106)
Ash Company reported sales of $400,000 for Year 1, $450,000 for Year 2, and $500,000 for Year
3. Using Year 1 as the base year, what is the revenue trend percent for Years 2 and 3?
A)
125% for Year 2 and 112.5% for Year 3.
B)
80% for Year 2 and 90% for Year 3.
C)
88% for Year 2 and 80% for Year 3.
D)
112.5% for Year 2 and 125% for Year 3.
E)
88% for Year 2 and 90% for Year 3.
107)
In horizontal analysis the percent change is computed by:
A)
Subtracting the base period amount from the analysis amount, then dividing the result by the
analysis period amount.
B)
Subtracting the analysis period amount from the base period amount.
C)
Subtracting the base period amount from the analysis period amount.
D)
Subtracting the analysis period amount from the base 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 period amount, dividing the result by
the base period amount, then multiplying that amount by 100.
108)
To compute trend percentages the analyst should:
A)
Compare amounts to a competitor.
B)
Select a base period, assign each item in the base period statement a weight of 100%, and
then express financial numbers from other periods as a percent of their base period number.
C)
Subtract the analysis period number from the base period number.
D)
Subtract the base period amount from the analysis period amount, divide the result by the
analysis period amount, then multiply that amount by 100.
E)
Compare amounts across industries using Dun and Bradstreet.
109)
Comparative financial statements in which each individual financial statement amount is expressed
as a percentage of a base amount are called:
A)
General-purpose financial statements.
B)
Asset comparative statements.
C)
Percentage comparative statements.
D)
Sales comparative statements.
E)
Common-size comparative statements.
110)
Common-size statements:
A)
Compare financial statements over time.
B)
Show the dollar amount of change for financial statement items.
C)
Do not emphasize the relative importance of each item.
D)
Reveal patterns in data across successive periods.
E)
Reveal changes in the relative importance of each financial statement item to a base amount.
111)
The common-size percent is computed by:
A)
Dividing the analysis amount by the base amount.
B)
Subtracting the base amount from the analysis amount and multiplying the result by 100.
C)
Dividing the base amount by the analysis amount.
D)
Dividing the base amount by the analysis amount and multiplying the result by 1,000.
E)
Dividing the analysis amount by the base amount and multiplying the result by 100.
112)
A corporation reported cash of $14,000 and total assets of $178,300 on its balance sheet. Its
common-size percent for cash equals:
A) 12.73%. B) 7.85%. C) .0785%. D) 7850%. E) 1273%.
113)
A corporation reported cash of $27,000 and total assets of $461,000 on its balance sheet. Its
common-size percent for cash equals:
A) 5.86%. B) 1707%. C) 100%. D) 58.6%. E) 17.1%.
114)
Current assets minus current liabilities is:
A)
Quick assets.
B)
Financial leverage.
C)
Profit margin.
D)
Working capital.
E)
Current ratio.
115)
Jones Corp. reported current assets of $193,000 and current liabilities of $137,000 on its most
recent balance sheet. The working capital is:
A) 71%. B) 41%. C) $56,000. D) 141%. E) ($56,000).
116)
Jones Corp. reported current assets of $193,000 and current liabilities of $137,000 on its most
recent balance sheet. The current ratio is:
A) 0.7:1. B) 1:1. C) 0.4:1. D) 1.4:1. E) 0.3:1.
117)
Jones Corp. reported current assets of $193,000 and current liabilities of $137,000 on its most
recent balance sheet. The current assets consisted of $62,000 Cash; $43,000 Accounts Receivable;
and $88,000 of Inventory. The acid-test (quick) ratio is:
A) 1.4:1. B) 0.77:1. C) 0.64:1. D) 0.54:1. E) 1:1.
118)
Current assets divided by current liabilities is the:
A)
Solvency ratio.
B)
Liquidity ratio.
C)
Quick ratio.
D)
Current ratio.
E)
Debt ratio.
119)
Quick assets divided by current liabilities is the:
A)
Working capital ratio.
B)
Acid-test ratio.
C)
Quick asset turnover ratio.
D)
Current ratio.
E)
Current liability turnover ratio.
120)
Net sales divided by Average accounts receivable, net is the:
A)
Profit margin.
B)
Average accounts receivable ratio.
C)
Current ratio.
D)
Days’ sales uncollected.
E)
Accounts receivable turnover ratio.
121)
Powers Company reported Net sales of $1,200,000 and average Accounts Receivable, net of
$78,500. The accounts receivable turnover ratio is:
A)
15.3 times. B) 16.3 times. C) 14.3 times. D) 28.6 times. E) 0.65 times.
122)
Powers Company reported Net sales of $1,200,000 and Accounts Receivable, net of $78,500. The
Day’s sales uncollected (rounded to whole days) is:
A)
4 days. B) 56 days. C) 24 days. D) 48 days. E) 15 days.
123)
Dividing Accounts receivable, net by Net sales and multiplying the result by 365 is the:
A)
Accounts receivable turnover ratio.
