Exam 14: Financial Performance Measurement

If Year 1 equals $1,400,Year 2 equals $1,554,and Year 3 equals $1,834,the index number to be assigned for Year 3 in trend analysis,assuming that Year 1 is the base year,is

Common-size statements are useful in assessing the changes in the composition of statements over time.

The price/earnings (P/E)ratio is measured in terms of

A quick ratio that is much smaller than the current ratio indicates that

The interest coverage ratio and the debt to equity ratio are short-term measures of liquidity.

Interim financial statements report data for a period of more than one year.

It is in the best interests of a company to base executive compensation on a single performance measure.

Which of the following describes the interest coverage ratio?

The price/earnings (P/E)ratio is an indication of investor confidence in a company.

The operating cycle is equal to days' sales uncollected plus days' inventory on hand.

Cost of goods sold is needed to calculate

Quality of earnings is only affected by accounting methods and accounting estimates.

The receivable turnover amount is needed to calculate the

Which of the following is a leverage ratio?

Which of the following must be reported by diversified companies for each of their operating segments?

The cash flow yield equals net income divided by net cash flows from operating activities.

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 return on assets for this corporation?

Match each definition with the correct term below. -Quality of earnings

For each of the performance objectives listed below,state the related financial objective term. a.To use debt effectively without jeopardizing the company's future. b.To earn a satisfactory net income. c.To be able to pay bills when due and meet unexpected needs for cash. d.To use all of the company's assets in a way that maximizes revenues while minimizing investment. e.To use current assets and current liabilities in a way that supports growth in revenues with minimum investment.

Match each definition with the correct term below. -Discontinued operations