Question 1

Define quality of earnings and identify the factors that affect quality of earnings.

Accepted Answer

Quality of earnings refers to the substa

Question 2

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

Accepted Answer

Vertical analysis will show what percent

Question 3

The analysis of risk and return is important to both investors and creditors.

Accepted Answer

A) True 
 B)False

Question 4

Using the income statement below,develop a common-size statement by filling in the blanks provided.Show your work.Round to one decimal place.

Accepted Answer

The answer of Using the income statement below,develop a common-size...

Question 5

All of the following are key sources of financial news,except

Accepted Answer

A)  Barron's. 
B)  Newsweek. 
C)  Fortune. 
D)  Forbes. 
A)  Barron's. 
B)  Newsweek. 
C)  Fortune. 
D)  Forbes.

Question 6

Free cash flow is measured in terms of

Accepted Answer

A)  a percentage. 
B)  dollars. 
C)  days. 
D)  times. 
A)  a percentage. 
B)  dollars. 
C)  days. 
D)  times.

Question 7

Both profit margin and asset turnover affect a company's return on assets.

Accepted Answer

A) True 
 B)False

Question 8

Using the following information from an annual report,prepare a vertical analysis of the consolidated balance sheet at June 30,2013.(Round percentage answers to one decimal place.)

Accepted Answer

@#IMG-DLM& *Rounding has cause

Question 9

Full disclosure in financial statements reduces problems in the interpretation of financial statements.

Accepted Answer

A) True 
 B)False

Question 10

The receivable turnover and inventory turnover ratios are used to analyze

Accepted Answer

A)  profitability. 
B)  liquidity. 
C)  long-term solvency. 
D)  leverage. 
A)  profitability. 
B)  liquidity. 
C)  long-term solvency. 
D)  leverage.

Question 11

The ability to pay bills when due and to meet unexpected needs for cash most closely describes

Accepted Answer

A)  liquidity. 
B)  long-term solvency. 
C)  profitability. 
D)  cash flow adequacy. 
A)  liquidity. 
B)  long-term solvency. 
C)  profitability. 
D)  cash flow adequacy.

Question 12

The market price of a stock represents investors' collective view at a point in time.

Accepted Answer

A) True 
 B)False

Question 13

Using the income statement below,develop a common-size statement by filling in the blanks provided.Show your work.Round to one decimal place.

Accepted Answer

The answer of Using the income statement below,develop a common-size...

Question 14

A common measure of profitability is the

Accepted Answer

A)  debt to equity ratio. 
B)  asset turnover. 
C)  current ratio. 
D)  receivable turnover. 
A)  debt to equity ratio. 
B)  asset turnover. 
C)  current ratio. 
D)  receivable turnover.

Question 15

Per the Sarbanes-Oxley Act of 2002,public corporations must establish a compensation committee to determine how its top executives will be compensated.

Accepted Answer

A) True 
 B)False

Question 16

The financial objective of long-term solvency is to

Accepted Answer

A)  be able to pay bills when they fall due. 
B)  earn a satisfactory net income. 
C)  be able to increase stockholders' wealth. 
D)  be able to survive for many years. 
A)  be able to pay bills when they fall due. 
B)  earn a satisfactory net income. 
C)  be able to increase stockholders' wealth. 
D)  be able to survive for many years.

Question 17

A company with $50,000 in current assets,$25,000 in quick assets,and $30,000 in current liabilities makes a payment of a $1,500 current debt.As a result of this transaction,the current ratio and quick ratio will

Accepted Answer

A)  both increase. 
B)  both decrease. 
C)  increase and decrease,respectively. 
D)  remain the same and decrease,respectively. 
A)  both increase. 
B)  both decrease. 
C)  increase and decrease,respectively. 
D)  remain the same and decrease,respectively.

Question 18

If two companies have identical net sales and use different inventory methods,income from continuing operations will likely be identical also.

Accepted Answer

A) True 
 B)False

Question 19

A company is referred to as a diversified company or a conglomerate if it operates in

Accepted Answer

A)  one single major industry. 
B)  many unrelated industries. 
C)  many related industries. 
D)  many and varied locations throughout the world. 
A)  one single major industry. 
B)  many unrelated industries. 
C)  many related industries. 
D)  many and varied locations throughout the world.

Question 20

Different accounting methods will often have different effects on net income.

Accepted Answer

A) True 
 B)False

Define quality of earnings and identify the factors that affect quality of earnings.

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

The analysis of risk and return is important to both investors and creditors.

Using the income statement below,develop a common-size statement by filling in the blanks provided.Show your work.Round to one decimal place.

All of the following are key sources of financial news,except

Free cash flow is measured in terms of

Both profit margin and asset turnover affect a company's return on assets.

Using the following information from an annual report,prepare a vertical analysis of the consolidated balance sheet at June 30,2013.(Round percentage answers to one decimal place.)

Full disclosure in financial statements reduces problems in the interpretation of financial statements.

The receivable turnover and inventory turnover ratios are used to analyze

The ability to pay bills when due and to meet unexpected needs for cash most closely describes

The market price of a stock represents investors' collective view at a point in time.

Using the income statement below,develop a common-size statement by filling in the blanks provided.Show your work.Round to one decimal place.

A common measure of profitability is the

Per the Sarbanes-Oxley Act of 2002,public corporations must establish a compensation committee to determine how its top executives will be compensated.

The financial objective of long-term solvency is to

A company with $50,000 in current assets,$25,000 in quick assets,and $30,000 in current liabilities makes a payment of a $1,500 current debt.As a result of this transaction,the current ratio and quick ratio will

If two companies have identical net sales and use different inventory methods,income from continuing operations will likely be identical also.

A company is referred to as a diversified company or a conglomerate if it operates in

Different accounting methods will often have different effects on net income.

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

Define quality of earnings and identify the factors that affect quality of earnings.

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

The analysis of risk and return is important to both investors and creditors.

Using the income statement below,develop a common-size statement by filling in the blanks provided.Show your work.Round to one decimal place.

All of the following are key sources of financial news,except

Free cash flow is measured in terms of

Both profit margin and asset turnover affect a company's return on assets.

Using the following information from an annual report,prepare a vertical analysis of the consolidated balance sheet at June 30,2013.(Round percentage answers to one decimal place.)

Full disclosure in financial statements reduces problems in the interpretation of financial statements.

The receivable turnover and inventory turnover ratios are used to analyze

The ability to pay bills when due and to meet unexpected needs for cash most closely describes

The market price of a stock represents investors' collective view at a point in time.

Using the income statement below,develop a common-size statement by filling in the blanks provided.Show your work.Round to one decimal place.

A common measure of profitability is the

Per the Sarbanes-Oxley Act of 2002,public corporations must establish a compensation committee to determine how its top executives will be compensated.

The financial objective of long-term solvency is to

A company with $50,000 in current assets,$25,000 in quick assets,and $30,000 in current liabilities makes a payment of a $1,500 current debt.As a result of this transaction,the current ratio and quick ratio will

If two companies have identical net sales and use different inventory methods,income from continuing operations will likely be identical also.

A company is referred to as a diversified company or a conglomerate if it operates in

Different accounting methods will often have different effects on net income.

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