Question 1

Expropriation of property by a foreign government is considered an extraordinary item.

Accepted Answer

A) True 
 B)False

Question 2

Use the financial data shown below to calculate the following ratios for the current year:
(a) Current ratio
(b) Acid-test ratio
(c) Accounts receivable turnover
(d) Days' sales uncollected
(e) Inventory turnover
(f) Days' sales in inventory

Accepted Answer

(a) @#IMG-DLM&_TB6947_00_TB6947_00_TB6947_00 (b) @#IMG-DLM&_

Question 3

Explain where the following item should appear in the financial statements of a corporation:
One of the company's plants was destroyed by an earthquake.The area has never reported an earthquake.The amount of the loss,net of tax,was $850,000.

Accepted Answer

This loss is both unusual and

Question 4

A company had a market price of $8.22 per share,earnings per share of $1.01,and dividends per share of $0.32.Its price-earnings ratio is equal to:

Accepted Answer

A) 8.14. 
B) 25.69. 
C) 6.18. 
D) 0.039. 
E) 0.123. 
A) 8.14. 
B) 25.69. 
C) 6.18. 
D) 0.039. 
E) 0.123.

Question 5

Comparative calendar year financial data for a company are shown below:
   Calculate:
(1) Return on total assets for 2014.
(2) Return on common stockholders' equity for 2014.

Accepted Answer

(1) Return on total assets: = (Net incom

Question 6

Net sales divided by average accounts receivable is equal to the:

Accepted Answer

A) Days' sales uncollected. 
B) Average accounts receivable ratio. 
C) Current ratio. 
D) Profit margin. 
E) Accounts receivable turnover ratio. 
A) Days' sales uncollected. 
B) Average accounts receivable ratio. 
C) Current ratio. 
D) Profit margin. 
E) Accounts receivable turnover ratio.

Question 7

Comparative horizontal analysis is used to reveal patterns in data covering successive periods.

Accepted Answer

A) True 
 B)False

Question 8

A company's balance sheet and income statement accounts follow:     
-What is the company's return on common stockholders' equity ratio for 2013?

Accepted Answer

A) 27.5% 
B) 25.4% 
C) 12.6% 
D) 29.4% 
E) 19.5% 
A) 27.5% 
B) 25.4% 
C) 12.6% 
D) 29.4% 
E) 19.5%

Question 9

The following information is from Omega Corporation's balance sheets as of December 31,2013 and 2014 and its income statement for 2014:
   From the above information,calculate the following ratios for 2014:
(a) Inventory turnover.
(b) Accounts receivable turnover.
(c) Return on total assets.
(d) Times interest earned.
(e) Total asset turnover.

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 10

Corona Company's balance sheet accounts follow:  
-What is Corona Company's inventory turnover ratio for 2014,assuming net sales and gross profit for the period were $1,236,783,and $927,587 respectively?

Accepted Answer

A) 10.96 
B) 3.25 
C) 3.00 
D) 3.67 
E) 4.20 
A) 10.96 
B) 3.25 
C) 3.00 
D) 3.67 
E) 4.20

Question 11

______________________ ratios include the price-earnings ratio and dividend yield.

Accepted Answer

The answer of ______________________ ratios include the price-earnings ratio and...

Question 12

The measurement of key relationships between financial statement items is known as _____________________________.

Accepted Answer

The answer of The measurement of key relationships between financial...

Question 13

A company reports basic earnings per share of $3.50,cash dividends per share of $0.75,and a market price per share of $64.75.The company's dividend yield equal is equal to 21.4%.

Accepted Answer

A) True 
 B)False

Question 14

Morgan Stanley is one of the most respected financial services companies in the world.The company analyzes financial statements for profit.One of Morgan Stanley's key tools for company analysis is ModelWare.What is one of the key aims of this tool? And how is this aim accomplished?

Accepted Answer

One of its key aims is to provide compar

Question 15

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

Accepted Answer

The answer of The comparison of a company's financial condition...

Question 16

Calculate the percent increase or decrease for each of the following financial statement items:

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 17

Comparative statements for Kool Corporation are shown below:
   Calculate trend percentages for all income statement amounts shown and comment on the results.Use 2012 as the base year.

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 18

Calculate the percent increases for each of the following selected balance sheet items.

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 19

Describe the purpose of horizontal financial statement analysis and how it is applied.

