Question 1

When no value is in the base period, no percent change is computable.

Accepted Answer

A) True 
 B)False

Question 2

The market price of Horokhiv Corporation's common stock at the start of 2016 was $47.50 and it declared and paid cash dividends of $3.28 per share. The Dividend yield ratio is:

Accepted Answer

A) 144.8%. 
B) 6.5%. 
C) 6.9%. 
D) 14.5%. 
E) 7.4%. 
A) 144.8%. 
B) 6.5%. 
C) 6.9%. 
D) 14.5%. 
E) 7.4%.

Question 3

Refer to the following selected financial information from Marston Company. Compute the company's days' sales uncollected for Year 2. (Use 365 days a year.) $\begin{array}{|l|r|r|}
\hline & \text { Year 2 } &{\text { Year 1 }} \
\hline \text { Accounts receivable, net } & 86,500 & 82,750 \
\hline \text { Net sales } & 723,000 & 693,000 \
\hline
\end{array}$

Accepted Answer

A) 42.7. 
B) 46.2. 
C) 85.4. 
D) 43.9. 
E) 43.7. 
A) 42.7. 
B) 46.2. 
C) 85.4. 
D) 43.9. 
E) 43.7.

Question 4

Powers Company reported Net sales of $1,200,000 and average Accounts Receivable, net of $78,500. The accounts receivable turnover ratio is:

Accepted Answer

A) 15.3 times. 
B) 16.3 times. 
C) 14.3 times. 
D) 28.6 times. 
E) 0.65 times. 
A) 15.3 times. 
B) 16.3 times. 
C) 14.3 times. 
D) 28.6 times. 
E) 0.65 times.

Question 5

The dollar change for a comparative financial statement item is calculated by:

Accepted Answer

A) Subtracting the base period amount from the analysis period amount. 
B) Subtracting the base period amount from the analysis period amount, dividing the result by the base period amount, then multiplying that amount by 100. 
C) Subtracting the analysis period amount from the base period amount. 
D) Subtracting the base period amount from the analysis amount, then dividing the result by the base amount. 
E) Subtracting the analysis period amount from the base period amount, dividing the result by the base period amount, then multiplying that amount by 100. 
A) Subtracting the base period amount from the analysis period amount. 
B) Subtracting the base period amount from the analysis period amount, dividing the result by the base period amount, then multiplying that amount by 100. 
C) Subtracting the analysis period amount from the base period amount. 
D) Subtracting the base period amount from the analysis amount, then dividing the result by the base amount. 
E) Subtracting the analysis period amount from the base period amount, dividing the result by the base period amount, then multiplying that amount by 100.

Question 6

A financial statement analysis report does not include:

Accepted Answer

A) Evidential matter. 
B) Qualitative and quantitative key factors. 
C) An analysis overview. 
D) Inferences such as forecasts. 
E) An auditor statement. 
A) Evidential matter. 
B) Qualitative and quantitative key factors. 
C) An analysis overview. 
D) Inferences such as forecasts. 
E) An auditor statement.

Question 7

Standards for comparison are not generally necessary when making judgments about a company's performance.

Accepted Answer

A) True 
 B)False

Question 8

Jones Corp. reported current assets of $193,000 and current liabilities of $137,000 on its most recent balance sheet. The working capital is:

Accepted Answer

A) 71%. 
B) 41%. 
C) $56,000. 
D) 141%. 
E) ($56,000). 
A) 71%. 
B) 41%. 
C) $56,000. 
D) 141%. 
E) ($56,000).

Question 9

Horizontal analysis is used to reveal changes in the relative importance of each financial statement item.

Accepted Answer

A) True 
 B)False

Question 10

Liquidity and efficiency are the ability to meet short-term obligations and to efficiently generate revenue.

Accepted Answer

A) True 
 B)False

Question 11

Match between columns
                        Premises: Dividend Yield
Accounts Receivable Turnover
Price Earnings Ratio
Equity Ratio
Times Interest Earned
Days' Sales in Inventory
Inventory Turnover
Debt Ratio
Return on Total Assets
Basic Earnings per Share

Accepted Answer

The Answer of Liquidity and Efficiency and Solvency and Profitability is...

Question 12

Financial statement analysis applies analytical tools to financial statements and related data for making business decisions.

Accepted Answer

A) True 
 B)False

Question 13

Profitability is the ability to generate future revenues and meet long-term obligations.

Accepted Answer

A) True 
 B)False

Question 14

Common-size statements:

Accepted Answer

A) Compare financial statements over time. 
B) Show the dollar amount of change for financial statement items. 
C) Do not emphasize the relative importance of each item. 
D) Reveal patterns in data across successive periods. 
E) Reveal changes in the relative importance of each financial statement item to a base amount. 
A) Compare financial statements over time. 
B) Show the dollar amount of change for financial statement items. 
C) Do not emphasize the relative importance of each item. 
D) Reveal patterns in data across successive periods. 
E) Reveal changes in the relative importance of each financial statement item to a base amount.

Question 15

Net sales divided by Average accounts receivable, net is the:

Accepted Answer

A) Profit margin. 
B) Average accounts receivable ratio. 
C) Current ratio. 
D) Days' sales uncollected. 
E) Accounts receivable turnover ratio. 
A) Profit margin. 
B) Average accounts receivable ratio. 
C) Current ratio. 
D) Days' sales uncollected. 
E) Accounts receivable turnover ratio.

