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Which of the following is considered an unusual item affecting the prior period's income statement?


A) Change in accounting principles
B) Fixed asset impairments
C) Extraordinary item
D) Discontinued operations

E) B) and D)
F) C) and D)

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Revenue and expense data for Martinez Company are as follows: Revenue and expense data for Martinez Company are as follows:

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blured image Round per...

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The following information pertains to Brock Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets The following information pertains to Brock Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets Liabilities and Stockholders' Equity Income Statement What is the current ratio for this company? A) 1.42 B) 0.78 C) 1.58 D) 0.67 Liabilities and Stockholders' Equity The following information pertains to Brock Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets Liabilities and Stockholders' Equity Income Statement What is the current ratio for this company? A) 1.42 B) 0.78 C) 1.58 D) 0.67 Income Statement The following information pertains to Brock Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets Liabilities and Stockholders' Equity Income Statement What is the current ratio for this company? A) 1.42 B) 0.78 C) 1.58 D) 0.67 The following information pertains to Brock Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets Liabilities and Stockholders' Equity Income Statement What is the current ratio for this company? A) 1.42 B) 0.78 C) 1.58 D) 0.67 What is the current ratio for this company?


A) 1.42
B) 0.78
C) 1.58
D) 0.67

E) All of the above
F) A) and C)

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Income statement information for Lucy Company is provided below: Income statement information for Lucy Company is provided below: Using vertical analysis of the income statement for Lucy Company, determine the gross profit margin. A) 100% B) 70% C) 40% D) 60% Using vertical analysis of the income statement for Lucy Company, determine the gross profit margin.


A) 100%
B) 70%
C) 40%
D) 60%

E) All of the above
F) B) and D)

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The effects of differences in accounting methods are of little importance when analyzing comparable data from competing businesses.

A) True
B) False

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Vertical analysis refers to comparing the financial statements of a single company for several years.

A) True
B) False

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Corporate annual reports typically do not contain which of the following?


A) management discussion and analysis
B) SEC statement expressing an opinion
C) accompanying foot notes
D) auditor's report

E) B) and D)
F) None of the above

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Based on the following data for the current year, what is the inventory turnover? Based on the following data for the current year, what is the inventory turnover? A) 2.7 B) 9.7 C) 2.5 D) 3.0


A) 2.7
B) 9.7
C) 2.5
D) 3.0

E) All of the above
F) A) and B)

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What information is generally included in the Management Discussion and Analysis (MD&A) section of a corporate annual report?

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The MD&A section typically includes:
Man...

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In a common size income statement, the 100% figure is:


A) net cost of goods sold.
B) net income.
C) gross profit.
D) net sales.

E) C) and D)
F) A) and D)

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A company reports the following: A company reports the following:

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Determine the company's price-earnings r...

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The following information has been condensed from the December 31 balance sheets of Hanson Co.: The following information has been condensed from the December 31 balance sheets of Hanson Co.:

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The balance sheets at the end of each of the first two years of operations indicate the following: The balance sheets at the end of each of the first two years of operations indicate the following: If net income is $115,000 and interest expense is $30,000 for 2012 what is the rate earned on total assets for 2012 (round percent to one decimal point) ? A) 9.3% B) 10.1% C) 8.0% D) 7.4% If net income is $115,000 and interest expense is $30,000 for 2012 what is the rate earned on total assets for 2012 (round percent to one decimal point) ?


A) 9.3%
B) 10.1%
C) 8.0%
D) 7.4%

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

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Match each item with its definition. -Vertical analysis


A) Useful for comparing one company to another or a company with industry averages
B) Focuses on a company’s ability to generate net income
C) The percentage analysis of the relationship of each component in a financial statement to a total within the statement.
D) An analysis of a company’s ability to pay its current liabilities.
E) Occurs when a company abandons a segment.
F) A percentage analysis of increases and decreases in related items in comparative financial statements.
G) Something that is both unusual and infrequent.
H) This requires a restatement of prior period financial statements.

I) B) and G)
J) B) and H)

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Revenue and expense data for Young Technologies are as follows: Revenue and expense data for Young Technologies are as follows:

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Required:
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(1)
Young Technol...

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A company reports the following: A company reports the following:

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Determine the ratio of net sales to tota...

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A company with working capital of $720,000 and a current ratio of 2.2 pays a $125,000 short-term liability. The amount of working capital immediately after payment is


A) $845,000
B) $595,000
C) $720,000
D) $125,000

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

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If a firm has a current ratio of 2, the subsequent receipt of a 60-day note receivable on account will cause the ratio to decrease.

A) True
B) False

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Assume the following sales data for a company: Assume the following sales data for a company: What is the percentage increase in sales from 2014 to 2015? A) 75% B) 66.7% C) 25% D) 150% What is the percentage increase in sales from 2014 to 2015?


A) 75%
B) 66.7%
C) 25%
D) 150%

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

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The Cash and Accounts Receivable for a company are provided below: The Cash and Accounts Receivable for a company are provided below: Based on this information, what is the amount and percentage of increase or decrease that would be shown in a balance sheet with horizontal analysis? Based on this information, what is the amount and percentage of increase or decrease that would be shown in a balance sheet with horizontal analysis?

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