Question 1

The computer is the only tool needed in monitoring a business's financial condition.

Accepted Answer

A) True 
 B)False

Question 2

Net purchases are the cost of purchases minus purchase discounts minus purchase returns and allowances.

Accepted Answer

A) True 
 B)False

Question 3

Selecting a base year and expressing each amount as a percent of the base year amount is called:

Accepted Answer

A)  Trend analysis 
B)  Horizontal analysis 
C)  Vertical analysis 
D)  Ratio analysis 
E)  None of these 
A)  Trend analysis 
B)  Horizontal analysis 
C)  Vertical analysis 
D)  Ratio analysis 
E)  None of these

Question 4

"Could we speed up our collections?" could be one question raised about the average day's collection ratio.

Accepted Answer

A) True 
 B)False

Question 5

Lee Company has a current ratio of 2.65. The acid test ratio is 2.01. The current liabilities of Lee are $45,000. The dollar amount of merchandise inventory is (assume no prepaid expenses):

Accepted Answer

A)  $28,008 
B)  $28,800 
C)  $90,450 
D)  $90,540 
E)  None of these 
A)  $28,008 
B)  $28,800 
C)  $90,450 
D)  $90,540 
E)  None of these

Question 6

In analyzing the income statement of Bob Company, cost of goods sold decreased from 2016 to 2017 by 8.2%. The cost of goods sold was $19,000 in 2016. The cost of goods sold to the nearest cent in 2017 was:

Accepted Answer

A)  $20,697.17 
B)  $20,679.71 
C)  $20,769.71 
D)  $20,796.71 
E)  None of these 
A)  $20,697.17 
B)  $20,679.71 
C)  $20,769.71 
D)  $20,796.71 
E)  None of these

Question 7

The balance sheet lists:

Accepted Answer

A)  Assets, liabilities, expenses 
B)  Assets, liabilities, equity 
C)  Assets, revenues, expenses 
D)  Assets, revenues, equity 
E)  None of these 
A)  Assets, liabilities, expenses 
B)  Assets, liabilities, equity 
C)  Assets, revenues, expenses 
D)  Assets, revenues, equity 
E)  None of these

Question 8

From 2016 to 2017, accounts receivable increased from $4,000 to $4,800. The percent increase is:

Accepted Answer

A)  120% 
B)  162/3% 
C)  20% 
D)  55% 
E)  None of these 
A)  120% 
B)  162/3% 
C)  20% 
D)  55% 
E)  None of these

Question 9

Bill's Pizza has an asset turnover of 3.5. The total assets of Bill's were $95,000. The net sales of Bill's Pizza is:

Accepted Answer

A)  $27,142.85 
B)  $332,500.00 
C)  $271,428.50 
D)  $33,250.00 
E)  None of these 
A)  $27,142.85 
B)  $332,500.00 
C)  $271,428.50 
D)  $33,250.00 
E)  None of these

Question 10

A balance sheet shows the financial condition of a business at a particular date.

Accepted Answer

A) True 
 B)False

Question 11

Complete using trend analyses for sales. (Round to nearest percent and use 2010 as the base year.)
   
A. 32%;
B. 123%;
C. 56%;
D. 100%

Accepted Answer

The answer of Complete using trend analyses for sales. (Round...

Question 12

A comparative statement contains data for less than two successive accounting periods.

Accepted Answer

A) True 
 B)False

Question 13

Complete the horizontal analysis below:

Accepted Answer

A)  ($3,809), 4.1% 
B)  $3,809, 4.1% 
C)  $180,485, 51.1% 
D)  $8,300, 15% 
E)  None of these 
A)  ($3,809), 4.1% 
B)  $3,809, 4.1% 
C)  $180,485, 51.1% 
D)  $8,300, 15% 
E)  None of these

Question 14

Given the following:   By trend analysis (base year is 2010), sales in 2012 to the nearest percent of the base year is:

Accepted Answer

A)  117% 
B)  116% 
C)  118% 
D)  119% 
E)  None of these 
A)  117% 
B)  116% 
C)  118% 
D)  119% 
E)  None of these

Question 15

Retained earnings are the same as cash.

Accepted Answer

A) True 
 B)False

Question 16

When each asset is analyzed as a percent of total assets for a single period, this is known as:

Accepted Answer

A)  Horizontal analysis 
B)  Comparative analysis 
C)  Ratio analysis 
D)  Vertical analysis 
E)  None of these 
A)  Horizontal analysis 
B)  Comparative analysis 
C)  Ratio analysis 
D)  Vertical analysis 
E)  None of these

Question 17

Solve for (A) current ratio, (B) acid test (quick), (C) average day's collection, (D) asset turnover, and (E) profit margin on sales. Round to nearest hundredth or hundredth percent as needed.
   
