Question 1

The price/earnings ratio indicates

Accepted Answer

A) the amount of earnings that a company is willing to pay to shareholders in the form of dividends. 
B) what multiple of current earnings investors are willing to pay for a share of stock. 
C) the net income available to pay out in dividends to shareholders. 
D) the amount of earnings in relation to total assets. 
A) the amount of earnings that a company is willing to pay to shareholders in the form of dividends. 
B) what multiple of current earnings investors are willing to pay for a share of stock. 
C) the net income available to pay out in dividends to shareholders. 
D) the amount of earnings in relation to total assets.

Question 2

Barber Industries reported net income of $32,000, earnings per share of $2, and paid dividends of $3 per share or a total of $3,000.The stock sells for $20 per share.What is the price/earnings ratio?

Accepted Answer

A) 10.00 
B) 10.67 
C) 1.50 
D) 6.67 
A) 10.00 
B) 10.67 
C) 1.50 
D) 6.67

Question 3

The following financial statement items are shown for J&T Manufacturing.   Calculate the common-size percentage for inventory.

Accepted Answer

A) 8% 
B) 14% 
C) 20% 
D) 500% 
A) 8% 
B) 14% 
C) 20% 
D) 500%

Question 4

The percentage change, as shown in horizontal analysis, is calculated as:
(current year account balance - previous year account balance) ÷ current year account balance

Accepted Answer

A) True 
 B)False

The price/earnings ratio indicates

Barber Industries reported net income of $32,000, earnings per share of $2, and paid dividends of $3 per share or a total of $3,000.The stock sells for $20 per share.What is the price/earnings ratio?

The following financial statement items are shown for J&T Manufacturing. Calculate the common-size percentage for inventory.

The percentage change, as shown in horizontal analysis, is calculated as: (current year account balance - previous year account balance) ÷ current year account balance

Accounting As a Tool for Management

Cost Behavior and Cost Estimation

Costvolumeprofit Analysis and Pricing Decisions

Product Costs and Job Order Costing

Planning and Forecasting in a Manufacturing Setting

Performance Evaluation: Variance Analysis

Activity-Based Costing and Activity-Based Management

Using Accounting Information to Make Managerial Decisions

Using Accounting Information to Make Managerial Decisions

Capital Budgeting

Decentralization and Performance Evaluation

Financial Statement Analysis

Filters

Exam 12: Performance Evaluation Revisited: a Balanced Approach

The price/earnings ratio indicates

Barber Industries reported net income of $32,000, earnings per share of $2, and paid dividends of $3 per share or a total of $3,000.The stock sells for $20 per share.What is the price/earnings ratio?

The following financial statement items are shown for J&T Manufacturing. Calculate the common-size percentage for inventory.

The percentage change, as shown in horizontal analysis, is calculated as: (current year account balance - previous year account balance) ÷ current year account balance

Accounting As a Tool for Management

Cost Behavior and Cost Estimation

Costvolumeprofit Analysis and Pricing Decisions

Product Costs and Job Order Costing

Planning and Forecasting in a Manufacturing Setting

Performance Evaluation: Variance Analysis

Activity-Based Costing and Activity-Based Management

Using Accounting Information to Make Managerial Decisions

Using Accounting Information to Make Managerial Decisions

Capital Budgeting

Decentralization and Performance Evaluation

Financial Statement Analysis

Filters