Question 1

Land does not depreciate.

Accepted Answer

A) True 
 B)False  True

Question 2

Horizontal analysis need not be done using comparative reports.

Accepted Answer

A) True 
 B)False  False

Question 3

Complete:
   
A. $42,000;
B. 23.81%;
C. 16.67%;
D. 9.52%;
E. 50.00%

Accepted Answer

The answer of Complete:
   
A. $42,000;
B. 23.81%;
C. 16.67%;
D....

Question 4

Complete the following vertical analysis of a balance sheet:   (Round to nearest tenth percent.)

Accepted Answer

A)  11.6%, 8.1%, 71.8%, 8.5% 
B)  11.5%, 8.0%, 72%, 11.7% 
C)  13%, 8.6%, 80%, 12.7% 
D)  15%, 10.2%, 66.1%, 12.5% 
E)  None of these 
A)  11.6%, 8.1%, 71.8%, 8.5% 
B)  11.5%, 8.0%, 72%, 11.7% 
C)  13%, 8.6%, 80%, 12.7% 
D)  15%, 10.2%, 66.1%, 12.5% 
E)  None of these

Question 5

Solve for (A) current ratio, (B) acid test (quick), (C) average day's collection (360), (D) asset turnover, and (E) profit margin on sales. Round to nearest hundredth or hundredth percent as needed.
   
A. 1.31;
B. 1.09;
C. 37 days;
D. 1.28;
E. 14.63%

Accepted Answer

The answer of Solve for (A) current ratio, (B) acid...

Question 6

The cost of merchandise sold from the following data is as follows: sales $80,000, beginning inventory $5,000, purchases $21,800, purchase discounts $790, ending inventory $5,100.

Accepted Answer

A)  $21,560 
B)  $20,190 
C)  $20,910 
D)  $21,650 
E)  None of these 
A)  $21,560 
B)  $20,190 
C)  $20,910 
D)  $21,650 
E)  None of these

Question 7

The return on equity ratio looks at how effectively assets are being utilized.

Accepted Answer

A) True 
 B)False

Question 8

Alice Co. has a current ratio of 2.7. The acid test ratio is 2.2. The current liabilities of Alice Co. are $46,000. Could you calculate the dollar amount of merchandise inventory?

Accepted Answer

The answer of Alice Co. has a current ratio of...

Question 9

In horizontal analysis the oldest year is the base.

Accepted Answer

A) True 
 B)False

Question 10

The acid test ratio does not include:

Accepted Answer

A)  Cash 
B)  Accounts receivable 
C)  Supplies 
D)  Inventory 
E)  None of these 
A)  Cash 
B)  Accounts receivable 
C)  Supplies 
D)  Inventory 
E)  None of these

Question 11

Which one is not used to calculate net sales?

Accepted Answer

A)  Purchases 
B)  Sales discount 
C)  Sales returns and allowance 
D)  Gross sales 
E)  None of these 
A)  Purchases 
B)  Sales discount 
C)  Sales returns and allowance 
D)  Gross sales 
E)  None of these

Question 12

Trend analysis expresses each number as a percent of the base year.

Accepted Answer

A) True 
 B)False

Question 13

A return on equity of 17% implies which of the following?

Accepted Answer

A)  For every 17 cents invested, a return of $1.00 results 
B)  For every $1.00 invested, a return of 17 cents results 
C)  For every $1.17 invested, a return of 17 cents results 
D)  For every $10.00 invested, a return of $1.17 results 
E)  None of the above 
A)  For every 17 cents invested, a return of $1.00 results 
B)  For every $1.00 invested, a return of 17 cents results 
C)  For every $1.17 invested, a return of 17 cents results 
D)  For every $10.00 invested, a return of $1.17 results 
E)  None of the above

Question 14

Reductions in the selling price for early payment are called sales returns and allowances.

Accepted Answer

A) True 
 B)False

Question 15

A relationship of one number to another is a ratio.

Accepted Answer

A) True 
 B)False

Question 16

The company's gross profit based on the following is sales $48,000, sales returns and allowances $6,000, operating expenses $6,200, beginning inventory $900, net purchases $9,100, ending inventory $2,300.

Accepted Answer

A)  $34,000 
B)  $43,000 
C)  $34,003 
D)  $34,300 
E)  None of these 
A)  $34,000 
B)  $43,000 
C)  $34,003 
D)  $34,300 
E)  None of these

Question 17

The income statement shows the financial condition of a business over a period of time.

Accepted Answer

A) True 
 B)False

Question 18

Cost of merchandise sold is equal to beginning inventory minus net purchases minus ending inventory.

Accepted Answer

A) True 
 B)False

Question 19

A ratio of 4:5:2 mean that out of 11 parts it is divided up as 4/11, 5/11, 2/11.

