Question 1

An organization that provides ratings of corporate governance services is:

Accepted Answer

A) SEC. 
B) ISS. 
C) IRS. 
D) IBM. 
A) SEC. 
B) ISS. 
C) IRS. 
D) IBM.

Question 2

Profitability measures
Shown below is a recent income statement for B-D Electric.   Assume that comparative balance sheets for B-D Electric indicate average total assets for the year of $2,500,000,and average total equity of $2,050,000.Compute the following:

Accepted Answer

The answer of Profitability measures
Shown below is a recent income...

Question 3

Financial ratios
Shown below are some key figures from the balance sheets of Minuteman Gas Company for two successive years:   Dividends of $96,000 were declared and paid in 2015.Compute the following:
Current ratio at end of 2014.
Current ratio at end of 2015.
Working capital at end of 2014.
Working capital at end of 2015.
Debt ratio at end of 2014.
Debt ratio at end of 2015.
Earnings per share for 2015.

Accepted Answer

The answer of Financial ratios
Shown below are some key figures...

Question 4

The yield rate on stock is measured by dividing dividends per share by market price per share.

Accepted Answer

A) True 
 B)False

Question 5

ROE - return on equity - is measured by dividing net income by average number of shares outstanding.

Accepted Answer

A) True 
 B)False

Question 6

The return on assets ratio usually is computed as:

Accepted Answer

A) Net sales divided by average total assets. 
B) Gross profit divided by average total assets. 
C) Operating income divided by average total assets. 
D) Net income divided by average total assets. 
A) Net sales divided by average total assets. 
B) Gross profit divided by average total assets. 
C) Operating income divided by average total assets. 
D) Net income divided by average total assets.

Question 7

A comparative financial statement:

Accepted Answer

A) Places the balance sheet,the income statement,and the statement of cash flows side-by-side in order to compare the results. 
B) Places two or more years of a financial statement side-by-side in order to compare results. 
C) Places the financial statements of two or more companies side-by-side in order to compare results. 
D) Places the dollar amounts next to the percentage amounts of a given year for the income statement. 
A) Places the balance sheet,the income statement,and the statement of cash flows side-by-side in order to compare the results. 
B) Places two or more years of a financial statement side-by-side in order to compare results. 
C) Places the financial statements of two or more companies side-by-side in order to compare results. 
D) Places the dollar amounts next to the percentage amounts of a given year for the income statement.

Question 8

A company's liquidity refers to its ability to remain profitable.

Accepted Answer

A) True 
 B)False

Question 9

Generally speaking,which appears to be a desirable current ratio?

Accepted Answer

A) 20 to 1. 
B) 1 to 20. 
C) 2 to 1. 
D) 1 to 2. 
A) 20 to 1. 
B) 1 to 20. 
C) 2 to 1. 
D) 1 to 2.

Question 10

The more pessimistic investors' expectations regarding a company's future performance,the lower the price-earnings ratio is likely to be.

Accepted Answer

A) True 
 B)False

Question 11

The changes in financial statement items from a base year to following years are called:

Accepted Answer

A) Money changes. 
B) Trend percentages. 
C) Component percentages. 
D) Ratios. 
A) Money changes. 
B) Trend percentages. 
C) Component percentages. 
D) Ratios.

Question 12

The return on equity ratio may be either higher or lower than the return on assets ratio.

Accepted Answer

A) True 
 B)False

Question 13

Effects of transactions upon analytical measurements
Determine the immediate effect of each of the transactions described below on the ratio listed beside each transaction.In the blank space to the left of each statement,you are to indicate the effect by writing the appropriate code letter.The code letters are as follows: I = increase the ratio,D = decrease the ratio,and NE = no effect on this ratio.

Accepted Answer

The answer of Effects of transactions upon analytical measurements
Determine the...

Question 14

Amalgamated Corporation's net income was $2,400,000 in 2014 and $800,000 in 2015.What percentage increase in net income must Amalgamated achieve in 2016 to offset the decline in profits in 2015?

