ACC 202
ACC 561 Week 2 Quiz -
115. The relationship between current assets and current liabilities is important in evaluating a company's
- market value.
- solvency.
- profitability.
- liquidity.
116. Which of the following is a measure of liquidity?
- Debt to equity ratio
- Profit margin
- Working capital
- Earnings per shar
117. Current assets divided by current liabilities is known as the
- capital structure.
- working capital
- current ratio.
- profit margin.
88. 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%
- 75%
- 113%
89 .An analyzing financial statements, horizontal analysis is a
- theory.
- requirement.
- tool.
- principle.
101. Comparative balance sheets
- are usually prepared for at least one year.
- are usually prepared for at least two years.
- do not show both dollar amount and percentage changes.
- do not show a comparison of total stockholders' equity.
102. 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%
105. Comparisons of data within a company are an example of the following comparative basis:
- Intercompany.
- Interregional.
- Industry averages.
- Intracompany.
123. The following schedule is a display of what type of analysis?
|
|
Amount |
Percent |
|
Current assets |
$100,000 |
25% |
|
Property, plant, and equipment |
300,000 |
75% |
|
Total assets |
$400,000 |
100% |
- Horizontal analysis
- Differential analysis
- Vertical analysis
- Ratio analysis
129. A common measure of profitability is the
- current ratio.
- debt to total assets.
- current cash debt coverage ratio.
- return on common stockholders' equity ratio.
134. Which one of the following would be considered a long-term solvency ratio?
- Return on total assets
- Current cash debt coverage ratio
- Debt to total assets ratio
- Receivables turnover
137. The current ratio is
- calculated by dividing current liabilities by current assets.
- used to evaluate a company's liquidity and short-term debt paying ability.
- used to evaluate a company's solvency and long-term debt paying ability.
- calculated by subtracting current liabilities from current assets.
121.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 60 |
|
Gross Profit 120 |
|
Operating Expenses 75 |
|
Net Income $ 45 |
|
Using vertical analysis, what percentage is assigned to net income? |
- A.100%
- B.75%
- C.25%
- D.None of the above.
