Question 1

Many industrial averages and figures are published in the each of the following except?

Accepted Answer

A)  Key Business Ratios, Dun and Bradstreet 
B)  The Almanac of Business and Industrial Financial Ratios, Prentice-Hall 
C)  Annual Random Studies, Robert Morris Associates 
D)  Standard and Poor's Industry Survey, Standard & Poor's 
E)  Dow Jones-Irwin Business and Investment Almanac, Dow Jones-Irwin 
A)  Key Business Ratios, Dun and Bradstreet 
B)  The Almanac of Business and Industrial Financial Ratios, Prentice-Hall 
C)  Annual Random Studies, Robert Morris Associates 
D)  Standard and Poor's Industry Survey, Standard & Poor's 
E)  Dow Jones-Irwin Business and Investment Almanac, Dow Jones-Irwin C

Question 2

Figure 16-2.
Financial statements for Grange Company appear below:
     Dividends during 2014 totaled $127,000, of which $5,000 were preferred dividends.
The market price of a share of common stock on December 31, 2014, was $100.
-Refer to Figure 16-2.
Required: Compute the following liquidity ratios for 2014:

Accepted Answer

The answer of Figure 16-2.
Financial statements for Grange Company appear...

Question 3

A liquidity ratio measures the

Accepted Answer

A)  income or operating success of an enterprise over a period of time. 
B)  ability of the enterprise to survive over a long period of time. 
C)  short-term ability of the enterprise to pay its obligations and to meet unexpected needs for cash. 
D)  number of times interest is earned. 
A)  income or operating success of an enterprise over a period of time. 
B)  ability of the enterprise to survive over a long period of time. 
C)  short-term ability of the enterprise to pay its obligations and to meet unexpected needs for cash. 
D)  number of times interest is earned. C

Question 4

Horizontal analysis is analysis

Accepted Answer

A)  of percentage changes over several years. 
B)  in which all items are presented as a percentage of one selected item on a financial statement. 
C)  in which a statistic is calculated for the relationship between two items on a single financial statement or for two items on different financial statements. 
D)  of all ratios that increased or decreased over past accounting periods. 
A)  of percentage changes over several years. 
B)  in which all items are presented as a percentage of one selected item on a financial statement. 
C)  in which a statistic is calculated for the relationship between two items on a single financial statement or for two items on different financial statements. 
D)  of all ratios that increased or decreased over past accounting periods.

Question 5

Eagle Company has $9,000 in cash, $11,000 in marketable securities, $26,000 in current receivables, $34,000 in inventories, and $40,000 in current liabilities. The company's quick ratio is closest to

Accepted Answer

A)  1.35. 
B)  1.15. 
C)  2.00. 
D)  1.73. 
A)  1.35. 
B)  1.15. 
C)  2.00. 
D)  1.73.

Question 6

The ___________________ is calculated by dividing the market price per share by earnings per share.

Accepted Answer

price-earn

Question 7

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

Accepted Answer

A)  current ratio 
B)  inventory turnover ratio 
C)  quick ratio 
D)  return on total assets ratio 
A)  current ratio 
B)  inventory turnover ratio 
C)  quick ratio 
D)  return on total assets ratio

Question 8

The Gift Shoppe's inventory turned over five times during the year. Similar gift shops have an inventory turnover equal to ten times per year. What explains the Gift Shoppe's inventory management?

Accepted Answer

A)  The Gift Shoppe sold too much inventory during the year. 
B)  The Gift Shoppe needs to increase sales and decrease the amount of goods on hand. 
C)  The Gift Shoppe is performing twice as well as it competitors. 
D)  The Gift Shoppe should increase the amount of goods on hand to accommodate the additional inventory demand. 
A)  The Gift Shoppe sold too much inventory during the year. 
B)  The Gift Shoppe needs to increase sales and decrease the amount of goods on hand. 
C)  The Gift Shoppe is performing twice as well as it competitors. 
D)  The Gift Shoppe should increase the amount of goods on hand to accommodate the additional inventory demand.