Accepted Answer

A) 75%. 
B) 300%. 
C) 33.33%. 
D) 800%. 
A) 75%. 
B) 300%. 
C) 33.33%. 
D) 800%.

An organization that provides ratings of corporate governance services is:

Profitability measures Shown below is a recent income statement for B-D Electric. Assume that comparative balance sheets for B-D Electric indicate average total assets for the year of $2,500,000,and average total equity of $2,050,000.Compute the following:

The yield rate on stock is measured by dividing dividends per share by market price per share.

ROE - return on equity - is measured by dividing net income by average number of shares outstanding.

The return on assets ratio usually is computed as:

A comparative financial statement:

A company's liquidity refers to its ability to remain profitable.

Generally speaking,which appears to be a desirable current ratio?

The more pessimistic investors' expectations regarding a company's future performance,the lower the price-earnings ratio is likely to be.

The changes in financial statement items from a base year to following years are called:

The return on equity ratio may be either higher or lower than the return on assets ratio.

Amalgamated Corporation's net income was $2,400,000 in 2014 and $800,000 in 2015.What percentage increase in net income must Amalgamated achieve in 2016 to offset the decline in profits in 2015?

Accounting: Information for Decision Making

Basic Financial Statements

The Accounting Cycle: Capturing Economic Events

The Accounting Cycle: Accruals and Deferrals

The Accounting Cycle: Reporting Financial Results

Merchandising Activities

Financial Assets

Inventories and the Cost of Goods Sold

Plant and Intangible Assets

Liabilities

Stockholders Equity: Paid-In Capital

Income and Changes in Retained Earnings

Statement of Cash Flows

Global Business and Accounting

Management Accounting: a Business Partner

Job Order Cost Systems and Overhead Allocations

Process Costing

Costing and the Value Chain

Cost-Volume-Profit Analysis

Incremental Analysis

Responsibility Accounting and Transfer Pricing

Operational Budgeting

Standard Cost Systems

Rewarding Business Performance

Capital Budgeting

Forms of Business Organization

The Time Value of Money: Future Amounts and Present Values

Filters

Exam 14: Financial Statement Analysis

An organization that provides ratings of corporate governance services is:

Profitability measures Shown below is a recent income statement for B-D Electric. Assume that comparative balance sheets for B-D Electric indicate average total assets for the year of $2,500,000,and average total equity of $2,050,000.Compute the following:

The yield rate on stock is measured by dividing dividends per share by market price per share.

ROE - return on equity - is measured by dividing net income by average number of shares outstanding.

The return on assets ratio usually is computed as:

A comparative financial statement:

A company's liquidity refers to its ability to remain profitable.

Generally speaking,which appears to be a desirable current ratio?

The more pessimistic investors' expectations regarding a company's future performance,the lower the price-earnings ratio is likely to be.

The changes in financial statement items from a base year to following years are called:

The return on equity ratio may be either higher or lower than the return on assets ratio.

Amalgamated Corporation's net income was $2,400,000 in 2014 and $800,000 in 2015.What percentage increase in net income must Amalgamated achieve in 2016 to offset the decline in profits in 2015?

Accounting: Information for Decision Making

Basic Financial Statements

The Accounting Cycle: Capturing Economic Events

The Accounting Cycle: Accruals and Deferrals

The Accounting Cycle: Reporting Financial Results

Merchandising Activities

Financial Assets

Inventories and the Cost of Goods Sold

Plant and Intangible Assets

Liabilities

Stockholders Equity: Paid-In Capital

Income and Changes in Retained Earnings

Statement of Cash Flows

Global Business and Accounting

Management Accounting: a Business Partner

Job Order Cost Systems and Overhead Allocations

Process Costing

Costing and the Value Chain

Cost-Volume-Profit Analysis

Incremental Analysis

Responsibility Accounting and Transfer Pricing

Operational Budgeting

Standard Cost Systems

Rewarding Business Performance

Capital Budgeting

Forms of Business Organization

The Time Value of Money: Future Amounts and Present Values

Filters