Question 1

The ____________________ is calculated by dividing current assets by current liabilities.

Accepted Answer

current ratio

Question 2

If total merchandise available for sale is 82 percent of net sales and ending inventory is 20 percent of net sales,gross profit on sales is

Accepted Answer

A)  20 percent of net sales. 
B)  36 percent of net sales. 
C)  38 percent of net sales. 
D)  58 percent of net sales. 
A)  20 percent of net sales. 
B)  36 percent of net sales. 
C)  38 percent of net sales. 
D)  58 percent of net sales. C

Question 3

A firm reported total liabilities of $60,000 and total stockholders' equity of $140,000.The amount of total liabilities is ____________________ percent of total assets.

Accepted Answer

30

Question 4

The yield on common stock is computed by dividing the dividend per share of common stock by the current ____________________ price of the share.

Accepted Answer

The answer of The yield on common stock is computed...

Question 5

A firm had current liabilities of $60,000 on December 31,2016,and $51,000 on December 31,2017.Current liabilities decreased by ____________________ percent.

Accepted Answer

The answer of A firm had current liabilities of $60,000...

Question 6

Which of the following is not true of vertical analysis?

Accepted Answer

A)  Each item on the balance sheet is expressed as a percentage of total liabilities. 
B)  The percentages can be added and subtracted from top to bottom. 
C)  Each item in the income statement is expressed as a percentage of net sales. 
D)  Each item on the balance sheet is expressed as a percentage of total assets. 
A)  Each item on the balance sheet is expressed as a percentage of total liabilities. 
B)  The percentages can be added and subtracted from top to bottom. 
C)  Each item in the income statement is expressed as a percentage of net sales. 
D)  Each item on the balance sheet is expressed as a percentage of total assets.

Question 7

Where the current ratio measures a company's ability to pay its current debts using current assets on a dollar for dollar basis,working capital provides a similar measure by providing the actual margin of security afforded to short-term creditors.

Accepted Answer

A) True 
 B)False

Question 8

Quick assets include cash,receivables,and inventories.

Accepted Answer

A) True 
 B)False

Question 9

A horizontal analysis of balance sheet data involves a comparison of a balance sheet amount on a given date with

Accepted Answer

A)  the total of the assets on the balance sheet for that date. 
B)  the net sales from the income statement for the period ending on that date. 
C)  the total stockholders' equity on the balance sheet for that date. 
D)  the amount for the same balance sheet item on a previous date. 
A)  the total of the assets on the balance sheet for that date. 
B)  the net sales from the income statement for the period ending on that date. 
C)  the total stockholders' equity on the balance sheet for that date. 
D)  the amount for the same balance sheet item on a previous date.

Question 10

Using the information given,discuss Lee Corporation's outcomes compared to J & S Partnership.

Accepted Answer

Lee Corporation has a higher cost of goo

Question 11

Financial statements presented side-by-side for two or more periods are called ____________________ statements.

Accepted Answer

The answer of Financial statements presented side-by-side for two or...

Question 12

On a comparative balance sheet that shows horizontal analysis,the percentage of change in total assets must equal the percentage of change in total liabilities and stockholders' equity.

Accepted Answer

A) True 
 B)False

Question 13

Using the information shown,prepare a vertical analysis.Carry all calculations to two decimal places and then round to one decimal place.

Accepted Answer

The answer of   Using the information shown,prepare a...

Question 14

If the ratio of total stockholders' equity to total assets was greater in 2017 than in 2016,then

Accepted Answer

A)  total assets increased by a greater amount than did total stockholders' equity. 
B)  the ratio of total liabilities to total assets was smaller in 2017 than in 2016. 
C)  creditors would consider it riskier to lend to this company in 2017 than in 2016. 
D)  the ratio of total liabilities to total assets was larger in 2017 than in 2016. 
A)  total assets increased by a greater amount than did total stockholders' equity. 
B)  the ratio of total liabilities to total assets was smaller in 2017 than in 2016. 
C)  creditors would consider it riskier to lend to this company in 2017 than in 2016. 
D)  the ratio of total liabilities to total assets was larger in 2017 than in 2016.