Question 9

Opis Company has total assets of $475,000 and total liabilities of $130,000. The company's debt-to-equity ratio is closest to

Accepted Answer

A)  0.32. 
B)  0.21. 
C)  0.38. 
D)  0.27. 
A)  0.32. 
B)  0.21. 
C)  0.38. 
D)  0.27.

Question 10

Figure 16-2.
Financial statements for Grange Company appear below:
     Dividends during 2014 totaled $127,000, of which $5,000 were preferred dividends.
The market price of a share of common stock on December 31, 2014, was $100.
-Refer to Figure 16-2.
Required: Compute the following profitability ratios for 2014:

Accepted Answer

The answer of Figure 16-2.
Financial statements for Grange Company appear...

Question 11

Data concerning Bouerneuf Company's common stock follow:   The price-earnings ratio would be

Accepted Answer

A)  2.0. 
B)  2.7. 
C)  3.0. 
D)  4.0. 
A)  2.0. 
B)  2.7. 
C)  3.0. 
D)  4.0.

Question 12

The type of analysis that is concerned with the relationships among the components of the financial statements is to prepare a

Accepted Answer

A)  vertical analysis. 
B)  trend analysis. 
C)  profitability analysis. 
D)  ratio analysis. 
A)  vertical analysis. 
B)  trend analysis. 
C)  profitability analysis. 
D)  ratio analysis.

Question 13

Kringle Company, a retailer, had cost of goods sold of $1,400,000 last year. The beginning inventory balance was $125,000 and the ending inventory balance was $142,000. The company's inventory turnover ratio was closest to

Accepted Answer

A)  10.49. 
B)  5.24. 
C)  11.20. 
D)  9.86. 
A)  10.49. 
B)  5.24. 
C)  11.20. 
D)  9.86.

Question 14

Cottle Company has total assets of $180,000 and total liabilities of $54,000. The company's debt-to-equity ratio is closest to

Accepted Answer

A)  0.32. 
B)  2.3. 
C)  0.30. 
D)  0.43. 
A)  0.32. 
B)  2.3. 
C)  0.30. 
D)  0.43.

Question 15

All debt is considered in the computation of the quick ratio.

Accepted Answer

A) True 
 B)False

Question 16

A company has an average inventory on hand of $100,000 and the days in inventory are 73 days. What is the cost of goods sold?

Accepted Answer

A)  $500,000 
B)  $7,300,000 
C)  $1,000,000 
D)  $3,650,000 
A)  $500,000 
B)  $7,300,000 
C)  $1,000,000 
D)  $3,650,000

Question 17

MATCHING
Match the classifications of ratios with each description.
a.
Liquidity Ratio
b.
Leverage Ratio
c.
Profitability Ratio
d.
Horizontal Analysis
e.
Trend Analysis
-Return on total assets ratio

Accepted Answer

The answer of MATCHING
Match the classifications of ratios with each...

Question 18

Lew Company's net income was $80,000 last year. The company has 20,000 shares of common stock and 5,000 shares of $100 par value, 7% preferred stock outstanding. There was no change in the number of common or preferred shares outstanding during the year. The earnings per share of common stock was

Accepted Answer

A)  $4.00. 
B)  $3.20. 
C)  $2.25. 
D)  $3.72. 
A)  $4.00. 
B)  $3.20. 
C)  $2.25. 
D)  $3.72.

Question 19

The quick ratio

Accepted Answer

A)  is used to quickly determine a company's leverage and long-term debt-paying ability. 
B)  relates cash, marketable securities, and net receivables to current liabilities. 
C)  is calculated by taking one item from the income statement and one item from the balance sheet. 
D)  is the same as the current ratio except it is rounded to the nearest whole percent. 
A)  is used to quickly determine a company's leverage and long-term debt-paying ability. 
B)  relates cash, marketable securities, and net receivables to current liabilities. 
C)  is calculated by taking one item from the income statement and one item from the balance sheet. 
D)  is the same as the current ratio except it is rounded to the nearest whole percent.

