Question 1

The dividend yield ratio equals the market price of a share of stock divided by that company's dividend per share.

Accepted Answer

A) True 
 B)False

Question 2

Discontinuing a particular business segment is a non-recurring event,so this item should be reported separately on the income statement.

Accepted Answer

A) True 
 B)False

Question 3

The following information has been adapted from the 2004 and 2005 annual reports of Amazon.com's worldwide operations, available online at
http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-reportsAnnual

-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.
Use the adapted financial statements from Amazon.com,Inc.to answer the following questions:
   13.Use the liquidity ratios you have just calculated to discuss Amazon.com's liquidity.

Accepted Answer

1.$2,539 / $1,620 = 1.57
2.$2,929 / $1,9

Question 4

Items that are both unusual in nature and infrequent in occurrence are considered ________.

Accepted Answer

A) discontinued operations 
B) extraordinary items 
C) items of other revenues and expenses 
D) changes in continuing operations 
A) discontinued operations 
B) extraordinary items 
C) items of other revenues and expenses 
D) changes in continuing operations

Question 5

The following information is from Acme's annual report for the years ended Dec. 31:
 
-Refer to the Acme annual report above.Calculate the debt-to-equity ratio for 2012.

Accepted Answer

A) 8.00 
B) 3.00 
C) 0.52 
D) 0.20 
A) 8.00 
B) 3.00 
C) 0.52 
D) 0.20

Question 6

Which of the following items affects total shareholders' equity without being reported on the income statement?

Accepted Answer

A) purchase of treasury stock 
B) extraordinary items 
C) discontinued operations 
D) repayment of long-term debt 
A) purchase of treasury stock 
B) extraordinary items 
C) discontinued operations 
D) repayment of long-term debt

Question 7

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 horizontal analysis with 2010 as the base year,$\bold{2011}$ income before taxes would be represented as ________.

Accepted Answer

A) 13% 
B) 105% 
C) 31% 
D) 131% 
A) 13% 
B) 105% 
C) 31% 
D) 131%

Question 8

A stock with a high dividend yield appeals to ________.

Accepted Answer

A) no one 
B) all investors 
C) investors who hope to profit in the future from a large increase in the market price of the shares that they own 
D) investors who need income now to help pay their living expenses 
A) no one 
B) all investors 
C) investors who hope to profit in the future from a large increase in the market price of the shares that they own 
D) investors who need income now to help pay their living expenses

Question 9

A loss from a tsunami in Kansas could be classified as an extraordinary item.

Accepted Answer

A) True 
 B)False

Question 10

Comprehensive income includes all changes in equity resulting from ________.

Accepted Answer

A) contributions by owners 
B) dividends 
C) net losses 
D) purchases of treasury stock 
A) contributions by owners 
B) dividends 
C) net losses 
D) purchases of treasury stock

Question 11

Which of the following items affects total shareholders' equity without being reported on the income statement?

Accepted Answer

A) discontinued operations 
B) extraordinary items 
C) sale of common stock at a price above par 
D) purchase of property,plant and equipment in exchange for a long-term note 
A) discontinued operations 
B) extraordinary items 
C) sale of common stock at a price above par 
D) purchase of property,plant and equipment in exchange for a long-term note

Question 12

What items are shown separately from income from operations on the income statement?

Accepted Answer

Discontinued operations and ex

Question 13

The return on assets ratio is a ________ ratio.

Accepted Answer

A) liquidity 
B) solvency 
C) profitability 
D) market indicator 
A) liquidity 
B) solvency 
C) profitability 
D) market indicator

Question 14

Investors diversify in order to ________.

Accepted Answer

A) earn the highest possible return from each investment in their portfolios 
B) offset losses from one investment with gains from another investment 
C) take maximum advantage of increases in earnings per share 
D) buy low and sell high 
A) earn the highest possible return from each investment in their portfolios 
B) offset losses from one investment with gains from another investment 
C) take maximum advantage of increases in earnings per share 
D) buy low and sell high

Question 15

Which financial statement(s)do you need to calculate the profit margin ratio?

