ACC 291 Week 4 Individual Assignment WileyPlus Practice Ch 13 And Ch 14 - 0 views
started by anonymous on 16 Aug 14
started by anonymous on 16 Aug 14
started by anonymous on 16 Aug 14
started by anonymous on 16 Aug 14
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ACC 291 Week 4 Individual Assignment WileyPlus Practice Ch 13 and Ch 14
Question 1
Comparisons of data within a company are an example of the following comparative basis:
Industry averages.
Intracompany.
Intercompany.
Both intracompany and intercompany.
Question 2
In horizontal analysis, each item is expressed as a percentage of the:
base year amount.
net income amount.
stockholders' equity amount.
total assets amount.
Question 3
In vertical analysis, the base amount for depreciation expense is generally:
fixed assets.
net sales.
depreciation expense in a previous year.
gross profit.
Question 4
The data in the schedule is a display of vertical analysis because the individual asset items are expressed as a percentage of total assets.
The following schedule is a display of what type of analysis?
Amount Percent
Current assets $200,000 25%
Property, plant, and equipment 600,000 75%
Total assets $800,000 100%
ratio analysis
horizontal analysis
differential analysis
vertical analysis
Question 5
Sammy Corporation reported net sales of $300,000, $330,000, and $360,000 in the years, 2009, 2010, and 2011, respectively. If 2009 is the base year, what is the trend percentage for 2011?
77%
108%
120%
130%
Question 6
Which of the following measures is an evaluation of a firm's ability to pay current liabilities?
Acid-test ratio
Current ratio
Both acid-test ratio and current ratio
None of the above
Question 7
A measure useful in evaluating the efficiency in managing inventories is:
a. inventory turnover.
b. average days to sell inventory.
c. Both (a) and (b).
d. None of the above.
Question 8
Financial statement information follows as of the end of each year.
2011 2010
Inventory $54,000 $48,000
Current assets 81,000 106,000
Total assets 382,000 326,000
Net sales 784,000 697,000
Cost of goods sold 306,000 277,000
Compute the days in inventory for 2011.
64.4 days
6 days
60.8 days
24 days
Question 9
Financial statement information follows as of the end of each year.
2011 2010
Inventory $54,000 $48,000
Current assets 81,000 106,000
Total assets 382,000 326,000
Current liabilities 27,000 36,000
Total liabilities 102,000 88,000
Compute the current ratio for 2011.
3.75:1
1.26:1
.80:1
3.0:1
Question 10
Financial statement information follows as of the end of each year.
2011 2010
Inventory $54,000 $48,000
Net sales 784,000 697,000
Cost of goods sold 306,000 277,000
Net income 134,000 90,000
Compute the profit margin ratio for 2011.
18.1%
37.9%
17.1%
5.9%
Question 11
Financial statement information follows as of the end of each year.
2011 2010
Stockholders' equity $280,000 $238,000
Net income 134,000 90,000
Tax expense 22,000 18,000
Interest expense 12,000 12,000
Dividends paid to preferred stockholders 20,000 20,000
Dividends paid to common stockholders 15,000 10,000
Compute the return on common stockholders' equity for 2011.
47.9%
44.0%
51.7%
40.7%
Question 12
Financial statement information follows as of the end of each year.
2011 2010
Stockholders' equity $280,000 $238,000
Net income 134,000 90,000
Tax expense 22,000 18,000
Interest expense 12,000 12,000
Dividends paid to preferred stockholders 20,000 20,000
Dividends paid to common stockholders 15,000 10,000
Compute the times interest earned for 2011.
13.0 times
14.0 times
11.2 times
65.3 times
Question 13
In reporting discontinued operations, the income statement should show in a special section:
a. gains and losses on the disposal of the discontinued segment.
b. gains and losses from operations of the discontinued segment.
c. Both (a) and (b).
d. Neither (a) nor (b).
Question 14
Scout Corporation has income before taxes of $400,000 and an extraordinary loss of $100,000. If the income tax rate is 25% on all items, the income statement should show income before extraordinary items and extraordinary items, respectively, of
$325,000 and $100,000.
$300,000 and $75,000.
$325,000 and $75,000.
$300,000 and $100,000.
Question 15
Which situation below might indicate a company has a low quality of earnings?
The same accounting principles are used each year.
The company is continually reporting pro forma income numbers.
Revenue is recognized when earned.
Maintenance costs are expensed as incurred.
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