Question 1

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 2

Three of the most common tools of financial analysis are (1) ____________, (2) __________________, and (3) ______________________.

Accepted Answer

horizontal analysis;

Question 3

Zhang Company reported Cost of Goods Sold of $835,000, beginning Inventory of $37,200 and ending Inventory of $46,300. The average Inventory amount is:

Accepted Answer

A) $37,200. 
B) $46,300. 
C) $83,500. 
D) $41,750. 
E) $9,100. 
A) $37,200. 
B) $46,300. 
C) $83,500. 
D) $41,750. 
E) $9,100.

Question 4

Describe ratio analysis including its purpose, application, and interpretation.

Accepted Answer

A ratio is a mathematical relation betwe

Question 5

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 equals 21.4%.
Dividend yield = cash dividend per share/market price per share
$0.75/$64.75 = 1.16%

Accepted Answer

A) True 
 B)False

Question 6

Comparative calendar-year financial data for a company are shown below. Calculate the following ratios for the company for 2017:
(a) accounts receivable turnover
(b) day's sales uncollected
(c) inventory turnover
(d) days' sales in inventory

Accepted Answer

The answer of Comparative calendar-year financial data for a company...

Question 7

Horizontal analysis is used to reveal changes in the relative importance of each financial statement item.

Accepted Answer

A) True 
 B)False

Question 8

Refer to the following selected financial information from Shakley's Incorporated. Compute the company's debt-to-equity ratio for Year 2.

Accepted Answer

A) 1.75. 
B) 2.34. 
C) 0.75. 
D) 1.34. 
E) 2.63. 
A) 1.75. 
B) 2.34. 
C) 0.75. 
D) 1.34. 
E) 2.63.

Question 9

How long a company holds inventory before selling it can be measured by dividing Cost of Goods Sold by the average Inventory balance to determine the:

Accepted Answer

A) Accounts receivable turnover. 
B) Inventory turnover. 
C) Days' sales uncollected. 
D) Current ratio. 
E) Price earnings ratio. 
A) Accounts receivable turnover. 
B) Inventory turnover. 
C) Days' sales uncollected. 
D) Current ratio. 
E) Price earnings ratio.

Question 10

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

Accepted Answer

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

Question 11

External users of accounting information make the strategic and operating decisions of a company.

Accepted Answer

A) True 
 B)False

Question 12

External users of financial information:

Accepted Answer

A) Are those individuals involved in managing and operating the company. 
B) Include internal auditors and consultants. 
C) Are not directly involved in operating the company. 
D) Make strategic decisions for a company. 
E) Make operating decisions for a company. 
A) Are those individuals involved in managing and operating the company. 
B) Include internal auditors and consultants. 
C) Are not directly involved in operating the company. 
D) Make strategic decisions for a company. 
E) Make operating decisions for a company.

Question 13

General-purpose financial statements include the (1) ______________, (2) _____________, (3) _______________, (4) ______________ and (5) ________________.

Accepted Answer

income statement; balance shee

Question 14

One purpose of financial statement analysis for internal users is to provide strategic information to improve company efficiency and effectiveness in providing products and services.

Accepted Answer

A) True 
 B)False

Question 15

A company paid cash dividends on its preferred stock of $40,000 in the current year when its net income was $120,000 and its average common stockholders' equity was $640,000. What is the company's return on common stockholders' equity?

Accepted Answer

($120,000

Question 16

Ratios may be expressed as (1) ________________, (2) __________________, or (3) __________________.

Accepted Answer

percentage

Question 17

The following current year information is available from a manufacturing company:   Calculate the company's accounts receivable turnover and its days' sales uncollected.

Accepted Answer

Accounts receivable turnover =

Question 18

Refer to the following selected financial information from Frankle Corp. Compute the company's current ratio.

Accepted Answer

A) 6.44. 
B) 2.84. 
C) 6.27. 
D) 3.60. 
E) 1.44. 
A) 6.44. 
B) 2.84. 
C) 6.27. 
D) 3.60. 
E) 1.44.