Question 20

Figure 16-7
     There were 30,000 shares of common stock outstanding throughout 2013. Dividends on common stock amounted to $21,000 and dividends on preferred stock amounted to $30,000. The market value of a share of common stock was $36 at the end of 2013. The income tax rate is 40%. The accounts receivable and inventory accounts had beginning balances of $58,500 and $101,400 respectively. Total assets at the beginning of the year were $430,500.
-Refer to Figure 16-7.
Required: Calculate the following ratios:
A. Debt ratio
B. Debt-to-equity ratio
State what information each ratio is providing to the company.

Accepted Answer

@#IMG-DLM& The debt ratio is 0.61, which means tha

Many industrial averages and figures are published in the each of the following except?

A liquidity ratio measures the

Horizontal analysis is analysis

Eagle Company has $9,000 in cash, $11,000 in marketable securities, $26,000 in current receivables, $34,000 in inventories, and $40,000 in current liabilities. The company's quick ratio is closest to

The ___________________ is calculated by dividing the market price per share by earnings per share.

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

The Gift Shoppe's inventory turned over five times during the year. Similar gift shops have an inventory turnover equal to ten times per year. What explains the Gift Shoppe's inventory management?

Opis Company has total assets of $475,000 and total liabilities of $130,000. The company's debt-to-equity ratio is closest to

Data concerning Bouerneuf Company's common stock follow: The price-earnings ratio would be

The type of analysis that is concerned with the relationships among the components of the financial statements is to prepare a

Kringle Company, a retailer, had cost of goods sold of $1,400,000 last year. The beginning inventory balance was $125,000 and the ending inventory balance was $142,000. The company's inventory turnover ratio was closest to

Cottle Company has total assets of $180,000 and total liabilities of $54,000. The company's debt-to-equity ratio is closest to

All debt is considered in the computation of the quick ratio.

A company has an average inventory on hand of $100,000 and the days in inventory are 73 days. What is the cost of goods sold?

MATCHING Match the classifications of ratios with each description. a. Liquidity Ratio b. Leverage Ratio c. Profitability Ratio d. Horizontal Analysis e. Trend Analysis -Return on total assets ratio

Lew Company's net income was $80,000 last year. The company has 20,000 shares of common stock and 5,000 shares of $100 par value, 7% preferred stock outstanding. There was no change in the number of common or preferred shares outstanding during the year. The earnings per share of common stock was

The quick ratio

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Profit Planning

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Filters

Exam 16: Financial Statement Analysis

Many industrial averages and figures are published in the each of the following except?

A liquidity ratio measures the

Horizontal analysis is analysis

Eagle Company has $9,000 in cash, $11,000 in marketable securities, $26,000 in current receivables, $34,000 in inventories, and $40,000 in current liabilities. The company's quick ratio is closest to

The ___________________ is calculated by dividing the market price per share by earnings per share.

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

The Gift Shoppe's inventory turned over five times during the year. Similar gift shops have an inventory turnover equal to ten times per year. What explains the Gift Shoppe's inventory management?

Opis Company has total assets of $475,000 and total liabilities of $130,000. The company's debt-to-equity ratio is closest to

Data concerning Bouerneuf Company's common stock follow: The price-earnings ratio would be

The type of analysis that is concerned with the relationships among the components of the financial statements is to prepare a

Kringle Company, a retailer, had cost of goods sold of $1,400,000 last year. The beginning inventory balance was $125,000 and the ending inventory balance was $142,000. The company's inventory turnover ratio was closest to

Cottle Company has total assets of $180,000 and total liabilities of $54,000. The company's debt-to-equity ratio is closest to

All debt is considered in the computation of the quick ratio.

A company has an average inventory on hand of $100,000 and the days in inventory are 73 days. What is the cost of goods sold?

MATCHING Match the classifications of ratios with each description. a. Liquidity Ratio b. Leverage Ratio c. Profitability Ratio d. Horizontal Analysis e. Trend Analysis -Return on total assets ratio

Lew Company's net income was $80,000 last year. The company has 20,000 shares of common stock and 5,000 shares of $100 par value, 7% preferred stock outstanding. There was no change in the number of common or preferred shares outstanding during the year. The earnings per share of common stock was

The quick ratio

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Profit Planning

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Filters