Question 1

Which of the following would be considered an "Other comprehensive income" item?

Accepted Answer

A)  Loss on disposal of discontinued operations 
B)  Unrealized loss on available-for-sale securities 
C)  Discontinued operations gain 
D)  Net income 
A)  Loss on disposal of discontinued operations 
B)  Unrealized loss on available-for-sale securities 
C)  Discontinued operations gain 
D)  Net income

Question 2

Hobson Corporation had net sales for the year of $300,000 and average total assets of $200,000. The asset turnover is ____________ times.

Accepted Answer

The answer of Hobson Corporation had net sales for the...

Question 3

In performing a vertical analysis, the base for sales revenues on the income statement is

Accepted Answer

A)  net sales. 
B)  sales revenue. 
C)  net income. 
D)  cost of goods available for sale. 
A)  net sales. 
B)  sales revenue. 
C)  net income. 
D)  cost of goods available for sale.

Question 4

Which one of the following would not be considered a liquidity ratio?

Accepted Answer

A)  Current ratio 
B)  Inventory turnover 
C)  Average collection period 
D)  Return on assets 
A)  Current ratio 
B)  Inventory turnover 
C)  Average collection period 
D)  Return on assets

Question 5

The current assets of Orangette Company are $292,500. The current liabilities are $130,000. The current ratio expressed as a proportion is

Accepted Answer

A)  225%. 
B)  2.25:1. 
C)  .44:1. 
D)  $130,000 ÷ $292,500. 
A)  225%. 
B)  2.25:1. 
C)  .44:1. 
D)  $130,000 ÷ $292,500.

Question 6

In horizontal analysis, the base year is the most current year being examined.

Accepted Answer

A) True 
 B)False

Question 7

Horizontal, vertical, and circular analyses are the basic tools of financial statement analysis.

Accepted Answer

A) True 
 B)False

Question 8

Vertical analysis is a technique for evaluating a series of financial statement data over a period of time to determine the increase (decrease) that has taken place.

Accepted Answer

A) True 
 B)False

Question 9

The following items were taken from the financial statements of Mint, Inc., over a three-year period:   
Instructions
Compute the following for each of the above time periods. 
a. The amount and percentage change from 2016 to 2017.
b. The amount and percentage change from 2017 to 2018.

Accepted Answer

@#IMG-DLM& *((2018 Net sal. -

Question 10

When preparing an income statement, which of the following is the proper order for income statement components?

Accepted Answer

A)  Comprehensive income, Other comprehensive income items, Net income 
B)  Net income, Comprehensive income, Other comprehensive income items 
C)  Net income, Other comprehensive income items, Comprehensive income 
D)  Other comprehensive income items Net income, Comprehensive income 
A)  Comprehensive income, Other comprehensive income items, Net income 
B)  Net income, Comprehensive income, Other comprehensive income items 
C)  Net income, Other comprehensive income items, Comprehensive income 
D)  Other comprehensive income items Net income, Comprehensive income

Question 11

The following information is available for Patterson Company:   The inventory turnover for 2017 is

Accepted Answer

A)  6.4 times. 
B)  6.0 times. 
C)  5.6 times. 
D)  3.0 times. 
A)  6.4 times. 
B)  6.0 times. 
C)  5.6 times. 
D)  3.0 times.

Question 12

Exeter Corporation had net income of $3,000,000 in 2016. Using 2016 as the base year, net income decreased by 40% in 2017 and increased by 110% in 2018.
Instructions
Compute the net income reported by Exeter Corporation for 2017 and 2018.

Accepted Answer

40 = $1,200,000
The decrease is $1,200,0

Question 13

Comparative information taken from the Bergeron Company financial statements is shown below:   
Instructions
Using horizontal analysis, show the percentage change from 2016 to 2017 with 2016 as the base year.

Accepted Answer

(a) $35,000 ÷ $140,000 = 25% increase (2

Question 14

Another name for horizontal analysis is trend analysis.

Accepted Answer

A) True 
 B)False

Question 15

The following data are taken from the financial statements of Bar Harbor Company:   
Instructions
(a) Compute the accounts receivable turnover and the average collection period for both years.
(b) What conclusion can an analyst draw about the management of the accounts receivable?

Accepted Answer

(b) The accounts receivable are turning

Question 16

Comprehensive income includes all changes in stockholders' equity during a period except those resulting from investments by stockholders and distributions to stockholders.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following items appears on the income statement before income before income taxes?

