Question 1

If a firm's debt ratio was 25%, its debt/equity ratio would be:

Accepted Answer

A) 25%. 
B) 50%. 
C) 33.33%. 
D) 75%. 
A) 25%. 
B) 50%. 
C) 33.33%. 
D) 75%.

Question 2

The following information was available for the year ended December 31, 2019: $\begin{array}{lr}
\text { Earnings before interest and taxes (operating income) } & \$ 50,000 \
\text { Interest expense } & 10,000 \
\text { Income tax expense } & 12,000 \
\text { Net income } & 28,000 \
\text { Total assets at year-end } & 200,000 \
\text { Total liabilities at year-end } & 120,000
\end{array}$ The debt/equity ratio at December 31, 2019 was:

Accepted Answer

A) 40.0% 
B) 60.0% 
C) 66.7% 
D) 150.0% 
A) 40.0% 
B) 60.0% 
C) 66.7% 
D) 150.0%

Question 3

The following amounts were reported on the December 31, 2019, balance sheet: $$\begin{array} { l r } 
\text { Cash } & \mathbf {\$ 8 , 0 0 0 } \
\text { Land } & 20,000 \
\text { Accounts payable } & 15,000 \
\text { Bonds payable } & 120,000 \
\text { Merchandise irventory } & 30,000 \
\text { Retained earnings } & 80,000 \
\text { Buildings and equipment, net of accumulated depreciation } & 180,000 \
\text { Accounts receivable } & 22,000 \
\text { Common stock } & 40,000 \
\text { Wages payable } & 5,000
\end{array}$$ The acid-test ratio at December 31, 2019 was:

Accepted Answer

A) 1.5 
B) 2.0 
C) 3.0 
D) 4.0 
A) 1.5 
B) 2.0 
C) 3.0 
D) 4.0

Question 4

Asset turnover calculations:

Accepted Answer

A) are made by dividing the average asset balance during the year by the sales for the year. 
B) are made by dividing sales for the year by the asset balance at the end of the year. 
C) communicate information about how promptly the entity pays its bills. 
D) should be evaluated by observing the turnover trend over a period of time. 
A) are made by dividing the average asset balance during the year by the sales for the year. 
B) are made by dividing sales for the year by the asset balance at the end of the year. 
C) communicate information about how promptly the entity pays its bills. 
D) should be evaluated by observing the turnover trend over a period of time.

Question 5

Which of the following are examples of physical measures of activity that are sometimes disclosed in corporate annual reports?

Accepted Answer

A) Sales in units. 
B) Number of employees. 
C) Gross profit per square foot of selling space. 
D) Each of these are all examples of physical measures of activity that are sometimes reported in corporate annual reports. 
A) Sales in units. 
B) Number of employees. 
C) Gross profit per square foot of selling space. 
D) Each of these are all examples of physical measures of activity that are sometimes reported in corporate annual reports.

If a firm's debt ratio was 25%, its debt/equity ratio would be:

Asset turnover calculations:

Which of the following are examples of physical measures of activity that are sometimes disclosed in corporate annual reports?

Accountingpresent and Past

Financial Statements and Accounting Conceptsprinciples

Fundamental Interpretations Made From Financial Statement Data

The Bookkeeping Process and Transaction Analysis

Accounting for and Presentation of Current Assets

Accounting for and Presentation of Property, Plant, and Equipment,

Accounting for and Presentation of Liabilities

Accounting for and Presentation of Stockholders Equity

The Income Statement and the Statement of Cash Flows

Corporate Governance, Notes to the Financial Statements,

Managerial Accounting and Cost-Volume-Profit Relationships

Cost Accounting and Reporting

Cost Planning

Cost Control

Cost for Decision Making

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Exam 11: Financial Statement Analysis

If a firm's debt ratio was 25%, its debt/equity ratio would be:

Asset turnover calculations:

Which of the following are examples of physical measures of activity that are sometimes disclosed in corporate annual reports?

Accountingpresent and Past

Financial Statements and Accounting Conceptsprinciples

Fundamental Interpretations Made From Financial Statement Data

The Bookkeeping Process and Transaction Analysis

Accounting for and Presentation of Current Assets

Accounting for and Presentation of Property, Plant, and Equipment,

Accounting for and Presentation of Liabilities

Accounting for and Presentation of Stockholders Equity

The Income Statement and the Statement of Cash Flows

Corporate Governance, Notes to the Financial Statements,

Managerial Accounting and Cost-Volume-Profit Relationships

Cost Accounting and Reporting

Cost Planning

Cost Control

Cost for Decision Making

Filters