Question 1

A company has total assets of $5,600,482,common stock of 2,111,111,retained earnings of $1,058,473.What is the company's equity ratio?

Accepted Answer

A) 43.41% 
B) 65.00% 
C) 41.57% 
D) 56.59% 
E) 54.22% 
A) 43.41% 
B) 65.00% 
C) 41.57% 
D) 56.59% 
E) 54.22%

Question 2

Internal users of financial information:

Accepted Answer

A) Are not directly involved in operating a company 
B) Are those individuals involved in managing and operating the company 
C) Include shareholders and lenders 
D) Include directors and customers 
E) Include suppliers,regulators and the press 
A) Are not directly involved in operating a company 
B) Are those individuals involved in managing and operating the company 
C) Include shareholders and lenders 
D) Include directors and customers 
E) Include suppliers,regulators and the press

Question 3

Comparative calendar-year financial data for a company are shown below:
 $\begin{array}{|l|r|r|}
\hline&2011&2010\
\hline \text { Sales } & \$ 720,000 & \$ 607,500 \
\hline \text { Cost of goods sold } & 450,000 & 382,700 \
\hline \text { Operating expenses } & 168,500 & 134,900 \
\hline \text { Net income } & 51,200 & 51,700\
\hline\
\hline&\text { December } 31&\text { December } 31\
\hline&2011&2010\
\hline\text { Accounts receivable (net } & \$ 157,500 & \$ 162,500 \
\hline \text { Inventory } & 139,500 & 110,500 \
\hline \text { Total assets } & 1,012,500 & 944,800\
\hline
\end{array}$ 
Calculate:
(1)Accounts receivable turnover for 2011.
(2)Days' sales uncollected for 2011.
(3)Inventory turnover for 2011.
(4)Days' sales in inventory for 2011.

Accepted Answer

(1)Accounts receivable turnover:
= $720,

Question 4

Net income divided by average total assets is equal to the:

Accepted Answer

A) Profit margin 
B) Total asset turnover 
C) Return on total assets 
D) Days' income in assets 
E) Current ratio 
A) Profit margin 
B) Total asset turnover 
C) Return on total assets 
D) Days' income in assets 
E) Current ratio

Question 5

A company has a current ratio of 1.92,total liabilities of $193,849,long-term notes payable of $85,791,a quick ratio of .96.What is the total of the quick assets for the company?

Accepted Answer

.96 = X/(

Question 6

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 7

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

Accepted Answer

A) True 
 B)False

Question 8

A financial statement analysis report should include a brief table of contents to help users focus on those areas most relevant to their decisions.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

None

Question 10

A _____________________________ is a part of a company's operations that serves a particular line of business or class of customers.

Accepted Answer

The answer of A _____________________________ is a part of a...

Question 11

Based on the data given below,which of the following statements are true?
$$\begin{array} { | l | r | r | } 
\hline \text { Case } & \begin{array} { c } 
\text { Aralysis } \
\text { Period }
\end{array} & \begin{array} { c } 
\text { Base } \
\text { Period }
\end{array} \
\hline \text { A } & \$ 1,500 & \$ ( 4,500 ) \
\hline \text { B } & ( 1,000 ) & 2,000 \
\hline \text { C } & 8,000 & \cdots \
\hline \text { D } & 0 & \$ 10,000 \
\hline
\end{array}$$

Accepted Answer

A) The percent change for case C is 100% 
B) A percent change either cannot be computed or is not meaningful for cases A,B,C and D 
C) A percent change either cannot be computed or is not meaningful for case C 
D) A percent change either cannot be computed or is not meaningful for cases B and C 
E) A percent change either cannot be computed or is not meaningful for cases A,B and C 
A) The percent change for case C is 100% 
B) A percent change either cannot be computed or is not meaningful for cases A,B,C and D 
C) A percent change either cannot be computed or is not meaningful for case C 
D) A percent change either cannot be computed or is not meaningful for cases B and C 
E) A percent change either cannot be computed or is not meaningful for cases A,B and C

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

In horizontal analysis the percent change is computed by:

Accepted Answer

A) Subtracting the analysis period amount from the base period amount 
B) Subtracting the base period amount from the analysis period amount 
C) Subtracting the analysis period amount from the base period amount,dividing the result by the base period amount,then multiplying that amount by 100 
D) Subtracting the base period amount from the analysis period amount,dividing the result by the base period amount,then multiplying that amount by 100 
E) Subtracting the base period amount from the analysis amount,then dividing the result by the analysis period amount 
A) Subtracting the analysis period amount from the base period amount 
B) Subtracting the base period amount from the analysis period amount 
C) Subtracting the analysis period amount from the base period amount,dividing the result by the base period amount,then multiplying that amount by 100 
D) Subtracting the base period amount from the analysis period amount,dividing the result by the base period amount,then multiplying that amount by 100 
E) Subtracting the base period amount from the analysis amount,then dividing the result by the analysis period amount

Question 14

The percent change is computed by subtracting the analysis period amount from the base period amount,then dividing the result by the base period amount and then multiplying that result by 100.