Question 16

To compute trend percentages the analyst should:

Accepted Answer

A) Compare amounts to a competitor. 
B) Select a base period, assign each item in the base period statement a weight of 100%, and then express financial numbers from other periods as a percent of their base period number. 
C) Subtract the analysis period number from the base period number. 
D) Subtract the base period amount from the analysis period amount, divide the result by the analysis period amount, then multiply that amount by 100. 
E) Compare amounts across industries using Dun and Bradstreet. 
A) Compare amounts to a competitor. 
B) Select a base period, assign each item in the base period statement a weight of 100%, and then express financial numbers from other periods as a percent of their base period number. 
C) Subtract the analysis period number from the base period number. 
D) Subtract the base period amount from the analysis period amount, divide the result by the analysis period amount, then multiply that amount by 100. 
E) Compare amounts across industries using Dun and Bradstreet.

Question 17

Ratios must refer to economically important relationships, such as a sale price compared to its cost.

Accepted Answer

A) True 
 B)False

Question 18

Identify and explain the four building blocks of financial statement analysis.

Accepted Answer

The four usual building blocks of financ

Question 19

Match each of the following terms with the appropriate formulas.
-$\frac{\text {Income before interest expense and income taxes  }}{\text {Interest expense }}$

Accepted Answer

A) Days' sales in inventory 
B) Dividend yield 
C) Total asset turnover 
D) Inventory turnover 
E) Return on common stockholders' equity
F)Gross margin ratio
G)Days' sales uncollected
H)Profit margin ratio
I)Times interest earned
J)Debt ratio 
A) Days' sales in inventory 
B) Dividend yield 
C) Total asset turnover 
D) Inventory turnover 
E) Return on common stockholders' equity
F)Gross margin ratio
G)Days' sales uncollected
H)Profit margin ratio
I)Times interest earned
J)Debt ratio

Question 20

The percent change of a comparative financial statement item is computed by subtracting the base period amount from the analysis period amount, dividing the result by the base period amount and multiplying that result by 100.

Accepted Answer

A) True 
 B)False

When no value is in the base period, no percent change is computable.

The market price of Horokhiv Corporation's common stock at the start of 2016 was $47.50 and it declared and paid cash dividends of $3.28 per share. The Dividend yield ratio is:

Refer to the following selected financial information from Marston Company. Compute the company's days' sales uncollected for Year 2. (Use 365 days a year.) Year 2 Year 1 Accounts receivable, net 86,500 82,750 Net sales 723,000 693,000

Powers Company reported Net sales of $1,200,000 and average Accounts Receivable, net of $78,500. The accounts receivable turnover ratio is:

The dollar change for a comparative financial statement item is calculated by:

A financial statement analysis report does not include:

Standards for comparison are not generally necessary when making judgments about a company's performance.

Jones Corp. reported current assets of $193,000 and current liabilities of $137,000 on its most recent balance sheet. The working capital is:

Horizontal analysis is used to reveal changes in the relative importance of each financial statement item.

Liquidity and efficiency are the ability to meet short-term obligations and to efficiently generate revenue.

Financial statement analysis applies analytical tools to financial statements and related data for making business decisions.

Profitability is the ability to generate future revenues and meet long-term obligations.

Common-size statements:

Net sales divided by Average accounts receivable, net is the:

To compute trend percentages the analyst should:

Ratios must refer to economically important relationships, such as a sale price compared to its cost.

Identify and explain the four building blocks of financial statement analysis.

Match each of the following terms with the appropriate formulas. - $\frac{\text {Income before interest expense and income taxes }}{\text {Interest expense }}$

The percent change of a comparative financial statement item is computed by subtracting the base period amount from the analysis period amount, dividing the result by the base period amount and multiplying that result by 100.

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resoures, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Filters

Exam 17: Analysis of Financial Statements

When no value is in the base period, no percent change is computable.

The market price of Horokhiv Corporation's common stock at the start of 2016 was $47.50 and it declared and paid cash dividends of $3.28 per share. The Dividend yield ratio is:

Refer to the following selected financial information from Marston Company. Compute the company's days' sales uncollected for Year 2. (Use 365 days a year.) Year 2 Year 1 Accounts receivable, net 86,500 82,750 Net sales 723,000 693,000

Powers Company reported Net sales of $1,200,000 and average Accounts Receivable, net of $78,500. The accounts receivable turnover ratio is:

The dollar change for a comparative financial statement item is calculated by:

A financial statement analysis report does not include:

Standards for comparison are not generally necessary when making judgments about a company's performance.

Jones Corp. reported current assets of $193,000 and current liabilities of $137,000 on its most recent balance sheet. The working capital is:

Horizontal analysis is used to reveal changes in the relative importance of each financial statement item.

Liquidity and efficiency are the ability to meet short-term obligations and to efficiently generate revenue.

Financial statement analysis applies analytical tools to financial statements and related data for making business decisions.

Profitability is the ability to generate future revenues and meet long-term obligations.

Common-size statements:

Net sales divided by Average accounts receivable, net is the:

To compute trend percentages the analyst should:

Ratios must refer to economically important relationships, such as a sale price compared to its cost.

Identify and explain the four building blocks of financial statement analysis.

Match each of the following terms with the appropriate formulas. - Income before interest expense and income taxes Interest expense \frac{\text {Income before interest expense and income taxes }}{\text {Interest expense }}Interest expense Income before interest expense and income taxes ​

The percent change of a comparative financial statement item is computed by subtracting the base period amount from the analysis period amount, dividing the result by the base period amount and multiplying that result by 100.

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resoures, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Filters

Match each of the following terms with the appropriate formulas. - $\frac{\text {Income before interest expense and income taxes }}{\text {Interest expense }}$