B)
Profit margin.
C)
Days’ sales uncollected.
D)
Average accounts receivable ratio.
E)
Current ratio.
124)
Dividing ending inventory by cost of goods sold and multiplying the result by 365 is the:
A)
Inventory turnover ratio.
B)
Days’ sales in inventory.
C)
Current ratio.
D)
Profit margin.
E)
Total asset turnover.
125)
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:
A) $83,500. B) $9,100. C) $41,750. D) $37,200. E) $46,300.
126)
Zhang Company reported Cost of goods sold of $835,000 and average Inventory of $41,750. The
Inventory turnover ratio is:
A)
0.5 times. B) 20 times. C) 418 times. D) 56 times. E) 19 times.
127)
Zhang Company reported Cost of goods sold of $835,000 and ending Inventory of $41,750. The
Days’ sales in inventory (rounded to whole days) is:
A)
18 days. B) 20 days. C) 418 days. D) 10 days. E) 56 days.
128)
Net sales divided by average total assets is the:
A)
Sales return ratio.
B)
Total asset turnover.
C)
Profit margin.
D)
Return on total assets.
E)
Current ratio.
129)
Carducci Corporation reported Net sales of $3.6 million and average Total assets of $1.1 million.
The Total asset turnover is:
A)
0.31 times. B) 0.77 times. C) 3.27 times. D) 2.27 times. E) 4.30 times.
130)
Carducci Corporation reported Net sales of $3.6 million and beginning Total assets of $0.9 million
and ending Total assets of $1.3 million. The average Total asset amount is:
A)
$0.36 million.
B)
$2.3 million.
C)
$0.25 million.
D)
$2.7 million.
E)
$1.1 million.
131)
Net income divided by net sales is the:
A)
Return on total assets.
B)
Days’ sales in inventory.
C)
Total asset turnover.
D)
Current ratio.
E)
Profit margin.
132)
Martinez Corporation reported Net sales of $765,000 and Net income of $142,000. The Profit
margin is:
A) 81.4%. B) 1.86%. C) 18.56%. D) 5.39%. E) 539.0%.
133)
Net income divided by average total assets is:
A)
Days’ income in assets.
B)
Profit margin.
C)
Total asset turnover.
D)
Current ratio.
E)
Return on total assets.
134)
Clairmont Industries reported Net income of $283,000 and average Total assets of $637,000. The
Return on total assets is:
A) 44.4%. B) 88.8%. C) 61.5%. D) 125.1%. E) 55.6%.
135)
Annual cash dividends per share divided by market price per share is the:
A)
Profit margin.
B)
Price-dividends ratio.
C)
Price-earnings ratio.
D)
Dividend yield ratio.
E)
Earnings per share.
136)
The market price of Horokhiv Corporation’s common stock at the start of 2016 was $47.50 and it
declared and paid cash dividends of $3.28 per share. The Dividend yield ratio is:
A) 144.8%. B) 6.5%. C) 6.9%. D) 14.5%. E) 7.4%.
137)
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:
A)
Current ratio.
B)
Price earnings ratio.
C)
Accounts receivable turnover.
D)
Inventory turnover.
E)
Days’ sales uncollected.
138)
A component of operating efficiency and profitability, calculated by expressing net income as a
percent of net sales, is the:
A)
Price earnings ratio.
B)
Profit margin ratio.
C)
Accounts receivable turnover.
D)
Acid-test ratio.
E)
Merchandise turnover.
139)
One of several ratios that reflects solvency includes the:
A)
Days’ sales in inventory.
B)
Total asset turnover.
C)
Acid-test ratio.
D)
Current ratio.
E)
Times interest earned ratio.
140)
A company had a market price of $27.50 per share, earnings per share of $1.25, and dividends per
share of $0.40. Its price-earnings ratio equals:
A) 32.0. B) 3.1. C) 93.8. D) 3.3. E) 22.0.
141)
A company reports basic earnings per share of $3.50, cash dividends per share of $1.25, and a
market price per share of $64.75. The company’s dividend yield equals:
A) 18.50%. B) 5.41%. C) 2.14%. D) 1.93%. E) 4.67%.
142)
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:
A) 0.58 B) 1.38 C) 1.00 D) 0.73 E) 0.42
143)
Desjardin Landscaping’s income statement reports net income of $75,300, which includes
deductions for interest expense of $11,500 and income taxes of $34,900. Its times interest earned
is:
A)
0.15 times B) 7.5 times C) 10.6 times D) 4.0 times E) 6.5 times
144)
A corporation reports the following year-end balance sheet data. The company’s working capital
equals:
Cash $ 40,000 Current liabilities $ 75,000
Accounts receivable 55,000 Long-term liabilities 35,000
Inventory 60,000 Common stock 100,00
0
Equipment 145,00
0
Total assets $ 300,00
0
Retained earnings 90,000
Total liabilities and equity $ 300,00
0
A) $75,000 B) $155,000 C) $300,000 D) $80,000 E) $190,000