Scribd Logo
Upload

Welcome to Scribd!

  • 2K views

    ACC 561 Week 2 Practice Quiz

    Uploaded by

    WrkingStudent
    The document contains 13 multiple choice questions testing concepts related to financial statement analysis. The questions cover topics such as liquidity, profitability ratios, horizontal and vertical analysis, and using financial information to evaluate a company's performance over time. The respondent answered each question correctly, demonstrating understanding of key financial analysis concepts and calculations.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    ACC 561 Week 2 Practice Quiz

    Uploaded by

    WrkingStudent
    2K views8 pages
    The document contains 13 multiple choice questions testing concepts related to financial statement analysis. The questions cover topics such as liquidity, profitability ratios, horizontal and vertical analysis, and using financial information to evaluate a company's performance over time. The respondent answered each question correctly, demonstrating understanding of key financial analysis concepts and calculations.

    Original Description:

    ACC/561 Week 2 Practice Quiz with 100% correct answers. From Wiley Plus

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document contains 13 multiple choice questions testing concepts related to financial statement analysis. The questions cover topics such as liquidity, profitability ratios, horizontal and vertical analysis, and using financial information to evaluate a company's performance over time. The respondent answered each question correctly, demonstrating understanding of key financial analysis concepts and calculations.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    2K views8 pages

    ACC 561 Week 2 Practice Quiz

    Uploaded by

    WrkingStudent
    The document contains 13 multiple choice questions testing concepts related to financial statement analysis. The questions cover topics such as liquidity, profitability ratios, horizontal and vertical analysis, and using financial information to evaluate a company's performance over time. The respondent answered each question correctly, demonstrating understanding of key financial analysis concepts and calculations.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 8

    Question1

    Your answer is correct.

    The relationship between current assets and current liabilities is important in evaluating a
    company's

    profitability.

    liquidity.

    market value.

    solvency.

    Question 2
    Your answer is correct.

    Which of the following is a measure of liquidity?

    Debt to equity ratio

    Working capital

    Earnings per share

    Profit margin

    Question 3

    Your answer is correct.

    Current assets divided by current liabilities is known as the

    working capital

    profit margin.

    current ratio.

    capital structure.

    Question4
    Correct.

    Danner Corporation reported net sales of $600,000, $680,000, and $800,000 in the years
    2011, 2012, and 2013, respectively. If 2011 is the base year, what percentage do 2013 sales
    represent of the base?

    33%

    133%

    113%

    75%

    Question 5
    Correct.

    In analyzing financial statements, horizontal analysis is a

    tool.

    principle.

    requirement.

    theory.

    Question6
    Correct.

    Comparative balance sheets

    do not show both dollar amount and percentage changes.

    do not show a comparison of total stockholders' equity.

    are usually prepared for at least one year.

    are usually prepared for at least two years.

    Question7
    Correct.

    Assume the following cost of goods sold data for a company:


    2013

    $1,500,000

    2012

    1,200,000

    2011
    1,000,000
    If 2011 is the base year, what is the percentage increase in cost of goods sold from 2011 to
    2013?

    50%

    67%

    150%

    20%

    Question 8
    Correct.

    Comparisons of data within a company are an example of the following comparative basis:

    Interregional.

    Intracompany.

    Intercompany.

    Industry averages.

    Question 9
    Correct.

    The following schedule is a display of what type of analysis?


    Amount
    Current assets
    Property, plant, and equipment
    Total assets

    Horizontal analysis

    Ratio analysis

    Differential analysis

    Vertical analysis

    Question 10
    Correct.

    A common measure of profitability is the

    current ratio.

    Percent

    $100,000

    25%

    300,000

    75%

    $400,000

    100%

    current cash debt coverage ratio.

    debt to total assets.

    return on common stockholders' equity ratio.

    Question11
    Correct.

    Which one of the following would be considered a long-term solvency ratio?

    Receivables turnover

    Current cash debt coverage ratio

    Return on total assets

    Debt to total assets ratio

    Question 12
    Correct.

    The current ratio is

    calculated by subtracting current liabilities from current assets.

    calculated by dividing current liabilities by current assets.

    used to evaluate a company's solvency and long-term debt paying ability.

    used to evaluate a company's liquidity and short-term debt paying ability.

    Question 13
    Correct.

    Richards, Inc. has the following income statement (in millions):


    RICHARDS, INC.
    Income Statement
    For the Year Ended December 31, 2012
    Net Sales

    $180

    Cost of Goods Sold


    Gross Profit

    60
    120

    Operating Expenses
    Net Income

    75
    $ 45

    Using vertical analysis, what percentage is assigned to net income?

    A.100%

    B.75%

    C.25%

    D.None of the above.

    You might also like