Question 1

Chilliton's gross profit was $183,750. Its net sales were $247,800. Its gross profit ratio was:

Accepted Answer

A)  4.2%. 
B)  $431,550. 
C)  13.4%. 
D)  74.1%. 
E)  $64,050. 
A)  4.2%. 
B)  $431,550. 
C)  13.4%. 
D)  74.1%. 
E)  $64,050. D

Question 2

Marble Corp. paid $.56 in common annual dividends per share. Its earnings per share was $5.20. The market price per share was $30.00. Its dividend yield was:

Accepted Answer

A)  7.1%. 
B)  11.4%. 
C)  8.75%. 
D)  1.9%. 
E)  14.0%. 
A)  7.1%. 
B)  11.4%. 
C)  8.75%. 
D)  1.9%. 
E)  14.0%. D

Question 3

Standards for comparison of performance are necessary when making judgments about a company's performance.

Accepted Answer

A) True 
 B)False  True

Question 4

TSN had $12,000 in accounts receivable and $320,000 in net sales for the period. Its days' sales uncollected was 13.7 days.

Accepted Answer

A) True 
 B)False

Question 5

A high times interest earned ratio means that a company has a high risk from borrowing.

Accepted Answer

A) True 
 B)False

Question 6

The merchandise turnover ratio:

Accepted Answer

A)  Is cost of goods sold divided by ending inventory. 
B)  Is calculated by dividing merchandise inventory by cost of goods sold. 
C)  Is calculated by dividing cost of goods sold by average merchandise inventory. 
D)  Is ending inventory divided by cost of goods sold. 
E)  Is cost of goods sold divided by ending inventory times 365. 
A)  Is cost of goods sold divided by ending inventory. 
B)  Is calculated by dividing merchandise inventory by cost of goods sold. 
C)  Is calculated by dividing cost of goods sold by average merchandise inventory. 
D)  Is ending inventory divided by cost of goods sold. 
E)  Is cost of goods sold divided by ending inventory times 365.

Question 7

Return on equity increases when the expected rate of return from new assets is greater than the interest rate on the bonds issued to finance the assets.

Accepted Answer

A) True 
 B)False

Question 8

Chapter's had net sales of $26,125 million. Its cost of goods sold was $16,022 million. Its profit was $997 million. Its gross profit ratio was:

Accepted Answer

A)  67%. 
B)  3.5%. 
C)  149.3%. 
D)  5.2%. 
E)  38.6%. 
A)  67%. 
B)  3.5%. 
C)  149.3%. 
D)  5.2%. 
E)  38.6%.

Question 9

Chicago's Best has current assets of $100 million and current liabilities of $50 million. Its current ratio is .63 to 1.

Accepted Answer

A) True 
 B)False

Question 10

The number of days' sales uncollected:

Accepted Answer

A)  Measures a company's ability to pay its bills on time. 
B)  Measures a company's debt to income. 
C)  Is used to evaluate the liquidity of receivables. 
D)  Is calculated by dividing accounts receivable by sales. 
E)  Is calculated by dividing sales by accounts receivable. 
A)  Measures a company's ability to pay its bills on time. 
B)  Measures a company's debt to income. 
C)  Is used to evaluate the liquidity of receivables. 
D)  Is calculated by dividing accounts receivable by sales. 
E)  Is calculated by dividing sales by accounts receivable.

Question 11

External users of accounting information are often directly involved in running a company.

Accepted Answer

A) True 
 B)False

Question 12

Jolly Co. had net sales of $111,500 and accounts receivable of $12,700. Its days' sales uncollected was:

Accepted Answer

A)  46.6. 
B)  11.7. 
C)  23.3. 
D)  41.6. 
E)  42.5. 
A)  46.6. 
B)  11.7. 
C)  23.3. 
D)  41.6. 
E)  42.5.

Question 13

Brown Company has profit of $125,000. Its net sales were $1,739,000 and its average total assets were $2,750,000. Its profit margin was 7.2%.

Accepted Answer

A) True 
 B)False

Question 14

Brown Company has profit of $125,000. Its net sales were $1,739,000 and its average total assets were $2,750,000. Its total asset turnover was 4.5%.

Accepted Answer

A) True 
 B)False

Question 15

The times interest earned formula is calculated by multiplying income by the interest rate on a company's debt.

Accepted Answer

A) True 
 B)False

Question 16

Standards for comparison for interpreting financial statement analysis include: intracompany, credit standing, and industry.

Accepted Answer

A) True 
 B)False

Question 17

In periods of low income, bonds can increase return on equity because of less equity investment.

Accepted Answer

A) True 
 B)False

Question 18

Profit margin is calculated by dividing revenues by profit.

Accepted Answer

A) True 
 B)False

Question 19

Sonie had average accounts receivable of $87 million and net sales of $864 million. Its accounts receivable turnover was:

Accepted Answer

A)  12.8. 
B)  10.3. 
C)  9.9. 
D)  36.1. 
E)  9.1. 
A)  12.8. 
B)  10.3. 
C)  9.9. 
D)  36.1. 
E)  9.1.

