Question 1

Using the following balance sheet and income statement data, what is the current ratio?   Average common shares outstanding was 15,000.

Accepted Answer

A) 0.78: 1 
B) 3.33: 1 
C) 0.57: 1 
D) 1.75: 1 
A) 0.78: 1 
B) 3.33: 1 
C) 0.57: 1 
D) 1.75: 1

Question 2

Which measure would a long-term creditor be least interested in reviewing?

Accepted Answer

A) Free cash flow 
B) Debt to assets ratio 
C) Current ratio 
D) Solvency measure 
A) Free cash flow 
B) Debt to assets ratio 
C) Current ratio 
D) Solvency measure

Question 3

Generally accepted accounting principles are rules and practices that are recognized as a general guide for financial reporting purposes.

Accepted Answer

A) True 
 B)False

Question 4

The following information is available for Bradshaw Corporation and Newell Corporation:   Based on this information, what is the amount of Bradshaw's earnings per share (rounded to two decimals) for 2022?

Accepted Answer

A) $2.76 
B) $2.50 
C) $1.25 
D) $1.32 
A) $2.76 
B) $2.50 
C) $1.25 
D) $1.32

Question 5

Based on the following data, what is the amount of current assets?

Accepted Answer

A) $232,000 
B) $390,000 
C) $252,000 
D) $250,000 
A) $232,000 
B) $390,000 
C) $252,000 
D) $250,000

Question 6

The advantage of accounting information is that it provides exact and completely reliable measures.

Accepted Answer

A) True 
 B)False

Question 7

The convention of consistency refers to consistent use of accounting principles

Accepted Answer

A) among firms. 
B) from period to period. 
C) throughout the current accounting period. 
D) within industries. 
A) among firms. 
B) from period to period. 
C) throughout the current accounting period. 
D) within industries.

Question 8

Buildings are classified on the balance sheet as

Accepted Answer

A) a current asset. 
B) property, plant, and equipment. 
C) an intangible asset. 
D) a long-term investment. 
A) a current asset. 
B) property, plant, and equipment. 
C) an intangible asset. 
D) a long-term investment.

Question 9

The excess of current assets over current liabilities is called working capital.

Accepted Answer

A) True 
 B)False

Question 10

The following information is available for Cooke Corporation for the year 2022:   What is the net increase in cash and equivalents for the year?

Accepted Answer

A) $1,500 
B) $1,080 
C) $530 
D) $2,050 
A) $1,500 
B) $1,080 
C) $530 
D) $2,050

Question 11

For 2022, Fielder Inc.reported net income of $42,000, had average shares outstanding of 16,000, paid preferred dividends of $10,000 and common dividends of $5,000.What was 2022 earnings per share?

Accepted Answer

A) $0.08 
B) $0.50 
C) $25.00 
D) $2.00 
A) $0.08 
B) $0.50 
C) $25.00 
D) $2.00

Question 12

Free cash flow is net cash provided by operating activities

Accepted Answer

A) less capital expenditures. 
B) less cash dividends. 
C) less capital expenditures and cash dividends. 
D) less capital expenditures and salaries expense. 
A) less capital expenditures. 
B) less cash dividends. 
C) less capital expenditures and cash dividends. 
D) less capital expenditures and salaries expense.

Question 13

Which of the following is not an accounting assumption?

Accepted Answer

A) Integrity 
B) Going concern 
C) Periodicity 
D) Economic entity 
A) Integrity 
B) Going concern 
C) Periodicity 
D) Economic entity

Question 14

Use the following data to calculate the current ratio.

Accepted Answer

The answer of Use the following data to calculate the...

Question 15

Which accounting assumption requires that only those things that can be expressed in dollar values are included in the accounting records?

Accepted Answer

A) monetary unit assumption. 
B) historical cost principle. 
C) periodicity assumption. 
D) full disclosure principle. 
A) monetary unit assumption. 
B) historical cost principle. 
C) periodicity assumption. 
D) full disclosure principle.

Question 16

Materiality relates to whether an item is large enough to likely influence the decision of an investor or creditor.

Accepted Answer

A) True 
 B)False

Question 17

The following information is available for Bradshaw Corporation and Newell Corporation:   Based on this information, which of the following is suggested by the earnings per share calculations (rounded to two decimals) and the information given?

Accepted Answer

A) There is lower performance in 2021 than in 2022 for Newell Corporation. 
B) There is higher performance in 2021 than in 2022 for Newell Corporation. 
C) There is less earnings available to Newell's common stockholders in 2022 than in 2021. 
D) There is a decrease in preferred shares of stock in 2022 as compared with 2021. 
A) There is lower performance in 2021 than in 2022 for Newell Corporation. 
B) There is higher performance in 2021 than in 2022 for Newell Corporation. 
C) There is less earnings available to Newell's common stockholders in 2022 than in 2021. 
D) There is a decrease in preferred shares of stock in 2022 as compared with 2021.

