profit margin percentage for Year 2 is closest to:

The accounts receivable for Note Corporation was $240,000 at the beginning of the year and $260,000 at the end of the year. If the accounts receivable turnover for the year was 8 and 20% of the total sales were cash sales, the total sales for the year were:

Macmillan Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $7,200. The market price of common stock at the end of Year 2 was $3.69 per share. The company's working capital at the end of Year 2 is:

Frantic Corporation had $130,000 in sales on account last year. The beginning accounts receivable balance was $10,000 and the ending accounts receivable balance was $16,000. The corporation's accounts receivable turnover was closest to:

Managerial Accounting and Cost Concepts

Job-Order Costing

Activity-Based Costing

Process Costing

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Master Budgeting

Flexible Budgets, Standard Costs, and Variance Analysis

Performance Measurement in Decentralized Organizations

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Journal Entries to Record Variances

The Concept of Present Value

The Direct Method of Determining the Net Cash Provided by Operating Activities

Filters