Question 15

A company reported net income of $80,000.It paid a cash dividend of $20,000 to preferred stockholders.If the company has 20,000 shares of common stock outstanding,earnings per share would be ______________.

Accepted Answer

The answer of A company reported net income of $80,000.It...

Question 16

Using the information given,analyze the financial strength of Sybaritic Corporation for 2017.

Accepted Answer

Number of times bond interest earned = 1

Question 17

Aston Corporation has a .7 to 1 ratio of stockholders' equity to total liabilities.If stockholders' equity is $420,000,then its total liabilities are $180,000.

Accepted Answer

A) True 
 B)False

Question 18

Using the information given below,calculate the gross profit percentage based on net sales.What conclusions can be made about this company based on this trend analysis?

Accepted Answer

@#IMG-DLM& Management has been able to increase sa

Question 19

In 2016,net sales were $672,000,cost of goods sold was $450,000.In 2015,net sales amounted to $600,000 and cost of goods sold was $400,000.In a comparative income statement,using vertical analysis,the 12% increase in net sales will be presented in the percentage column.

Accepted Answer

A) True 
 B)False

Question 20

Using the information given,discuss Lee Corporation's standing when compared to the industry averages.

Accepted Answer

Lee Corporation has a higher cost of goo

Exam 23: Financial Statement Analyses

The ____________________ is calculated by dividing current assets by current liabilities.

If total merchandise available for sale is 82 percent of net sales and ending inventory is 20 percent of net sales,gross profit on sales is

A firm reported total liabilities of $60,000 and total stockholders' equity of $140,000.The amount of total liabilities is ____________________ percent of total assets.

The yield on common stock is computed by dividing the dividend per share of common stock by the current ____________________ price of the share.

A firm had current liabilities of $60,000 on December 31,2016,and $51,000 on December 31,2017.Current liabilities decreased by ____________________ percent.

Which of the following is not true of vertical analysis?

Where the current ratio measures a company's ability to pay its current debts using current assets on a dollar for dollar basis,working capital provides a similar measure by providing the actual margin of security afforded to short-term creditors.

Quick assets include cash,receivables,and inventories.

A horizontal analysis of balance sheet data involves a comparison of a balance sheet amount on a given date with

Using the information given,discuss Lee Corporation's outcomes compared to J & S Partnership.

Financial statements presented side-by-side for two or more periods are called ____________________ statements.

On a comparative balance sheet that shows horizontal analysis,the percentage of change in total assets must equal the percentage of change in total liabilities and stockholders' equity.

Using the information shown,prepare a vertical analysis.Carry all calculations to two decimal places and then round to one decimal place.

If the ratio of total stockholders' equity to total assets was greater in 2017 than in 2016,then

A company reported net income of $80,000.It paid a cash dividend of $20,000 to preferred stockholders.If the company has 20,000 shares of common stock outstanding,earnings per share would be ______________.

Using the information given,analyze the financial strength of Sybaritic Corporation for 2017.

Aston Corporation has a .7 to 1 ratio of stockholders' equity to total liabilities.If stockholders' equity is $420,000,then its total liabilities are $180,000.

Using the information given below,calculate the gross profit percentage based on net sales.What conclusions can be made about this company based on this trend analysis?

In 2016,net sales were $672,000,cost of goods sold was $450,000.In 2015,net sales amounted to $600,000 and cost of goods sold was $400,000.In a comparative income statement,using vertical analysis,the 12% increase in net sales will be presented in the percentage column.

Using the information given,discuss Lee Corporation's standing when compared to the industry averages.

Accounting: the Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and the Postclosing Trial Balance

Accounting for Sales and Accounts Receivable

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Financial Statements and Closing Procedures

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

The Statement of Cash Flows

Departmentalized Profit and Cost Centers

Accounting for Manufacturing Activities

Job Order Cost Accounting

Process Cost Accounting

Controlling Manufacturing Costs: Standard Costs

Cost-Revenue Analysis for Decision Making

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