Question 1

Ratios can be expressed as a percent,rate,or proportion.

Accepted Answer

A) True 
 B)False

Question 2

Capital structure refers to a company's long-run financial viability and its ability to cover long-term obligations.

Accepted Answer

A) True 
 B)False

Question 3

The measurement of key relations among financial statement items is known as:

Accepted Answer

A) Financial reporting. 
B) Horizontal analysis. 
C) Investment analysis. 
D) Ratio analysis. 
E) Risk analysis. 
A) Financial reporting. 
B) Horizontal analysis. 
C) Investment analysis. 
D) Ratio analysis. 
E) Risk analysis.

Question 4

Comparative financial statements in which each amount is expressed as a percentage of a base amount and in which the base amount is expressed as 100% are called:

Accepted Answer

A) Comparative statements. 
B) Common-size comparative statements. 
C) General-purpose financial statements. 
D) Base line statements. 
E) Index statements. 
A) Comparative statements. 
B) Common-size comparative statements. 
C) General-purpose financial statements. 
D) Base line statements. 
E) Index statements.

Question 5

Corona Company's balance sheet accounts follow:  
-What is Corona Company's debt to equity ratio for 2013?

Accepted Answer

A) 1.49 
B) 0.71 
C) 0.40 
D) 4.39 
E) 0.67 
A) 1.49 
B) 0.71 
C) 0.40 
D) 4.39 
E) 0.67

Question 6

Vertical analysis is a tool to evaluate individual financial statement items or groups of items in terms of a specific base amount.

Accepted Answer

A) True 
 B)False

Question 7

A company has an inventory turnover ratio of 2.81,merchandise inventory for 2014 of $93,303,and average inventory of $83,397.What is the cost of goods sold?

Accepted Answer

The answer of A company has an inventory turnover ratio...

Question 8

______________________________ applies analytical tools to general-purpose financial statements and related data for making business decisions.

Accepted Answer

Financial

Question 9

Match between columns
                        Premises: Days' sales in inventory
Dividend yield
Profit margin ratio
Gross margin ratio
Total asset turnover
Times interest earned
Debt ratio
Inventory turnover
Days' sales uncollected
Return on common stockholders' equity

Accepted Answer

The Answer of Annual cash dividends per share /Market price is...

Question 10

Trend percentage is calculated by dividing _________________________ by ___________________________ and multiplying the result by 100.

Accepted Answer

analysis p

Question 11

Which of the following financial statement sections includes information on the background on a company,its industry,and its economic setting?

Accepted Answer

A) Executive summary 
B) Analysis overview 
C) Evidential conclusions 
D) Factor analysis 
E) Inferences 
A) Executive summary 
B) Analysis overview 
C) Evidential conclusions 
D) Factor analysis 
E) Inferences

Question 12

Common-size statements:

Accepted Answer

A) Reveal changes in the relative magnitude of each financial statement item. 
B) Do not emphasize the relative magnitude of each item. 
C) Compare financial statements over time. 
D) Show the dollar amount of change for financial statement items. 
E) Consist of two or more balance sheets arranged side-by-side. 
A) Reveal changes in the relative magnitude of each financial statement item. 
B) Do not emphasize the relative magnitude of each item. 
C) Compare financial statements over time. 
D) Show the dollar amount of change for financial statement items. 
E) Consist of two or more balance sheets arranged side-by-side.

Question 13

The comparison of a company's financial condition and performance to a base amount is known as:

Accepted Answer

A) Financial reporting. 
B) Horizontal ratios. 
C) Investment analysis. 
D) Risk analysis. 
E) Vertical analysis. 
A) Financial reporting. 
B) Horizontal ratios. 
C) Investment analysis. 
D) Risk analysis. 
E) Vertical analysis.

Question 14

A common focus of financial statement users in evaluating a company's performance includes evaluation of its (1) ______________________________, (2) ________________________ and (3) ____________________________.

Accepted Answer

past and current per

Question 15

Corona Company's balance sheet accounts follow:  
-What is Corona Company's current ratio for 2014?

Accepted Answer

A) 1.96 
B) 2.32 
C) 1.07 
D) 1.92 
E) 2.17 
A) 1.96 
B) 2.32 
C) 1.07 
D) 1.92 
E) 2.17

Question 16

Efficiency refers to how productive a company is in using its assets and is usually measured relative to how much revenue is generated from a certain level of assets.