Accepted Answer

Horizontal analysis is a tool to evaluat

Question 20

The comparison of a company's financial condition and performance across time is known as ________________________________.

Accepted Answer

The answer of The comparison of a company's financial condition...

Expropriation of property by a foreign government is considered an extraordinary item.

Use the financial data shown below to calculate the following ratios for the current year: (a) Current ratio (b) Acid-test ratio (c) Accounts receivable turnover (d) Days' sales uncollected (e) Inventory turnover (f) Days' sales in inventory

Explain where the following item should appear in the financial statements of a corporation: One of the company's plants was destroyed by an earthquake.The area has never reported an earthquake.The amount of the loss,net of tax,was $850,000.

A company had a market price of $8.22 per share,earnings per share of $1.01,and dividends per share of $0.32.Its price-earnings ratio is equal to:

Comparative calendar year financial data for a company are shown below: Calculate: (1) Return on total assets for 2014. (2) Return on common stockholders' equity for 2014.

Net sales divided by average accounts receivable is equal to the:

Comparative horizontal analysis is used to reveal patterns in data covering successive periods.

A company's balance sheet and income statement accounts follow: -What is the company's return on common stockholders' equity ratio for 2013?

Corona Company's balance sheet accounts follow: -What is Corona Company's inventory turnover ratio for 2014,assuming net sales and gross profit for the period were $1,236,783,and $927,587 respectively?

______________________ ratios include the price-earnings ratio and dividend yield.

The measurement of key relationships between financial statement items is known as _____________________________.

A company reports basic earnings per share of $3.50,cash dividends per share of $0.75,and a market price per share of $64.75.The company's dividend yield equal is equal to 21.4%.

Morgan Stanley is one of the most respected financial services companies in the world.The company analyzes financial statements for profit.One of Morgan Stanley's key tools for company analysis is ModelWare.What is one of the key aims of this tool? And how is this aim accomplished?

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

Calculate the percent increase or decrease for each of the following financial statement items:

Comparative statements for Kool Corporation are shown below: Calculate trend percentages for all income statement amounts shown and comment on the results.Use 2012 as the base year.

Calculate the percent increases for each of the following selected balance sheet items.

Describe the purpose of horizontal financial statement analysis and how it is applied.

The comparison of a company's financial condition and performance across time is known as ________________________________.

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

Expropriation of property by a foreign government is considered an extraordinary item.

Use the financial data shown below to calculate the following ratios for the current year: (a) Current ratio (b) Acid-test ratio (c) Accounts receivable turnover (d) Days' sales uncollected (e) Inventory turnover (f) Days' sales in inventory

Explain where the following item should appear in the financial statements of a corporation: One of the company's plants was destroyed by an earthquake.The area has never reported an earthquake.The amount of the loss,net of tax,was $850,000.

A company had a market price of $8.22 per share,earnings per share of $1.01,and dividends per share of $0.32.Its price-earnings ratio is equal to:

Comparative calendar year financial data for a company are shown below: Calculate: (1) Return on total assets for 2014. (2) Return on common stockholders' equity for 2014.

Net sales divided by average accounts receivable is equal to the:

Comparative horizontal analysis is used to reveal patterns in data covering successive periods.

A company's balance sheet and income statement accounts follow: -What is the company's return on common stockholders' equity ratio for 2013?

Corona Company's balance sheet accounts follow: -What is Corona Company's inventory turnover ratio for 2014,assuming net sales and gross profit for the period were $1,236,783,and $927,587 respectively?

______________________ ratios include the price-earnings ratio and dividend yield.

The measurement of key relationships between financial statement items is known as _____________________________.

A company reports basic earnings per share of $3.50,cash dividends per share of $0.75,and a market price per share of $64.75.The company's dividend yield equal is equal to 21.4%.

Morgan Stanley is one of the most respected financial services companies in the world.The company analyzes financial statements for profit.One of Morgan Stanley's key tools for company analysis is ModelWare.What is one of the key aims of this tool? And how is this aim accomplished?

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

Calculate the percent increase or decrease for each of the following financial statement items:

Comparative statements for Kool Corporation are shown below: Calculate trend percentages for all income statement amounts shown and comment on the results.Use 2012 as the base year.

Calculate the percent increases for each of the following selected balance sheet items.

Describe the purpose of horizontal financial statement analysis and how it is applied.

The comparison of a company's financial condition and performance across time is known as ________________________________.

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