Question 1

Horizontal analysis need not be done using comparative reports.

Accepted Answer

A) True 
 B)False

Question 2

The asset turnover of Ryan Company is 7.2. The total assets of Ryan are $88,000. Ryan's net sales were:

Accepted Answer

A)  $6,336 
B)  $63,360 
C)  $633,000 
D)  $633,600 
E)  None of these 
A)  $6,336 
B)  $63,360 
C)  $633,000 
D)  $633,600 
E)  None of these

Question 3

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 4

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

Accepted Answer

A) True 
 B)False

Question 5

From 2013 to 2014, accounts receivable increased from $4,000 to $4,800. The percent increase is:

Accepted Answer

A)  120% 
B)  16 2/3% 
C)  20% 
D)  55% 
E)  None of these 
A)  120% 
B)  16 2/3% 
C)  20% 
D)  55% 
E)  None of these

Question 6

Mel King has asked you to prepare a classified balance sheet for Pad Co. as of December 31, 2014. Ending merchandise inventory was $1,800:

Accepted Answer

The answer of Mel King has asked you to prepare...

Question 7

In horizontal analysis the old year is the base.

Accepted Answer

A) True 
 B)False

Question 8

A current ratio is calculated by current assets times current liabilities.

Accepted Answer

A) True 
 B)False

Question 9

Assets that last longer than one year are called plant and equipment.

Accepted Answer

A) True 
 B)False

Question 10

In analyzing the income statement of Bob Company, cost of goods sold decreased from 2013 to 2014 by 8.2%. The cost of goods sold was $19,000 in 2014. The cost of goods sold to nearest dollar in 2013 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 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

Assets represent things of value owed by the business.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Horizontal analysis need not be done using comparative reports.

The asset turnover of Ryan Company is 7.2. The total assets of Ryan are $88,000. Ryan's net sales were:

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:

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

From 2013 to 2014, accounts receivable increased from $4,000 to $4,800. The percent increase is:

Mel King has asked you to prepare a classified balance sheet for Pad Co. as of December 31, 2014. Ending merchandise inventory was $1,800:

In horizontal analysis the old year is the base.

A current ratio is calculated by current assets times current liabilities.

Assets that last longer than one year are called plant and equipment.

In analyzing the income statement of Bob Company, cost of goods sold decreased from 2013 to 2014 by 8.2%. The cost of goods sold was $19,000 in 2014. The cost of goods sold to nearest dollar in 2013 was:

Which one is not used to calculate net sales?

Assets represent things of value owed by the business.

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

Problem Solving With Math

Fractions

Decimals

Solving for the Unknown

Business Statistics

Banking and Budgeting

Payroll and Income Tax

Sales, Excise, and Property Taxes

Risk Management

Installment Buying and Revolving Charge Credit Cards

Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

Depreciation

Inventory and Overhead

Simple Interest

Promissory Notes, Simple Discount Notes, and the Discount Process

The Cost of Home Ownership

Compound Interest and Present Value

Annuities and Sinking Funds

Stocks, Bonds, and Mutual Funds

Filters

Exam 13: How to Read, Analyze, and Interpret Financial Reports

Horizontal analysis need not be done using comparative reports.

The asset turnover of Ryan Company is 7.2. The total assets of Ryan are $88,000. Ryan's net sales were:

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:

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

From 2013 to 2014, accounts receivable increased from $4,000 to $4,800. The percent increase is:

Mel King has asked you to prepare a classified balance sheet for Pad Co. as of December 31, 2014. Ending merchandise inventory was $1,800:

In horizontal analysis the old year is the base.

A current ratio is calculated by current assets times current liabilities.

Assets that last longer than one year are called plant and equipment.

In analyzing the income statement of Bob Company, cost of goods sold decreased from 2013 to 2014 by 8.2%. The cost of goods sold was $19,000 in 2014. The cost of goods sold to nearest dollar in 2013 was:

Which one is not used to calculate net sales?

Assets represent things of value owed by the business.

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

Problem Solving With Math

Fractions

Decimals

Solving for the Unknown

Business Statistics

Banking and Budgeting

Payroll and Income Tax

Sales, Excise, and Property Taxes

Risk Management

Installment Buying and Revolving Charge Credit Cards

Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

Depreciation

Inventory and Overhead

Simple Interest

Promissory Notes, Simple Discount Notes, and the Discount Process

The Cost of Home Ownership

Compound Interest and Present Value

Annuities and Sinking Funds

Stocks, Bonds, and Mutual Funds

Filters