Question 1

A balance sheet that displays only component percentages is called a

Accepted Answer

A)  segmented balance sheet. 
B)  common-size balance sheet. 
C)  condensed balance sheet. 
D)  comparative balance sheet. 
A)  segmented balance sheet. 
B)  common-size balance sheet. 
C)  condensed balance sheet. 
D)  comparative balance sheet.

Question 2

Use the following information to calculate the ratios requested below.Round answers to one decimal place.Show your work.

Accepted Answer

The answer of Use the following information to calculate the...

Question 3

In trend analysis,each item is expressed as a percentage of the

Accepted Answer

A)  total assets amount. 
B)  retained earnings amount. 
C)  net income amount. 
D)  base year amount. 
A)  total assets amount. 
B)  retained earnings amount. 
C)  net income amount. 
D)  base year amount.

Question 4

The number of days' sales uncollected is determined by dividing

Accepted Answer

A)  the number of days in a year by average accounts receivable. 
B)  sales by average accounts receivable. 
C)  the number of days in a year by the receivable turnover. 
D)  net income by average accounts receivable. 
A)  the number of days in a year by average accounts receivable. 
B)  sales by average accounts receivable. 
C)  the number of days in a year by the receivable turnover. 
D)  net income by average accounts receivable.

Question 5

Vertical analysis is the same as common-size analysis.

Accepted Answer

A) True 
 B)False

Question 6

Financial statement analysis can be both past- and future-oriented.

Accepted Answer

A) True 
 B)False

Question 7

Match each definition with the correct term below.
-Quick ratio

Accepted Answer

A) The time that it takes to purchase inventory,sell it,and collect cash for it. 
B) The relationship of the more liquid current assets (cash,marketable securities or short-term investments,and receivables)to current liabilities. 
C) A technique for analyzing financial statements that uses percentages to show the relationship of the different parts to the total in a single statement. 
D) The substance of earnings and their sustainability into future accounting periods. 
E) All the techniques used to show important relationships in financial statements and to relate them to important financial objectives.
F)A technique for analyzing financial statements that involves the computation of dollar amount changes and percentage changes from the previous to the current year.
G)Large companies that have multiple segments and operate in more than one industry.
H)Segments that are no longer a part of a company's operations.
I)A technique for analyzing financial statements in which meaningful relationships between components of the financial statements are shown.
J)The measure of investors' confidence in a company. 
A) The time that it takes to purchase inventory,sell it,and collect cash for it. 
B) The relationship of the more liquid current assets (cash,marketable securities or short-term investments,and receivables)to current liabilities. 
C) A technique for analyzing financial statements that uses percentages to show the relationship of the different parts to the total in a single statement. 
D) The substance of earnings and their sustainability into future accounting periods. 
E) All the techniques used to show important relationships in financial statements and to relate them to important financial objectives.
F)A technique for analyzing financial statements that involves the computation of dollar amount changes and percentage changes from the previous to the current year.
G)Large companies that have multiple segments and operate in more than one industry.
H)Segments that are no longer a part of a company's operations.
I)A technique for analyzing financial statements in which meaningful relationships between components of the financial statements are shown.
J)The measure of investors' confidence in a company.

Question 8

Days' payable is a measure of

Accepted Answer

A)  volatility. 
B)  long-term solvency. 
C)  profitability. 
D)  operating asset management. 
A)  volatility. 
B)  long-term solvency. 
C)  profitability. 
D)  operating asset management.

Question 9

The following selected amounts were extracted from the financial statements of Bandera Corporation.
   Prepare a trend analysis for net sales,cost of goods sold,and gross margin.(Round answers to the nearest tenth of 1 percent.)Use Year 1 as the base year.

Accepted Answer

@#IMG-DLM& 
*Year 1: 100 x ($288,000 ÷ $288,000)

Question 10

What is horizontal analysis,and why is it useful in performing financial performance measurement?

Accepted Answer

Horizontal analysis is the computation o

Question 11

Which of the following best describes the debt to equity ratio?

Accepted Answer

A)  Stockholders' equity divided by total liabilities 
B)  Average total assets divided by stockholders' equity 
C)  Average total assets divided by total liabilities 
D)  Total liabilities divided by stockholders' equity 
A)  Stockholders' equity divided by total liabilities 
B)  Average total assets divided by stockholders' equity 
C)  Average total assets divided by total liabilities 
D)  Total liabilities divided by stockholders' equity

Question 12

Companies file their quarterly reports with the SEC on Form 8K.

Accepted Answer

A) True 
 B)False

Question 13

Lois Kent has owned and managed the operations of a small chain of sporting goods stores for the past two years.She has asked her administrative assistant to provide her with some annual reports of other companies that sell sporting goods as well as some published reports showing norms for the sporting goods industry so that Lois can compare the financial ratios of her company with those of other companies that sell sporting goods.Discuss the limitations of using comparisons with other companies and industry norms,which Lois needs to remember.

Accepted Answer

Lois can learn some important things abo

Question 14

The following information pertains to Jasmin Corporation.Assume that all balance sheet amounts represent both average and ending figures.     Jasmin Corporation had 6,000 shares of common stock issued and outstanding.The market price of Jasmin common stock on December 31,2013,was $20.Jasmin paid dividends of $0.90 per share during 2013.
What is the debt to equity ratio for this corporation?

