Question 1

The return on common stockholder's equity measures a company's success in earning net income for its owners.

Accepted Answer

A) True 
 B)False

Question 2

Quick assets divided by current liabilities is the:

Accepted Answer

A) Acid-test ratio. 
B) Current ratio. 
C) Working capital ratio. 
D) Current liability turnover ratio. 
E) Quick asset turnover ratio. 
A) Acid-test ratio. 
B) Current ratio. 
C) Working capital ratio. 
D) Current liability turnover ratio. 
E) Quick asset turnover ratio.

Question 3

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 4

Refer to the following selected financial information from Marston Company. Compute the company's days' sales uncollected for Year 2.

Accepted Answer

A) 43.9. 
B) 43.7. 
C) 46.2. 
D) 85.4. 
E) 42.7. 
A) 43.9. 
B) 43.7. 
C) 46.2. 
D) 85.4. 
E) 42.7.

Question 5

Identify and describe three common tools of financial statement analysis.

Accepted Answer

Three common tools of financial statemen

Question 6

Information from a manufacturing company's current year income statement follows. Calculate the company's (a) profit margin ratio, (b) gross margin ratio, and (c) times interest earned.

Accepted Answer

The answer of Information from a manufacturing company's current year...

Question 7

The ability to generate positive market expectations is called:

Accepted Answer

A) Liquidity and efficiency. 
B) Liquidity and solvency. 
C) Profitability. 
D) Market prospects. 
E) Creditworthiness. 
A) Liquidity and efficiency. 
B) Liquidity and solvency. 
C) Profitability. 
D) Market prospects. 
E) Creditworthiness.

Question 8

A good financial statement analysis report usually includes the following six sections: (1) ________________________, (2) ______________________, (3) _________________, (4) __________________ (5) ____________________, and (6) ______________________.

Accepted Answer

executive summary; a

Question 9

The common-size percent is computed by:

Accepted Answer

A) Dividing the analysis amount by the base amount. 
B) Dividing the base amount by the analysis amount. 
C) Dividing the analysis amount by the base amount and multiplying the result by 100. 
D) Dividing the base amount by the analysis amount and multiplying the result by 1,000. 
E) Subtracting the base amount from the analysis amount and multiplying the result by 100. 
A) Dividing the analysis amount by the base amount. 
B) Dividing the base amount by the analysis amount. 
C) Dividing the analysis amount by the base amount and multiplying the result by 100. 
D) Dividing the base amount by the analysis amount and multiplying the result by 1,000. 
E) Subtracting the base amount from the analysis amount and multiplying the result by 100.

Question 10

Dividing Accounts Receivable, net by Net Sales and multiplying the result by 365 is the:

Accepted Answer

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

Question 11

What is the purpose of a good financial statement analysis report? What are the key components?

Accepted Answer

A good financial statement analysis repo

Question 12

Jones Corp. reported current assets of $193,000 and current liabilities of $137,000 on its most recent balance sheet. The current ratio is:

Accepted Answer

A) 1.4:1. 
B) 0.7:1. 
C) 0.3:1. 
D) 1:1. 
E) 0.4:1. 
A) 1.4:1. 
B) 0.7:1. 
C) 0.3:1. 
D) 1:1. 
E) 0.4:1.

Question 13

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

Accepted Answer

The answer of Calculate the percent increase or decrease for...

Question 14

Intra-company analysis is based on comparisons with competitors.

Accepted Answer

A) True 
 B)False

Question 15

The base amount for a common-size balance sheet is usually total assets.

Accepted Answer

A) True 
 B)False

Question 16

Selected current year company information follows:   The total asset turnover is:

Accepted Answer

A) 2.24 times 
B) 2.81 times 
C) 3.64 times 
D) 4.67 times 
E) 6.28 times 
A) 2.24 times 
B) 2.81 times 
C) 3.64 times 
D) 4.67 times 
E) 6.28 times

Question 17

Financial statement analysis is the application of analytical tools to general-purpose financial statements and related data for making business decisions.

Accepted Answer

A) True 
 B)False

Question 18

Selected balances from a company's financial statements are shown below. Calculate the following ratios for 2017:
(a) accounts receivable turnover
(b) inventory turnover
(c) days' sales uncollected
(d) days' sales in inventory
(e) profit margin.
(f) return on total assets.

Accepted Answer

The answer of Selected balances from a company's financial statements...

Question 19

Financial statements with data for two or more successive accounting periods placed in columns side by side, sometimes with changes shown in both dollar amounts and percentages, are referred to as:

Accepted Answer

A) Period-to-period statements. 
B) Controlling statements. 
C) Successive statements. 
D) Comparative statements. 
E) Serial statements. 
A) Period-to-period statements. 
B) Controlling statements. 
C) Successive statements. 
D) Comparative statements. 
E) Serial statements.