Question 18

Which accounting assumption assumes that an enterprise will continue in operation long enough to carry out its existing objectives and commitments?

Accepted Answer

A) Monetary unit assumption 
B) Economic entity assumption 
C) Periodicity assumption 
D) Going concern assumption 
A) Monetary unit assumption 
B) Economic entity assumption 
C) Periodicity assumption 
D) Going concern assumption

Question 19

The operating cycle of a company is the average time that is required to go from cash to

Accepted Answer

A) sales in producing revenues. 
B) cash in producing revenues. 
C) inventory in producing revenues. 
D) accounts receivable in producing revenues. 
A) sales in producing revenues. 
B) cash in producing revenues. 
C) inventory in producing revenues. 
D) accounts receivable in producing revenues.

Question 20

Working capital is

Accepted Answer

A) calculated by dividing current assets by current liabilities. 
B) used to evaluate a company's liquidity and short-term debt paying ability. 
C) used to evaluate a company's solvency and long-term debt paying ability. 
D) calculated by subtracting current assets from current liabilities. 
A) calculated by dividing current assets by current liabilities. 
B) used to evaluate a company's liquidity and short-term debt paying ability. 
C) used to evaluate a company's solvency and long-term debt paying ability. 
D) calculated by subtracting current assets from current liabilities.

Using the following balance sheet and income statement data, what is the current ratio? Average common shares outstanding was 15,000.

Which measure would a long-term creditor be least interested in reviewing?

Generally accepted accounting principles are rules and practices that are recognized as a general guide for financial reporting purposes.

The following information is available for Bradshaw Corporation and Newell Corporation: Based on this information, what is the amount of Bradshaw's earnings per share (rounded to two decimals) for 2022?

Based on the following data, what is the amount of current assets?

The advantage of accounting information is that it provides exact and completely reliable measures.

The convention of consistency refers to consistent use of accounting principles

Buildings are classified on the balance sheet as

The excess of current assets over current liabilities is called working capital.

The following information is available for Cooke Corporation for the year 2022: What is the net increase in cash and equivalents for the year?

For 2022, Fielder Inc.reported net income of $42,000, had average shares outstanding of 16,000, paid preferred dividends of $10,000 and common dividends of $5,000.What was 2022 earnings per share?

Free cash flow is net cash provided by operating activities

Which of the following is not an accounting assumption?

Use the following data to calculate the current ratio.

Which accounting assumption requires that only those things that can be expressed in dollar values are included in the accounting records?

Materiality relates to whether an item is large enough to likely influence the decision of an investor or creditor.

The following information is available for Bradshaw Corporation and Newell Corporation: Based on this information, which of the following is suggested by the earnings per share calculations (rounded to two decimals) and the information given?

Which accounting assumption assumes that an enterprise will continue in operation long enough to carry out its existing objectives and commitments?

The operating cycle of a company is the average time that is required to go from cash to

Working capital is

Introduction to Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Understanding Investments in Debt and Equity Securities

Filters

Exam 2: A Further Look at Financial Statements

Using the following balance sheet and income statement data, what is the current ratio? Average common shares outstanding was 15,000.

Which measure would a long-term creditor be least interested in reviewing?

Generally accepted accounting principles are rules and practices that are recognized as a general guide for financial reporting purposes.

The following information is available for Bradshaw Corporation and Newell Corporation: Based on this information, what is the amount of Bradshaw's earnings per share (rounded to two decimals) for 2022?

Based on the following data, what is the amount of current assets?

The advantage of accounting information is that it provides exact and completely reliable measures.

The convention of consistency refers to consistent use of accounting principles

Buildings are classified on the balance sheet as

The excess of current assets over current liabilities is called working capital.

The following information is available for Cooke Corporation for the year 2022: What is the net increase in cash and equivalents for the year?

For 2022, Fielder Inc.reported net income of $42,000, had average shares outstanding of 16,000, paid preferred dividends of $10,000 and common dividends of $5,000.What was 2022 earnings per share?

Free cash flow is net cash provided by operating activities

Which of the following is not an accounting assumption?

Use the following data to calculate the current ratio.

Which accounting assumption requires that only those things that can be expressed in dollar values are included in the accounting records?

Materiality relates to whether an item is large enough to likely influence the decision of an investor or creditor.

The following information is available for Bradshaw Corporation and Newell Corporation: Based on this information, which of the following is suggested by the earnings per share calculations (rounded to two decimals) and the information given?

Which accounting assumption assumes that an enterprise will continue in operation long enough to carry out its existing objectives and commitments?

The operating cycle of a company is the average time that is required to go from cash to

Working capital is

Introduction to Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Understanding Investments in Debt and Equity Securities

Filters