Question 1

The rate of return on net sales is a basic measure of operating efficiency and ___________________.

Accepted Answer

The answer of The rate of return on net sales...

Question 2

On a comparative income statement that shows horizontal analysis,the percentage of change in each category is based on gross sales for that year.

Accepted Answer

A) True 
 B)False

Question 3

The ability of a company to pay its debts when due is known as liquidity.

Accepted Answer

A) True 
 B)False

Question 4

Using the information given,analyze the profitability ratios of Sybaritic Corporation for 2017.

Accepted Answer

Rate of Return on Net Sales = 30.24%
Rat

Question 5

The price-earnings ratio compares the present market value of a corporation's common stock with the earnings per share of that stock.

Accepted Answer

A) True 
 B)False

Question 6

A company reported an expense of $30,000 for the current year that was $6,000 higher than the previous year.The increase from last year to this year was ____________________ percent.

Accepted Answer

The answer of A company reported an expense of $30,000...

Question 7

A company reported net income of $120,000.It paid a cash dividend of $20,000 to preferred stockholders and a cash dividend to common shareholders of $40,000.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 $120,000.It...

Question 8

Using the information given,analyze the liquidity of Sybaritic Corporation for the year 2017.

Accepted Answer

Working capital = $438,000
Cur

Question 9

In vertical analysis of the balance sheet,each item is expressed as a percentage of

Accepted Answer

A)  current liabilities. 
B)  current assets. 
C)  long-term liabilities. 
D)  total assets or of total liabilities and stockholders' equity. 
A)  current liabilities. 
B)  current assets. 
C)  long-term liabilities. 
D)  total assets or of total liabilities and stockholders' equity.

Question 10

Ratios are meaningful only when used to compare performance with rates of prior years and with the industry averages.

Accepted Answer

A) True 
 B)False

Question 11

Selected financial ratios for Opus Company and its industry averages are given.What does the information suggest about Opus?

Accepted Answer

Opus is well able to pay its debts when

Question 12

Using the information shown,prepare a vertical analysis of all asset items.Carry all calculations to two decimal places and then round to one decimal place.(Leave all percentages unadjusted. )

Accepted Answer

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

Question 13

The rate of return on total assets measures how effectively management has used the assets of the company.

Accepted Answer

A) True 
 B)False

Question 14

When horizontal analysis is performed,no percentage change is computed for a given item if there is no balance for that item in the base year.

Accepted Answer

A) True 
 B)False

Question 15

Common-size statements present comparative data side by side with items expressed as percentages.

Accepted Answer

A) True 
 B)False

Question 16

Using the information shown,prepare a horizontal 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 17

The number of times bond interest earned ratio provides bondholders and stockholders with information related to a company's ability to pay required bond interest payments from its earnings.

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& Conclusions: Although sales are increas

Question 19

Vertical analysis of income statement data most often involves a comparison of each income statement item with

Accepted Answer

A)  net sales. 
B)  gross profit on sales. 
C)  net income before taxes. 
D)  net income after taxes. 
A)  net sales. 
B)  gross profit on sales. 
C)  net income before taxes. 
D)  net income after taxes.

Question 20

Ratios can be classified into all of the following categories except:

Accepted Answer

A)  financial strength. 
B)  profitability. 
C)  liquidity. 
D)  marketability. 
A)  financial strength. 
B)  profitability. 
C)  liquidity. 
D)  marketability.

Exam 23: Financial Statement Analyses

The rate of return on net sales is a basic measure of operating efficiency and ___________________.

On a comparative income statement that shows horizontal analysis,the percentage of change in each category is based on gross sales for that year.

The ability of a company to pay its debts when due is known as liquidity.

Using the information given,analyze the profitability ratios of Sybaritic Corporation for 2017.

The price-earnings ratio compares the present market value of a corporation's common stock with the earnings per share of that stock.

A company reported an expense of $30,000 for the current year that was $6,000 higher than the previous year.The increase from last year to this year was ____________________ percent.

A company reported net income of $120,000.It paid a cash dividend of $20,000 to preferred stockholders and a cash dividend to common shareholders of $40,000.If the company has 20,000 shares of common stock outstanding,earnings per share would be ______________.

Using the information given,analyze the liquidity of Sybaritic Corporation for the year 2017.

In vertical analysis of the balance sheet,each item is expressed as a percentage of

Ratios are meaningful only when used to compare performance with rates of prior years and with the industry averages.

Selected financial ratios for Opus Company and its industry averages are given.What does the information suggest about Opus?

Using the information shown,prepare a vertical analysis of all asset items.Carry all calculations to two decimal places and then round to one decimal place.(Leave all percentages unadjusted. )

The rate of return on total assets measures how effectively management has used the assets of the company.

When horizontal analysis is performed,no percentage change is computed for a given item if there is no balance for that item in the base year.

Common-size statements present comparative data side by side with items expressed as percentages.

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

The number of times bond interest earned ratio provides bondholders and stockholders with information related to a company's ability to pay required bond interest payments from its earnings.

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?

Vertical analysis of income statement data most often involves a comparison of each income statement item with

Ratios can be classified into all of the following categories except:

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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