Question 20

Markham Corporation had profit of $1,330,000, net sales of $22,000,000 and average total assets of $5,783,000. Its return on total assets was:

Accepted Answer

A)  6.0%. 
B)  26.3%. 
C)  16.5%. 
D)  23.0%. 
E)  38.0%. 
A)  6.0%. 
B)  26.3%. 
C)  16.5%. 
D)  23.0%. 
E)  38.0%.

Chilliton's gross profit was $183,750. Its net sales were $247,800. Its gross profit ratio was:

Marble Corp. paid $.56 in common annual dividends per share. Its earnings per share was $5.20. The market price per share was $30.00. Its dividend yield was:

Standards for comparison of performance are necessary when making judgments about a company's performance.

TSN had $12,000 in accounts receivable and $320,000 in net sales for the period. Its days' sales uncollected was 13.7 days.

A high times interest earned ratio means that a company has a high risk from borrowing.

The merchandise turnover ratio:

Return on equity increases when the expected rate of return from new assets is greater than the interest rate on the bonds issued to finance the assets.

Chapter's had net sales of $26,125 million. Its cost of goods sold was $16,022 million. Its profit was $997 million. Its gross profit ratio was:

Chicago's Best has current assets of $100 million and current liabilities of $50 million. Its current ratio is .63 to 1.

The number of days' sales uncollected:

External users of accounting information are often directly involved in running a company.

Jolly Co. had net sales of $111,500 and accounts receivable of $12,700. Its days' sales uncollected was:

Brown Company has profit of $125,000. Its net sales were $1,739,000 and its average total assets were $2,750,000. Its profit margin was 7.2%.

Brown Company has profit of $125,000. Its net sales were $1,739,000 and its average total assets were $2,750,000. Its total asset turnover was 4.5%.

The times interest earned formula is calculated by multiplying income by the interest rate on a company's debt.

Standards for comparison for interpreting financial statement analysis include: intracompany, credit standing, and industry.

In periods of low income, bonds can increase return on equity because of less equity investment.

Profit margin is calculated by dividing revenues by profit.

Sonie had average accounts receivable of $87 million and net sales of $864 million. Its accounts receivable turnover was:

Markham Corporation had profit of $1,330,000, net sales of $22,000,000 and average total assets of $5,783,000. Its return on total assets was:

Property, Plant and Equipment and Intangibles

Current Liabilities

Partnerships

Organization and Operation of Corporations

Corporate Reporting: Profit, Earnings Per Share, and Retained Earnings

Bonds and Long-Term Notes Payable

Accounting for Debt and Share Investments

Reporting and Analyzing Cash Flows

Filters

Exam 17: Analyzing Financial Statements

Chilliton's gross profit was $183,750. Its net sales were $247,800. Its gross profit ratio was:

Marble Corp. paid $.56 in common annual dividends per share. Its earnings per share was $5.20. The market price per share was $30.00. Its dividend yield was:

Standards for comparison of performance are necessary when making judgments about a company's performance.

TSN had $12,000 in accounts receivable and $320,000 in net sales for the period. Its days' sales uncollected was 13.7 days.

A high times interest earned ratio means that a company has a high risk from borrowing.

The merchandise turnover ratio:

Return on equity increases when the expected rate of return from new assets is greater than the interest rate on the bonds issued to finance the assets.

Chapter's had net sales of $26,125 million. Its cost of goods sold was $16,022 million. Its profit was $997 million. Its gross profit ratio was:

Chicago's Best has current assets of $100 million and current liabilities of $50 million. Its current ratio is .63 to 1.

The number of days' sales uncollected:

External users of accounting information are often directly involved in running a company.

Jolly Co. had net sales of $111,500 and accounts receivable of $12,700. Its days' sales uncollected was:

Brown Company has profit of $125,000. Its net sales were $1,739,000 and its average total assets were $2,750,000. Its profit margin was 7.2%.

Brown Company has profit of $125,000. Its net sales were $1,739,000 and its average total assets were $2,750,000. Its total asset turnover was 4.5%.

The times interest earned formula is calculated by multiplying income by the interest rate on a company's debt.

Standards for comparison for interpreting financial statement analysis include: intracompany, credit standing, and industry.

In periods of low income, bonds can increase return on equity because of less equity investment.

Profit margin is calculated by dividing revenues by profit.

Sonie had average accounts receivable of $87 million and net sales of $864 million. Its accounts receivable turnover was:

Markham Corporation had profit of $1,330,000, net sales of $22,000,000 and average total assets of $5,783,000. Its return on total assets was:

Property, Plant and Equipment and Intangibles

Current Liabilities

Partnerships

Organization and Operation of Corporations

Corporate Reporting: Profit, Earnings Per Share, and Retained Earnings

Bonds and Long-Term Notes Payable

Accounting for Debt and Share Investments

Reporting and Analyzing Cash Flows

Filters