FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 13: Financial Statement Analysis

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 131

Multiple Choice

Review LaterAdd Note

Review Later

The asset turnover is

A) net sales divided by net income.
B) average total assets divided by net income.
C) net sales divided by average total assets.
D) average total assets divided by net sales.

E) B) and C)
F) A) and B)

Correct Answer

verified

Show Answer

Question 132

Multiple Choice

Review LaterAdd Note

Review Later

The use of alternative accounting methods

A) is not a problem in ratio analysis because the footnotes disclose the method used.
B) may be a problem in ratio analysis even if disclosed.
C) is not a problem in ratio analysis since eventually all methods will lead to the same end.
D) is only a problem in ratio analysis with respect to inventory.

E) A) and B)
F) A) and C)

Correct Answer

verified

Show Answer

Question 133

Multiple Choice

Review LaterAdd Note

The following amounts were taken from the financial statements of Ando Company: The price-earnings ratio for 2017 is

If equal amounts are added to the numerator and the denominator of the current ratio and the ratio is over one, the ratio will always

Distinguishing normal levels of income from irregular items is of interest for the

Vertical analysis is useful in making comparisons of companies of different sizes.

Tito Corporation had net income of $2,000,000 and paid dividends to common stockholders of $300,000 in 2017. The weighted average number of shares outstanding in 2017 was 400,000 shares. Tito Corporation's common stock is selling for $50 per share on the NASDAQ. Tito Corporation's payout ratio for 2017 is

Expressing each item in a financial statement as a percent of a base amount is called ______________ analysis.

In horizontal or trend analysis, each item is expressed as a(n)

All of the following statements are true regarding comprehensive income except

All of the following may be indicators of channel stuffing except

The best way to study the relationship of the components within a financial statement is to prepare

A supplier to a company would be most interested in the

Jones Corporation has issued common stock only. The company has been successful and has a gross profit rate of 20%. The information shown below was taken from the company's financial statements. Instructions Compute the following: (a) Accounts receivable turnover and the average number of days required to collect the accounts receivable. (b) The inventory turnover and the average days in inventory. (c) Return on common stockholders' equity.

Which situation below might indicate a company has a low quality of earnings?

Vertical analysis (common-size) percentages for Austin Company's sales, cost of goods sold, and expenses are listed here. Did Austin Company's net income as a percent of sales increase, decrease, or remain unchanged over the 3-year period? Provide numerical support for your answer.

A company with $60,000 in current assets and $35,000 in current liabilities pays a $1,000 current liability. As a result of this transaction, the current ratio and working capital will

A current ratio of 1.2 to 1 indicates that a company's current assets exceed its current liabilities.

Other comprehensive income is reported on the statement of comprehensive income immediately