Question 20

Flaherty Corporation used data for 3 years to perform a trend analysis of its operating expenses, which were $54,305 in Year 1; $63,421 in Year 2 and $70,340 in Year 3. Using Year 1 as the base year, the operating expense trend percent (rounded to the nearest whole percent) for Year 2 is:

Accepted Answer

A) 100%. 
B) 111%. 
C) 117%. 
D) 130%. 
E) 86%. 
A) 100%. 
B) 111%. 
C) 117%. 
D) 130%. 
E) 86%.

The return on common stockholder's equity measures a company's success in earning net income for its owners.

Quick assets divided by current liabilities is the:

In horizontal analysis the percent change is computed by:

Refer to the following selected financial information from Marston Company. Compute the company's days' sales uncollected for Year 2.

Identify and describe three common tools of financial statement analysis.

Information from a manufacturing company's current year income statement follows. Calculate the company's (a) profit margin ratio, (b) gross margin ratio, and (c) times interest earned.

The ability to generate positive market expectations is called:

A good financial statement analysis report usually includes the following six sections: (1) __________, (2) , (3) _, (4) (5) , and (6) ____________.

The common-size percent is computed by:

Dividing Accounts Receivable, net by Net Sales and multiplying the result by 365 is the:

What is the purpose of a good financial statement analysis report? What are the key components?

Jones Corp. reported current assets of $193,000 and current liabilities of $137,000 on its most recent balance sheet. The current ratio is:

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

Intra-company analysis is based on comparisons with competitors.

The base amount for a common-size balance sheet is usually total assets.

Selected current year company information follows: The total asset turnover is:

Financial statement analysis is the application of analytical tools to general-purpose financial statements and related data for making business decisions.

Selected balances from a company's financial statements are shown below. Calculate the following ratios for 2017: (a) accounts receivable turnover (b) inventory turnover (c) days' sales uncollected (d) days' sales in inventory (e) profit margin. (f) return on total assets.

Financial statements with data for two or more successive accounting periods placed in columns side by side, sometimes with changes shown in both dollar amounts and percentages, are referred to as:

Flaherty Corporation used data for 3 years to perform a trend analysis of its operating expenses, which were $54,305 in Year 1; $63,421 in Year 2 and $70,340 in Year 3. Using Year 1 as the base year, the operating expense trend percent (rounded to the nearest whole percent) for Year 2 is:

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

Reporting and Analyzing Partnerships

Filters

Exam 13: Analyzing and Interpreting Financial Statements

The return on common stockholder's equity measures a company's success in earning net income for its owners.

Quick assets divided by current liabilities is the:

In horizontal analysis the percent change is computed by:

Refer to the following selected financial information from Marston Company. Compute the company's days' sales uncollected for Year 2.

Identify and describe three common tools of financial statement analysis.

Information from a manufacturing company's current year income statement follows. Calculate the company's (a) profit margin ratio, (b) gross margin ratio, and (c) times interest earned.

The ability to generate positive market expectations is called:

A good financial statement analysis report usually includes the following six sections: (1) ________________________, (2) ______________________, (3) _________________, (4) __________________ (5) ____________________, and (6) ______________________.

The common-size percent is computed by:

Dividing Accounts Receivable, net by Net Sales and multiplying the result by 365 is the:

What is the purpose of a good financial statement analysis report? What are the key components?

Jones Corp. reported current assets of $193,000 and current liabilities of $137,000 on its most recent balance sheet. The current ratio is:

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

Intra-company analysis is based on comparisons with competitors.

The base amount for a common-size balance sheet is usually total assets.

Selected current year company information follows: The total asset turnover is:

Financial statement analysis is the application of analytical tools to general-purpose financial statements and related data for making business decisions.

Selected balances from a company's financial statements are shown below. Calculate the following ratios for 2017: (a) accounts receivable turnover (b) inventory turnover (c) days' sales uncollected (d) days' sales in inventory (e) profit margin. (f) return on total assets.

Financial statements with data for two or more successive accounting periods placed in columns side by side, sometimes with changes shown in both dollar amounts and percentages, are referred to as:

Flaherty Corporation used data for 3 years to perform a trend analysis of its operating expenses, which were $54,305 in Year 1; $63,421 in Year 2 and $70,340 in Year 3. Using Year 1 as the base year, the operating expense trend percent (rounded to the nearest whole percent) for Year 2 is:

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

Reporting and Analyzing Partnerships

Filters

A good financial statement analysis report usually includes the following six sections: (1) __________, (2) , (3) _, (4) (5) , and (6) ____________.