Accepted Answer

A) True 
 B)False

Question 17

Use the following information from the current year financial statements of a company to calculate the ratios below:
(a) Current ratio.
(b) Accounts receivable turnover.(Assume the prior year's accounts receivable balance was $100,000.)
(c) Days' sales uncollected.
(d) Inventory turnover.(Assume the prior year's inventory was $50,200.)
(e) Times interest earned ratio.
(f) Return on common stockholders' equity.(Assume the prior year's common stock balance was $480,000 and the retained earnings balance was $128,000.)
(g) Earnings per share (assuming the corporation has a simple capital structure,with only common stock outstanding).
(h) Price earnings ratio.(Assume the company's stock is selling for $26 per share.)
(i) Divided yield ratio.(Assume that the company paid $1.25 per share in cash dividends.)

Accepted Answer

@#IMG-DLM&_TB6947_00_TB6947_00_TB6947_00

Question 18

____________ is a method of analysis used to evaluate individual financial statement items or groups of items in terms of a specific base amount.

Accepted Answer

The answer of ____________ is a method of analysis used...

Question 19

The return on total assets can be calculated as the profit margin times the total asset turnover.

Accepted Answer

A) True 
 B)False

Question 20

Express the following balance sheets for Alberts Company in common-size percents.

Accepted Answer

@#IMG-DLM&_TB6947_00

Ratios can be expressed as a percent,rate,or proportion.

Capital structure refers to a company's long-run financial viability and its ability to cover long-term obligations.

The measurement of key relations among financial statement items is known as:

Comparative financial statements in which each amount is expressed as a percentage of a base amount and in which the base amount is expressed as 100% are called:

Corona Company's balance sheet accounts follow: -What is Corona Company's debt to equity ratio for 2013?

Vertical analysis is a tool to evaluate individual financial statement items or groups of items in terms of a specific base amount.

A company has an inventory turnover ratio of 2.81,merchandise inventory for 2014 of $93,303,and average inventory of $83,397.What is the cost of goods sold?

______________________________ applies analytical tools to general-purpose financial statements and related data for making business decisions.

Trend percentage is calculated by dividing _ by ___ and multiplying the result by 100.

Which of the following financial statement sections includes information on the background on a company,its industry,and its economic setting?

Common-size statements:

The comparison of a company's financial condition and performance to a base amount is known as:

A common focus of financial statement users in evaluating a company's performance includes evaluation of its (1) __, (2) and (3) .

Corona Company's balance sheet accounts follow: -What is Corona Company's current ratio for 2014?

Efficiency refers to how productive a company is in using its assets and is usually measured relative to how much revenue is generated from a certain level of assets.

____________ is a method of analysis used to evaluate individual financial statement items or groups of items in terms of a specific base amount.

The return on total assets can be calculated as the profit margin times the total asset turnover.

Express the following balance sheets for Alberts Company in common-size percents.

Introducing Financial Accounting

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Applying Present and Future Values

Investments and International Operations

Accounting for Partnerships

Accounting With Special Journals

Filters

Exam 13: Analyzing and Interpreting Financial Statements

Ratios can be expressed as a percent,rate,or proportion.

Capital structure refers to a company's long-run financial viability and its ability to cover long-term obligations.

The measurement of key relations among financial statement items is known as:

Comparative financial statements in which each amount is expressed as a percentage of a base amount and in which the base amount is expressed as 100% are called:

Corona Company's balance sheet accounts follow: -What is Corona Company's debt to equity ratio for 2013?

Vertical analysis is a tool to evaluate individual financial statement items or groups of items in terms of a specific base amount.

A company has an inventory turnover ratio of 2.81,merchandise inventory for 2014 of $93,303,and average inventory of $83,397.What is the cost of goods sold?

______________________________ applies analytical tools to general-purpose financial statements and related data for making business decisions.

Trend percentage is calculated by dividing _________________________ by ___________________________ and multiplying the result by 100.

Which of the following financial statement sections includes information on the background on a company,its industry,and its economic setting?

Common-size statements:

The comparison of a company's financial condition and performance to a base amount is known as:

A common focus of financial statement users in evaluating a company's performance includes evaluation of its (1) ______________________________, (2) ________________________ and (3) ____________________________.

Corona Company's balance sheet accounts follow: -What is Corona Company's current ratio for 2014?

Efficiency refers to how productive a company is in using its assets and is usually measured relative to how much revenue is generated from a certain level of assets.

____________ is a method of analysis used to evaluate individual financial statement items or groups of items in terms of a specific base amount.

The return on total assets can be calculated as the profit margin times the total asset turnover.

Express the following balance sheets for Alberts Company in common-size percents.

Introducing Financial Accounting

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Applying Present and Future Values

Investments and International Operations

Accounting for Partnerships

Accounting With Special Journals

Filters

Trend percentage is calculated by dividing _ by ___ and multiplying the result by 100.

A common focus of financial statement users in evaluating a company's performance includes evaluation of its (1) __, (2) and (3) .