Question 1

Refer to the following selected financial information from Keller Company.Compute the company's debt to equity for Year 2.

Accepted Answer

A)  0.9.
B)  1.1.
C)  0.5.
D)  1.9.
E)  2.1.F) A) and E)
G) A) and D)

Question 2

All of the following statements regarding a business segment are true except:

Accepted Answer

A)  A business segment is a part of a company's operations that serves a particular product line.
B)  A segment has assets,liabilities,and financial results of operations that can be distinguished from those of other parts of the company.
C)  A company's gain or loss from selling or closing down a segment is reported separately.
D)  The income tax effects of a discontinued segment are combined with income tax from continuing operations.
E)  A segment's income for the period prior to the disposal and the gain or loss resulting from disposing of the segment's assets are reported separately.F) C) and E)
G) A) and E)

Question 3

Refer to the following selected financial information from McCormik,LLC.Compute the company's accounts receivable turnover for Year 2.

Accepted Answer

A)  8.62.
B)  8.28.
C)  8.94.
D)  5.78.
E)  7.90.F) B) and E)
G) None of the above

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Selected current year company information follows:  The return on total assets is:

Accepted Answer

A)  2.24%
B)  2.81%
C)  3.64%
D)  4.67%
E)  6.28%F) C) and D)
G) A) and C)

Question 6

A trend percent,or index number,is calculated by dividing the analysis period amount by the base period amount and multiplying the result by 100.

Accepted Answer

A) True 
 B)False

Question 7

Refer to the following selected financial information from Marston Company.Compute the company's accounts receivable turnover for Year 2.

Accepted Answer

A)  8.36.
B)  8.37.
C)  4.78.
D)  8.59.
E)  8.54.F) C) and E)
G) A) and B)

Question 8

Rajan Company's most recent balance sheet reported total assets of $1.9 million,total liabilities of $0.8 million,and total equity of $1.1 million.Its Debt to equity ratio is:

Accepted Answer

A)  0.42
B)  0.58
C)  1.38
D)  0.73
E)  1.00F) A) and B)
G) A) and C)

Question 9

Refer to the following selected financial information from Shakley's Incorporated.Compute the company's return on total assets for Year 2.

Accepted Answer

A)  9.6%.
B)  15.2%.
C)  2.6%.
D)  22.2%.
E)  14.5%.F) A) and D)
G) A) and C)

Question 10

Express the following balance sheets for Safety Company in common-size percentages.

Accepted Answer

The answer of Express the following balance sheets for Safety...

Question 11

A corporation reported cash of $14,000 and total assets of $178,300.Its common-size percent for cash equals 7.85%.
($14,000/$178,300)* 100 = 7.85%

Accepted Answer

A) True 
 B)False

Question 12

A financial statement analysis report helps to reduce uncertainty in business decisions through a rigorous and sound evaluation.

Accepted Answer

A) True 
 B)False

Question 13

The debt ratio,the equity ratio,pledged assets to secured liabilities,and times interest earned are all ___________________ ratios.

Accepted Answer

The answer of The debt ratio,the equity ratio,pledged assets to...

Question 14

Vertical analysis is the comparison of a company's financial condition and performance across time.

Accepted Answer

A) True 
 B)False

Question 15

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 16

Financial statement analysis lessens the need for expert judgment.

Accepted Answer

A) True 
 B)False

Question 17

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.F) A) and B)
G) A) and C)

Question 18

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

Accepted Answer

horizontal analysis ...

Question 19

Trend analysis of financial statement items can include comparisons of relations between items on different financial statements.

Accepted Answer

A) True 
 B)False

Question 20

_______________ financial statements are reports where financial amounts are placed side-by-side in columns on a single statement for analytical purposes.

Accepted Answer

The answer of _______________ financial statements are reports where financial...

Exam 17: Analysis of Financial Statements

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

Correct Answerverifiedhorizontal analysis ...View AnswerShow Answer

Selected current year company information follows: The return on total assets is:

Correct AnswerverifiedShow Answer

Refer to the following selected financial information from McCormik,LLC.Compute the company's accounts receivable turnover for Year 2.

Correct AnswerverifiedShow Answer

Rajan Company's most recent balance sheet reported total assets of $1.9 million,total liabilities of $0.8 million,and total equity of $1.1 million.Its Debt to equity ratio is:

Correct AnswerverifiedShow Answer

Quick assets divided by current liabilities is the:

Correct AnswerverifiedShow Answer

Express the following balance sheets for Safety Company in common-size percentages.

Correct AnswerverifiedShow Answer

_______________ financial statements are reports where financial amounts are placed side-by-side in columns on a single statement for analytical purposes.

Correct AnswerverifiedShow Answer

Refer to the following selected financial information from Marston Company.Compute the company's accounts receivable turnover for Year 2.

Correct AnswerverifiedShow Answer

All of the following statements regarding a business segment are true except:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A corporation reported cash of $14,000 and total assets of $178,300.Its common-size percent for cash equals 7.85%. ($14,000/$178,300)* 100 = 7.85%

Correct AnswerverifiedShow Answer

Refer to the following selected financial information from Keller Company.Compute the company's debt to equity for Year 2.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A trend percent,or index number,is calculated by dividing the analysis period amount by the base period amount and multiplying the result by 100.

Correct AnswerverifiedShow Answer

The debt ratio,the equity ratio,pledged assets to secured liabilities,and times interest earned are all ___________________ ratios.

Correct AnswerverifiedShow Answer

Trend analysis of financial statement items can include comparisons of relations between items on different financial statements.

Correct AnswerverifiedShow Answer

Refer to the following selected financial information from Shakley's Incorporated.Compute the company's return on total assets for Year 2.

Correct AnswerverifiedShow Answer

A financial statement analysis report helps to reduce uncertainty in business decisions through a rigorous and sound evaluation.

Correct AnswerverifiedShow Answer

Financial statement analysis lessens the need for expert judgment.

Correct AnswerverifiedShow Answer

Vertical analysis is the comparison of a company's financial condition and performance across time.

Correct AnswerverifiedShow Answer

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

Correct Answer
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horizontal analysis ...
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