Question 19

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 20

Express the following income statement information in common-size percentages and in trend percentages using 2016 as the base year.

Accepted Answer

The answer of Express the following income statement information in...

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

Three of the most common tools of financial analysis are (1) , (2) , and (3) ____________.

Zhang Company reported Cost of Goods Sold of $835,000, beginning Inventory of $37,200 and ending Inventory of $46,300. The average Inventory amount is:

Describe ratio analysis including its purpose, application, and interpretation.

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 equals 21.4%. Dividend yield = cash dividend per share/market price per share $0.75/$64.75 = 1.16%

Comparative calendar-year financial data for a company are shown below. Calculate the following ratios for the company for 2017: (a) accounts receivable turnover (b) day's sales uncollected (c) inventory turnover (d) days' sales in inventory

Horizontal analysis is used to reveal changes in the relative importance of each financial statement item.

Refer to the following selected financial information from Shakley's Incorporated. Compute the company's debt-to-equity ratio for Year 2.

How long a company holds inventory before selling it can be measured by dividing Cost of Goods Sold by the average Inventory balance to determine the:

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

External users of accounting information make the strategic and operating decisions of a company.

External users of financial information:

General-purpose financial statements include the (1) ________, (2) _, (3) _, (4) and (5) __________.

One purpose of financial statement analysis for internal users is to provide strategic information to improve company efficiency and effectiveness in providing products and services.

A company paid cash dividends on its preferred stock of $40,000 in the current year when its net income was $120,000 and its average common stockholders' equity was $640,000. What is the company's return on common stockholders' equity?

Ratios may be expressed as (1) , (2) , or (3) ____.

The following current year information is available from a manufacturing company: Calculate the company's accounts receivable turnover and its days' sales uncollected.

Refer to the following selected financial information from Frankle Corp. Compute the company's current ratio.

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

Express the following income statement information in common-size percentages and in trend percentages using 2016 as the base year.

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

Three of the most common tools of financial analysis are (1) ____________, (2) __________________, and (3) ______________________.

Zhang Company reported Cost of Goods Sold of $835,000, beginning Inventory of $37,200 and ending Inventory of $46,300. The average Inventory amount is:

Describe ratio analysis including its purpose, application, and interpretation.

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 equals 21.4%. Dividend yield = cash dividend per share/market price per share $0.75/$64.75 = 1.16%

Comparative calendar-year financial data for a company are shown below. Calculate the following ratios for the company for 2017: (a) accounts receivable turnover (b) day's sales uncollected (c) inventory turnover (d) days' sales in inventory

Horizontal analysis is used to reveal changes in the relative importance of each financial statement item.

Refer to the following selected financial information from Shakley's Incorporated. Compute the company's debt-to-equity ratio for Year 2.

How long a company holds inventory before selling it can be measured by dividing Cost of Goods Sold by the average Inventory balance to determine the:

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

External users of accounting information make the strategic and operating decisions of a company.

External users of financial information:

General-purpose financial statements include the (1) ______________, (2) _____________, (3) _______________, (4) ______________ and (5) ________________.

One purpose of financial statement analysis for internal users is to provide strategic information to improve company efficiency and effectiveness in providing products and services.

A company paid cash dividends on its preferred stock of $40,000 in the current year when its net income was $120,000 and its average common stockholders' equity was $640,000. What is the company's return on common stockholders' equity?

Ratios may be expressed as (1) ________________, (2) __________________, or (3) __________________.

The following current year information is available from a manufacturing company: Calculate the company's accounts receivable turnover and its days' sales uncollected.

Refer to the following selected financial information from Frankle Corp. Compute the company's current ratio.

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

Express the following income statement information in common-size percentages and in trend percentages using 2016 as the base year.

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

Three of the most common tools of financial analysis are (1) , (2) , and (3) ____________.

General-purpose financial statements include the (1) ________, (2) _, (3) _, (4) and (5) __________.

Ratios may be expressed as (1) , (2) , or (3) ____.