Chapter 14 – Financial Statement Analysis
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Page 61
DIFFICULTY:
Bloom’s: Remembering
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.14–06 – LO: 14–06
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.02 – GAAP
ACCT.ACBSP.APC.23 – Financial Statement Analysis
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 6:35 PM
DATE MODIFIED:
10/16/2017 6:37 PM
136. Which of the following items appear on the corporate income statement before income from continuing operations?
a.
cumulative effect of a change in accounting principle
b.
income tax expense
c.
presentation of earnings per share
d.
loss on discontinued operations
ANSWER:
b
POINTS:
1
DIFFICULTY:
Bloom’s: Remembering
Moderate
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.14–06 – LO: 14–06
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.02 – GAAP
ACCT.ACBSP.APC.23 – Financial Statement Analysis
ACCT.AICPA.FN.03 – Measurement
BUSPROG: Analytic
DATE CREATED:
7/22/2017 6:35 PM
DATE MODIFIED:
10/16/2017 6:37 PM
137. The price-earnings ratio on common stock is calculated as
a.
market price per share of common stock, divided by earnings per share on common stock.
b.
earnings per share of common stock, divided by market price per share of common stock.
c.
market price per share of common stock, divided by dividends per share of common stock.
d.
dividends per share of common stock, divided by earnings per share on common stock.
ANSWER:
a
POINTS:
1
DIFFICULTY:
Bloom’s: Remembering
Easy
QUESTION TYPE:
Multiple Choice
HAS VARIABLES:
False
LEARNING OBJECTIVES:
FNMN.WAJO.19.14–05 – LO: 14–05
ACCREDITING STANDARDS:
ACCT.ACBSP.APC.23 – Financial Statement Analysis
ACCT.AICPA.FN-03 – Measurement
BUSPROG – Analytic
Chapter 14 – Financial Statement Analysis
Matching
False
ANSWER:
g
ANSWER:
c
ANSWER:
e
POINTS:
1
146. a company’s ability to make interest payments and repay debt at maturity
ANSWER:
a
POINTS:
1
147. focuses on a company’s ability to generate net income
ANSWER:
h
POINTS:
1
148. useful for comparing one company to another or to industry averages
ANSWER:
f
POINTS:
1
149. measures the risk that interest payments will not be made if earnings decrease
ANSWER:
c
POINTS:
1
