Question 1

Market strength refers most closely to the ability to

Accepted Answer

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

Question 2

The quick ratio and the debt to equity ratio are measures of short-term debt-paying ability.

Accepted Answer

A) True 
 B)False

Question 3

Both diversified companies and conglomerates operate in a single,well-defined industry.

Accepted Answer

A) True 
 B)False

Question 4

In a common-size balance sheet for a retail store,the 100 percent amount is for

Accepted Answer

A)  total property,plant,and equipment. 
B)  merchandise inventory. 
C)  total current assets. 
D)  total assets. 
A)  total property,plant,and equipment. 
B)  merchandise inventory. 
C)  total current assets. 
D)  total assets.

Question 5

The annual report of a publicly held corporation usually does not contain the auditors' report.

Accepted Answer

A) True 
 B)False

Question 6

Match each definition with the correct term below.
-Vertical analysis

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 7

One of the best places to look for early signals of change in a company's profitability is the

Accepted Answer

A)  year-end financial statements. 
B)  annual report sent to stockholders. 
C)  annual report sent to the SEC. 
D)  interim financial statements. 
A)  year-end financial statements. 
B)  annual report sent to stockholders. 
C)  annual report sent to the SEC. 
D)  interim financial statements.

Question 8

Profitability is the ability to pay bills when due and to meet unexpected needs for cash.

Accepted Answer

A) True 
 B)False

Question 9

A high receivable turnover indicates that

Accepted Answer

A)  the company's inventory is moving very quickly. 
B)  a large proportion of the company's sales is on credit. 
C)  many customers are defaulting on their debts. 
D)  customers are making payments very quickly. 
A)  the company's inventory is moving very quickly. 
B)  a large proportion of the company's sales is on credit. 
C)  many customers are defaulting on their debts. 
D)  customers are making payments very quickly.

Question 10

The following information pertains to Bailey Corporation:
   Calculate the return on assets for 2013.Round your answer to two decimal places.

Accepted Answer

Return on assets = Net income

Question 11

Form 10-Q refers to the annual report filed with the SEC.

Accepted Answer

A) True 
 B)False

Question 12

Trend analysis is a variation on horizontal analysis.

Accepted Answer

A) True 
 B)False

Question 13

Liquidity is the ability to earn a satisfactory net income.

Accepted Answer

A) True 
 B)False

Question 14

Return on assets is most closely related to

Accepted Answer

A)  inventory turnover and profit margin. 
B)  profit margin and asset turnover. 
C)  interest coverage and the debt to equity ratios. 
D)  profit margin and the debt to equity ratio. 
A)  inventory turnover and profit margin. 
B)  profit margin and asset turnover. 
C)  interest coverage and the debt to equity ratios. 
D)  profit margin and the debt to equity ratio.

Question 15

Financial statements for Boston Corporation are presented below.
     Note: Dividends of $0.60 per share were declared and paid during 2013.The market price of the stock on December 31,2013 was $18.00 per share.
Compute the following for 2013 and place your answers in the spaces provided.Round answers to two decimal places.Show your work.

Accepted Answer

@#IMG-DLM& 
*Additional Calculations: 
Current ass

Question 16

When using an index number,one sets the first (oldest)number in a series equal to 100.

Accepted Answer

A) True 
 B)False

Question 17

The use of rule-of-thumb measures is not an exact science and should be used with great care.

Accepted Answer

A) True 
 B)False

Question 18

Publicly held corporations must file annual reports with the SEC.All such reports are available

Accepted Answer

A)  to the general public. 
B)  only to the SEC,the company's owners and management,and the company's auditors. 
C)  only to the SEC,the company's management,and the company's auditors. 
D)  only to other SEC companies and the issuing company's owners and management. 
A)  to the general public. 
B)  only to the SEC,the company's owners and management,and the company's auditors. 
C)  only to the SEC,the company's management,and the company's auditors. 
D)  only to other SEC companies and the issuing company's owners and management.

Question 19

The quality of a company's earnings refers to the substance of earnings and their sustainability into future accounting periods.

Accepted Answer

A) True 
 B)False

Question 20

Companies in the same industry are required to use the same methods to value inventory and to depreciate similar assets.

Accepted Answer

A) True 
 B)False

Market strength refers most closely to the ability to

The quick ratio and the debt to equity ratio are measures of short-term debt-paying ability.

Both diversified companies and conglomerates operate in a single,well-defined industry.

In a common-size balance sheet for a retail store,the 100 percent amount is for

The annual report of a publicly held corporation usually does not contain the auditors' report.

Match each definition with the correct term below. -Vertical analysis

One of the best places to look for early signals of change in a company's profitability is the

Profitability is the ability to pay bills when due and to meet unexpected needs for cash.

A high receivable turnover indicates that

The following information pertains to Bailey Corporation: Calculate the return on assets for 2013.Round your answer to two decimal places.

Form 10-Q refers to the annual report filed with the SEC.

Trend analysis is a variation on horizontal analysis.

Liquidity is the ability to earn a satisfactory net income.

Return on assets is most closely related to

When using an index number,one sets the first (oldest)number in a series equal to 100.

The use of rule-of-thumb measures is not an exact science and should be used with great care.

Publicly held corporations must file annual reports with the SEC.All such reports are available

The quality of a company's earnings refers to the substance of earnings and their sustainability into future accounting periods.

Companies in the same industry are required to use the same methods to value inventory and to depreciate similar assets.

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

Market strength refers most closely to the ability to

The quick ratio and the debt to equity ratio are measures of short-term debt-paying ability.

Both diversified companies and conglomerates operate in a single,well-defined industry.

In a common-size balance sheet for a retail store,the 100 percent amount is for

The annual report of a publicly held corporation usually does not contain the auditors' report.

Match each definition with the correct term below. -Vertical analysis

One of the best places to look for early signals of change in a company's profitability is the

Profitability is the ability to pay bills when due and to meet unexpected needs for cash.

A high receivable turnover indicates that

The following information pertains to Bailey Corporation: Calculate the return on assets for 2013.Round your answer to two decimal places.

Form 10-Q refers to the annual report filed with the SEC.

Trend analysis is a variation on horizontal analysis.

Liquidity is the ability to earn a satisfactory net income.

Return on assets is most closely related to

When using an index number,one sets the first (oldest)number in a series equal to 100.

The use of rule-of-thumb measures is not an exact science and should be used with great care.

Publicly held corporations must file annual reports with the SEC.All such reports are available

The quality of a company's earnings refers to the substance of earnings and their sustainability into future accounting periods.

Companies in the same industry are required to use the same methods to value inventory and to depreciate similar assets.

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