Question 1

A trend analysis to determine a year-to-year dollar amount change is calculated by:

Accepted Answer

A) subtracting the previous period amount from the current amount. 
B) subtracting the current period amount from the previous period amount. 
C) subtracting the current period amount from the previous period amount and then dividing the result by the previous period amount. 
D) subtracting the previous period amount from the current period amount and then dividing the result by the current period amount. 
A) subtracting the previous period amount from the current amount. 
B) subtracting the current period amount from the previous period amount. 
C) subtracting the current period amount from the previous period amount and then dividing the result by the previous period amount. 
D) subtracting the previous period amount from the current period amount and then dividing the result by the current period amount.

Question 2

A ratio that may be used to evaluate solvency is the:

Accepted Answer

A) Asset turnover ratio. 
B) Quick ratio. 
C) Current ratio. 
D) Times interest earned ratio. 
A) Asset turnover ratio. 
B) Quick ratio. 
C) Current ratio. 
D) Times interest earned ratio.

Question 3

Which ratio is used to evaluate how a company is managing its property,plant and equipment?

Accepted Answer

A) Accounts receivable turnover. 
B) Inventory turnover. 
C) Fixed asset turnover. 
D) Asset turnover. 
A) Accounts receivable turnover. 
B) Inventory turnover. 
C) Fixed asset turnover. 
D) Asset turnover.

Question 4

Which of the following is calculated by dividing cost of goods sold by average inventory and then dividing this result into 365 days?

Accepted Answer

A) Inventory turnover. 
B) Current ratio. 
C) Days to collect ratio. 
D) Days to sell ratio. 
A) Inventory turnover. 
B) Current ratio. 
C) Days to collect ratio. 
D) Days to sell ratio.

Question 5

A times interest earned ratio of 11 means that the company's:

Accepted Answer

A) net income is large enough to pay interest and taxes 11 times. 
B) net cash flow from operations before taxes and interest is large enough to pay interest and taxes 11 times. 
C) net cash flow from operations is large enough to pay interest and taxes 11 times. 
D) income before taxes and interest is large enough to pay interest 11 times. 
A) net income is large enough to pay interest and taxes 11 times. 
B) net cash flow from operations before taxes and interest is large enough to pay interest and taxes 11 times. 
C) net cash flow from operations is large enough to pay interest and taxes 11 times. 
D) income before taxes and interest is large enough to pay interest 11 times.

Question 6

A company has $72,500 in inventory at the beginning of the accounting period and $65,500 at the end of the accounting period.Sales revenue is $986,400,cost of goods sold is $572,700,and net income is $124,200 for the accounting period.On average,this company has inventory on hand for approximately:

Accepted Answer

A) 203 days. 
B) 44 days. 
C) 61 days. 
D) 26 days. 
A) 203 days. 
B) 44 days. 
C) 61 days. 
D) 26 days.

Question 7

Company X has net sales revenue of $436,000,cost of goods sold of $343,000,and all other expenses of $90,000.If interest expense is $10,000 and income tax expense is $1,000,the times interest earned ratio is closest to

Accepted Answer

A) 1.4. 
B) .33. 
C) 1.3. 
D) .40. 
A) 1.4. 
B) .33. 
C) 1.3. 
D) .40.

Question 8

If net income is rising,but sales and the gross profit percentage remain the same,then:

Accepted Answer

A) operating expenses are falling. 
B) operating expenses are rising. 
C) cost of goods sold is falling. 
D) cost of goods sold is rising. 
A) operating expenses are falling. 
B) operating expenses are rising. 
C) cost of goods sold is falling. 
D) cost of goods sold is rising.

Question 9

If the debt-to-assets ratio is 0.63,it means that 37% of the company's financing has been provided by stockholders' equity.A debt-to-assets ratio of 0.63 indicates that creditors contributed 63% of the company's financing,while stockholders provided only 37%.

Accepted Answer

A) True 
 B)False

Question 10

On December 31,2014 and 2015,a company had 10,000 shares of common stock outstanding.The following information is also available: Use the information above to answer the following question.The price/earnings ratio at December 31,2015 is closest to:

Accepted Answer

A) 0.35. 
B) 1.40. 
C) 0.28. 
D) 3.50. 
A) 0.35. 
B) 1.40. 
C) 0.28. 
D) 3.50.

A trend analysis to determine a year-to-year dollar amount change is calculated by:

A ratio that may be used to evaluate solvency is the:

Which ratio is used to evaluate how a company is managing its property,plant and equipment?

Which of the following is calculated by dividing cost of goods sold by average inventory and then dividing this result into 365 days?

A times interest earned ratio of 11 means that the company's:

A company has $72,500 in inventory at the beginning of the accounting period and $65,500 at the end of the accounting period.Sales revenue is $986,400,cost of goods sold is $572,700,and net income is $124,200 for the accounting period.On average,this company has inventory on hand for approximately:

Company X has net sales revenue of $436,000,cost of goods sold of $343,000,and all other expenses of $90,000.If interest expense is $10,000 and income tax expense is $1,000,the times interest earned ratio is closest to

If net income is rising,but sales and the gross profit percentage remain the same,then:

If the debt-to-assets ratio is 0.63,it means that 37% of the company's financing has been provided by stockholders' equity.A debt-to-assets ratio of 0.63 indicates that creditors contributed 63% of the company's financing,while stockholders provided only 37%.

On December 31,2014 and 2015,a company had 10,000 shares of common stock outstanding.The following information is also available: Use the information above to answer the following question.The price/earnings ratio at December 31,2015 is closest to:

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Activity-Based Costing and Cost Management

Cost Behavior

Cost-Volume-Profit Analysis

Incremental Analysis for Short-Term Decision Making

Budgetary Planning

Standard Costing and Variances

Decentralized Performance Evaluation

Capital Budgeting

Statement of Cash Flows

Filters

Exam 13: Measuring and Evaluating Financial Performance

A trend analysis to determine a year-to-year dollar amount change is calculated by:

A ratio that may be used to evaluate solvency is the:

Which ratio is used to evaluate how a company is managing its property,plant and equipment?

Which of the following is calculated by dividing cost of goods sold by average inventory and then dividing this result into 365 days?

A times interest earned ratio of 11 means that the company's:

A company has $72,500 in inventory at the beginning of the accounting period and $65,500 at the end of the accounting period.Sales revenue is $986,400,cost of goods sold is $572,700,and net income is $124,200 for the accounting period.On average,this company has inventory on hand for approximately:

Company X has net sales revenue of $436,000,cost of goods sold of $343,000,and all other expenses of $90,000.If interest expense is $10,000 and income tax expense is $1,000,the times interest earned ratio is closest to

If net income is rising,but sales and the gross profit percentage remain the same,then:

If the debt-to-assets ratio is 0.63,it means that 37% of the company's financing has been provided by stockholders' equity.A debt-to-assets ratio of 0.63 indicates that creditors contributed 63% of the company's financing,while stockholders provided only 37%.

On December 31,2014 and 2015,a company had 10,000 shares of common stock outstanding.The following information is also available: Use the information above to answer the following question.The price/earnings ratio at December 31,2015 is closest to:

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Activity-Based Costing and Cost Management

Cost Behavior

Cost-Volume-Profit Analysis

Incremental Analysis for Short-Term Decision Making

Budgetary Planning

Standard Costing and Variances

Decentralized Performance Evaluation

Capital Budgeting

Statement of Cash Flows

Filters