Accepted Answer

A)  Other comprehensive income 
B)  Comprehensive income 
C)  Other revenues and gains 
D)  Discontinued operations 
A)  Other comprehensive income 
B)  Comprehensive income 
C)  Other revenues and gains 
D)  Discontinued operations

Question 18

Horizontal analysis of comparative financial statements includes the

Accepted Answer

A)  development of common size statements. 
B)  calculation of liquidity ratios. 
C)  calculation of dollar amount and percentage changes from financial statements over a period of time, as compared to a base year. 
D)  evaluation of financial statement data that expresses each item in a financial statement as a percentage of a base amount. 
A)  development of common size statements. 
B)  calculation of liquidity ratios. 
C)  calculation of dollar amount and percentage changes from financial statements over a period of time, as compared to a base year. 
D)  evaluation of financial statement data that expresses each item in a financial statement as a percentage of a base amount.

Question 19

The following information pertains to Blue Flower Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.    
What is the return on common stockholders' equity for this company?

Accepted Answer

A)  25.8% 
B)  12.9% 
C)  22.6% 
D)  32.3% 
A)  25.8% 
B)  12.9% 
C)  22.6% 
D)  32.3%

Question 20

The order of presentation of items that may appear on the statement of comprehensive income is

Accepted Answer

A)  Other comprehensive income, Discontinued operations, Income before income taxes. 
B)  Discontinued operations, Other comprehensive income, Income before income taxes. 
C)  Income before income taxes, Discontinued operations, Other comprehensive income. 
D)  Income before income taxes, Other comprehensive income, Discontinued operations. 
A)  Other comprehensive income, Discontinued operations, Income before income taxes. 
B)  Discontinued operations, Other comprehensive income, Income before income taxes. 
C)  Income before income taxes, Discontinued operations, Other comprehensive income. 
D)  Income before income taxes, Other comprehensive income, Discontinued operations.

Exam 13: Financial Statement Analysis

Which of the following would be considered an "Other comprehensive income" item?

Hobson Corporation had net sales for the year of $300,000 and average total assets of $200,000. The asset turnover is ____________ times.

In performing a vertical analysis, the base for sales revenues on the income statement is

Which one of the following would not be considered a liquidity ratio?

The current assets of Orangette Company are $292,500. The current liabilities are $130,000. The current ratio expressed as a proportion is

In horizontal analysis, the base year is the most current year being examined.

Horizontal, vertical, and circular analyses are the basic tools of financial statement analysis.

Vertical analysis is a technique for evaluating a series of financial statement data over a period of time to determine the increase (decrease) that has taken place.

The following items were taken from the financial statements of Mint, Inc., over a three-year period: Instructions Compute the following for each of the above time periods. a. The amount and percentage change from 2016 to 2017. b. The amount and percentage change from 2017 to 2018.

When preparing an income statement, which of the following is the proper order for income statement components?

The following information is available for Patterson Company: The inventory turnover for 2017 is

Exeter Corporation had net income of $3,000,000 in 2016. Using 2016 as the base year, net income decreased by 40% in 2017 and increased by 110% in 2018. Instructions Compute the net income reported by Exeter Corporation for 2017 and 2018.

Comparative information taken from the Bergeron Company financial statements is shown below: Instructions Using horizontal analysis, show the percentage change from 2016 to 2017 with 2016 as the base year.

Another name for horizontal analysis is trend analysis.

The following data are taken from the financial statements of Bar Harbor Company: Instructions (a) Compute the accounts receivable turnover and the average collection period for both years. (b) What conclusion can an analyst draw about the management of the accounts receivable?

Comprehensive income includes all changes in stockholders' equity during a period except those resulting from investments by stockholders and distributions to stockholders.

Which of the following items appears on the income statement before income before income taxes?

Horizontal analysis of comparative financial statements includes the

The following information pertains to Blue Flower Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. What is the return on common stockholders' equity for this company?

The order of presentation of items that may appear on the statement of comprehensive income is

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations Perpetual Approach

Inventories Periodic Approach

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Liabilities

Corporations: Organization, Stock Transactions, and Stockholders Equity

Statement of Cash Flows

Managerial Accounting

Job Order Costing

Process Costing

Activity-Based Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Incremental Analysis

Pricing

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Time Value of Money

Investments

Payroll Accounting

Subsidiary Ledgers and Special Journals

Other Significant Liabilities

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