Question 1

A high times interest earned ratio means that a company has a high risk from borrowing.

Accepted Answer

A) True 
 B)False

Question 2

Blaise Corporation has net income of $187,000,net sales of $1,496,000 and average total assets of $1,040,000.Its return on total assets was:

Accepted Answer

A)  18.0%. 
B)  144.0%. 
C)  12.5%. 
D)  556.1%. 
E)  69.5%. 
A)  18.0%. 
B)  144.0%. 
C)  12.5%. 
D)  556.1%. 
E)  69.5%.

Question 3

Vertical analysis includes tools used to compare a company's financial condition and performance across time.

Accepted Answer

A) True 
 B)False

Question 4

The times interest earned formula is calculated by multiplying income by the interest rate on a company's debt.

Accepted Answer

A) True 
 B)False

Question 5

A share's market value is affected by:

Accepted Answer

A)  Expected growth in earnings. 
B)  Expected growth in dividends. 
C)  Expected business opportunities. 
D)  Expected growth in earnings and dividends. 
E)  All of these answers are correct. 
A)  Expected growth in earnings. 
B)  Expected growth in dividends. 
C)  Expected business opportunities. 
D)  Expected growth in earnings and dividends. 
E)  All of these answers are correct.

Question 6

Xtreme Sports had gross sales of $485,000 in Year 1 and $555,000 in Year 2.Its net sales were $475,300 for Year 1 and $541,500 for Year 2.Its average assets were $400,000 for Year 1 and $410,000 for Year 2.Calculate the total asset turnover for each year and comment on the company's efficiency in the use of its assets.

Accepted Answer

Year 1 = 1.2,Year 2 = 1.3 For every doll

Question 7

The following information refers to Annie's Attic and competitors in the antiques business.   Based on this information,comment on the relative liquidity positions of the three companies.

Accepted Answer

Both Chisolm's Collectibles and Bart's B

Question 8

Standards for comparison of performance are necessary when making judgments about a company's performance.

Accepted Answer

A) True 
 B)False

Question 9

Information from the current income statement of Barnes Corp follows:   Calculate the profit margin.

Accepted Answer

$35,600/$8

Question 10

The following financial data relates to Eighteen Corp,which has pledged all of its property,plant and equipment as security for its long-term notes payable:   Calculate the following ratios:
(A)Percentage of capital contributed by owners.(Equity ratio.)
(B)Pledged assets to secured liabilities.
(C)Times interest earned.

Accepted Answer

The answer of The following financial data relates to Eighteen...

Question 11

Showdown Co.had net sales of $680,000 and average accounts receivable of $64,000.Its accounts receivable turnover was 10.6.

Accepted Answer

A) True 
 B)False

Question 12

For trend analysis,the percent change is completed by subtracting the analysis period amount from the base period amount,dividing the result by the base period amount and multiplying that result by 100.

Accepted Answer

A) True 
 B)False

Question 13

External users of accounting information are often directly involved in running a company.

Accepted Answer

A) True 
 B)False

Question 14

The larger the times interest earned ratio,the greater the risk a company incurs.

Accepted Answer

A) True 
 B)False

Question 15

Chicago Company's cost of goods sold was $19,250.Its average merchandise inventory was $4,575.Its merchandise turnover was 4.2.

Accepted Answer

A) True 
 B)False

Question 16

The acid-test ratio differs from the current ratio:

Accepted Answer

A)  Because it excludes prepaid expenses and inventory. 
B)  Because liabilities are divided by current assets. 
C)  Because it measures profitability. 
D)  Because it excludes short-term investments. 
E)  Because it excludes prepaid expenses and inventory and because it measures profitability. 
A)  Because it excludes prepaid expenses and inventory. 
B)  Because liabilities are divided by current assets. 
C)  Because it measures profitability. 
D)  Because it excludes short-term investments. 
E)  Because it excludes prepaid expenses and inventory and because it measures profitability.

Question 17

CrossSport had average total assets of $697,000.Its gross sales were $3,090,000 and its net sales were $2,000,000.CrossSport's total asset turnover was:

Accepted Answer

A)  2.87. 
B)  .82. 
C)  1.2. 
D)  .64. 
E)  .34. 
A)  2.87. 
B)  .82. 
C)  1.2. 
D)  .64. 
E)  .34.

