Question 1

Owners' contributions and dividends are reported as special items on income statements.

Accepted Answer

A) True 
 B)False

Question 2

In 2011,Bebe's Baby Boutique shut down its store in Paris.Operating losses for the year were $114,000,after a tax savings of $28,000.The store's furnishings and equipment were sold at a loss of $175,000,which was partially offset by a tax savings of $25,000.
Required: Show how these amounts would be reported on Bebe's income statement for the year ended December 31,2011.

Accepted Answer

Discontinu

Question 3

Investments in debt and equity securities that a company has purchased to make a short-term profit are called ________.

Accepted Answer

A) held-to-maturity securities 
B) trading securities 
C) available-for-sale securities 
D) speculative investments 
A) held-to-maturity securities 
B) trading securities 
C) available-for-sale securities 
D) speculative investments

Question 4

Indicate which of the following analytical tools is described in each situation below.Each ratio is used only once.
a.debt-to-equity ratio
b.return on assets ratio
c.return on equity ratio
d.gross profit ratio

Accepted Answer

The answer of Indicate which of the following analytical tools...

Question 5

The following selected information is from Acme's annual report for the years ended December 31:
 
-Refer to the Acme annual report above.Calculate the inventory turnover ratio for 2011.

Accepted Answer

A) 3.75 times 
B) 6.0 times 
C) 7.3 times 
D) The answer cannot be determined from the information given. 
A) 3.75 times 
B) 6.0 times 
C) 7.3 times 
D) The answer cannot be determined from the information given.

Question 6

The FASB has defined three items that need to be separated from the regular earnings of a business: discontinued operations,other income and expenses,and extraordinary items.

Accepted Answer

A) True 
 B)False

Question 7

Analyze the liquidity of Wurst Buy,a sausage manufacturer,using the current ratio,inventory turnover ratio,and accounts receivable turnover ratio.
All data are in millions

Accepted Answer

1.Current ratio: $4,503 / $3,8

Question 8

The following information is provided from EZ Electronics' annual report for the years ended December 31:

-Refer to the EZ Electronics annual report above.Using vertical analysis,2012 gross profit would be represented as ________.

Accepted Answer

A) 67% 
B) 150% 
C) 40% 
D) 80% 
A) 67% 
B) 150% 
C) 40% 
D) 80%

Question 9

The following information has been adapted from the 2005 and 2006 annual reports of Microsoft Corporation's worldwide operations, available online at http://www.microsoft.com/msft/reports/default.mspx:
 
Additional information that might be useful:
 
In 2005, Microsoft declared and paid a one-time cash dividend of $3.00 per share. At the same time, Microsoft announced plans to repurchase a large amount of its own stock.

-Divide the class into teams of three or four people.Each team member should work the following problem separately outside of class.Then give the students time in class to compare answers with their teammates and put together a final,correct copy of the problem.Each team should turn in only one copy of the problem for grading.All team members will receive the same grade.
Required:
Use the adapted financial statements from Microsoft Corporation to answer the following questions:
   13.Use the liquidity ratios you have just calculated to discuss Microsoft's liquidity.

Accepted Answer

1.$48,737 / $16,877 = 2.89
2.$49,010 / $

Question 10

The price-earnings ratio is a market indicator.

Accepted Answer

A) True 
 B)False

Question 11

The following information is provided from Ace Electronics' annual report for the years ended December 31:
 
-Refer to the Ace Electronics annual report above.Using horizontal analysis with 2010 as the base year,$\bold{2012}$ Net income would be represented as ________.

Accepted Answer

A) 90% 
B) 15% 
C) (11)% 
D) (10)% 
A) 90% 
B) 15% 
C) (11)% 
D) (10)%

Question 12

An increase or decrease in the market value of a company's investments in securities is ________.

Accepted Answer

A) a realized gain or loss 
B) considered to be either other gain or other loss on the income statement 
C) an unrealized gain or loss 
D) treated as an operating income or expense 
A) a realized gain or loss 
B) considered to be either other gain or other loss on the income statement 
C) an unrealized gain or loss 
D) treated as an operating income or expense

Question 13

Analyze the liquidity of Circuit City using the current ratio and inventory turnover ratio.
All data are in millions.

Accepted Answer

1.Current ratio: $2,

Owners' contributions and dividends are reported as special items on income statements.

Investments in debt and equity securities that a company has purchased to make a short-term profit are called ________.

Indicate which of the following analytical tools is described in each situation below.Each ratio is used only once. a.debt-to-equity ratio b.return on assets ratio c.return on equity ratio d.gross profit ratio

The following selected information is from Acme's annual report for the years ended December 31: -Refer to the Acme annual report above.Calculate the inventory turnover ratio for 2011.

The FASB has defined three items that need to be separated from the regular earnings of a business: discontinued operations,other income and expenses,and extraordinary items.

Analyze the liquidity of Wurst Buy,a sausage manufacturer,using the current ratio,inventory turnover ratio,and accounts receivable turnover ratio. All data are in millions

The following information is provided from EZ Electronics' annual report for the years ended December 31: -Refer to the EZ Electronics annual report above.Using vertical analysis,2012 gross profit would be represented as ________.

The price-earnings ratio is a market indicator.

An increase or decrease in the market value of a company's investments in securities is ________.

Analyze the liquidity of Circuit City using the current ratio and inventory turnover ratio. All data are in millions.

Business: Whats It All About

Qualities of Accounting Information

Accruals and Deferrals: Timing Is Everything in Accounting

Payment for Goods and Services: Cash and Accounts Receivable

The Purchase and Sale of Inventory

Acquisition and Use of Long-Term Assets

Accounting for Liabilities

Accounting for Shareholders Equity

Preparing and Analyzing the Statement of Cash Flows

Quality of Earnings, corporate Governance, and Ifrs

Filters

Exam 10: Using Financial Statement Analysis to Evaluate Firm Performance

Owners' contributions and dividends are reported as special items on income statements.

Investments in debt and equity securities that a company has purchased to make a short-term profit are called ________.

Indicate which of the following analytical tools is described in each situation below.Each ratio is used only once. a.debt-to-equity ratio b.return on assets ratio c.return on equity ratio d.gross profit ratio

The following selected information is from Acme's annual report for the years ended December 31: -Refer to the Acme annual report above.Calculate the inventory turnover ratio for 2011.

The FASB has defined three items that need to be separated from the regular earnings of a business: discontinued operations,other income and expenses,and extraordinary items.

Analyze the liquidity of Wurst Buy,a sausage manufacturer,using the current ratio,inventory turnover ratio,and accounts receivable turnover ratio. All data are in millions

The following information is provided from EZ Electronics' annual report for the years ended December 31: -Refer to the EZ Electronics annual report above.Using vertical analysis,2012 gross profit would be represented as ________.

The price-earnings ratio is a market indicator.

The following information is provided from Ace Electronics' annual report for the years ended December 31: -Refer to the Ace Electronics annual report above.Using horizontal analysis with 2010 as the base year, 2012\bold{2012}2012 Net income would be represented as ________.

An increase or decrease in the market value of a company's investments in securities is ________.

Analyze the liquidity of Circuit City using the current ratio and inventory turnover ratio. All data are in millions.

Business: Whats It All About

Qualities of Accounting Information

Accruals and Deferrals: Timing Is Everything in Accounting

Payment for Goods and Services: Cash and Accounts Receivable

The Purchase and Sale of Inventory

Acquisition and Use of Long-Term Assets

Accounting for Liabilities

Accounting for Shareholders Equity

Preparing and Analyzing the Statement of Cash Flows

Quality of Earnings, corporate Governance, and Ifrs

Filters