Accepted Answer

A) only the income statement 
B) only the balance sheet 
C) both the income statement and the balance sheet 
D) both the statement of cash flows and the income statement 
A) only the income statement 
B) only the balance sheet 
C) both the income statement and the balance sheet 
D) both the statement of cash flows and the income statement

Question 16

Use the information provided to analyze the profitability of T-Shirt City using the following ratios: return on assets,return on equity,gross profit ratio,and earnings per share.T-Shirt City has no preferred stock.

Accepted Answer

1.Return on assets: ($115,000 + 2,875)/

Question 17

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,2011 cost of goods sold would be represented as ________.

Accepted Answer

A) 100% 
B) 31% 
C) 43% 
D) 143% 
A) 100% 
B) 31% 
C) 43% 
D) 143%

Question 18

An increase or decrease in the market value of a company's investments in securities is an unrealized gain or loss.

Accepted Answer

A) True 
 B)False

Question 19

What are the market indicators used to evaluate companies,and what do they measure?

Accepted Answer

The market indicators are the price/earn

Question 20

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 asset turnover ratio for 2012.

Accepted Answer

A) 1.2 times 
B) 0.9 times 
C) 1.4 times 
D) The answer cannot be determined from the information given. 
A) 1.2 times 
B) 0.9 times 
C) 1.4 times 
D) The answer cannot be determined from the information given.

The dividend yield ratio equals the market price of a share of stock divided by that company's dividend per share.

Discontinuing a particular business segment is a non-recurring event,so this item should be reported separately on the income statement.

Items that are both unusual in nature and infrequent in occurrence are considered ________.

The following information is from Acme's annual report for the years ended Dec. 31: -Refer to the Acme annual report above.Calculate the debt-to-equity ratio for 2012.

Which of the following items affects total shareholders' equity without being reported on the income statement?

A stock with a high dividend yield appeals to ________.

A loss from a tsunami in Kansas could be classified as an extraordinary item.

Comprehensive income includes all changes in equity resulting from ________.

Which of the following items affects total shareholders' equity without being reported on the income statement?

What items are shown separately from income from operations on the income statement?

The return on assets ratio is a ________ ratio.

Investors diversify in order to ________.

Which financial statement(s)do you need to calculate the profit margin ratio?

Use the information provided to analyze the profitability of T-Shirt City using the following ratios: return on assets,return on equity,gross profit ratio,and earnings per share.T-Shirt City has no preferred stock.

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,2011 cost of goods sold would be represented as ________.

An increase or decrease in the market value of a company's investments in securities is an unrealized gain or loss.

What are the market indicators used to evaluate companies,and what do they measure?

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 asset turnover ratio for 2012.

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

The dividend yield ratio equals the market price of a share of stock divided by that company's dividend per share.

Discontinuing a particular business segment is a non-recurring event,so this item should be reported separately on the income statement.

Items that are both unusual in nature and infrequent in occurrence are considered ________.

The following information is from Acme's annual report for the years ended Dec. 31: -Refer to the Acme annual report above.Calculate the debt-to-equity ratio for 2012.

Which of the following items affects total shareholders' equity without being reported on the income statement?

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 horizontal analysis with 2010 as the base year, 2011\bold{2011}2011 income before taxes would be represented as ________.

A stock with a high dividend yield appeals to ________.

A loss from a tsunami in Kansas could be classified as an extraordinary item.

Comprehensive income includes all changes in equity resulting from ________.

Which of the following items affects total shareholders' equity without being reported on the income statement?

What items are shown separately from income from operations on the income statement?

The return on assets ratio is a ________ ratio.

Investors diversify in order to ________.

Which financial statement(s)do you need to calculate the profit margin ratio?

Use the information provided to analyze the profitability of T-Shirt City using the following ratios: return on assets,return on equity,gross profit ratio,and earnings per share.T-Shirt City has no preferred stock.

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,2011 cost of goods sold would be represented as ________.

An increase or decrease in the market value of a company's investments in securities is an unrealized gain or loss.

What are the market indicators used to evaluate companies,and what do they measure?

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 asset turnover ratio for 2012.

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