A. 1.41;
B. 1.18;
C. 35 days;
D. 1.33;
E. 15.91%

Accepted Answer

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

Question 18

Complete:
A. _______________
B. _______________

Accepted Answer

@#IMG-DLM& A. $4,000

Question 19

Jay Corporation has earned $175,900 after tax. The accountant calculated the return on equity as 12.5%. Jay Corporation's stockholders' equity to the nearest dollar is:

Accepted Answer

A)  $140,720 
B)  $14,720 
C)  $1,407,200 
D)  $140,720,000 
E)  None of these 
A)  $140,720 
B)  $14,720 
C)  $1,407,200 
D)  $140,720,000 
E)  None of these

Question 20

Cash is a liability.

Accepted Answer

A) True 
 B)False

The computer is the only tool needed in monitoring a business's financial condition.

Net purchases are the cost of purchases minus purchase discounts minus purchase returns and allowances.

Selecting a base year and expressing each amount as a percent of the base year amount is called:

"Could we speed up our collections?" could be one question raised about the average day's collection ratio.

Lee Company has a current ratio of 2.65. The acid test ratio is 2.01. The current liabilities of Lee are $45,000. The dollar amount of merchandise inventory is (assume no prepaid expenses):

In analyzing the income statement of Bob Company, cost of goods sold decreased from 2016 to 2017 by 8.2%. The cost of goods sold was $19,000 in 2016. The cost of goods sold to the nearest cent in 2017 was:

The balance sheet lists:

From 2016 to 2017, accounts receivable increased from $4,000 to $4,800. The percent increase is:

Bill's Pizza has an asset turnover of 3.5. The total assets of Bill's were $95,000. The net sales of Bill's Pizza is:

A balance sheet shows the financial condition of a business at a particular date.

Complete using trend analyses for sales. (Round to nearest percent and use 2010 as the base year.) A. 32%; B. 123%; C. 56%; D. 100%

A comparative statement contains data for less than two successive accounting periods.

Complete the horizontal analysis below:

Given the following: By trend analysis (base year is 2010), sales in 2012 to the nearest percent of the base year is:

Retained earnings are the same as cash.

When each asset is analyzed as a percent of total assets for a single period, this is known as:

Solve for (A) current ratio, (B) acid test (quick), (C) average day's collection, (D) asset turnover, and (E) profit margin on sales. Round to nearest hundredth or hundredth percent as needed. A. 1.41; B. 1.18; C. 35 days; D. 1.33; E. 15.91%

Complete: A. _ B. _

Jay Corporation has earned $175,900 after tax. The accountant calculated the return on equity as 12.5%. Jay Corporation's stockholders' equity to the nearest dollar is:

Cash is a liability.

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

The computer is the only tool needed in monitoring a business's financial condition.

Net purchases are the cost of purchases minus purchase discounts minus purchase returns and allowances.

Selecting a base year and expressing each amount as a percent of the base year amount is called:

"Could we speed up our collections?" could be one question raised about the average day's collection ratio.

Lee Company has a current ratio of 2.65. The acid test ratio is 2.01. The current liabilities of Lee are $45,000. The dollar amount of merchandise inventory is (assume no prepaid expenses):

In analyzing the income statement of Bob Company, cost of goods sold decreased from 2016 to 2017 by 8.2%. The cost of goods sold was $19,000 in 2016. The cost of goods sold to the nearest cent in 2017 was:

The balance sheet lists:

From 2016 to 2017, accounts receivable increased from $4,000 to $4,800. The percent increase is:

Bill's Pizza has an asset turnover of 3.5. The total assets of Bill's were $95,000. The net sales of Bill's Pizza is:

A balance sheet shows the financial condition of a business at a particular date.

Complete using trend analyses for sales. (Round to nearest percent and use 2010 as the base year.) A. 32%; B. 123%; C. 56%; D. 100%

A comparative statement contains data for less than two successive accounting periods.

Complete the horizontal analysis below:

Given the following: By trend analysis (base year is 2010), sales in 2012 to the nearest percent of the base year is:

Retained earnings are the same as cash.

When each asset is analyzed as a percent of total assets for a single period, this is known as:

Solve for (A) current ratio, (B) acid test (quick), (C) average day's collection, (D) asset turnover, and (E) profit margin on sales. Round to nearest hundredth or hundredth percent as needed. A. 1.41; B. 1.18; C. 35 days; D. 1.33; E. 15.91%

Complete: A. _______________ B. _______________

Jay Corporation has earned $175,900 after tax. The accountant calculated the return on equity as 12.5%. Jay Corporation's stockholders' equity to the nearest dollar is:

Cash is a liability.

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

Complete: A. _ B. _