Accepted Answer

A) True 
 B)False

Question 20

The asset turnover from the following is (round to nearest tenth):

Accepted Answer

A)  1.7 
B)  1.5 
C)  1.9 
D)  1.6 
E)  None of these 
A)  1.7 
B)  1.5 
C)  1.9 
D)  1.6 
E)  None of these

Land does not depreciate.

Horizontal analysis need not be done using comparative reports.

Complete: A. $42,000; B. 23.81%; C. 16.67%; D. 9.52%; E. 50.00%

Complete the following vertical analysis of a balance sheet: (Round to nearest tenth percent.)

Solve for (A) current ratio, (B) acid test (quick), (C) average day's collection (360), (D) asset turnover, and (E) profit margin on sales. Round to nearest hundredth or hundredth percent as needed. A. 1.31; B. 1.09; C. 37 days; D. 1.28; E. 14.63%

The cost of merchandise sold from the following data is as follows: sales $80,000, beginning inventory $5,000, purchases $21,800, purchase discounts $790, ending inventory $5,100.

The return on equity ratio looks at how effectively assets are being utilized.

Alice Co. has a current ratio of 2.7. The acid test ratio is 2.2. The current liabilities of Alice Co. are $46,000. Could you calculate the dollar amount of merchandise inventory?

In horizontal analysis the oldest year is the base.

The acid test ratio does not include:

Which one is not used to calculate net sales?

Trend analysis expresses each number as a percent of the base year.

A return on equity of 17% implies which of the following?

Reductions in the selling price for early payment are called sales returns and allowances.

A relationship of one number to another is a ratio.

The company's gross profit based on the following is sales $48,000, sales returns and allowances $6,000, operating expenses $6,200, beginning inventory $900, net purchases $9,100, ending inventory $2,300.

The income statement shows the financial condition of a business over a period of time.

Cost of merchandise sold is equal to beginning inventory minus net purchases minus ending inventory.

A ratio of 4:5:2 mean that out of 11 parts it is divided up as 4/11, 5/11, 2/11.

The asset turnover from the following is (round to nearest tenth):

Whole Numbers: How to Dissect and Solve Word Problems

Fractions

Decimals

Banking

Solving for the Unknown: a How-To Approach for Solving Equations

Percents and Their Applications

Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

Payroll

Simple Interest

Promissory Notes, Simple Discount Notes, and the Discount Process

Compound Interest and Present Value

Annuities and Sinking Funds

Installment Buying

The Cost of Home Ownership

Depreciation

Inventory and Overhead

Sales, Excise, and Property Taxes

Filters

Exam 16: How to Read, Analyze, and Interpret Financial Reports

Land does not depreciate.

Horizontal analysis need not be done using comparative reports.

Complete: A. $42,000; B. 23.81%; C. 16.67%; D. 9.52%; E. 50.00%

Complete the following vertical analysis of a balance sheet: (Round to nearest tenth percent.)

Solve for (A) current ratio, (B) acid test (quick), (C) average day's collection (360), (D) asset turnover, and (E) profit margin on sales. Round to nearest hundredth or hundredth percent as needed. A. 1.31; B. 1.09; C. 37 days; D. 1.28; E. 14.63%

The cost of merchandise sold from the following data is as follows: sales $80,000, beginning inventory $5,000, purchases $21,800, purchase discounts $790, ending inventory $5,100.

The return on equity ratio looks at how effectively assets are being utilized.

Alice Co. has a current ratio of 2.7. The acid test ratio is 2.2. The current liabilities of Alice Co. are $46,000. Could you calculate the dollar amount of merchandise inventory?

In horizontal analysis the oldest year is the base.

The acid test ratio does not include:

Which one is not used to calculate net sales?

Trend analysis expresses each number as a percent of the base year.

A return on equity of 17% implies which of the following?

Reductions in the selling price for early payment are called sales returns and allowances.

A relationship of one number to another is a ratio.

The company's gross profit based on the following is sales $48,000, sales returns and allowances $6,000, operating expenses $6,200, beginning inventory $900, net purchases $9,100, ending inventory $2,300.

The income statement shows the financial condition of a business over a period of time.

Cost of merchandise sold is equal to beginning inventory minus net purchases minus ending inventory.

A ratio of 4:5:2 mean that out of 11 parts it is divided up as 4/11, 5/11, 2/11.

The asset turnover from the following is (round to nearest tenth):

Whole Numbers: How to Dissect and Solve Word Problems

Fractions

Decimals

Banking

Solving for the Unknown: a How-To Approach for Solving Equations

Percents and Their Applications

Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

Payroll

Simple Interest

Promissory Notes, Simple Discount Notes, and the Discount Process

Compound Interest and Present Value

Annuities and Sinking Funds

Installment Buying

The Cost of Home Ownership

Depreciation

Inventory and Overhead

Sales, Excise, and Property Taxes

Filters