A) whether the firm can pay its long-term liabilities. B) the proportion of borrowed funds compared to equity. C) whether the firm can pay its current liabilities. D) profit as a portion of equity. A) whether the firm can pay its long-term liabilities. B) the proportion of borrowed funds compared to equity. C) whether the firm can pay its current liabilities. D) profit as a portion of equity.

Exam 19: Analysis and Interpretation of Financial Statements

Making Moves has the following data available. Sales $800 000 Selling expenses 160 000 Profit 320 000 Using vertical analysis,express selling expenses as a percentage of the base amount.

(Multiple Choice)

4.7/5

(40)

Question 41

Leverage measures:

(Multiple Choice)

4.8/5

(42)

Question 42

All of these are possible explanations of why profitability is inadequate except:

(Multiple Choice)

4.7/5

(27)

Question 43

Financial ratios are used for all of the following purposes except:

(Multiple Choice)

4.9/5

(46)

Question 44

Profit before finance costs is used in calculating return on total assets because:

(Multiple Choice)

4.8/5

(36)

Question 45

How many of these are limitations of financial analysis? I The past is an imperfect guide to the future II The effect of inflation is not considered III Undisclosed changes in accounting policies IV Inconsistent classification

(Multiple Choice)

4.7/5

(48)

Question 46

Kaplan has a current ratio of 2.5 to 1 and current liabilities of $12 000.If Kaplan has $9000 of inventory what is the quick ratio?

(Multiple Choice)

4.8/5

(35)

Question 47

Which statement relating to the debt ratio of a company is not true?

(Multiple Choice)

4.8/5

(39)

Question 48

Which statement is incorrect?

(Multiple Choice)

4.8/5

(36)

Question 49

Besides the information in annual reports,how many of these are sources of financial information about companies that are useful for analysing their performance and financial position? -The Internet -The Stock Exchange -Financial newspapers and journals -Stock brokers -Information on competitors

(Multiple Choice)

4.8/5

(37)

Question 50

Protan Ltd has the following summary balance sheet at year-end. Current assets $ 700 000 Long-term assets 1 000 000 Current liabilities 100 000 Long-term liabilities 300 000 Share capital 600 000 Retained earnings 700 000 The debt ratio at year-end is:

(Multiple Choice)

4.8/5

(35)

Question 51

Which of these are sources of financial information about companies? I.Published financial statements (annual reports) II.The Internet III.The Stock Exchange IV.Financial newspapers and journals V.Financial advisory services

(Multiple Choice)

4.8/5

(44)

Question 52

Belfast Water Works had a profit of $300 000 before tax,after deducting $27 000 in interest expense.Belfast's liabilities and equity total $2 725 000.Return on total assets,before finance costs and tax is:

(Multiple Choice)

4.8/5

(42)

Question 53

Per share Carrying value on 31 December,current year $25 Quoted market value on 31 December,current year 30 Earnings per share for the current year 6 Dividend per share for the current year 3 The price-earnings ratio of the shares for the current year is:

(Multiple Choice)

4.9/5

(41)

Question 54

Analysis of an entity's financial structure and its ability to continue to operate into the future and meet its long term cash obligations is known as:

(Multiple Choice)

4.9/5

(27)

Question 55

A company has a current ratio of 3:1.Which action will decrease this ratio?

(Multiple Choice)

4.8/5

(43)

Question 56

Buyer Co has ordered goods on credit from Seller Co.Before Seller ships the goods it would like to be sure that Buyer will be able to pay for them within the normal credit period.Assuming Seller has access to Buyer's financial statements,in which of the following ratios will Seller be most interested?

(Multiple Choice)

4.8/5

(36)

Question 57

Financial statements in which each item is stated as a percentage of some specific base item in the same statement are known as:

(Multiple Choice)

4.8/5

(33)

Question 58

Why is interest added back to profit before tax when calculating the rate of return on total assets?

(Multiple Choice)

4.8/5

(33)

Question 59

Which statement about capital market research and financial statement analysis is correct?

(Multiple Choice)

4.9/5

(33)

Question 60

Showing 41 - 60 of 65

Making Moves has the following data available. Sales $800 000 Selling expenses 160 000 Profit 320 000 Using vertical analysis,express selling expenses as a percentage of the base amount.

Leverage measures:

All of these are possible explanations of why profitability is inadequate except:

Financial ratios are used for all of the following purposes except:

Profit before finance costs is used in calculating return on total assets because:

How many of these are limitations of financial analysis? I The past is an imperfect guide to the future II The effect of inflation is not considered III Undisclosed changes in accounting policies IV Inconsistent classification

Kaplan has a current ratio of 2.5 to 1 and current liabilities of $12 000.If Kaplan has $9000 of inventory what is the quick ratio?

Which statement relating to the debt ratio of a company is not true?

Which statement is incorrect?

Besides the information in annual reports,how many of these are sources of financial information about companies that are useful for analysing their performance and financial position? -The Internet -The Stock Exchange -Financial newspapers and journals -Stock brokers -Information on competitors

Protan Ltd has the following summary balance sheet at year-end. Current assets $ 700 000 Long-term assets 1 000 000 Current liabilities 100 000 Long-term liabilities 300 000 Share capital 600 000 Retained earnings 700 000 The debt ratio at year-end is:

Which of these are sources of financial information about companies? I.Published financial statements (annual reports) II.The Internet III.The Stock Exchange IV.Financial newspapers and journals V.Financial advisory services

Belfast Water Works had a profit of $300 000 before tax,after deducting $27 000 in interest expense.Belfast's liabilities and equity total $2 725 000.Return on total assets,before finance costs and tax is:

Per share Carrying value on 31 December,current year $25 Quoted market value on 31 December,current year 30 Earnings per share for the current year 6 Dividend per share for the current year 3 The price-earnings ratio of the shares for the current year is:

Analysis of an entity's financial structure and its ability to continue to operate into the future and meet its long term cash obligations is known as:

A company has a current ratio of 3:1.Which action will decrease this ratio?

Financial statements in which each item is stated as a percentage of some specific base item in the same statement are known as:

Why is interest added back to profit before tax when calculating the rate of return on total assets?

Which statement about capital market research and financial statement analysis is correct?

Decision Making and the Role of Accounting

Financial Statements for Decision Making

Recording Transactions

Adjusting the Accounts and Preparing Financial Statements

Completing the Accounting Cycle Closing and Reversing Entries

Accounting for Retailing

Accounting for Systems

Partnerships: Formation,operation and Reporting

Companies: Formation and Operations

Regulation and the Conceptual Framework

Cash Management and Control

Receivables

Inventories

Non-Current Assets: Acquisition and Depreciation

Non-Current Assets: Revaluation,disposal and Other Aspects

Liabilities

Presentation of Financial Statements

Statement of Cash Flows

Filters