Question 1

What is treated as an extraordinary item on an income statement?

Accepted Answer

Occasionally,something that is both unus

Question 2

Earnings per share is a ________ ratio.

Accepted Answer

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

Question 3

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 2010.

Accepted Answer

A) 4.0 times 
B) 0.25 times 
C) 7.7 times 
D) The answer cannot be determined from the information given. 
A) 4.0 times 
B) 0.25 times 
C) 7.7 times 
D) The answer cannot be determined from the information given.

Question 4

Trading securities are ________.

Accepted Answer

A) investments the company may hold or sell 
B) investments in debt securities that a company plans to hold until the securities mature 
C) investments in debt and equity securities that a company has purchased to make a short-term profit 
D) discretionary investments with a specific maturity date 
A) investments the company may hold or sell 
B) investments in debt securities that a company plans to hold until the securities mature 
C) investments in debt and equity securities that a company has purchased to make a short-term profit 
D) discretionary investments with a specific maturity date

Question 5

Why must discontinued operations and extraordinary items be reported separately from income from operations on the income statement?

Accepted Answer

Discontinued operations and extraordinar

Question 6

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 accounts receivable turnover ratio for 2012.

Accepted Answer

A) 11.0 times 
B) 6.0 times 
C) 8.8 times 
D) The answer cannot be determined from the information given. 
A) 11.0 times 
B) 6.0 times 
C) 8.8 times 
D) The answer cannot be determined from the information given.

Question 7

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 vertical analysis,$\bold{2011}$ Cost of goods sold would be represented as ________.

Accepted Answer

A) 267% 
B) 105% 
C) 42% 
D) 38% 
A) 267% 
B) 105% 
C) 42% 
D) 38%

Question 8

What is horizontal analysis?

Accepted Answer

Horizontal analysis is a technique that

Question 9

The following information is from Acme's annual report for the years ended Dec. 31:
 
-Refer to the Acme annual report above.Calculate return on equity for 2011.

Accepted Answer

A) 43.2% 
B) 55.2% 
C) 32.7% 
D) The answer cannot be determined from the information given. 
A) 43.2% 
B) 55.2% 
C) 32.7% 
D) The answer cannot be determined from the information given.

Question 10

Which of these could a retailing business in the Midwest classify as an extraordinary item?

Accepted Answer

A) a loss from employee embezzlement 
B) a loss from a lower-of-cost-or market inventory write-down 
C) a loss from selling a delivery truck at less than its book value 
D) none of these are extraordinary items 
A) a loss from employee embezzlement 
B) a loss from a lower-of-cost-or market inventory write-down 
C) a loss from selling a delivery truck at less than its book value 
D) none of these are extraordinary items

Question 11

The gross profit 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 12

Which financial statement(s)do you need to calculate the inventory turnover 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 13

The financial statements used to analyze companies include all of these statements $\bold{EXCEPT}$ the ________.

Accepted Answer

A) balance sheet 
B) income statement 
C) statement of cash flows 
D) statement of shareholders' rights 
A) balance sheet 
B) income statement 
C) statement of cash flows 
D) statement of shareholders' rights

Question 14

The following selected information is from Acme's annual report for the years ended December 31:
 
-Refer to the Acme annual report above.Calculate return on assets for 2012.

Accepted Answer

A) 33.1% 
B) 38.1% 
C) 22.1% 
D) The answer cannot be determined from the information given. 
A) 33.1% 
B) 38.1% 
C) 22.1% 
D) The answer cannot be determined from the information given.

Question 15

Put an X in the appropriate boxes to indicate the financial statement(s)that are needed to calculate each of the following items.If an item needs information from more than one financial statement,be sure to indicate all of the statements required.

Accepted Answer

The answer of Put an X in the appropriate boxes...

Question 16

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 vertical analysis,$\bold{2011}$ Gross profit would be represented as ________.

Accepted Answer

A) 70% 
B) 14% 
C) 17% 
D) 63% 
A) 70% 
B) 14% 
C) 17% 
D) 63%

Question 17

Any part of a company that is sold off or otherwise eliminated is referred to as discontinued operations.

Accepted Answer

A) True 
 B)False

Question 18

If a company buys securities solely to trade them and to make a short-term profit,the securities are classified as available-for-sale securities.

Accepted Answer

A) True 
 B)False

Question 19

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 2012.

Accepted Answer

A) 4.9 times 
B) 2.7 times 
C) 3.4 times 
D) The answer cannot be determined from the information given. 
A) 4.9 times 
B) 2.7 times 
C) 3.4 times 
D) The answer cannot be determined from the information given.

Question 20

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 2011.

Accepted Answer

A) 0.24 
B) 0.41 
C) 3.75 
D) 2.25 
A) 0.24 
B) 0.41 
C) 3.75 
D) 2.25

What is treated as an extraordinary item on an income statement?

Earnings per share is a ________ 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 2010.

Trading securities are ________.

Why must discontinued operations and extraordinary items be reported separately from income from operations on the income statement?

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 accounts receivable turnover ratio for 2012.

What is horizontal analysis?

The following information is from Acme's annual report for the years ended Dec. 31: -Refer to the Acme annual report above.Calculate return on equity for 2011.

Which of these could a retailing business in the Midwest classify as an extraordinary item?

The gross profit ratio is a ________ ratio.

Which financial statement(s)do you need to calculate the inventory turnover ratio?

The financial statements used to analyze companies include all of these statements $\bold{EXCEPT}$ the ________.

The following selected information is from Acme's annual report for the years ended December 31: -Refer to the Acme annual report above.Calculate return on assets for 2012.

Put an X in the appropriate boxes to indicate the financial statement(s)that are needed to calculate each of the following items.If an item needs information from more than one financial statement,be sure to indicate all of the statements required.

Any part of a company that is sold off or otherwise eliminated is referred to as discontinued operations.

If a company buys securities solely to trade them and to make a short-term profit,the securities are classified as available-for-sale securities.

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 2012.

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 2011.

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

What is treated as an extraordinary item on an income statement?

Earnings per share is a ________ 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 2010.

Trading securities are ________.

Why must discontinued operations and extraordinary items be reported separately from income from operations on the income statement?

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 accounts receivable turnover ratio for 2012.

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 vertical analysis, 2011\bold{2011}2011 Cost of goods sold would be represented as ________.

What is horizontal analysis?

The following information is from Acme's annual report for the years ended Dec. 31: -Refer to the Acme annual report above.Calculate return on equity for 2011.

Which of these could a retailing business in the Midwest classify as an extraordinary item?

The gross profit ratio is a ________ ratio.

Which financial statement(s)do you need to calculate the inventory turnover ratio?

The financial statements used to analyze companies include all of these statements EXCEPT\bold{EXCEPT}EXCEPT the ________.

The following selected information is from Acme's annual report for the years ended December 31: -Refer to the Acme annual report above.Calculate return on assets for 2012.

Put an X in the appropriate boxes to indicate the financial statement(s)that are needed to calculate each of the following items.If an item needs information from more than one financial statement,be sure to indicate all of the statements required.

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 vertical analysis, 2011\bold{2011}2011 Gross profit would be represented as ________.

Any part of a company that is sold off or otherwise eliminated is referred to as discontinued operations.

If a company buys securities solely to trade them and to make a short-term profit,the securities are classified as available-for-sale securities.

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 2012.

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 2011.

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

The financial statements used to analyze companies include all of these statements $\bold{EXCEPT}$ the ________.