Accepted Answer

A) True 
 B)False

Question 15

David and Tom Gardner created The Motley Fool to help investors.What do David and Tom believe is their mission?

Accepted Answer

David and Tom Gardner created The Motley

Question 16

Which of the following items is not likely to be considered an extraordinary item?

Accepted Answer

A) Loss from an unexpected union strike 
B) Condemnation of property by the city government 
C) Loss of use of property due to a new and unexpected environmental regulation 
D) Loss due to an earthquake in Florida 
E) Expropriation of property by a foreign government 
A) Loss from an unexpected union strike 
B) Condemnation of property by the city government 
C) Loss of use of property due to a new and unexpected environmental regulation 
D) Loss due to an earthquake in Florida 
E) Expropriation of property by a foreign government

Question 17

Liquidity refers to the availability of resources to meet short-term cash requirements.

Accepted Answer

A) True 
 B)False

Question 18

Financial reporting includes not only general purpose financial statements,but also information from SEC filings,press releases,shareholders' meetings,forecasts,management letters,auditor's reports and Webcasts.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

Financial

Question 20

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) .039 
E) .123 
A) 8.14 
B) 25.69 
C) 6.18 
D) .039 
E) .123

A company has total assets of $5,600,482,common stock of 2,111,111,retained earnings of $1,058,473.What is the company's equity ratio?

Internal users of financial information:

Net income divided by average total assets is equal to the:

A company has a current ratio of 1.92,total liabilities of $193,849,long-term notes payable of $85,791,a quick ratio of .96.What is the total of the quick assets for the company?

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%.

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

A financial statement analysis report should include a brief table of contents to help users focus on those areas most relevant to their decisions.

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

A _____________________________ is a part of a company's operations that serves a particular line of business or class of customers.

Based on the data given below,which of the following statements are true? Case Aralysis Period Base Period A \ 1,500 \ (4,500) B (1,000) 2,000 C 8,000 \@cdots D 0 \ 10,000

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

In horizontal analysis the percent change is computed by:

The percent change is computed by subtracting the analysis period amount from the base period amount,then dividing the result by the base period amount and then multiplying that result by 100.

David and Tom Gardner created The Motley Fool to help investors.What do David and Tom believe is their mission?

Which of the following items is not likely to be considered an extraordinary item?

Liquidity refers to the availability of resources to meet short-term cash requirements.

Financial reporting includes not only general purpose financial statements,but also information from SEC filings,press releases,shareholders' meetings,forecasts,management letters,auditor's reports and Webcasts.

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

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:

Introducing Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing 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

Investments and International Operations

Reporting and Analyzing Partnerships

Reporting and Preparing Special Journals

Filters

Exam 13: Analyzing and Interpreting Financial Statements

A company has total assets of $5,600,482,common stock of 2,111,111,retained earnings of $1,058,473.What is the company's equity ratio?

Internal users of financial information:

Net income divided by average total assets is equal to the:

A company has a current ratio of 1.92,total liabilities of $193,849,long-term notes payable of $85,791,a quick ratio of .96.What is the total of the quick assets for the company?

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%.

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

A financial statement analysis report should include a brief table of contents to help users focus on those areas most relevant to their decisions.

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

A _____________________________ is a part of a company's operations that serves a particular line of business or class of customers.

Based on the data given below,which of the following statements are true? Case Aralysis Period Base Period A \ 1,500 \ (4,500) B (1,000) 2,000 C 8,000 \@cdots D 0 \ 10,000

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

In horizontal analysis the percent change is computed by:

The percent change is computed by subtracting the analysis period amount from the base period amount,then dividing the result by the base period amount and then multiplying that result by 100.

David and Tom Gardner created The Motley Fool to help investors.What do David and Tom believe is their mission?

Which of the following items is not likely to be considered an extraordinary item?

Liquidity refers to the availability of resources to meet short-term cash requirements.

Financial reporting includes not only general purpose financial statements,but also information from SEC filings,press releases,shareholders' meetings,forecasts,management letters,auditor's reports and Webcasts.

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

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:

Introducing Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing 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

Investments and International Operations

Reporting and Analyzing Partnerships

Reporting and Preparing Special Journals

Filters