Accepted Answer

A)  1.0 times 
B)  2.5 times 
C)  0.4 times 
D)  0.6 times 
A)  1.0 times 
B)  2.5 times 
C)  0.4 times 
D)  0.6 times

Question 15

Prepare a trend analysis of the following data using 2011 as the base year.Place your answers in the chart provided.Comment on the trend.

Accepted Answer

@#IMG-DLM& Comment: Year 2013 looks like the start

Question 16

Following are the financial statements for Starman Corporation for the year ended December 31,2013.Assume that all balance sheet amounts represent both average and ending figures.     What is the receivable turnover for this corporation?

Accepted Answer

A)  6.0 times 
B)  1.8 times 
C)  4.8 times 
D)  8.0 times 
A)  6.0 times 
B)  1.8 times 
C)  4.8 times 
D)  8.0 times

Question 17

Contrast the circumstances where horizontal analysis would be an effective analysis tool with those where common-sized analysis would be more useful.

Accepted Answer

Horizontal analysis reveals meaningful i

Question 18

The following selected amounts were extracted from the financial statements of Clay Corporation.  (Round all answers below to one decimal place.)
 
a. Prepare a trend analysis for net sales, gross margin, and net income using Year 1 as the base year.
 
b. For net sales, gross margin, and net income:
    1. Calculate the percentage change from Year 1 to Year 2.
    2. Calculate the percentage change from Year 2 to Year 3.
c. For each of the four years, compute the percentage relationship of gross margin to net sales and the relationship of net income to net sales.
 
d. Identify which requirement(s) above involve(s):
    1. Horizontal analysis
    2. Vertical analysis
Round all answers to the nearest tenth of 1 percent.

Accepted Answer

a.@#IMG-DLM&
*Year 1: 100 x ($1,200,000 ÷ $1,200,0

A balance sheet that displays only component percentages is called a

Use the following information to calculate the ratios requested below.Round answers to one decimal place.Show your work.

In trend analysis,each item is expressed as a percentage of the

The number of days' sales uncollected is determined by dividing

Vertical analysis is the same as common-size analysis.

Financial statement analysis can be both past- and future-oriented.

Match each definition with the correct term below. -Quick ratio

Days' payable is a measure of

The following selected amounts were extracted from the financial statements of Bandera Corporation. Prepare a trend analysis for net sales,cost of goods sold,and gross margin.(Round answers to the nearest tenth of 1 percent.)Use Year 1 as the base year.

What is horizontal analysis,and why is it useful in performing financial performance measurement?

Which of the following best describes the debt to equity ratio?

Companies file their quarterly reports with the SEC on Form 8K.

Prepare a trend analysis of the following data using 2011 as the base year.Place your answers in the chart provided.Comment on the trend.

Following are the financial statements for Starman Corporation for the year ended December 31,2013.Assume that all balance sheet amounts represent both average and ending figures. What is the receivable turnover for this corporation?

Contrast the circumstances where horizontal analysis would be an effective analysis tool with those where common-sized analysis would be more useful.

Uses of Accounting Information and the Financial Statements

Analyzing Business Transactions

Measuring Business Income

Supplement - Closing Entries and the Work Sheet

Financial Reporting and Analysis

The Operating Cycle and Merchandising Operations

Inventories

Cash and Receivables

Current Liabilities and Fair Value Accounting

Long Term Assets

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Investments

Filters

Exam 14: Financial Performance Measurement

A balance sheet that displays only component percentages is called a

Use the following information to calculate the ratios requested below.Round answers to one decimal place.Show your work.

In trend analysis,each item is expressed as a percentage of the

The number of days' sales uncollected is determined by dividing

Vertical analysis is the same as common-size analysis.

Financial statement analysis can be both past- and future-oriented.

Match each definition with the correct term below. -Quick ratio

Days' payable is a measure of

The following selected amounts were extracted from the financial statements of Bandera Corporation. Prepare a trend analysis for net sales,cost of goods sold,and gross margin.(Round answers to the nearest tenth of 1 percent.)Use Year 1 as the base year.

What is horizontal analysis,and why is it useful in performing financial performance measurement?

Which of the following best describes the debt to equity ratio?

Companies file their quarterly reports with the SEC on Form 8K.

Prepare a trend analysis of the following data using 2011 as the base year.Place your answers in the chart provided.Comment on the trend.

Following are the financial statements for Starman Corporation for the year ended December 31,2013.Assume that all balance sheet amounts represent both average and ending figures. What is the receivable turnover for this corporation?

Contrast the circumstances where horizontal analysis would be an effective analysis tool with those where common-sized analysis would be more useful.

Uses of Accounting Information and the Financial Statements

Analyzing Business Transactions

Measuring Business Income

Supplement - Closing Entries and the Work Sheet

Financial Reporting and Analysis

The Operating Cycle and Merchandising Operations

Inventories

Cash and Receivables

Current Liabilities and Fair Value Accounting

Long Term Assets

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Investments

Filters