Question 18

The number of days' sales uncollected:

Accepted Answer

A)  Measures a company's ability to pay its bills on time. 
B)  Is calculated by dividing accounts receivable by sales. 
C)  Is used to evaluate the liquidity of receivables. 
D)  Measures a company's debt to income. 
E)  Is calculated by dividing sales by accounts receivablE. 
A)  Measures a company's ability to pay its bills on time. 
B)  Is calculated by dividing accounts receivable by sales. 
C)  Is used to evaluate the liquidity of receivables. 
D)  Measures a company's debt to income. 
E)  Is calculated by dividing sales by accounts receivablE.

Question 19

Using the following information,calculate the gross profit ratio for each of the following situations:

Accepted Answer

The answer of Using the following information,calculate the gross profit...

Question 20

Trekking Company reported the following data:   (1)Calculate Trekking Company's merchandise turnover for each year.
(2)Comment on the company's efficiency in managing its inventory.

Accepted Answer

(1) @#IMG-DLM& (2)Trekking Company's eff

A high times interest earned ratio means that a company has a high risk from borrowing.

Blaise Corporation has net income of $187,000,net sales of $1,496,000 and average total assets of $1,040,000.Its return on total assets was:

Vertical analysis includes tools used to compare a company's financial condition and performance across time.

The times interest earned formula is calculated by multiplying income by the interest rate on a company's debt.

A share's market value is affected by:

The following information refers to Annie's Attic and competitors in the antiques business. Based on this information,comment on the relative liquidity positions of the three companies.

Standards for comparison of performance are necessary when making judgments about a company's performance.

Information from the current income statement of Barnes Corp follows: Calculate the profit margin.

Showdown Co.had net sales of $680,000 and average accounts receivable of $64,000.Its accounts receivable turnover was 10.6.

For trend analysis,the percent change is completed by subtracting the analysis period amount from the base period amount,dividing the result by the base period amount and multiplying that result by 100.

External users of accounting information are often directly involved in running a company.

The larger the times interest earned ratio,the greater the risk a company incurs.

Chicago Company's cost of goods sold was $19,250.Its average merchandise inventory was $4,575.Its merchandise turnover was 4.2.

The acid-test ratio differs from the current ratio:

CrossSport had average total assets of $697,000.Its gross sales were $3,090,000 and its net sales were $2,000,000.CrossSport's total asset turnover was:

The number of days' sales uncollected:

Using the following information,calculate the gross profit ratio for each of the following situations:

Trekking Company reported the following data: (1)Calculate Trekking Company's merchandise turnover for each year. (2)Comment on the company's efficiency in managing its inventory.

Property,plant and Equipment,and Intangibles

Current Liabilities

Partnerships

Organization and Operation of Corporations

Corporate Reporting: Income,earnings Per Share,and Retained Earnings

Bonds and Long-Term Notes Payable

Accounting for Debt and Share Investments

Reporting and Analyzing Cash Flows

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Exam 18: Analyzing Financial Statements

A high times interest earned ratio means that a company has a high risk from borrowing.

Blaise Corporation has net income of $187,000,net sales of $1,496,000 and average total assets of $1,040,000.Its return on total assets was:

Vertical analysis includes tools used to compare a company's financial condition and performance across time.

The times interest earned formula is calculated by multiplying income by the interest rate on a company's debt.

A share's market value is affected by:

The following information refers to Annie's Attic and competitors in the antiques business. Based on this information,comment on the relative liquidity positions of the three companies.

Standards for comparison of performance are necessary when making judgments about a company's performance.

Information from the current income statement of Barnes Corp follows: Calculate the profit margin.

Showdown Co.had net sales of $680,000 and average accounts receivable of $64,000.Its accounts receivable turnover was 10.6.

For trend analysis,the percent change is completed by subtracting the analysis period amount from the base period amount,dividing the result by the base period amount and multiplying that result by 100.

External users of accounting information are often directly involved in running a company.

The larger the times interest earned ratio,the greater the risk a company incurs.

Chicago Company's cost of goods sold was $19,250.Its average merchandise inventory was $4,575.Its merchandise turnover was 4.2.

The acid-test ratio differs from the current ratio:

CrossSport had average total assets of $697,000.Its gross sales were $3,090,000 and its net sales were $2,000,000.CrossSport's total asset turnover was:

The number of days' sales uncollected:

Using the following information,calculate the gross profit ratio for each of the following situations:

Trekking Company reported the following data: (1)Calculate Trekking Company's merchandise turnover for each year. (2)Comment on the company's efficiency in managing its inventory.

Property,plant and Equipment,and Intangibles

Current Liabilities

Partnerships

Organization and Operation of Corporations

Corporate Reporting: Income,earnings Per Share,and Retained Earnings

Bonds and Long-Term Notes Payable

Accounting for Debt and Share Investments

Reporting and Analyzing Cash Flows

Filters